Flywire (FLYW) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $167.7 million, up 27.2% year-over-year, with strong transaction volume growth, expanding deal sizes, and new client additions across all verticals.

• Adjusted EBITDA grew 44.5% to $24.0 million (14.6% margin), with margin expanding by 160 basis points year-over-year.

• Net loss narrowed to $8.1 million from $12.0 million in Q2 2025, reflecting improved operating leverage and cost controls.

• AI-driven digital transformation delivered measurable productivity gains, with 45% of customer inquiries resolved automatically and further improvements targeted.

• Vertically and geographically diversified business model enables resilience amid challenging macro and regulatory conditions.

Financial highlights

• Q2 2026 total revenue less ancillary services was $163.8 million, up 28.5% year-over-year (26.9% FX-neutral).

• Transaction revenue grew 35.1% to $135.9 million, driven by 38.2% growth in total payment volume to $8.2 billion.

• Adjusted gross profit was $92.7 million (56.6% margin), up 19% year-over-year; gross margin declined to 53.4% due to business mix shifts.

• Adjusted EBITDA was $24.0 million (14.6% margin), up from $16.6 million (13.0% margin) in Q2 2025.

• Corporate cash and cash equivalents stood at $282.4 million as of June 30, 2026, with no outstanding debt and $300 million revolving credit facility fully available.

Outlook and guidance

• FY 2026 FX-neutral revenue less ancillary services growth guidance raised to 21–27% year-over-year, with 3–4 points from payment processing ramps and 1.5 points inorganic contribution.

• Adjusted EBITDA margin expected to expand 200–400 basis points, reaching ~23% at midpoint; Q3 2026 FX-neutral revenue growth expected at 16–22% year-over-year.

• Free cash flow conversion targeted at 70–75% of adjusted EBITDA; GAAP net income expected to grow four-fold to over $50 million.

• Guidance assumes moderate downward pressure on gross margins due to payment processing ramp, but absolute gross profit to grow.

• Targeting $1 billion annual organic revenue and 30% adjusted EBITDA margin within the next few years.