Flywire (FLYW) investor relations material

Cross-border education market trends

• International student enrollment in the U.S. declined less than expected, with first-year payers down in the mid to high teens percent, offset by better performance in high-tuition programs and improved student retention.

• U.S. education business is still growing in the low single digits due to these dynamics and continued addition of cross-border schools.

• Mid-single-digit revenue headwinds from Canada, Australia, and the U.S. are expected this year and next, with Canada’s impact lessening and the U.S. potentially becoming the larger factor in 2025.

• U.K. market remains stable, with visa trends flat to slightly up and a balanced political approach to international students; the reduction of postgraduate work permits to 18 months is noted but not seen as a major negative.

• Growth outside the Big Four countries is strong, driven by increased international student demand and the need for software to replace manual payment processes at universities.

Domestic education and product differentiation

• Combining cross-border and domestic payment solutions resonates with schools seeking vendor consolidation and modern, cloud-native software.

• Reference clients like Stanford, UVA, and Penn State are helping shift market perception, with a long but effective enterprise sales cycle leading to deeper client integration.

• Integrations with student information systems, such as Unit4 in the UK, accelerate adoption and provide unique value, though not strictly required to win business.

Travel and adjacent verticals

• Luxury travel and hospitality segments are growing, with new client acquisition as the main driver; the Sertifi acquisition is performing well, with synergies expected to materialize more next year.

• Product value lies in solving operational complexities for travel operators, including FX, reconciliation, and payment flexibility, leading to strong client referrals and pipeline growth.