Voss Capital, LLC, an investment management company, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. Voss Capital’s funds, Voss Value Fund, LP, and the Voss Value Offshore Fund, Ltd returned -2.1% and -2.2%, respectively, to investors net of fees and expenses, in the fourth quarter compared to a +2.2% return for the Russell 2000 Index, +3.3% return for the Russell 2000 Value Index, and +2.7% return for the S&P 500 Index. The Voss Value Master Fund’s total gross exposure stood at 158.7%, and the delta-adjusted was 78.8% as of December 31, 2025. The weight of the Fund’s top 10 longs was 76.4%, and the top 10 shorts were -27.3%. The letter discussed the storm around Artificial Intelligence. Software companies have the highest AI adoption rates. The firm believes that early users of new technology, rather than infrastructure providers, often receive the largest long-term economic benefits. Incumbent corporations enjoy a structural advantage due to their access to engineering skills and modern multi-agent tools. In addition, you can check the firm’s top 5 holdings to determine its best picks for 2025.
In its fourth-quarter 2025 investor letter, Voss Capital highlighted stocks like Flywire Corporation (NASDAQ:FLYW). Headquartered in Boston, Massachusetts, Flywire Corporation (NASDAQ:FLYW) is a payments enablement and software company. On March 06, 2026, Flywire Corporation (NASDAQ:FLYW) stock closed at $13.28 per share. One-month return of Flywire Corporation (NASDAQ:FLYW) was 17.63%, and its shares gained 34.55% over the past 52 weeks. Flywire Corporation (NASDAQ:FLYW) has a market capitalization of $1.622 billion.
Voss Capital stated the following regarding Flywire Corporation (NASDAQ:FLYW) in its fourth quarter 2025 investor letter:
“Our largest position remains Flywire Corporation (NASDAQ:FLYW). Operating at the intersection of payments and software, FLYW targets high-value, complex verticals—such as healthcare, education, and travel—where payments are deeply entangled with core workflows, receivables, reconciliation, and compliance.
The company has dredged a formidable moat by building global payment capabilities through localized banking relationships and rails in practically every country. Because FLYW is so deeply embedded into hospital billing systems, university ERPs, and travel back-office tools, the switching costs are immense. Over 80% of FLYW’s revenue comes from processing fees (FX spreads and cross-border fees) rather than software. Because they charge customers only a nominal software subscription fee, even a “free” vibe-coded AI alternative is unlikely to warrant a second glance. Replicating this bespoke network of payment rails from scratch today would realistically take over five years and $100M+ in legal and compliance spending.
Despite this deep entrenchment and rapid scaling, a massive valuation disconnect exists. Competitors with a fraction of FLYW’s growth are being acquired at mid-to-high teens EBITDA multiples, whereas FLYW trades at just a 6x multiple on 2027 consensus EBITDA estimates. To put a finer point on it: a slightly larger private competitor, Airwallex, recently raised funds at an $8B valuation, making FLYW’s $1.1B enterprise value look remarkably compelling by comparison.”
Flywire Corporation (NASDAQ:FLYW) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 32 hedge fund portfolios held Flywire Corporation (NASDAQ:FLYW) at the end of the fourth quarter, up from 31 in the previous quarter. While we acknowledge the risk and potential of Flywire Corporation (NASDAQ:FLYW) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Flywire Corporation (NASDAQ:FLYW) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Flywire Corporation (NASDAQ:FLYW) and shared a list of small-cap software infrastructure stocks with highest upside potential. In its Q3 2025 investor letter, Voss Capital highlighted its optimistic views on Flywire Corporation (NASDAQ:FLYW). In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
