Flywire Reports First Quarter 2025 Financial Results
- Revenue increased 17.0% YoY to $133.5 million
- Total Payment Volume grew 20.4% to $8.4 billion
- Adjusted EBITDA margins improved 476 bps to 16.8%
- Net loss decreased from ($6.2M) to ($4.2M) YoY
- Signed over 200 new clients across all verticals
- Processed over $2 billion in 529 tuition payments benefiting 750+ U.S. institutions
- Gross Margin declined from 61.7% to 60.3% YoY
- Adjusted Gross Margin decreased from 65.2% to 64.1% YoY
- Still operating at a net loss of ($4.2M)
Insights
Flywire shows strong execution with 17% revenue growth, 63.6% increase in Adjusted EBITDA, and significant margin expansion despite continued net loss.
Flywire delivered impressive Q1 2025 results with revenue growing
The Sertifi acquisition is already proving accretive, contributing
The company's capital allocation strategy includes an aggressive share repurchase program, with 3.6 million shares bought back for approximately
Flywire's vertical-specific approach drives client acquisition, with education and travel sectors showing particular strength and strategic global expansion.
Flywire's Q1 results highlight the company's momentum in specialized payment flows, particularly in education and travel verticals. The addition of over 200 new clients during the quarter while maintaining low client churn demonstrates strong product-market fit and service quality in a competitive payments landscape.
The strategic expansion in India through partnerships with major financial institutions (Avanse and State Bank of India) positions Flywire to capture significant cross-border education payment volume in one of the world's fastest-growing education markets. Meanwhile, their established presence in U.S. education payments is evidenced by processing over
The travel vertical is emerging as another growth engine, with notable client wins including Scandinavia's largest inbound tour operator (Haman Group) and expansion of Sertifi solutions across leading hotel brands. The appointment of a Chief Payments Officer signals investment in payment innovation, likely to enhance their competitive position.
Flywire's integration strategy with leading ERPs for higher education (including Ellucian, Workday, and Unit4) creates embedded workflows that increase switching costs for clients and establishes structural barriers to competition. This software-led approach differentiates Flywire from traditional payment processors and supports their ability to maintain pricing power as evidenced by the improving EBITDA margins despite competitive market conditions.
First Quarter Revenue Increased
First Quarter Revenue Less Ancillary Services Increased
Previous Fiscal Year 2025 guidance reaffirmed
BOSTON, May 06, 2025 (GLOBE NEWSWIRE) -- Flywire Corporation (Nasdaq: FLYW) (“Flywire” or the “Company”), a global payments enablement and software company, today reported financial results for its first quarter ended March 31, 2025.
"We are pleased with our 2025 first quarter results, as we signed more than 200 new clients, led by our Travel and Education verticals, and exceeded the high end of our FX Neutral Revenue Guidance, while expanding Adjusted EBITDA margins above our guidance mid-point," said Mike Massaro, CEO of Flywire. “This solid start to our year reflects ongoing sales momentum, the strength and resilience of our global and diversified business, as well as strategic changes that came out of our operational review tied to capital allocation and performance culture. Importantly, our core business is thriving, showing low client churn and clear evidence that our clients deeply value our services.”
"Looking ahead, we plan to continue to make strategic and operational decisions to support our clients and position us for even greater strength and long-term success, while investing and optimizing the business to emerge even stronger as we exit the year."
First Quarter 2025 Financial Highlights:
GAAP Results
- Revenue increased
17.0% to$133.5 million in the First quarter of 2025, compared to$114.1 million in the First quarter of 2024. Sertifi positively impacted revenue by$4.7 million in the First quarter of 2025 or4.1% year over year. - Gross Profit increased to
$80.5 million , resulting in Gross Margin of60.3% , for the First quarter of 2025, compared to Gross Profit of$70.4 million and Gross Margin of61.7% in the First quarter of 2024. - Net loss was (
$4.2) million in the First quarter of 2025, compared to net loss of ($6.2) million in the First quarter of 2024.
Key Business Performance highlights:
- Signed more than 200 new clients across all verticals.
- Scaled the fast-growing Travel vertical, adding key clients like Haman Group, Scandinavia's largest inbound tour operator, and expanding Sertifi solutions across leading hotel brands and multinational hospitality management companies.
