What changed in Flywire Corp's 10-K — 2024 vs 2025
vs
Paragraph-level year-over-year comparison of Flywire Corp's 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.
+256 added−244 removedSource: 10-K (2026-02-24) vs 10-K (2025-02-26)
Top changes in Flywire Corp's 2025 10-K
256 paragraphs added · 244 removed · 156 edited across 1 sections
- Item 1C. Cybersecurity+256 / −244 · 156 edited
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
156 edited+100 added−88 removed121 unchanged
Item 1C. Cybersecurity
Cybersecurity — threats and controls disclosure
156 edited+100 added−88 removed121 unchanged
2024 filing
2025 filing
Biggest changeRevenue Less Ancillary Services, Adjusted Gross Profit and Adjusted Gross Margin: Year Ended December 31, (dollars in millions) 2024 2023 2022 Revenue $ 492.1 $ 403.1 $ 289.4 Adjusted to exclude gross up for: Pass-through cost for printing and mailing (15.9 ) (19.4 ) (20.4 ) Marketing fees (2.0 ) (2.2 ) (1.9 ) Revenue Less Ancillary Services $ 474.2 $ 381.5 $ 267.1 Payment processing services costs 177.5 147.3 107.9 Hosting and amortization costs within technology and development expenses 7.7 8.4 6.6 Cost of Revenue $ 185.2 $ 155.7 $ 114.5 Adjusted to: Exclude printing and mailing costs (15.9 ) (19.4 ) (20.4 ) Offset marketing fees against related costs (2.0 ) (2.2 ) (1.9 ) Exclude depreciation and amortization (5.9 ) (6.7 ) (7.0 ) Adjusted Cost of Revenue $ 161.4 $ 127.4 $ 85.2 Gross Profit $ 306.9 $ 247.4 $ 174.9 Gross Margin 62.4 % 61.4 % 60.4 % Adjusted Gross Profit $ 312.8 $ 254.1 $ 181.9 Adjusted Gross Margin 66.0 % 66.6 % 68.1 % 94 (dollars in millions) Transaction Platform and other revenues Year Ended December 31, 2024 Revenue $ 410.2 $ 81.9 $ 492.1 Adjusted to exclude gross up for: Pass-through cost for printing and mailing — (15.9 ) (15.9 ) Marketing fees (2.0 ) — (2.0 ) Revenue Less Ancillary Services $ 408.2 $ 66.0 $ 474.2 Percentage of Revenue 83.4 % 16.6 % 100.0 % Percentage of Revenue Less Ancillary Services 86.1 % 13.9 % 100.0 % (dollars in millions) Transaction Platform and other revenues Year Ended December 31, 2023 Revenue $ 329.7 $ 73.4 $ 403.1 Adjusted to exclude gross up for: Pass-through cost for printing and mailing — (19.4 ) (19.4 ) Marketing fees (2.2 ) — (2.2 ) Revenue Less Ancillary Services $ 327.5 $ 54.0 $ 381.5 Percentage of Revenue 81.8 % 18.2 % 100.0 % Percentage of Revenue Less Ancillary Services 85.8 % 14.2 % 100.0 % (dollars in millions) Transaction Platform and other revenues Year Ended December 31, 2022 Revenue $ 224.2 $ 65.2 $ 289.4 Adjusted to exclude gross up for: Pass-through cost for printing and mailing — (20.4 ) (20.4 ) Marketing fees (1.9 ) — (1.9 ) Revenue Less Ancillary Services $ 222.3 $ 44.8 $ 267.1 Percentage of Revenue 77.5 % 22.5 % 100.0 % Percentage of Revenue Less Ancillary Services 83.2 % 16.8 % 100.0 % FX Neutral Revenue Less Ancillary Services: Year Ended December 31, Growth Rate (dollars in millions) 2024 2023 Revenue $ 492.1 $ 403.1 22.1 % Ancillary services (17.9 ) (21.6 ) Revenue Less Ancillary Services 474.2 381.5 24.3 % Effects of foreign currency rate fluctuations $ (2.3 ) FX Neutral Revenue Less Ancillary Services $ 471.9 $ 381.5 23.7 % 95 EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin: Year Ended December 31, (in millions) 2024 2023 2022 Net income (loss) $ 2.9 $ (8.6 ) $ (39.3 ) Interest expense 0.5 0.4 1.2 Interest income (21.4 ) (13.3 ) (3.2 ) (Benefit from) provision for income taxes (1.0 ) 4.2 2.0 Depreciation and amortization 18.5 16.4 14.1 EBITDA (0.5 ) (0.9 ) (25.2 ) Stock-based compensation expense and related taxes 65.8 45.2 31.2 Change in fair value of contingent consideration (1.0 ) 0.4 (2.8 ) Loss (gain) from remeasurement of foreign currency 11.8 (4.2 ) 9.2 Indirect taxes related to intercompany activity 0.7 0.2 0.4 Acquisition related transaction costs (1) 0.6 0.4 0.8 Acquisition related employee retention costs (2) 0.5 0.9 1.4 Adjusted EBITDA $ 77.9 $ 42.0 $ 14.9 (1) Acquisition related transaction costs consisted of legal and advisory fees incurred in connection with the Invoiced, StudyLink and Cohort Go acquisitions.
