Good day, and welcome to the Flywire third quarter of 2024 earnings conference call. All participants will be in a listen-only mode for the duration of the call, and should you need any assistance today, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one on your telephone keypad. And to withdraw a question, please press star, then two. Also, please be aware that today's call is being recorded. I would now like to turn the call over to Masha Kahn, Investor Relations. Please go ahead.
Thank you, and good afternoon. With us on today's call are Mike Massaro, Chief Executive Officer, Rob Orgel, President and Chief Operating Officer, and Cosmin Pitigoi, Chief Financial Officer. Our Third Quarter 2024 earnings press release supplemental presentation and when filed, Form 10-Q, can be found at ir.flywire.com. During the call, we'll be discussing certain forward-looking information. Actual results could differ materially from those contemplated by this forward-looking statement. We'll also be discussing certain non-GAAP financial measures.
Please refer to our press release and SEC filings for more information on the risks regarding these forward-looking statements that could cause actual results to differ materially and require disclosures and reconciliations related to non-GAAP financial measures. Unless otherwise stated, all references on this call to revenue, cost of revenue, gross profit and gross margins, sales and marketing expense, technology and development expense, and administrative expense are on non-GAAP basis. This call is being broadcast live and will be available for replay on our website. I would now like to turn the call over to Mike Massaro.
Thank you, Masha, and thank you to everyone that is joining us today. Before we go into details about the quarter, I want to provide some context on what we have accomplished as a public company and how we are looking towards the future. Since our IPO in 2021, we have doubled the business in terms of revenue and surpassed the revenue, gross profit, and Adjusted EBITDA margin objectives we had set at the time of our IPO. We plan to double the revenue yet again over the next several years while improving profitability and the cash flow generation of the company. We expect to accomplish this through a combination of business improvements we have already made and the investments we are making. We now have 4,000-plus loyal clients in 50 countries across numerous verticals and sub-verticals, with great revenue diversification.
We have more than 1,300 Flymates focused on execution and building high-performance teams. We have powerful sales and customer success engines in each industry we serve, and we have a robust global payments infrastructure that was able to support the nearly 2x total payment volume spike in Q3 compared to the average volume processed during the first two quarters of this year. Our combination of next-gen payments platform, proprietary global payment network, and vertical-specific software creates a powerful value proposition, further strengthened by our efficient go-to-market engine and existing client relationships. I am very proud of our team's product capabilities and our ability to prioritize investments to further optimize our cost structure and deliver more value to our clients, their payers, and to our shareholders. Our core business is operating well because we are focusing on the things we can control.
We are deepening our relationships and seeing revenue growth at existing clients. We are reducing the small amount of client churn we have. We are expanding our value proposition, and we are managing both gross margins and our operating costs to further deliver to the bottom line. We are landing more clients in every vertical around the world. Education continues to prosper well. We see strong growth in travel and B2B, and our healthcare business returned to modest revenue growth during the quarter as well. As well as we're doing, we continue to face a well-understood macro dynamic in our education business, specifically related to limits on foreign students imposed by the Canadian government, with potential future actions by the Australian government. These have put pressure on our revenue growth rate over the last number of quarters, despite very strong execution by our team.
Even in the face of these headwinds, Flywire continues to grow at scale, helping our clients digitize large and complex payments all over the world. With that context, I am pleased to share our Q3 2024 results with all of you, demonstrating continued strong performance across our business. Revenue less ancillary services was $151.4 million, an increase of 29.6% year over year. Adjusted gross profit for the quarter was $101.9 million, an increase of 27.2% year over year. Adjusted EBITDA was $42.2 million for the quarter, increasing by $14.7 million year over year, and adjusted EBITDA margin expanded by nearly 429 basis points year over year, with strong free cash flow conversion. As a result of our strong growth, combined with meaningful operating leverage, Flywire has been and expects to continue to be a Rule of 40 company.
We are proud that we have built a durable business where we have been able to drive solid revenue growth, gain market share, expand our total addressable market, and deliver innovative solutions to the industries we serve. As we look ahead, our goal is to continue to balance strong top-line growth with margin expansion and deliver strong cash flows and GAAP net income profitability. With that, I will now share some progress we made in Q3 against our three-pronged strategy of optimizing our go-to-market capabilities, expanding our Flywire Advantage, and strengthening our Flymate community. First, on our go-to-market capabilities, we believe we have a data-driven and disciplined approach to how we optimize revenue growth and efficiency across sales, marketing, and customer success. We prioritize high ROI marketing activities, ensuring our investments directly support revenue growth across our verticals.
All of this rigor helps drive strong revenue growth, logo retention, pipeline development, and new client signings, and at the same time, a reduction in average deal cycle time. This approach strengthens our confidence in scaling strategic investments across sales and marketing within diverse verticals and regions. By testing and optimizing initiatives in one market and expanding proven successes into another while adapting only for the essential local operating requirements, we have a proven playbook that helps us optimize our impact and ensure efficient growth across geographies. Last quarter, we held our inaugural client conference in the United States, modeled on the success of our conference in the U.K. We brought together more than 100 colleges and universities, reinforcing the significant ROI our full-suite solution is delivering to institutions who use it to manage billing, one-time payments, payment plans, and past due collections.