- Appointed a Chief Payments Officer to accelerate product and payment innovation.
- Expanded our footprint in India, partnering with the second-largest non-banking financial company in India (Avanse) and India's largest public sector bank (State Bank of India) to capitalize on the billion dollars of payment volume from education loans.
- Strengthened our software integrations with leading ERPs for the higher education industry, including Ellucian, Workday, and Unit4.
- More than
$2 billion in 529 tuition payments were delivered directly to colleges and universities in the U.S. using our platform in 2024, benefitting more than 750 U.S. institutions.
Key Operating Metrics and Non-GAAP Results
- Total Payment Volume increased
20.4% to$8.4 billion in the First quarter of 2025, compared to$7.0 billion in the First quarter of 2024. Excluding Sertifi, Total Payment Volume increased19.1% to$8.3 billion in the First quarter of 2025, compared to$7.0 billion in the First quarter of 2024. - Revenue Less Ancillary Services increased
16.8% to$128.7 million in the First quarter of 2025, compared to$110.2 million in the First quarter of 2024. On an FX-neutral basis, Revenue Less Ancillary Services increased18.6% year-over-year. Excluding Sertifi, Revenue Less Ancillary Services increased12.6% year over year to$124 million or14.4% year over year on an FX-Neutral basis in the First quarter of 2025. - Adjusted Gross Profit increased to
$82.5 million , up14.6% compared to$71.9 million in the First quarter of 2024. Adjusted Gross Margin was64.1% in the First quarter of 2025 compared to65.2% in the First quarter of 2024. - Adjusted EBITDA increased to
$21.6 million in the First quarter of 2025, compared to$13.2 million in the First quarter of 2024. Our adjusted EBITDA margins increased 476 bps year-over-year to16.8% in the First quarter of 2025. Excluding Sertifi, adjusted EBITDA was$20.6 million compared to$13.2 million in the First quarter of 2024. - We repurchased 3.6 million shares of our common stock for approximately
$49 million (including commissions), with approximately$57 million remaining in the share repurchase program as of the end of the First quarter 2025
Guidance
”First quarter 2025 performance meaningfully beat across both FX Neutral Revenue Growth and Adjusted EBITDA Margin Growth, as we're driving revenue growth and margin expansion through effective execution, with a sharp focus on strategic investments and operational efficiency,” said Flywire's CFO, Cosmin Pitigoi. “This approach is enabling us to win new clients, particularly in our key travel and education verticals, while maintaining our full-year 2025 financial outlook despite macroeconomic challenges.”
Based on information available as of May 6, 2025, Flywire anticipates the following results for the second quarter and fiscal year 2025*.
| Fiscal Year 2025 | |
| FX-Neutral Revenue Less Ancillary Services Growth | 17 |
| FX-Neutral Revenue Less Ancillary Services Growth (excluding Sertifi) | 10 |
| Sertifi Revenue contribution1 | |
| Adjusted EBITDA Margin Growth | +100-300 bps YoY |
1 Since the acquisition closed on 02/24/2025.
| Second Quarter 2025 | |
| FX-Neutral Revenue Less Ancillary Services Growth | 17 |
| FX-Neutral Revenue Less Ancillary Services Growth (excluding Sertifi) | 7 |
| Sertifi Revenue contribution | |
| Adjusted EBITDA Margin Growth | +150-350 bps YoY |
*Flywire has not provided a quantitative reconciliation of forecasted FX-Neutral Revenue Less Ancillary Services Growth to forecasted GAAP Revenue Growth or forecasted Adjusted EBITDA Margin Growth to forecasted GAAP Net Income Margin Growth or to forecasted GAAP net income (loss) before income taxes within this earnings release because Flywire is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to, income taxes, which are directly impacted by unpredictable fluctuations in the market price of Flywire's stock and foreign currency exchange rates.
These statements are forward-looking, and actual results may differ materially. Refer to the “Safe Harbor Statement” below for information on the factors that could cause Flywire’s actual results to differ materially from these forward-looking statements.
