Payment solutions provider Flywire sinks 37% on financials and restructuring plans

Quotes on Flywire, a small-cap company that provides payment solutions and software, plunged more than 37% yesterday, February 26. As Barron’s reported, the decline was sparked by disappointing fourth-quarter financials and plans to cut 10% of its workforce. Following the earnings report, five coverage analysts slashed their target prices for the stock.

Yesterday, Flywire stock dropped more than 37% on the Nasdaq, sinking below the $11-per-share mark. The intraday loss got as big as 43%, putting it on track for its largest daily percentage decrease on record, reported Barron’s.

Investors rushed to sell Flywire shares after the company reported disappointing fourth-quarter financial results. Revenue less ancillary services grew 17.4% year over year to $112.5 million, 5% below the Wall Street consensus, Barron’s notes, but earnings per share of $0.10 missed expectations by 111.5%, according to Yahoo Finance.

For the full-year 2025, Flywire guides for revenue less ancillary services to grow 10-14% on a constant currency basis. 

The company has vowed to improve efficiency and discipline throughout its global business and carry out a restructuring, including a 10% workforce reduction.

Additionally, Flywire is shifting focus to areas it believes will drive future growth. On Tuesday, February 25, the company announced the acquisition of hospitality software provider Sertifi for $330 million. The deal is expected to strengthen Flywire’s position in the travel industry, according to the press release. Flywire likes Sertifi’s platform that enables global brands such as Marriott, Hilton, and Hyatt, as well as independent hotels like Sage Hospitality Group and Corinthia Hotel, to securely sign contracts, exchange payment details, and process transactions.

Since its public debut in May 2021, Flywire stock has lost more than 67% of its value.

After the company released its latest earnings report, five Wall Street analysts revised downward their target prices for the stock: RBC Capital and Wells Fargo by 20%, UBS by 40%, and Stephens & Co by 42%.

According to MarketWatch, 17 analysts cover Flywire, with their recommendations split roughly evenly: nine “buys” versus eight “holds.” Their average target price of $18.79 per share implies upside of almost 70%.