Core Viewpoint - Remitly Global (RELY) stock is considered a viable investment opportunity due to its growth, cash generation, and significant valuation discount [2] Financial Performance - Remitly Global experienced a 21% increase in active customers, reaching 8.9 million, and a 35% growth in send volume to $19.5 billion in Q3 2025 [4] - The company revised its full-year revenue forecast upward to over $1.6 billion, indicating a 28% growth, and expects a positive net income [5] - RELY has a low debt-to-equity ratio of 0.04 and demonstrates robust cash generation, reflecting solid financial health [5] Valuation Metrics - RELY stock is currently trading at a 38% discount compared to its 3-month peak, 54% below its 1-year peak, and 54% below its 2-year peak [10] - The stock provides an impressive cash flow yield of 7.4% and has shown revenue growth of 31.3% over the past twelve months [10] Market Sentiment - Despite its positive fundamentals, RELY has decreased by 44% this year due to macroeconomic challenges, competitive pricing pressures, and uncertainties regarding new digital offerings [3] Investment Potential - Companies with profiles similar to RELY can utilize cash for further revenue growth or return it to shareholders through dividends or buybacks, enhancing market appeal [2] - The average forward returns for stocks meeting specific criteria are projected at 25.7% and 57.9% over 6-month and 12-month periods, respectively [11]

Core Insights - Remitly Global has established itself as a leader in the global remittance market, with a total addressable market of $22 trillion [4] - The company reported strong growth in Q3, with active customers increasing by 21% to 8.9 million, send volume rising by 35% to $19.5 million, and revenue growing by 25% to $419.5 million, surpassing estimates [5] - Despite strong performance, Remitly's stock fell 25% following the earnings report due to guidance indicating a slowdown in revenue growth [8] Company Performance - Remitly's adjusted EBITDA rose by 29% to $61.2 million, and GAAP earnings per share increased from $0.01 to $0.04 year-over-year [7] - The company is launching new products, including Remitly One, aimed at expanding its customer base and increasing engagement [6] - The stock is currently trading at a price-to-sales ratio of 1.7 and 11 times its EBITDA forecast for the year, indicating it may be undervalued [9] Market Context - The fintech sector is experiencing a downturn, with many stocks declining due to concerns over loan losses and consumer confidence [2] - Remitly's business model, which primarily generates income from transaction fees, presents a lower credit risk compared to other fintech companies [10] - The overall housing market remains weak, and consumer discretionary spending is declining, impacting various sectors [2]

Core Viewpoint - Remitly Global is experiencing strong financial performance despite concerns over immigration changes, making it a compelling growth stock opportunity [1][2]. Financial Performance - Remitly's transfer volume grew 35% year-over-year to $19.5 billion, while revenue increased by 25% to $420 million [4]. - The company has an operating margin of 2.5% and a gross profit margin of 58%, indicating potential for margin expansion over time [6]. - The company expects to generate $1.62 billion in revenue this year, with forecasts for high-teens percentage revenue growth in 2026 [11]. Market Position - Remitly is rapidly gaining market share from traditional players like Western Union, even as the overall remittance market shows minimal growth due to U.S. immigration crackdowns [5]. - The company is expanding its offerings to small businesses, increasing its addressable market from $2 trillion to $22 trillion [7]. Product Expansion - Remitly has launched the Remitly One subscription service, which includes a wallet, debit card, and flexible payment options, enhancing customer engagement and revenue potential [8][9]. - The introduction of Remitly One allows the company to build a banking relationship with its customers, offering rewards and bonuses [8]. Investment Potential - The stock has declined significantly, down 55% from highs earlier this year and 75% since its IPO in 2021, presenting a buying opportunity [2][11]. - With potential profit margins of 20% or higher as the business matures, the forward price-to-earnings ratio could be as low as 6.5 based on projected earnings [12][13].