Conference Call
The Company will host a conference call to discuss First quarter financial results today at 5:00 pm ET. Hosting the call will be Mike Massaro, CEO, Rob Orgel, President and COO, and Cosmin Pitigoi, CFO. The conference call can be accessed live via webcast from the Company's investor relations website at https://ir.flywire.com/. A replay will be available on the investor relations website following the call.
Note Regarding Share Repurchase Program
Repurchases under the Company’s share repurchase program (the Repurchase Program) may be made from time to time through open market purchases, in privately negotiated transactions or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, in accordance with applicable securities laws and other restrictions, including Rule 10b-18. The timing, value and number of shares repurchased will be determined by the Company in its discretion and will be based on various factors, including an evaluation of current and future capital needs, current and forecasted cash flows, the Company’s capital structure, cost of capital and prevailing stock prices, general market and economic conditions, applicable legal requirements, and compliance with covenants in the Company’s credit facility that may limit share repurchases based on defined leverage ratios. The Repurchase Program does not obligate the Company to purchase a specific number of, or any, shares. The Repurchase Program does not expire and may be modified, suspended, or terminated at any time without notice at the Company’s discretion.
Key Operating Metrics and Non-GAAP Financial Measures
Flywire uses non-GAAP financial measures to supplement financial information presented on a GAAP basis. The Company believes that excluding certain items from its GAAP results allows management to better understand its consolidated financial performance from period to period and better project its future consolidated financial performance as forecasts are developed at a level of detail different from that used to prepare GAAP-based financial measures. Moreover, Flywire believes these non-GAAP financial measures provide its stakeholders with useful information to help them evaluate the Company’s operating results by facilitating an enhanced understanding of the Company’s operating performance and enabling them to make more meaningful period-to-period comparisons. There are limitations to the use of the non-GAAP financial measures presented here. Flywire’s non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in Flywire’s industry, may calculate non-GAAP financial measures differently, limiting the usefulness of those measures for comparative purposes.
Flywire uses supplemental measures of its performance, which are derived from its consolidated financial information, but which are not presented in its consolidated financial statements prepared in accordance with GAAP. These non-GAAP financial measures include the following:
- Revenue Less Ancillary Services. Revenue Less Ancillary Services represents the Company’s consolidated revenue in accordance with GAAP less (i) pass-through cost for printing and mailing services and (ii) marketing fees. The Company excludes these amounts to arrive at this supplemental non-GAAP financial measure as it views these services as ancillary to the primary services it provides to its clients.
- Adjusted Gross Profit and Adjusted Gross Margin. Adjusted gross profit represents Revenue Less Ancillary Services less cost of revenue adjusted to (i) exclude pass-through cost for printing services, (ii) offset marketing fees against costs incurred and (iii) exclude depreciation and amortization, including accelerated amortization on the impairment of customer set-up costs tied to technology integration, if applicable. Adjusted Gross Margin represents Adjusted Gross Profit divided by Revenue Less Ancillary Services. Management believes this presentation supplements the GAAP presentation of Gross Profit and Gross Margin with a useful measure of the gross profit and gross margin of the Company’s payment-related services, which are the primary services it provides to its clients.
- Adjusted EBITDA. EBITDA represents our consolidated net income (loss) in accordance with GAAP adjusted to include (i) interest expense, (ii) interest income, (iii) (benefit from) provision for income taxes and (iv) depreciation and amortization. Adjusted EBITDA represents EBITDA further adjusted by excluding (a) stock-based compensation expense and related payroll taxes, (b) the impact from the change in fair value measurement for contingent consideration associated with acquisitions,(c) gain (loss) from the remeasurement of foreign currency, (d) indirect taxes related to intercompany activity, (e) acquisition related transaction costs, (f) employee retention costs, such as incentive compensation, associated with acquisition activities and (g) restructuring costs. Management believes that the exclusion of these amounts to calculate Adjusted EBITDA provides useful measures for period-to-period comparisons of the Company’s business.
- Adjusted EBITDA Margin - Adjusted EBITDA Margin represents Adjusted EBITDA divided by Revenue Less Ancillary Services. Management believes this presentation supplements the GAAP presentation of gross margin with a useful measure of the gross margin of the Company’s payment-related services, which are the primary services it provides to its clients.