Biggest changeRevenue Less Ancillary Services, Adjusted Gross Profit, and Adjusted Gross Margin: Year Ended December 31, (dollars in millions) 2025 2024 Revenue $ 623.0 $ 492.1 Adjusted to exclude gross up for: Pass-through cost for printing and mailing (17.6) (15.9) Marketing fees (2.4) (2.0) Revenue Less Ancillary Services $ 603.1 $ 474.2 Payment processing services costs 240.4 177.5 Hosting and amortization costs within technology and development expenses 11.6 7.7 Cost of Revenue $ 252.0 $ 185.2 Adjusted to: Exclude printing and mailing costs (17.6) (15.9) Offset marketing fees against related costs (2.4) (2.0) Exclude depreciation and amortization (10.5) (5.9) Adjusted Cost of Revenue $ 221.5 $ 161.4 Gross Profit $ 371.1 $ 306.9 Gross Margin 59.6% 62.4% Adjusted Gross Profit $ 381.6 $ 312.8 Adjusted Gross Margin 63.3% 66.0% 99 Revenue Less Ancillary Services Disaggregated by Revenue Type Year Ended December 31, 2025 (dollars in millions) Transaction Platform and other revenues Revenue Revenue $ 502.7 $ 120.4 $ 623.0 Adjusted to exclude gross up for: Pass-through cost for printing and mailing — (17.6) (17.6) Marketing fees (2.4) — (2.4) Revenue Less Ancillary Services $ 500.3 $ 102.7 $ 603.1 Percentage of Revenue 80.7% 19.3% 100.0% Percentage of Revenue Less Ancillary Services 83.0% 17.0% 100.0% Year Ended December 31, 2024 (dollars in millions) Transaction Platform and other revenues Revenue Revenue $ 410.2 $ 81.9 $ 492.1 Adjusted to exclude gross up for: Pass-through cost for printing and mailing — (15.9) (15.9) Marketing fees (2.0) — (2.0) Revenue Less Ancillary Services $ 408.2 $ 66.0 $ 474.2 Percentage of Revenue 83.4% 16.6% 100.0% Percentage of Revenue Less Ancillary Services 86.1% 13.9% 100.0% FX Neutral Revenue Less Ancillary Services: Year Ended December 31, Percentage (dollars in millions) 2025 2024 Change Revenue $ 623.0 $ 492.1 26.6% Ancillary services (20.0) (17.9) Revenue Less Ancillary Services 603.1 474.2 27.2% Effects of foreign currency rate fluctuations (6.6) — FX Neutral Revenue Less Ancillary Services $ 596.5 $ 474.2 25.8% 100 EBITDA, Adjusted EBITDA, and Adjusted EBITDA Margin: Year Ended December 31, (in millions) 2025 2024 Net income $ 13.5 $ 2.9 Interest expense 3.5 0.5 Interest income (5.6) (21.4) Provision for (benefit from) income taxes 7.9 (1.0) Depreciation and amortization expense 27.7 18.5 EBITDA 47.0 (0.5) Stock-based compensation expense and related taxes 69.7 65.8 Change in fair value of contingent consideration (1.9) (1.0) (Gain) loss from remeasurement of foreign currency (7.9) 11.8 Gain on available-for-sale debt securities (0.2) — Indirect taxes related to intercompany activity 2.5 0.7 Acquisition related transaction costs (a) 2.6 0.6 Restructuring 8.7 — Acquisition related employee retention costs (b) 0.0 0.5 Adjusted EBITDA $ 120.6 $ 77.9 Adjusted EBITDA margin 20.0% 16.4% (a) Acquisition-related transaction costs consisted of legal and advisory fees incurred in connection with the Sertifi and Invoiced acquisitions.
These non-GAAP financial measures include the following: • Revenue Less Ancillary Services - Revenue Less Ancillary Services represents our consolidated revenue in accordance with GAAP less (i) pass-through cost for printing and mailing services and (ii) marketing fees.
These non-GAAP financial measures include the following: • Revenue Less Ancillary Services - represents our consolidated revenue in accordance with GAAP less (i) pass-through cost for printing and mailing services and (ii) marketing fees.
Our significant accounting policies are described in Note 1 - Business Overview and Summary of Significant Accounting Policies to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. We believe that the following critical accounting policies are most important to the judgments and estimates used in the preparation of our consolidated financial statements.
Our significant accounting policies are described in Note 1 - Business Overview and Summary of Significant Accounting Policies in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. We believe that the following critical accounting policies are most important to the judgments and estimates used in the preparation of our consolidated financial statements.
Resulting translation adjustments are included as a component of accumulated other comprehensive (loss) income in our consolidated balance sheets. Gains and losses from the remeasurement of foreign currencies into functional currencies are recognized in the consolidated statements of operations and comprehensive loss.
Resulting translation adjustments are included as a component of accumulated other comprehensive (loss) income in our consolidated balance sheets. Gains and losses from the remeasurement of foreign currencies into functional currencies are recognized in the consolidated statements of operations and comprehensive income (loss).
Properties Our corporate headquarters are located in Boston, Massachusetts, where we occupy facilities totaling 10,946 square feet under a lease that expires in June 2027. We use these facilities for administration, finance, legal, compliance, human resources, global payments, IT, sales and marketing, engineering, and customer success. We maintain other leased locations in the United States and throughout the world.
Properties Our corporate headquarters are located in Boston, Massachusetts, where we occupy facilities totaling 10,946 square feet under a lease that expires in June 2027. We use these facilities for administration, finance, legal, compliance, human resources, payments, IT, sales and marketing, engineering, and customer success. We maintain other leased locations in the United States and throughout the world.
Recent Acquisition In August 2024, we acquired all of the issued and outstanding shares of Invoiced for an estimated total aggregate purchase price of approximately $51.7 million, consisting of approximately $47.2 million in cash consideration, net of cash acquired and up to $7.5 million of contingent consideration, with an estimated fair value of $4.5 million on the date of acquisition.
In August 2024, we acquired all of the issued and outstanding shares of Invoiced for an estimated total aggregate purchase price of approximately $51.7 million, consisting of approximately $47.2 million in cash consideration, net of cash acquired and up to $7.5 million of contingent consideration, with an estimated fair value of $4.5 million on the date of acquisition.
Our ability to influence clients to process more transactions on our platform will have a direct impact on our revenue. In addition, sustaining our growth requires continued adoption of our platform by new clients and further adoption of use cases such as payment plans, by our clients’ customers.
Our ability to influence clients to process more transactions on our platform will have a direct impact on our revenue. 86 In addition, sustaining our growth requires continued adoption of our platform by new clients and further adoption of use cases such as payment plans, by our clients’ customers.
An immediate 10% increase or decrease in interest rates on either our cash and cash equivalents and available-for-sale debt securities or our 2024 Revolving Credit Facility would not have a material effect on our financial position, results of operations or cash flows.
An immediate 10% increase or decrease in interest rates on either our cash and cash equivalents and available-for-sale debt securities or our 2024 Amended Revolving Credit Facility would not have a material effect on our financial position, results of operations or cash flows.
We continue to see growth in new customers in our U.S., Canada and Australia education markets, providing a lever to offset some of the expected decline in new incoming international student growth resulting from these government changes to international student visa policies.
