Company: FLYW
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000950170-25-027078
Chunk: 133

Company: Flywire Corp
Filing Date: 2025-02-26
Form: 10-K
Item: Item 1A
Chunk 133
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 wider military conflicts. Any such disruptions could also magnify the impact of other risks described in this Annual Report on Form 10-K.

In addition, political tensions between the U.S. and countries, such as Canada, Mexico and China, have recently escalated due to, among other things, priorities and executive orders from the new U.S. presidential administration, and could have an adverse effect on our operations. Rising political tensions could reduce levels of trade, investments, technological and educational exchanges, travel and other economic activities between the U.S. and such other countries, which would have a material adverse effect on global economic conditions and the stability of global financial markets. For example, the Trump administration recently confirmed its intent to impose heavy tariffs on imports from several nations, including Canada, Mexico, and China. On February 3, 2025, President Trump announced a deal to delay the imposition of tariffs on imports from Canada and Mexico by a month. However, any such tariffs, if and when enacted, and any further legislation or actions taken by the U.S. federal government (and responsive actions adopted by other countries as well) that restrict trade, such as additional tariffs, trade barriers, and other protectionist or retaliatory measures could harm our business, results of operations and financial condition. Any of these factors could have a material adverse effect on our business, prospects, financial condition and results of operations. We cannot assure you that, if the political tension between the U.S. and other countries intensifies and further regulations affecting our business are passed, our business will not be materially and adversely affected.

Inflation and heightened interest rates have and may in the future result in decreased demand for our solutions, increases in our operating costs including our labor costs, constrained credit and liquidity, and volatility in financial markets and the banking ecosystem. Although the Federal Reserve lowered interest rates by 50 basis points on September 18, 2024, interest rates remain elevated and there continues to be uncertainty in the changing market and economic conditions, including the effects of additional measures that have and could be taken by the Trump administration, the Federal Reserve and other government agencies, related to concerns over inflation risk. A sharp rise in interest rates could have an adverse impact on the fair market value of securities we may invest in as part of our portfolio investments, which could adversely affect our financial results.  

Risks Related to Our Operations 

We may not be able to scale our business quickly enough to meet our growing client base, and if we are not able to grow efficiently, our operating results could