- FX Neutral Revenue Less Ancillary Services. FX Neutral Revenue Less Ancillary Services represents Revenue Less Ancillary Services adjusted to show presentation on a FX Neutral basis. The FX Neutral information presented is calculated by translating current-period results using prior-period weighted average foreign currency exchange rates. Flywire analyzes Revenue Less Ancillary Services on an FX Neutral basis to provide a comparable framework for assessing how the business performed, excluding the effect of foreign currency fluctuations.
- Non-GAAP Operating Expenses - Non-GAAP Operating Expenses represents GAAP Operating Expenses adjusted by excluding (i) stock-based compensation expense and related payroll taxes, (ii) depreciation and amortization, (iii) acquisition related transaction costs, if applicable, (iv) employee retention costs, such as incentive compensation, associated with acquisition activities, (v) the impact from the change in fair value measurement for contingent consideration associated with acquisitions and (vi) restructuring costs.
- FX Neutral Revenue Less Ancillary Services and Adjusted EBITDA, excluding Sertifi - FX Neutral Revenue Less Ancillary Services and Adjusted EBITDA, excluding Sertifi, represents FX Neutral Revenue Less Ancillary Services and Adjusted EBITDA, respectively, adjusted by excluding the contributions from Sertifi. Flywire believes these measures are useful in understanding the ongoing results of our operations.
These non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for the Company’s revenue, gross profit, gross margin or net income (loss), or operating expenses prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis. Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure are presented below. Flywire encourages you to review these reconciliations in conjunction with the presentation of the non-GAAP financial measures for each of the periods presented. In future fiscal periods, Flywire may exclude such items and may incur income and expenses similar to these excluded items.
Flywire has not provided a quantitative reconciliation of forecasted FX-Neutral Revenue Less Ancillary Services Growth to forecasted GAAP Revenue Growth or forecasted Adjusted EBITDA Margin Growth to forecasted GAAP Net Income Margin Growth or to forecasted GAAP net income (loss) before income taxes within this earnings release because it is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to, income taxes, which are directly impacted by unpredictable fluctuations in the market price of Flywire's stock and foreign currency exchange rates. For figures in this press release reported on an "FX-Neutral basis,” Flywire calculates the year-over-year impact of foreign currency movements using prior period weighted average foreign currency exchange rates.
About Flywire
Flywire is a global payments enablement and software company. We combine our proprietary global payments network, next-gen payments platform and vertical-specific software to deliver the most important and complex payments for our clients and their customers.
Flywire leverages its vertical-specific software and payments technology to deeply embed within the existing A/R workflows for its clients across the education, healthcare, and travel vertical markets, as well as in key B2B industries. Flywire also integrates with leading ERP systems, such as NetSuite, so organizations can optimize the payment experience for their customers while eliminating operational challenges.
Flywire supports over 4,600** clients with diverse payment methods in more than 140 currencies across 250 countries and territories around the world. Flywire is headquartered in Boston, MA, USA, with global offices. For more information, visit www.flywire.com. Follow Flywire on X (formerly known as Twitter), LinkedIn and Facebook.
**Excludes clients from Flywire’s Invoiced and Sertifi acquisitions
Safe Harbor Statement