We continue to see growth in new customers in our U.S., Canada and Australia education markets, providing a lever to offset some of the expected decline in new incoming international student growth resulting from these government changes to international student visa policies and international trade policies.
General and Administrative General and administrative expenses consist of personnel-related expenses, including stock-based compensation expense for finance, risk management, legal and compliance, human resources and IT functions, costs incurred for external professional services, as well as rent, and facility and insurance costs.
General and Administrative General and administrative expenses consist of personnel-related expenses, including stock-based compensation expense for finance, risk management, legal and compliance, human resources, IT, and other administrative functions, costs incurred for external professional services, as well as rent and facility and insurance costs.
We believe that our existing cash and cash equivalents will be sufficient to support our expected working capital needs and material cash requirements for at least the next 12 months from the issuance of these consolidated financial statements.
We believe that our existing cash will be sufficient to support our expected working capital needs and material cash requirements for at least the next 12 months from the issuance of these consolidated financial statements.
We do not recognize the underlying amount of the transaction being settled between client and client’s customer, as revenue or cost of revenue in the consolidated statements of operations and comprehensive loss, as we are not the responsible party for fulfilling the obligation between the client and client’s customer.
We do not recognize the underlying amount of the transaction being settled between client and client’s customer, as revenue or cost of revenue in the consolidated statements of operations and comprehensive income (loss), as we are not the responsible party for fulfilling the obligation between the client and client’s customer.
While we have experienced significant growth and increased demand for our solutions over recent periods, we may continue to incur losses in the short term and may not be able to achieve or maintain profitability in the future.
While we have experienced significant growth and increased demand for our solutions over recent periods, we may incur losses in the short term and may not be able to achieve or maintain profitability in the future.
As each day of providing these services is substantially the same 102 and the client simultaneously receives and consumes the benefits as services are provided, these services are viewed as a single performance obligation comprised of a series of distinct daily services. We satisfy the performance obligation as these services are provided.
As each day of providing these services is substantially the same and the client simultaneously receives and consumes the benefits as services are provided, these services are viewed as a single performance obligation comprised of a series of distinct daily services. We satisfy the performance obligation as these services are provided.
Under this method, the value of an intangible asset is equal to the present value of the incremental after-tax cash flows attributable solely to the intangible asset. We value trade names and trademarks using the relief from royalty method.
Under this method, the value of an intangible asset is equal to the present value of the incremental after-tax cash flows attributable solely to the intangible asset. We value trade names and trademarks using 104 the relief-from-royalty method.
Management believes that the exclusion of these amounts to calculate Adjusted EBITDA provides useful measures for period-to-period comparisons of our business. • Adjusted EBITDA Margin - Adjusted EBITDA Margin represents Adjusted EBITDA divided by Revenue Less Ancillary Services.
Management believes that the exclusion of these amounts to calculate Adjusted EBITDA provides useful measures for period-to-period comparisons of our business. 98 • Adjusted EBITDA Margin - represents Adjusted EBITDA divided by Revenue Less Ancillary Services.
Our future capital requirements will depend on many factors, including our revenue growth rate, the timing and the amount of cash received from clients, the expansion of sales and marketing activities, the timing and extent of 97 spending to support development efforts, the price at which we are able to purchase public cloud capacity, expenses associated with our international expansion, the introduction of platform enhancements, and the continuing market adoption of our platform.
Our future capital requirements will depend on many factors, including our revenue growth rate, the timing and the amount of cash received from clients, the expansion of sales and marketing activities, the timing and extent of spending to support 102 development efforts, the price at which we are able to purchase public cloud capacity, expenses associated with our international expansion, the introduction of platform enhancements, and the continuing market adoption of our platform.
Impacts Resulting From Government Changes to International Student Visa Policies Revenue from our education clients, which primarily includes clients in the United States, Canada, U.K., Europe, and Asia Pacific/Australia, is affected by several factors, including policies enacted by government organizations around the world that cap the issuance of international student visas.
Impacts Resulting From Government Changes to International Student and H-1B Visa Policies Revenue from our education clients, which primarily includes clients in the United States, Canada, U.K., Europe, and Asia Pacific/Australia, is affected by several factors, including policies enacted by government organizations around the world that cap the issuance of international student visas.
We also expect our costs and expenses to increase in future periods, which could negatively affect our future operating results if our revenue does not increase.
We also expect our costs and expenses to increase in future periods, which could negatively 91 affect our future operating results if our revenue does not increase.
Fees received are recorded as revenue in the consolidated statements of operations and comprehensive loss upon completion of the payment processing transaction.
Fees received are recorded as revenue in the consolidated statements of operations and comprehensive income (loss) upon completion of the payment processing transaction.
We analyze FX Neutral Revenue Less Ancillary Services to provide a comparable framework for assessing how the business performed excluding the effect of foreign currency fluctuations. • Adjusted Gross Profit - 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.
We analyze FX Neutral 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. • 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.
The following graph depicts the total cumulative stockholder return on our common stock from May 26, 2021, the first day of trading of our common stock on the Nasdaq Global Select Market, through December 31, 2024, relative to the performance of the S&P 500 Index and S&P 500 IT Index.
The following graph depicts the total cumulative stockholder return on our common stock from May 26, 2021, the first day of trading of our common stock on the Nasdaq Global Select Market, through December 31, 2025, relative to the performance of the S&P 500 Index and S&P 500 IT Index.
It em 6. [Reserved] 78 It em 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes appearing elsewhere in this Annual Report on Form 10-K.
It em 6. [Reserved] 82 It em 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes appearing elsewhere in this Annual Report on Form 10-K.
Management’s Role Managing Risk The CISO, General Counsel & Chief Compliance Officer (GC & CCO), Chief Operating Officer (COO) and the Chief Executive Officer (CEO) play a pivotal role in informing the Audit Committee on cybersecurity risks. They provide 74 comprehensive briefings to the Audit Committee on a quarterly basis.
Management’s Role Managing Risk The CISO, General Counsel & Chief Compliance Officer (GC & CCO), Chief Operating Officer (COO) and the Chief Executive Officer (CEO) play a pivotal role in informing the Audit Committee on cybersecurity risks. They provide 78 comprehensive briefings to the Audit Committee on a quarterly basis.
