Raymond James maintains Flywire stock with $17 target post 1Q results

The analyst’s comments highlight Flywire’s ability to deliver strong results and maintain a steady outlook in an uncertain macroeconomic environment, reinforcing the belief that the company presents a favorable risk/reward scenario for investors. InvestingPro analysis reveals the company maintains strong financial health with an overall score of "GOOD" and impressive revenue growth of 22% in the last twelve months. For deeper insights into Flywire’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers. InvestingPro analysis reveals the company maintains strong financial health with an overall score of "GOOD" and impressive revenue growth of 22% in the last twelve months. For deeper insights into Flywire’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The analyst’s comments highlight Flywire’s ability to deliver strong results and maintain a steady outlook in an uncertain macroeconomic environment, reinforcing the belief that the company presents a favorable risk/reward scenario for investors. InvestingPro analysis reveals the company maintains strong financial health with an overall score of "GOOD" and impressive revenue growth of 22% in the last twelve months. For deeper insights into Flywire’s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.

The analyst noted that while the cross-border education sector is experiencing changes, with U.S. education-related revenue projected to grow at a lower single-digit rate compared to a 13% increase in 2024, the outlook for Canada and Australia has improved. Expected declines in these regions’ education revenues have been adjusted from around 30% to the high 20% range.

Flywire’s after-hours stock price saw a significant increase, up 15%, as investors responded to the company’s financial performance and prospects. The stock is currently trading at roughly 9 times Raymond (NSE:RYMD) James’ estimated EBITDA for 2026, which is seen as an attractive valuation given the anticipated 35% EBITDA growth for the year, even in the face of the aforementioned challenges.

The analyst’s comments highlight Flywire’s ability to deliver strong results and maintain a steady outlook in an uncertain macroeconomic environment, reinforcing the belief that the company presents a favorable risk/reward scenario for investors.

In other recent news, Flywire Corp reported its Q1 2025 earnings, showing a revenue of $128.7 million, which exceeded expectations of $123.71 million. This represents a 16.8% year-over-year increase, bolstered by strategic expansions and innovations in payment capabilities. The company’s adjusted gross profit also rose by 14.6% year-over-year to $82.5 million, although the adjusted gross margin saw a slight decline. Flywire’s full-year revenue growth guidance remains strong, expecting 10-14% growth excluding Certify and 17-23% with Certify. The company also repurchased 3.6 million shares for approximately $49 million, indicating a strong balance sheet and commitment to shareholder returns.

In addition to earnings, Flywire’s recent acquisition of Certify has been transformative, enhancing its payment capabilities in the travel sector. The acquisition is expected to unlock significant growth opportunities, particularly in luxury and boutique hotels. Despite challenges in the education sector in Australia and Canada, Flywire continues to see strong demand in other international education markets. Furthermore, the company is actively pursuing operational efficiencies and investments in automation and product development to enhance its offerings.

Analysts from various firms have shown interest in Flywire’s strategic initiatives and its ability to maintain demand in international education markets, despite macroeconomic challenges. The company’s efforts to streamline operations and optimize costs are expected to support continued growth and profitability.

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