Flywire Corporation (FLYW): A Bull Case Theory

We came across a bullish thesis on Flywire Corporation on Valueinvestorsclub.com by beethoven. In this article, we will summarize the bulls’ thesis on FLYW. Flywire Corporation's share was trading at $14.30 as of January 13th. FLYW’s trailing and forward P/E were 271.80 and 19.08 respectively according to Yahoo Finance.

Flywire is a best-in-class vertical payments and software company focused on digitizing complex, underserved areas of accounts receivable where legacy payment methods persist. Its core strength lies in simplifying cross-border and specialized payments for education, travel, and healthcare through superior technology, faster settlement, and lower fees, benefiting both institutional clients and end users.

Founded to solve inefficiencies in international tuition payments, Flywire disrupted incumbents like Convera by offering a modern, asset-light platform that reduces manual processes and improves collection accuracy. Education remains its dominant vertical, representing 77% of revenue, where Flywire is the market leader in cross-border higher-education payments and is increasingly expanding into domestic campus payments. Smaller but growing verticals include travel, healthcare, and a nascent B2B business.

After years of VC-style growth driven by headcount expansion and elevated stock-based compensation, macro pressures from student visa caps exposed inefficiencies, forcing Flywire to pivot toward disciplined execution and margin expansion. The company cut headcount, refocused on profitability, and supplemented growth with the Sertifi acquisition, which meaningfully scaled its travel segment and introduced cross-sell opportunities while reducing private-equity takeout appeal. Despite macro headwinds, Flywire has met or exceeded recent guidance, with healthcare poised to reaccelerate following the onboarding of a major U.S. hospital system.

Management strength is concentrated in technology and operations, with deep domain expertise underpinning strong customer retention and expansion. Long-term concerns around globalization and student mobility appear cyclical rather than structural, as demand shifts geographically rather than disappearing. With improving margins, recurring revenues, and conservative guidance, Flywire offers a compelling risk-reward profile, with significant upside from normalized growth and multiple expansion, supported by ongoing execution and potential strategic interest.

Previously, we covered a bullish thesis on PayPal Holdings, Inc. (PYPL) by Sergey in May 2025, which highlighted the company’s transformation through high-margin growth initiatives, AI integration, and expansion of Venmo and BNPL. PYPL's stock price has depreciated by approximately 14.71% since our coverage. The thesis still stands as PayPal continues to execute effectively. Beethoven shares a similar perspective but emphasizes Flywire’s focus on digitizing vertical payments in education, travel, and healthcare, with margin expansion and strategic acquisitions to navigate macro headwinds.

Flywire Corporation is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 31 hedge fund portfolios held FLYW at the end of the third quarter which was 36 in the previous quarter. While we acknowledge the risk and potential of FLYW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FLYW and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Disclosure: None.