These partnerships promote organic referral and lead generation opportunities and enhance our indirect sales strategy. 79 The combination of our differentiated solution and efficient go-to-market strategy has resulted in strong and consistent client growth. • Rapid domestic and international payments volume growth .
These partnerships promote organic referral and lead generation opportunities and enhance our indirect sales strategy. 83 The combination of our differentiated solution and efficient go-to-market strategy has resulted in strong and consistent client growth. • Rapid domestic and international payments volume growth .
Management believes this presentation supplements the GAAP presentation of gross margin with a useful measure of the gross margin of our payment-related services, which are the primary services we provide to our clients. • 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, (iv) employee retention costs, such as incentive compensation associated with acquisition activities and (v) the impact from the change in fair value measurement for contingent consideration associated with acquisitions.
Management believes this presentation supplements the GAAP presentation of gross margin with a useful measure of the gross margin of our payment-related services, which are the primary services we provide to our clients. • 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.
Legal Proceedings 75 From time to time, we may be subject to legal proceedings and claims in the ordinary course of business, including patent, commercial, product liability, employment, class action, whistleblower, and other litigation and claims, as well as governmental and other regulatory investigations and proceedings.
Legal Proceedings 79 From time to time, we may be subject to legal proceedings and claims in the ordinary course of business, including patent, commercial, product liability, employment, class action, whistleblower, and other litigation and claims, as well as governmental and other regulatory investigations and proceedings.
The preparation of our consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported revenue generated, and reported expenses incurred during the reporting periods.
The preparation of our consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, as well as the reported revenue generated, and reported expenses incurred during the reporting periods.
Flywire is currently engaging with OFAC to resolve these matters. Based upon the results of the internal investigation completed to date, we do not believe that the amount of any loss incurred as a result of this matter would be material to our business, financial condition, results of operations or cash flows. It em 4.
Flywire is currently engaging with OFAC to resolve these matters. Based upon the results of the internal investigation completed to date, we do not believe that the amount of any loss incurred as a result of this matter would be material to our business, financial condition, results of operations or cash flows.
These non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for revenue, gross margin or net income (loss) prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis.
These non-GAAP financial measures are not meant to be considered as indicators of performance in isolation from or as a substitute for revenue, gross profit, gross margin, operating expenses, or net income (loss) prepared in accordance with GAAP and should be read only in conjunction with financial information presented on a GAAP basis.
For additional information on our Repurchase Program, see Note 12 - Stockholders’ Equity in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. (2) Average price paid per share includes related commissions, but excludes the 1% excise tax accrued on our share repurchases as a result of the Inflation Reduction Act of 2022.
For additional information on our Repurchase Program, see Note 13 - Stockholders’ Equity in our consolidated financial statements included elsewhere in this Annual Report on Form 10-K. (b) Average price paid per share includes related commissions, but excludes the 1% excise tax accrued on our share repurchases as a result of the Inflation Reduction Act of 2022.
Inflation Risk Inflation did not have a material effect on our cash flows and results of operations during the year ended December 31, 2024. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through increase in prices of our product offerings. 105
Inflation Risk Inflation did not have a material effect on our cash flows and results of operations during the year ended December 31, 2025. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through increase in prices of our product offerings. 109
Platform and Other Revenues Our platform and other revenues primarily include (i) fees earned for the utilization of the Company's platforms to optimize cash collections and student application processing, which include revenue earned from software subscription fees and usage-based fees, (ii) fees for the establishment of payment plans on the Company's payment platform, (iii) fees related to printing, mailing, and other services which are ancillary to the solutions the Company provides to its clients, (iv) commissions from insurance providers when an end-user purchases an insurance policy, and (v) revenue from interest earned on funds held for customers in interest-bearing accounts.
Platform and Other Revenues Our platform and other revenues primarily include (i) fees earned for the utilization of our platforms to optimize cash collections and student application processing, which include revenue earned from software subscription fees and usage-based fees, (ii) fees for the establishment of payment plans on our payment platform, (iii) fees related to printing, mailing, and other services which are ancillary to the solutions we provide to our clients, (iv) commissions from insurance providers when an end-user purchases an insurance policy, and (v) revenue from interest earned on funds held for customers in interest-bearing accounts.
Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently than we do, limiting the usefulness of those measures for comparative purposes.
Our non-GAAP financial measures may not be comparable to similarly titled measures of other companies. Other companies, including companies in our industry, may calculate non-GAAP financial measures differently, limiting the usefulness of those measures for comparative purposes.
We exclude these amounts to arrive at this supplemental non-GAAP financial measure as we view these services as ancillary to the primary services we provide to our clients. • FX Neutral Revenue Less Ancillary Services - FX Neutral Revenue Less Ancillary Services represents Revenue Less Ancillary Services adjusted to show presentation on a constant currency basis.
We exclude these amounts to arrive at this supplemental non-GAAP financial measure as we view these services as ancillary to the primary services we provide to our clients. • FX Neutral Rev enue Less Ancillary Services - represents Revenue Less Ancillary Services adjusted to show presentation on a FX Neutral basis.
Financing Activities During 2024, cash used in financing activities of $37.6 million was primarily driven by common stock repurchase of $43.7 million, offset primarily by proceeds from the exercise of stock options of $5.6 million and proceeds from the issuance of stock under the ESPP of $3.1 million.
During the year ended December 31, 2024, cash used in financing activities of $37.6 million was primarily driven by common stock repurchase of $43.7 million, offset primarily by proceeds from the exercise of stock options of $5.6 million and proceeds from the issuance of stock under the ESPP of $3.1 million.
As of December 31, 2024 and 2023, there was no outstanding indebtedness under the 2024 Revolving Credit Facility and the 2021 Revolving Credit Facility. Critical Accounting Policies Our consolidated financial statements and the related notes thereto included elsewhere in this Annual Report on Form 10-K are prepared in accordance with GAAP.
As of December 31, 2025 and 2024, there was no outstanding indebtedness under the 2024 Amended Revolving Credit Facility and 2024 Revolving Credit Facility, respectively. Critical Accounting Policies and Estimates Our consolidated financial statements and the related notes thereto included elsewhere in this Annual Report on Form 10-K are prepared in accordance with GAAP.
For example, we recognize more transaction revenue as our clients engage in cross border payment flows which may increase or decrease depending on the industry in which our clients operate.
