Goldman Sachs reiterates Neutral rating on Flywire stock amid FX benefits

Published 06/08/2025, 11:18
Goldman Sachs reiterates Neutral rating on Flywire stock amid FX benefits

Investing.com - Goldman Sachs has maintained its Neutral rating and $15.00 price target on Flywire (NASDAQ:FLYW) following the company’s second-quarter results. According to InvestingPro data, the stock has declined nearly 49% over the past six months, though analysis suggests the company is currently undervalued based on its Fair Value assessment.

The payment solutions provider reported stronger-than-expected second-quarter performance, benefiting from continued strength in its travel segment and favorable foreign exchange dynamics, according to Goldman Sachs. The company maintains solid fundamentals with a healthy current ratio of 2.02 and impressive gross margins of 63.6%.

While Flywire’s headline guidance appeared better than expected, Goldman Sachs largely attributes this improvement to foreign exchange factors, which have since partially reversed. The company is using strength in other geographic markets to reduce risk exposure in its U.S. education business.

For the third quarter, Flywire provided a wide guidance range of 13-21% growth, reflecting uncertainty in the U.S. market. Goldman Sachs noted that while commentary on the U.S. business was somewhat positive, the company remains cautious about near-term headline risks in U.S. education.

The investment bank believes July trends will likely be most informative in determining outcomes for the upcoming academic semester, as June student visa trends are expected to be weak due to a temporary pause in visa issuance during that month.

In other recent news, Flywire Corp reported its Q2 2025 earnings, showcasing a notable revenue achievement. The company recorded revenue of $131.9 million, significantly surpassing the forecasted $120.44 million by 9.52%. However, Flywire’s earnings per share (EPS) did not meet expectations, posting a loss of $0.10 per share, compared to the anticipated loss of $0.07. This represented a 42.86% negative surprise in EPS. Despite the earnings miss, the revenue beat stands out as a positive development for the company. There were no recent updates regarding mergers or acquisitions involving Flywire. Analyst reactions to these results have not been specified in the available information. Investors may keep an eye on how the company addresses its earnings challenges moving forward.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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