This Small-Cap Stock is the Biggest Russell 2000 Loser Today, Here’s Why

Flywire (FLYW) stock is down more than 37% to trade at $11.05 this afternoon, on pace for its biggest daily drop in years as Wall Street reacts to its quarterly earnings report. The company’s Q4 2024 revenue of $112.8 million fell short of estimates by $8 million, primarily due to challenges in their education business segment in Canada and Australia. 

Flywire is facing substantial headwinds in these key markets, where visa policy changes are expected to drive revenue down by 30% year-over-year in 2025, prompting a cautious revenue growth guidance of 10-14% for the year.

What’s Next for Flywire?

In response to these challenges, Flywire has announced a strategic restructuring plan that will impact 10% of its workforce, aimed at optimizing costs and investments across various operational areas. 

The company's travel vertical has also emerged as a bright spot, growing over 50% in 2024 to become its second-largest segment. Travel now represents 13% of total revenue, which has led to the strategic acquisition of Sertifi for $330 million to further strengthen this business line.

Wall Street Bulls Turn Negative on FLYW

Ahead of the dismal guidance, analysts were very bullish on FLYW stock. However, multiple analysts - including Goldman Sachs, Raymond James, and JPMorgan - have now downwardly revised their expectations for FLYW, with new price targets ranging between $15 and $17.

"Even if FY25 guidance that missed Street estimates by a long shot is baking in a worst-case scenario, we do not see how investors can gain any confidence in the company's top-line growth algorithm until it strings together a few quarters of consistency," wrote BTIG’s Andrew Harte, who cut the stock to “Neutral” from “Buy.”

FLYW Stock Leads Small-Cap Decliners

With 1,934 total components, the Russell 2000 Index (RUT) is a wide-ranging benchmark of small-cap stocks. Valued at $2.19 billion by market cap, Russell 2000 constituent Flywire has the unpleasant distinction of being today’s biggest decliner across the entire index.

FLYW fell to a new all-time low of $8.62 earlier in the session, and is now down by more than 48% on a year-to-date basis. The stock looks deeply oversold, with its 14–day Relative Strength Index (RSI) now below 15 - although traders may want to wait for some initial signs of life before betting on a short-term bounce.