For example, we recognize more transaction revenue as our clients engage in cross border payment flows compared to domestic payments, which may increase or decrease depending on the industry in which our clients operate.
Total payment volume is comprised of transaction payment volume and platform and other revenues payment volume. The following tables set forth the increase in our total payment volume, and the payment volume mix between transaction payment volume and platform and other revenues payment volume.
The following tables set forth the increase in our total payment volume, and the payment volume mix between transaction payment volume and platform and other revenues payment volume.
Business Continuity We have a history of operating losses and while we have experienced significant revenue growth in recent years and achieved profitability on a GAAP basis in prior quarters, we are not certain whether or when we will obtain a high enough volume of revenue to sustain or increase our growth or achieve or maintain profitability in the future.
Business Continuity We have a history of operating losses and while we have experienced significant revenue growth in recent years and achieved profitability on a GAAP basis in the years ended December 31, 2024 and 2025, we are not certain whether or when we will obtain a high enough volume of revenue to sustain or increase our growth or achieve or maintain profitability in the future.
The constant currency information presented is calculated by translating current period results using prior period weighted average foreign currency exchange rates.
The FX Neutral information presented is calculated by translating current period results using prior period weighted average foreign currency exchange rates.
In particular, we intend to continue to strategically invest in headcount, to further develop our solutions, including introducing new functionality, and to expand our marketing programs and sales teams to drive new client adoption, expand strategic partner integrations, and support international and industry expansion.
In particular, we intend to continue to strategically invest in headcount and technologies and systems to improve operating efficiencies, to further develop and enhance our solutions, including introducing new functionality, and to expand our marketing programs and sales teams to drive new client adoption, expand strategic partner integrations, and support international and industry expansion.
We encourage 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, we may exclude such items and may incur income and expenses similar to these excluded items.
Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure are presented below. We encourage 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, we may exclude such items and may incur income and expenses similar to these excluded items.
A potential change in foreign exchange rates of 10% from such remeasurement would have impacted income (loss) before income taxes by approximately $24.7 million and $19.9 million for the years ended December 31, 2024 and 2023, respectively.
A potential change in foreign exchange rates of 10% from such remeasurement would have impacted income (loss) before income taxes by approximately $25.3 million and $24.7 million for the years ended December 31, 2025 and 2024, respectively.
Holders of Record As of February 21, 2025, there were approximately 25 holders of record of our voting common stock. This number does not include beneficial owners whose shares are held by nominees in street name. As of February 21, 2025, there was 1 holder of record of our non-voting common stock.
Holders of Record As of February 20, 2026, there were approximately 15 holders of record of our voting common stock. This number does not include beneficial owners whose shares are held by nominees in street name. As of February 20, 2026, there was 1 holder of record of our non-voting common stock.
The third-party service provider invoices us on a recurring basis with a fee for each payment processed and deposited into our bank account. The fee paid to third-party service providers as well as any foreign exchange banking fees paid by us are reflected in the payment processing services costs line in the consolidated statements of operations and comprehensive loss.
The third-party service provider charges us on a recurring basis with a fee for each payment processed. The fee paid to third-party service providers as well as any foreign exchange banking fees paid by us are reflected in the payment processing services costs line in the consolidated statements of operations and comprehensive income (loss).
The increase was primarily the result of the remeasurement of foreign currency intercompany loans and impact of fluctuations in exchange rates during respective remeasurement periods.
The increase was primarily the result of the remeasurement of foreign currency intercompany loans, net of related hedging instruments and the impact of fluctuations in exchange rates during respective remeasurement periods.
The increase in transaction revenue was primarily driven by growth in transaction payment volumes for the year ended December 31, 2024 from both our existing clients and new clients added during the year ended December 31, 2024, compared to the year ended December 31, 2023.
The increase in transaction revenue was primarily driven by growth in transaction payment volumes inclusive of the Sertifi acquisition for the year ended December 31, 2025 from both our existing clients and new clients added during the year ended December 31, 2025, compared to the year ended December 31, 2024.
We have grown our total payment volume by approximately 24% period-over-period from $24.0 billion during the year ended December 31, 2023 to $29.7 billion during the year ended December 31, 2024.
We have grown our total payment volume by approximately 23.6% period-over-period from $24.0 billion during the year ended December 31, 2023 to $29.7 billion during the year ended December 31, 2024. • Expanded global payments network .
This increase was driven by an increase in funds payable to clients of $37.7 million compared to the prior year primarily as a result of the timing of payments to our clients in the applicable period, partially offset by a decrease in funds receivable from payment partners of $20.1 million, as a result of the timing of collections from our partners in the applicable period.
This decrease was driven by an decrease in the change of funds receivable from payment partners of $87.1 million, as a result of the timing of collections from our partners in the applicable period, partially offset by an increase in the change of funds payable to clients of $84.5 million compared to the prior year as a result of the timing of payments to our clients in the applicable period.
Technology and Development Technology and development includes (a) costs incurred in connection with the development of our solution and the improvement of existing solutions, including the amortization of software and website development costs incurred in developing our solution, which are capitalized, and acquired developed technology, (b) site operations and other infrastructure costs incurred, (c) amortization related to capitalized cost to fulfill a contract, (d) personnel-related expenses, including salaries, stock based compensation and other expenses, (e) hardware and software engineering, consultant services and other costs associated with our technology platform and products, (f) research materials and facilities, and (g) depreciation and maintenance expense.
Technology and Development Technology and development includes (i) costs incurred in connection with the development of our solution and the improvement of existing solutions, including the amortization of software and website development costs incurred in developing our solution, which are capitalized, and acquired developed technology, (ii) site operations and other infrastructure costs incurred, (iii) amortization related to capitalized cost to fulfill a contract, (iv) personnel-related expenses, including salaries, stock-based compensation and other expenses, (v) hardware and software engineering, consultant services, and other costs associated with our technology platform and products, (vi) research materials and facilities, and (vii) depreciation and maintenance expense.
The income tax benefit for the year ended December 31, 2024 was primarily attributable to a non-recurring benefit of $4.9 million relating to the release of a portion of our valuation allowance in the U.S.
The provision for income taxes for the year ended December 31, 2025, was primarily attributable to activity in our foreign subsidiaries and U.S. state taxes. The income tax benefit for the year ended December 31, 2024 was primarily attributable to a non-recurring benefit of $4.9 million relating to the release of a portion of our valuation allowance in the U.S.