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding Flywire’s future operating results and financial position, Flywire’s business strategy and plans, market growth, and Flywire’s objectives for future operations. Flywire intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by terms such as, but not limited to, “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negative of these terms, and similar expressions intended to identify forward-looking statements. Such forward-looking statements are based upon current expectations that involve risks, changes in circumstances, assumptions, and uncertainties. Important factors that could cause actual results to differ materially from those reflected in Flywire's forward-looking statements include, among others, Flywire’s future financial performance, including its expectations regarding FX Neutral Revenue Less Ancillary Services growth, and Adjusted EBITDA margin growth and foreign exchange rates. Risks that may cause actual results to differ materially from these forward looking statements include, but are not limited to: Flywire’s ability to execute its business plan and effectively manage its growth; Flywire’s cross-border expansion plans and ability to expand internationally; anticipated trends, growth rates, and challenges in Flywire’s business and in the markets in which Flywire operates; the sufficiency of Flywire’s cash and cash equivalents to meet its liquidity needs; political, economic, foreign currency exchange rate, inflation, legal, social and health risks, that may affect Flywire’s business or the global economy; Flywire’s beliefs and objectives for future operations; Flywire’s ability to develop and protect its brand; Flywire’s ability to maintain and grow the payment volume that it processes; Flywire’s ability to further attract, retain, and expand its client base; Flywire’s ability to develop new solutions and services and bring them to market in a timely manner; Flywire’s expectations concerning relationships with third parties, including financial institutions and strategic partners; the effects of increased competition in Flywire’s markets and its ability to compete effectively; recent and future acquisitions or investments in complementary companies, products, services, or technologies; Flywire’s ability to enter new client verticals, including its relatively new business-to-business sector; Flywire’s expectations regarding anticipated technology needs and developments and its ability to address those needs and developments with its solutions; Flywire’s expectations regarding its ability to meet existing performance obligations and maintain the operability of its solutions; Flywire’s expectations regarding the effects of existing and developing laws and regulations, including with respect to payments and financial services, taxation, privacy and data protection; Flywire’s ability to adapt its business to changes in government policy regarding tariffs and immigration; economic and industry trends, including the risk of a global recession, projected growth, or trend analysis; the effects of global events and geopolitical conflicts, including without limitation the continuing hostilities in Ukraine and involving Israel; Flywire’s ability to adapt to changes in U.S. federal income or other tax laws or the interpretation of tax laws, including the Inflation Reduction Act of 2022; Flywire’s ability to attract and retain qualified employees; Flywire’s ability to maintain, protect, and enhance its intellectual property; Flywire’s ability to maintain the security and availability of its solutions; the increased expenses associated with being a public company; the future market price of Flywire’s common stock; and other factors that are described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of Flywire's Annual Report on Form 10-K for the year ended December 31, 2024 which is on file with the Securities and Exchange Commission (SEC) and available on the SEC's website at https://www.sec.gov/. Additional factors may be described in those sections of Flywire’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, expected to be filed in the second quarter of 2025. The information in this release is provided only as of the date of this release, and Flywire undertakes no obligation to update any forward-looking statements contained in this release on account of new information, future events, or otherwise, except as required by law.