Core Insights - Remitly Global's shares fell 23.7% following the release of its third-quarter results and preliminary 2026 guidance, which disappointed investors [1][5]. Financial Performance - Active customers increased by 21% to 8.9 million, leading to a 35% rise in send volume to $19.5 billion [3]. - Revenue grew by 25% to $419.5 million, surpassing estimates of $413.7 million, despite a declining take rate [3][4]. - Adjusted EBITDA rose by 29% to $61.2 million [3]. - The company reported a GAAP profit of $0.04 per share, translating to a net income of $8.8 million [4]. Guidance and Market Reaction - Remitly raised its full-year revenue guidance to between $1.619 billion and $1.621 billion, indicating a growth rate of 28% [4][5]. - The company anticipates positive GAAP net income for the year and adjusted EBITDA of $234 million to $236 million [5]. - However, the initial guidance for 2026 projected revenue growth in the high teens, which is a significant slowdown compared to 2025 and below the average analyst estimate of 19.2% [5][6]. Valuation - Following the sell-off, Remitly's forward P/E ratio is positioned at 12 based on 2026 adjusted EPS estimates, suggesting it may be well-priced for potential growth [6].

Core Insights - Remitly's shares dropped 23.2% following the release of mixed third-quarter results and a disappointing forecast for the upcoming quarter [1][2] - The company reported a revenue increase of 24.7% year-over-year, but its revenue guidance of approximately $427 million for the next quarter fell short of analysts' expectations [2] - Concerns about future performance overshadowed the solid results of the recent quarter, leading to a negative market reaction [2] Financial Performance - Remitly's third-quarter revenue was better than expected, growing 24.7% from the previous year [2] - The company's guidance for adjusted EBITDA also did not meet Wall Street's projections, contributing to the stock's decline [2] - Year-to-date, Remitly's stock has decreased by 44.6%, trading at $12.41 per share, which is 54.3% below its 52-week high of $27.14 [6] Market Reaction - The stock has shown volatility, with 11 moves greater than 5% over the last year, indicating significant market impact from recent news [4] - The previous notable stock movement occurred three days prior, when shares gained 3.1% in anticipation of the third-quarter earnings report [5] - The market's perception of Remitly has been significantly affected by the recent news, suggesting a cautious outlook among investors [4]

Financial Data and Key Metrics Changes - In Q3 2025, revenue reached $419.5 million, reflecting a 25% year-over-year growth, while adjusted EBITDA was $61.2 million, representing a 15% margin [18][34] - Send volume grew 35% to $19.5 billion, with send volume per active customer increasing 11% year-over-year [18][19] - Quarterly active customers increased by 21% year-over-year to nearly 8.9 million, maintaining strong retention levels with a day rate of 2.15% [19] Business Line Data and Key Metrics Changes - Remitly Business saw a near doubling of business send volume sequentially in Q3, with nearly 10,000 businesses now using the platform [9][21] - High-amount senders experienced over 40% year-over-year send volume growth for customers sending more than $1,000, with a mix increase of over 200 basis points [12][21] - Flex, the flexible funding solution, had over 100,000 active users by the end of Q3, with revenue nearly doubling sequentially [13][22] Market Data and Key Metrics Changes - U.S. revenue grew 28%, while the rest of the world grew 20% year-over-year, reflecting a sequential deceleration due to tough comparisons [19][20] - Revenue from regions outside of India, the Philippines, and Mexico grew 31% year-over-year, with Mexico's receive revenue growth outpacing overall revenue growth [20][21] Company Strategy and Development Direction - The company aims to expand from being a leader in money movement to capturing a larger portion of the $22 trillion total addressable market [6][8] - Strategic investments in new customer categories and products, such as Remitly Business and Flex, are expected to drive sustainable revenue growth and margin expansion [10][16] - The upcoming federal remittance tax on cash transfers is anticipated to benefit the digital-first model, enhancing the competitive advantage [16][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's position and growth potential, highlighting the strong foundation built in 2025 [16][33] - The company expects revenue growth in the high teens range for 2026, influenced by new products and customer categories, despite potential immigration headwinds [33][34] - Management emphasized the importance of balancing growth with disciplined execution and maintaining profitability [39][40] Other Important Information - The company reported a GAAP net income of $8.8 million, a significant improvement from the previous year [29] - Stock-based compensation was $40 million, approximately 9.5% of revenue, reflecting a decrease compared to the previous year [29] - The company repurchased $11.9 million of shares under its $200 million authorization, demonstrating confidence in future growth [29] Q&A Session Summary Question: Insights on 2026 outlook and assumptions - Management highlighted strong execution in 2025 as a foundation for 2026, with optimism about the remittance tax and new product contributions [36][37] Question: Incremental margins and spending strategies - Management discussed maintaining a balanced approach to capital deployment, focusing on driving growth while managing expenses [39][40] Question: Economics of new products like Flex - Management provided insights on the credit profile of Flex, noting a 90% current balance and minimal charge-offs, indicating strong performance [51][54] Question: Comparison of Remitly Business to high-dollar senders - Management explained that Remitly Business has seen significant growth, with average transaction sizes roughly double those of core consumer categories [58]