We may experience shifts in the type of revenue we earn (transaction revenue or platform and other revenues) depending on the nature of the activity of our clients and our clients’ customers on our platform. Investment in Technology and Development and Sales and Marketing We make significant investments in both new solutions and existing solution enhancement.
We may experience shifts in the type of revenue we earn (transaction revenue or platform and other revenues) depending on the nature of the activity of our clients and our clients’ customers on our platform. Digital Transformation and Operational Focus We make significant investments in both new solutions and existing solution enhancement.
Investing Activities During 2024, cash used in investing activities of $215.8 million was primarily the result of purchase of short-term and long-term investments for $193.9 million, our acquisition of Invoiced for a purchase consideration of $45.2 million, net of cash acquired and capitalization of internally developed software costs of $5.3 million, offset primarily by the proceeds from the maturity and sale of short and long-term investments of $29.6 million.
During the year ended December 31, 2024, cash used in investing activities of $214.0 million was primarily the result of the purchase of short-term and long-term investments for $192.1 million, our acquisition of Invoiced for a purchase consideration of $45.2 million, net of cash acquired, and the capitalization of internally developed software costs of $5.3 million, offset primarily by the proceeds from the maturity and sale of short-term and long-term investments of $29.6 million.
Therefore, revenue is only recognized for the fee for which we are entitled for processing the payment. We also earn revenue from fees charged to credit card service providers for marketing arrangements in which we perform certain marketing activities to increase the awareness of the credit card provider and promote certain methods of payment.
We also earn revenue from fees charged to credit card service providers for marketing arrangements in which we perform certain marketing activities to increase the awareness of the credit card provider and promote certain methods of payment.
Mine Safety Disclosures Not applicable. 76 PART II It em 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our voting common stock trades on the Nasdaq Global Select Market under the symbol “FLYW.” Our non-voting common stock is not listed on any stock exchange nor traded on any public market.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our voting common stock trades on the Nasdaq Global Select Market under the symbol “FLYW.” Our non-voting common stock is not listed on any stock exchange nor traded on any public market.
These new Australian government policies, including university quotas, slower visa processing, higher fees, and stricter financial and language requirements, has had an adverse impact on our business in the fourth quarter of 2024 and we anticipate will continue to impact our Australian revenues in 2025.
These new Australian government policies, including university quotas, slower visa processing, higher fees, and stricter financial and language requirements, has had an adverse impact on our business for the year ended December 31, 2025, and we anticipate will continue to impact our Australian revenues in 2026.
We expect to incur additional general and administrative expenses as we continue to invest in our planned growth of our business. We also expect to increase the size of our general and administrative functions to support the growth in the business, and to operate as a public company.
We expect to incur additional general and administrative expenses as we continue to invest in our planned growth of our business, including certain costs incurred relating to our digital transformation initiative. We also expect to increase the size of our general and administrative functions to support the growth in the business, and to operate as a public company.
Other governments where our client institutions are located, including in the U.S., may introduce measures from time to time to manage the growth of the international student population in their respective countries, which may have adverse effects on our business. Our U.S. market saw slower growth in the fourth quarter of 2024 due to shifting visa trends.
Other governments where our client institutions are located, including in the U.S., may introduce measures from time to time to manage the growth of the international student population in their respective countries, which may have adverse effects on our business.
Our effective tax rate was(96.8)% for the year ended December 31, 2023, compared to (5.4)% for the year ended December 31, 2022. Key Operating Metrics and Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (GAAP), we use certain non-GAAP financial measures.
Our effective tax rate was 37.0% for the year ended December 31, 2025, compared to (55.9)% for the year ended December 31, 2024. Key Operating Metrics and Non-GAAP Financial Measures To supplement our consolidated financial statements, which are prepared in accordance with generally accepted accounting principles in the United States (GAAP), we use certain non-GAAP financial measures.
The 2024 Revolving Credit Facility replaced the 2021 Revolving Credit Facility of $50.0 million, which were entered into in July 2021, under which $50.0 million was available to Flywire as of December 31, 2023.
The 2024 Revolving Credit Facility, as amended by the 2025 Revolving Credit Facility Amendment, is hereinafter referred to as the 2024 Amended Revolving Credit Facility. The 2024 Revolving Credit Facility replaced the 2021 Revolving Credit Facility of $50.0 million, which was entered into in July 2021, under which $50.0 million was available to Flywire as of December 31, 2023.
We are also exposed to interest rate risk related to our 2024 Revolving Credit Facility. Our 2024 Revolving Credit Facility consists of ABR borrowings or Term SOFR borrowings, at our option. ABR borrowings bear interest at the ABR plus the applicable rate. Term SOFR borrowings bear interest at the Adjusted Term SOFR for the interest period plus the applicable rate.
Our 2024 Amended Revolving Credit Facility consists of ABR borrowings or Term SOFR borrowings, at our option. ABR borrowings bear interest at the ABR plus the applicable rate. Term SOFR borrowings bear interest at the Adjusted Term SOFR for the interest period plus the applicable rate.
This net increase in cash provided by operating activities was also impacted by our operating cash flows from our net income (after adjustments for an increase in non-cash expenses of $9.9 million) which increased by $21.3 million for the year ended December 31, 2024, compared to the prior period, reflective of the growth in transaction payment volumes, from both our existing clients and new clients, an increase in interest income as a result of our higher cash balances and higher market interest rates, offset by increases in our costs and operating expenses, the largest of which was our payment processing services costs and an increase in losses from the remeasurement of foreign currency due to foreign currency intercompany loans and impact of fluctuations in exchange rates during respective remeasurement periods.
The increase of $1.5 million in our net cash provided by operating activities was primarily related to our net income (after adjustments for an increase in non-cash expenses of $4.3 million) which increased by $14.9 million for the year ended December 31, 2025, compared to the prior period, reflective of the growth in transaction payment volumes, from both our existing clients and new clients and an increase in gains from the remeasurement of foreign currency due to foreign currency intercompany loans and impact of fluctuations in exchange rates during respective remeasurement periods, offset by increases in our costs and operating expenses, the largest of which was our payment processing services costs.