Contacts
Investor Relations:
Masha Kahn
ir@Flywire.com
Media:
Sarah King
Media@Flywire.com
| Condensed Consolidated Statements of Operations and Comprehensive Loss | |||||||||
| (Unaudited) (Amounts in thousands, except share and per share amounts) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2025 | 2024 | ||||||||
| Revenue | $ | 133,452 | $ | 114,103 | |||||
| Costs and operating expenses: | |||||||||
| Payment processing services costs | 50,563 | 41,650 | |||||||
| Technology and development | 16,911 | 16,737 | |||||||
| Selling and marketing | 36,569 | 30,083 | |||||||
| General and administrative | 33,058 | 31,596 | |||||||
| Restructuring Costs | 7,339 | — | |||||||
| Total costs and operating expenses | 144,440 | 120,066 | |||||||
| Loss from operations | $ | (10,988 | ) | $ | (5,963 | ) | |||
| Other income (expense): | |||||||||
| Interest expense | (724 | ) | (142 | ) | |||||
| Interest income | 2,934 | 5,879 | |||||||
| Gain (loss) from remeasurement of foreign currency | 3,576 | (4,376 | ) | ||||||
| Realized gain on available-for-sale debt securities | 158 | — | |||||||
| Total other income, net | 5,944 | 1,361 | |||||||
| Loss before provision for income taxes | (5,044 | ) | (4,602 | ) | |||||
| Provision (benefit) for income taxes | (884 | ) | 1,615 | ||||||
| Net Loss | $ | (4,160 | ) | $ | (6,217 | ) | |||
| Foreign currency translation adjustment | 2,677 | (1,361 | ) | ||||||
| Unrealized losses on available-for-sale debt securities, net | $ | (129 | ) | $ | — | ||||
| Total other comprehensive income (loss) | $ | 2,548 | $ | (1,361 | ) | ||||
| Comprehensive loss | $ | (1,612 | ) | $ | (7,578 | ) | |||
| Net loss attributable to common stockholders - basic and diluted | $ | (4,160 | ) | $ | (6,217 | ) | |||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.03 | ) | $ | (0.05 | ) | |||
| Weighted average common shares outstanding - basic and diluted | 123,235,263 | 123,143,343 | |||||||
| Condensed Consolidated Balance Sheets | |||||||||
| (Unaudited) (Amounts in thousands, except share amounts) | |||||||||
| March 31, | December 31, | ||||||||
| 2025 | 2024 | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 190,507 | $ | 495,242 | |||||
| Restricted cash | — | — | |||||||
| Short-term investments | 64,823 | 115,848 | |||||||
| Accounts receivable, net | 33,585 | 23,703 | |||||||
| Unbilled receivables, net | 11,431 | 15,453 | |||||||
| Funds receivable from payment partners | 64,237 | 90,110 | |||||||
| Prepaid expenses and other current assets | 31,947 | 22,528 | |||||||
| Total current assets | 396,530 | 762,884 | |||||||
| Long-term investments | 18,069 | 50,125 | |||||||
| Property and equipment, net | 17,391 | 17,160 | |||||||
| Intangible assets, net | 202,014 | 118,684 | |||||||
| Goodwill | 402,715 | 149,558 | |||||||
| Other assets | 23,629 | 24,035 | |||||||
| Total assets | $ | 1,060,348 | $ | 1,122,446 | |||||
| Liabilities and Stockholders’ Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 15,069 | $ | 15,353 | |||||
| Funds payable to clients | 106,613 | 217,788 | |||||||
| Accrued expenses and other current liabilities | 53,022 | 49,297 | |||||||
| Deferred revenue | 21,228 | 7,337 | |||||||
| Total current liabilities | 195,932 | 289,775 | |||||||
| Long-term debt | 60,000 | — | |||||||
| Deferred tax liabilities | 13,216 | 12,643 | |||||||
| Other liabilities | 6,935 | 5,261 | |||||||
| Total liabilities | 276,083 | 307,679 | |||||||
| Commitments and contingencies (Note 16) | |||||||||
| Stockholders’ equity: | |||||||||
| Preferred stock, | — | — | |||||||
| Voting common stock, | 13 | 13 | |||||||
| Non-voting common stock, | — | — | |||||||
| Treasury voting common stock, 8,214,435 and 4,670,974 shares as of March 31, 2025 and December 31, 2024 respectively, held at cost | (94,489 | ) | (46,268 | ) | |||||
| Additional paid-in capital | 1,053,289 | 1,033,958 | |||||||
| Accumulated other comprehensive income | 482 | (2,066 | ) | ||||||
