With the business potentially at an important milestone, we thought we'd take a closer look at Flywire Corporation's (NASDAQ:FLYW) future prospects. Flywire Corporation, together with its subsidiaries, operates as a payments enablement and software company in the United States and internationally. The US$4.1b market-cap company posted a loss in its most recent financial year of US$39m and a latest trailing-twelve-month loss of US$26m shrinking the gap between loss and breakeven. As path to profitability is the topic on Flywire's investors mind, we've decided to gauge market sentiment. Below we will provide a high-level summary of the industry analysts’ expectations for the company.
Consensus from 11 of the American Diversified Financial analysts is that Flywire is on the verge of breakeven. They anticipate the company to incur a final loss in 2024, before generating positive profits of US$36m in 2025. So, the company is predicted to breakeven approximately 2 years from today. How fast will the company have to grow each year in order to reach the breakeven point by 2025? Working backwards from analyst estimates, it turns out that they expect the company to grow 108% year-on-year, on average, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
We're not going to go through company-specific developments for Flywire given that this is a high-level summary, though, keep in mind that by and large a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
Before we wrap up, there’s one aspect worth mentioning. Flywire currently has no debt on its balance sheet, which is rare for a loss-making growth company, which typically has high debt relative to its equity. The company currently operates purely off its shareholder funding and has no debt obligation, reducing concerns around repayments and making it a less risky investment.
This article is not intended to be a comprehensive analysis on Flywire, so if you are interested in understanding the company at a deeper level, take a look at Flywire's company page on Simply Wall St. We've also put together a list of key aspects you should further research:
Historical Track Record: What has Flywire's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Flywire's board and the CEO’s background.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.