During 2024, net cash provided by operating activities of $91.5 million was primarily the result of net income of $2.9 million adjusted for non-cash expenses of $72.2 million, which primarily consisted of stock-based compensation expense of $64.9 million and depreciation and amortization of $17.4 million, and the benefit of changes in operating assets and liabilities, net of acquisitions of $16.4 million.
During the year ended December 31, 2024, net cash provided by operating activities of $98.7 million was primarily the result of net income of $2.9 million adjusted for non-cash expenses of $82.0 million, which primarily consisted of stock-based compensation expense of $64.9 million and depreciation and amortization of $17.4 million, and the benefit of changes in operating assets and liabilities, net of acquisitions of $13.8 million.
For the year ended December 31, 2024, transaction revenue and platform and other revenues represented 86.1% and 13.9% of our total revenue less ancillary services, respectively. For the year ended December 31, 2023, transaction revenue and platform and other revenues represented 81.8% and 18.2% of our revenue, respectively.
For the year ended December 31, 2024, transaction revenue and platform and other revenues represented 83.4% and 16.6% of our revenue, respectively. For the year ended December 31, 2024, transaction revenue and platform and other revenues represented 86.1% and 13.9% of our total revenue less ancillary services, respectively.
The 2024 Revolving Credit Facility incurs a commitment fee ranging from 0.25% to 0.35% based upon our consolidated total net leverage ratio as of the most recent consolidated financial information assessed on the average available commitment. As of December 31, 2024 and 2023, there was no outstanding indebtedness under the 2024 Revolving Credit Facility and 2021 Revolving Credit Facility.
The 2024 Amended Revolving Credit Facility incurs a commitment fee ranging from 0.25% to 0.35% based upon our consolidated total net leverage ratio as of the most recent consolidated financial information assessed on the average available commitment.
For the year ended December 31, 2022, our total payment volume was approximately $18.1 billion, consisting of approximately $12.2 billion of total payment volume from transactions included in transaction revenue and approximately $5.8 billion of total payment volume from transactions included in platform and other revenues.
For the year ended December 31, 2024, our total payment volume was approximately $29.7 billion, consisting of $23.2 billion of total payment volume from transactions included in transaction revenue and $6.5 billion of total payment volume from transactions included in platform and other revenues.
The repurchased shares are currently being held as treasury stock. As of December 31, 2024, approximately $104.9 million of the originally authorized amount under the Repurchase Program remained available for future repurchases.
The repurchased shares are held as treasury stock. As of December 31, 2025, approximately $181.9 million of the authorized $300.0 million amount under the Repurchase Program remained available for future repurchases.
The increase in technology and development cost was primarily driven by an increase in personnel costs and stock-based compensation expense, offset by a decrease in amortization expense. Personnel costs were $42.1 million for the year ended December 31, 2024, compared to $38.5 million for the year ended December 31, 2023, an increase of $3.6 million or 9.4%.
The increase in technology and development cost was primarily driven by an increase in personnel costs and stock-based compensation expense. • Personnel costs were $43.7 million for the year ended December 31, 2025, compared to $42.1 million for the year ended December 31, 2024, an increase of $1.6 million or 3.8%.
The increase in platform and other revenues was primarily driven by the Invoiced and StudyLink acquisitions and revenue from interest earned on funds held for customers in interest-bearing accounts, offset by a decrease in revenue for printing and mailing and insurance products.
The increase in platform and other revenues was primarily driven by the Sertifi and Invoiced acquisitions, an increase in healthcare platform products, and revenue from interest earned on funds held for customers in interest-bearing accounts.
Delays in issuances of visas or visa denials may discourage prospective international students from choosing U.S. institutions as places for study.
Delays in issuances of visas or visa denials – which could be exacerbated by the recent U.S. government shutdown – may discourage prospective international students from choosing U.S. institutions as places for study.
The contingent consideration represents additional payments that we may be required to make in the future dependent on the successful achievement of revenue, cross-selling, product and security and IT milestones. During the year ended December 31, 2024, we made a payment of contingent consideration of $1.1 million based on Invoiced's successful and timely achievement of the contracted milestones.
The contingent consideration represented additional payments that we were required to make in the future dependent on the successful achievement of revenue, cross-selling, product, and security and IT milestones. During the years ended December 31, 2025 and 2024, we paid contingent considerations of $2.6 million and $1.1 million based on Invoiced's successful and timely achievement of contracted milestones.
For the year ended December 31, 2023, our total payment volume was over $24.0 billion, consisting of $17.7 billion of total payment volume from transactions included in transaction revenue and $6.3 billion of total payment volume from transactions included in platform and other revenues.
For the year ended December 31, 2025, our total payment volume was approximately $37.6 billion, consisting of $30.7 billion of total payment volume from transactions included in transaction revenue and $6.8 billion of total payment volume from transactions included in platform and other revenues.
On February 23, 2024, we entered into an Amended and Restated Credit Agreement for a five-year senior secured revolving credit syndication loan with four banks for a total commitment of $125.0 million, which replaced the Revolving Credit Facility of $50.0 that was in effect as of December 31, 2023.
Interest Expense On February 23, 2024, we entered into an Amended and Restated Credit Agreement for a five-year senior secured revolving credit syndication loan (2024 Revolving Credit Facility) with four banks for a total commitment of $125.0 million.
Components of Results of Operations Revenue We generate revenue from transactions and from platform and other fees as described under “Our Revenue Model”. 85 Payment Processing Services Costs Payment processing services costs consist of costs incurred to process payment transactions which include banking and credit card processing fees, foreign currency translation costs, partner fees, personnel-related expenses for our FlyMates who facilitate these payments and personnel related expenses for our FlyMates who provide implementation services to our clients.
Payment Processing Services Costs Payment processing services costs consist of costs incurred to process payment transactions which include banking and credit card processing fees, foreign currency translation costs, partner fees, personnel-related expenses for our FlyMates who facilitate these payments, and personnel-related expenses for our FlyMates who provide implementation services to our clients.