| Accumulated deficit | (175,030 | ) | (170,870 | ) | |||||
| Total stockholders’ equity | 784,265 | 814,767 | |||||||
| Total liabilities and stockholders’ equity | $ | 1,060,348 | $ | 1,122,446 | |||||
| Condensed Consolidated Statement of Cash Flows | ||||||||
| (Unaudited) (Amounts in thousands) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (4,160 | ) | $ | (6,217 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Depreciation and amortization | 5,502 | 4,259 | ||||||
| Stock-based compensation expense | 18,218 | 14,842 | ||||||
| Amortization of deferred contract costs | 376 | 242 | ||||||
| Change in fair value of contingent consideration | 165 | (478 | ) | |||||
| Deferred tax provision (benefit) | 1,174 | (643 | ) | |||||
| Provision for uncollectible accounts | 28 | (16 | ) | |||||
| Non-cash interest expense | 46 | 92 | ||||||
| Non-cash interest income | (508 | ) | — | |||||
| Changes in operating assets and liabilities, net of acquisitions: | ||||||||
| Accounts receivable | (3,492 | ) | (1,457 | ) | ||||
| Unbilled receivables | 4,068 | 2,694 | ||||||
| Funds receivable from payment partners | 25,873 | 37,714 | ||||||
| Prepaid expenses, other current assets and other assets | (9,151 | ) | 1,863 | |||||
| Funds payable to clients | (111,175 | ) | (86,810 | ) | ||||
| Accounts payable, accrued expenses and other current liabilities | (5,130 | ) | (2,489 | ) | ||||
| Other liabilities | (255 | ) | (340 | ) | ||||
| Deferred revenue | (469 | ) | (1,349 | ) | ||||
| Net cash used in operating activities | (78,890 | ) | (38,093 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Acquisition of businesses, net of cash acquired | (319,835 | ) | — | |||||
| Purchase of debt securities | (15,252 | ) | — | |||||
| Sale of debt securities | 98,712 | — | ||||||
| Capitalization of internally developed software | (1,310 | ) | (1,259 | ) | ||||
| Purchases of property and equipment | (187 | ) | (255 | ) | ||||
| Net cash used in investing activities | (237,872 | ) | (1,514 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Proceeds from draw on line of credit | 125,000 | — | ||||||
| Payment of line of credit debt | (65,000 | ) | ||||||
| Payment of debt issuance costs | — | (783 | ) | |||||
| Payments of tax withholdings for net settled equity awards | (1,676 | ) | — | |||||
| Purchases of treasury stock | (49,304 | ) | — | |||||
| Proceeds from the issuance of stock under Employee Stock Purchase Plan | 1,242 | 1,415 | ||||||
| Proceeds from exercise of stock options | 1,377 | 1,617 | ||||||
| Net cash provided by financing activities | 11,639 | 2,249 | ||||||
| Effect of exchange rates changes on cash and cash equivalents | 388 | 1,764 | ||||||
| Net decrease in cash, cash equivalents and restricted cash | (304,735 | ) | (35,594 | ) | ||||
| Cash, cash equivalents and restricted cash, beginning of year | $ | 495,242 | $ | 654,608 | ||||
| Cash, cash equivalents and restricted cash, end of year | $ | 190,507 | $ | 619,014 | ||||
| Reconciliation of Non-GAAP Financial Measures | |||||||||
| (Unaudited) (Amounts in millions, except percentages) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2025 | 2024 | ||||||||
| Revenue | $ | 133.5 | $ | 114.1 | |||||
| Adjusted to exclude gross up for: | |||||||||
| Pass-through cost for printing and mailing | (4.4 | ) | (3.6 | ) | |||||
| Marketing fees | (0.3 | ) | (0.3 | ) | |||||
| Revenue Less Ancillary Services | $ | 128.7 | $ | 110.2 | |||||
| Payment processing services costs | 50.6 | 41.7 | |||||||
| Hosting and amortization costs within technology and development expenses | 2.4 | 2.0 | |||||||
| Cost of Revenue | $ | 53.0 | $ | 43.7 | |||||
| Adjusted to: | |||||||||
| Exclude printing and mailing costs | (4.4 | ) | (3.6 | ) | |||||
| Offset marketing fees against related costs | (0.3 | ) | (0.3 | ) | |||||
| Exclude depreciation and amortization | (2.0 | ) | (1.5 | ) | |||||
| Adjusted Cost of Revenue | $ | 46.2 | $ | 38.3 | |||||
| Gross Profit | $ | 80.5 | $ | 70.4 | |||||
| Gross Margin | |||||||||
| Adjusted Gross Profit | $ | 82.5 | $ | 71.9 | |||||
| Adjusted Gross Margin | |||||||||
