Key Highlights

  • USD 74.5 million of Net Income was reported by Flywire (NASDAQ:FLYW) in the third quarter of 2026, up from USD 29.6 million, but it included a non-cash tax benefit the company does not expect to recur.
  • 25.1% Revenue growth to USD 250.3 million came with payment Volume up 27.7% to USD 17.8 billion in the quarter ended September 30, 2026.
  • 39.2% growth in adjusted EBITDA to USD 79.5 million lifted the Margin about 310 basis points to 32.5%.
  • 14% to 20% is the fourth quarter growth guidance for FX-neutral revenue less ancillary services, versus 26.0% in the third quarter.

Revenue Growth and a One-Time Tax Boost

Flywire (NASDAQ:FLYW), a global payments enablement and software company, reported third quarter 2026 results on November 3, 2026. GAAP revenue rose 25.1% to USD 250.3 million, and revenue less ancillary services, which strips out pass-through printing and Marketing fees, rose 26.0% to USD 244.5 million. Net income was USD 74.5 million. The company said it includes a non-cash income tax benefit of about USD 39.2 million from releasing the valuation allowance on U.S. deferred tax assets, and it does not expect a benefit of that size to recur. Removing it leaves roughly USD 35.3 million (simple arithmetic), still above last year's USD 29.6 million. The release also cites a USD 25.2 million allowance release among discrete items, so the exact tax effect is not clear.

Volume, Margins and Where Growth Came From

Total payment volume reached USD 17.8 billion, up 27.7%, during what the company calls its seasonal education peak. Adjusted EBITDA, a non-GAAP measure, rose to USD 79.5 million, while GAAP gross margin slipped to 61.0% from 62.3% and adjusted gross margin to 63.7% from 65.7%. Commercial updates included about 180 new clients across 31 countries, student financial software agreements with three U.S. universities and one U.K. institution, over 1 million payment plans activated since inception, and a Global Preferred Payment Partner role with Kinetic Software, which manages more than 700,000 student bedrooms. The company also completed an asset Acquisition of customer relationships in Canada to move higher education institutions onto its platform.

Visa Assumptions, Slower Q4 and Board Change

The 2026 outlook was raised: FX-neutral revenue less ancillary services growth of 25% to 27%, up 2 points at the midpoint, and adjusted EBITDA margin expansion of 300 to 360 basis points. The fourth quarter guide is much lower at 14% to 20% growth, and management said it factored in prudent visa assumptions across the four largest education markets and trends in business-to-business payments. Student visa policy is therefore a risk to the education vertical, as are foreign exchange swings and currency. Gross margin also declined year over year. Separately, long-serving director Alex Finkelstein resigned from the board effective October 29, 2026, and Sabrina Farmer, previously announced, joined. Free Cash Flow and profit were described as the highest in company history, though the excerpt gives no free cash flow figure.

Where Things Stand

Flywire (NASDAQ:FLYW) reported USD 74.5 million of profit because roughly USD 39.2 million of it was a non-cash tax benefit, not because operations suddenly doubled, and it guides slower fourth quarter growth after the seasonal education peak, citing prudent visa assumptions. Underlying results were still strong: revenue up 25.1%, payment volume up 27.7% and adjusted EBITDA margin at 32.5%. The raised full-year outlook supports the picture, while gross margin pressure and visa policy are the main watch items.