December 31, (in millions) 2024 2023 2022 Revenue (A) $ 492.1 $ 403.1 $ 289.4 Revenue less ancillary services (B) 474.2 381.5 267.1 Net loss (C) 2.9 (8.6 ) (39.3 ) EBITDA (D) (0.5 ) (0.9 ) (25.2 ) Adjusted EBITDA (E) 77.9 42.0 14.9 Net margin (C/A) 0.6 % (2.1 )% (13.6 )% Net margin using RLAS (C/B) 0.6 % (2.3 )% (14.7 )% EBITDA Margin (D/A) (0.1 )% (0.2 )% (8.7 )% Adjusted EBITDA Margin (E/A) 15.8 % 10.4 % 5.1 % EBITDA Margin using RLAS (D/B) (0.1 )% (0.2 )% (9.4 )% Adjusted EBITDA Margin using RLAS (E/B) 16.4 % 11.0 % 5.6 % 96 Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses: December 31, (in millions) 2024 2023 2022 GAAP Technology and development $ 66.6 $ 62.0 $ 50.3 (-) Stock-based compensation expense and related taxes (11.8 ) (9.2 ) (4.9 ) (-) Depreciation and amortization (7.4 ) (8.4 ) (7.8 ) (-) Acquisition related employee retention costs — (0.5 ) (1.1 ) Non-GAAP Technology and development $ 47.4 $ 43.9 $ 36.5 GAAP Selling and marketing $ 129.4 $ 107.6 $ 78.5 (-) Stock-based compensation expense and related taxes (18.3 ) (12.4 ) (7.9 ) (-) Depreciation and amortization (8.2 ) (5.2 ) (3.9 ) (-) Acquisition related employee retention costs (0.5 ) (0.4 ) (0.3 ) Non-GAAP Selling and marketing $ 102.4 $ 89.6 $ 66.4 GAAP General and administrative $ 125.8 $ 107.6 $ 82.9 (-) Stock-based compensation expense and related taxes (35.7 ) (23.6 ) (18.4 ) (-) Depreciation and amortization (3.0 ) (2.8 ) (2.4 ) (-) Acquisition related transaction costs (0.6 ) (0.4 ) (0.8 ) (-) Acquisition related employee retention costs — — (0.1 ) (-) Change in fair value of contingent consideration 1.0 (0.4 ) 2.8 Non-GAAP General and administrative $ 87.5 $ 80.4 $ 64.0 Liquidity and Capital Resources As of December 31, 2024, our principal source of liquidity is cash and cash equivalents of $495.2 million, short-term available-for-sale debt securities of $115.8 million and the available undrawn balance under our 2024 Revolving Credit Facility of $125.0 million.
Net Margin, EBITDA Margin, and Adjusted EBITDA Margin: Year Ended December 31, (in millions) 2025 2024 Revenue (A) $ 623.0 $ 492.1 Revenue less ancillary services (B) $ 603.1 $ 474.2 Net income (C) $ 13.5 $ 2.9 EBITDA (D) $ 47.0 $ (0.5) Adjusted EBITDA (E) $ 120.6 $ 77.9 Net margin (C/A) 2.2% 0.6% Net margin using RLAS (C/B) 2.2% 0.6% EBITDA Margin (D/B) 7.8% (0.1)% Adjusted EBITDA Margin (E/B) 20.0% 16.4% 101 Reconciliation of GAAP Operating Expenses to Non-GAAP Operating Expenses: Year Ended December 31, (in millions) 2025 2024 GAAP Technology and development $ 70.2 $ 66.6 (-) Stock-based compensation expense and related taxes (13.4) (11.8) (-) Depreciation and amortization (6.7) (7.4) Non-GAAP Technology and development $ 50.1 $ 47.4 GAAP Selling and marketing $ 157.0 $ 129.4 (-) Stock-based compensation expense and related taxes (19.8) (18.3) (-) Depreciation and amortization (16.3) (8.2) (-) Acquisition related employee retention costs 0.0 (0.5) Non-GAAP Selling and marketing $ 121.0 $ 102.4 GAAP General and administrative $ 135.5 $ 125.8 (-) Stock-based compensation expense and related taxes (36.5) (35.7) (-) Depreciation and amortization (3.0) (3.0) (-) Acquisition related transaction costs (2.6) (0.6) (-) Change in fair value of contingent consideration 1.9 1.0 Non-GAAP General and administrative $ 95.3 $ 87.5 Liquidity and Capital Resources As of December 31, 2025, our principal source of liquidity is cash and cash equivalents of $330.3 million, short-term available-for-sale debt securities of $24.7 million, and the available balance under our 2024 Amended Revolving Credit Facility of $300.0 million.
We experienced strong growth in transaction payment volume across most regions and verticals during the period, excluding Canada, which decreased primarily due to Canada’s international student permit applications cap introduced earlier in calendar year 2024.
We experienced strong growth in transaction payment volume across most regions and verticals during the period, excluding Canada, which decreased primarily due to Canada’s international student permit applications cap introduced earlier in 2024. Transaction payment volume increased approximately 32.3% during the year ended December 31, 2025 to $30.7 million compared to $23.2 million during the year ended December 31, 2024.
We expect to maintain these valuation allowances until it becomes more likely than not that the benefit of our deferred tax assets are realized through future taxable income generated in these jurisdictions. The Company released its valuation allowance on its net deferred tax assets in the U.K. as of December 31, 2024.
We have a valuation allowance on our net U.S. deferred tax assets, including federal and state NOLs. We expect to maintain these valuation allowances until it becomes more likely than not that the benefit of our deferred tax assets are realized through future taxable income generated in these jurisdictions.
(Loss) Gain from Remeasurement of Foreign Currency Loss from remeasurement of foreign currency was $11.8 million for the year ended December 31, 2024, compared to a gain of $4.2 million for the year ended December 31, 2023, an increase of $16.0 million or 381.0%.
Gain (Loss) from Remeasurement of Foreign Currency Gain from remeasurement of foreign currency was $7.9 million for the year ended December 31, 2025, compared to a loss of $11.8 million for the year ended December 31, 2024, an increase of $19.7 million or 166.9%.
Our ability to influence our clients to expand their customers’ usage of our platform also depends on our ability to successfully introduce new solutions, such as our solutions to support payments by international education consultants and our B2B solutions.
Our ability to influence our clients to expand their customers’ usage of our platform also depends on our ability to successfully introduce new solutions, such as our solutions to support payments by international education consultants, B2B solutions, and our student financial software (SFS) solution, which provides institutions a comprehensive platform spanning the student financial lifecycle.
… 264 more changes not shown on this page.