| FX Neutral Revenue Less Ancillary Services | ||||||||||
| (unaudited) (in millions) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2025 | 2024 | |||||||||
| Revenue | $ | 133.5 | $ | 114.1 | ||||||
| Ancillary services | (4.8 | ) | (3.9 | ) | ||||||
| Revenue Less Ancillary Services | 128.7 | 110.2 | ||||||||
| Effects of foreign currency rate fluctuations | 2.0 | — | ||||||||
| FX Neutral Revenue Less Ancillary Services | $ | 130.7 | $ | 110.2 | ||||||
| Revenue Less Ancillary Services | $ | 128.7 | $ | 110.2 | ||||||
| Sertifi Revenue | (4.7 | ) | — | |||||||
| Revenue Less Ancillary Services excluding Sertifi | $ | 124.0 | $ | 110.2 | ||||||
| Reconciliation of Non-GAAP Operating Expenses | |||||||||
| (Unaudited) (in millions) | |||||||||
| Three Months Ended March 31, | |||||||||
| 2025 | 2024 | ||||||||
| GAAP Technology and development | $ | 16.9 | $ | 16.7 | |||||
| (-) Stock-based compensation expense and related taxes | (3.2 | ) | (2.6 | ) | |||||
| (-) Depreciation and amortization | (1.6 | ) | (1.9 | ) | |||||
| Non-GAAP Technology and development | $ | 12.1 | $ | 12.2 | |||||
| GAAP Selling and marketing | $ | 36.6 | $ | 30.1 | |||||
| (-) Stock-based compensation expense and related taxes | (4.3 | ) | (4.1 | ) | |||||
| (-) Depreciation and amortization | (3.0 | ) | (1.9 | ) | |||||
| Non-GAAP Selling and marketing | $ | 29.3 | $ | 24.1 | |||||
| GAAP General and administrative | $ | 33.1 | $ | 31.6 | |||||
| (-) Stock-based compensation expense and related taxes | (8.4 | ) | (8.4 | ) | |||||
| (-) Depreciation and amortization | (0.8 | ) | (0.7 | ) | |||||
| (-) Change in fair value of contingent consideration | (0.2 | ) | 0.5 | ||||||
| (-) Acquisition related transaction costs | (2.5 | ) | — | ||||||
| Non-GAAP General and administrative | $ | 21.2 | $ | 23.0 | |||||
| EBITDA, Adjusted EBITDA and Adjusted EBITDA excluding Sertifi | ||||||||||
| (Unaudited) (in millions) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2025 | 2024 | |||||||||
| Net loss | $ | (4.2 | ) | $ | (6.2 | ) | ||||
| Interest expense | 0.7 | 0.1 | ||||||||
| Interest income | (2.9 | ) | (5.9 | ) | ||||||
| Provision for income taxes | (0.9 | ) | 1.6 | |||||||
| Depreciation and amortization | 5.9 | 4.5 | ||||||||
| EBITDA | (1.4 | ) | (5.9 | ) | ||||||
| Stock-based compensation expense and related taxes | 15.9 | 15.1 | ||||||||
| Change in fair value of contingent consideration | 0.2 | (0.5 | ) | |||||||
| (Gain) loss from remeasurement of foreign currency | (3.6 | ) | 4.4 | |||||||
| Indirect taxes related to intercompany activity | 0.6 | 0.1 | ||||||||
| Acquisition related transaction costs | 2.5 | — | ||||||||
| Acquisition related employee retention costs | — | 0.0 | ||||||||
| Restructuring costs | $ | 7.3 | $ | — | ||||||
| Adjusted EBITDA | $ | 21.6 | $ | 13.2 | ||||||
| Sertifi Adjusted EBITDA Contribution | (1.0 | ) | — | |||||||
| Adjusted EBITDA excluding Sertifi | $ | 20.6 | $ | 13.2 | ||||||
| Net Margin, EBITDA Margin, Adjusted EBITDA Margin and Adjusted EBITDA Margin excluding Sertifi | ||||||||
| (Unaudited) (Amounts in millions, except percentages) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenue (A) | $ | 133.5 | $ | 114.1 | ||||
| Revenue less ancillary services (B) | $ | 128.7 | $ | 110.2 | ||||
| Revenue less ancillary services excluding Sertifi (C ) | $ | 124.0 | — | |||||
| Net loss (D) | $ | (4.2 | ) | $ | (6.2 | ) | ||
| EBITDA (E) | $ | (1.4 | ) | $ | (5.9 | ) | ||
| Adjusted EBITDA (F) | $ | 21.6 | $ | 13.2 | ||||
| Adjusted EBITDA excluding Sertifi (G) | $ | 20.6 | — | |||||
| Net margin (D/A) | -3.1 | % | -5.4 | % | ||||
| Net margin using RLAS (D/B) | -3.2 | % | -5.6 | % | ||||
| EBITDA Margin (E/A) | -1.0 | % | -5.2 | % | ||||
| Adjusted EBITDA Margin (F/A) | 16.2 | % | 11.6 | % | ||||
| Adjusted EBITDA Margin excluding Sertifi (G/A) | 15.4 | % | 0.0 | % | ||||
| EBITDA Margin using RLAS (E/B) | -1.1 | % | -5.4 | % | ||||
| Adjusted EBITDA Margin using RLAS (F/B) | 16.8 | % | 12.0 | % | ||||
| Adjusted EBITDA Margin excluding Sertifi using RLAS excluding Sertifi (G/C) | 16.6 | % | — | |||||
FAQ
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