Flywire Corporation: Visible Path For Durable Adj. EBITDA Growth

Redfox Capital Ideas715 FollowersFollow5ShareSavePlay(8min)CommentsSummaryFlywire Corporation remains a buy as growth is robust and business stickiness increases through deeper workflow integration, especially via Student Financial Software.Q4 revenue grew 34% y/y to $157.5M (20%+ organic), with strong TPV and ARR pipeline, but margins contracted due to mix and payment processing ramp-up.Adj. EBITDA rose 52% y/y despite gross margin pressure, demonstrating operating leverage; incremental margin reached 22.5% on $40M additional revenue.FLYW trades at ~7x forward EBITDA, undervalued versus peers, with potential for re-rating if gross margin stabilizes and profit expansion resumes. 10'000 Hours/DigitalVision via Getty Images Investment Summary My previous investment thought on Flywire Corporation (FLYW) was a buy rating because all the growth metrics were healthy, and I believed there were tangible growth catalysts previously. Fast forward ~18 months later, growthThis article was written byRedfox Capital Ideas715 FollowersFollowI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.