Flywire (NASDAQ: FLYW) CEO Mike Massaro announced that the company is benefiting from a strategic review aimed at streamlining operations and focusing on priority areas. In a recent fireside chat with JPMorgan’s Tien-Tsin Huang, Massaro outlined a “three-pronged approach” that includes organizational streamlining, geographic optimization, and reinvestment in select markets.
Flywire’s revenue streams span education, healthcare, travel, and B2B payments, targeting clients with complex payment processes. The company sees notable growth in its travel business, particularly through its acquisition of Sertifi, which added approximately 20,000 U.S. hotel locations and is set for international product launch next year. Key wins include partnerships with institutions like Cornell, Penn State, and the Cleveland Clinic. Despite headwinds from visa-related issues in education, the company has gained market share, with its Student Financials Solution only currently penetrating 10% of existing clients.
Flywire has also embraced AI to improve efficiency, achieving a 40% reduction in payer support tickets. Additionally, the company is exploring stablecoins, conducting a pilot with over 1,000 clients, although stablecoin volume remains small relative to overall transactions. Massaro stated Flywire is on track for continued growth, with EBITDA margins expanding by 300 basis points last year and a target of 275 basis points this year.
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