Financial Performance - Remitly's 3Q25 revenue reached $419.5 million, a 25% year-over-year increase[11] - The company reported GAAP net income of $8.8 million for 3Q25[11] - Adjusted EBITDA for 3Q25 was $61.2 million, representing a 15% Adjusted EBITDA margin[11] - Send volume grew by 35% year-over-year, reaching $19.5 billion in 3Q25[34] - Quarterly active customers increased by 21% year-over-year to 8.9 million in 3Q25[34] Strategic Initiatives - Remitly Business has expanded its total addressable market (TAM) from $2 trillion to $22 trillion[17] - High Amount Senders saw a mix shift of +200 bps year-over-year to customers sending $1K+[21] - Send volume for customers sending $1K+ grew by 40% year-over-year[22] - The company is operationalizing tokenized USD for global liquidity, enabling 24/7 settlement[26] Outlook - Remitly projects 2025 revenue between $1.619 billion and $1.621 billion, representing 28% year-over-year growth[46] - The company anticipates 2025 Adjusted EBITDA between $234 million and $236 million[46] - For 4Q 2025, Remitly expects revenue between $426 million and $428 million, a 21% to 22% year-over-year increase[49] - 4Q 2025 Adjusted EBITDA is projected to be between $50 million and $52 million[49]

Customer Growth - Active customers increased to approximately 8.9 million, representing a 21% growth for the three months ended September 30, 2025, compared to the same period in 2024[125] - Active customers increased by 21% year-over-year, contributing to revenue growth and retention of existing customers[155] Send Volume - Send volume rose 35% to $19.5 billion for the three months ended September 30, 2025, up from $14.5 billion in the same period in 2024[128] - For the nine months ended September 30, 2025, send volume increased 38% to $54.2 billion, compared to $39.2 billion for the same period in 2024[128] - Send volume rose by 35% to $19.5 billion for the three months ended September 30, 2025, and by 38% to $54.2 billion for the nine months ended September 30, 2025, compared to the same periods in 2024[156] Revenue Performance - Revenue increased by 25% to $419.5 million for the three months ended September 30, 2025, and by 31% to $1.19 billion for the nine months ended September 30, 2025, compared to the same periods in 2024[153] Expenses and Costs - Transaction expenses increased by 27% to $146.7 million for the three months ended September 30, 2025, and by 31% to $411.9 million for the nine months ended September 30, 2025, primarily due to higher processing costs[157][158] - As a percentage of revenue, transaction expenses remained stable at 35% for both the three and nine months ended September 30, 2025[159] - Customer support and operations expenses increased by 21% to $26.4 million for the three months ended September 30, 2025, and by 20% to $74.0 million for the nine months ended September 30, 2025[160][161] - Customer support and operations expenses decreased as a percentage of revenue to 6% for both the three and nine months ended September 30, 2025, down from 7% in the same periods in 2024[162] - Marketing expenses increased by $17.0 million, or 23%, for the three months ended September 30, 2025, compared to the same period in 2024, driven by a $13.3 million increase in advertising and targeted marketing expenses[163] - Technology and development expenses rose by $12.0 million, or 17%, for the three months ended September 30, 2025, primarily due to an $8.7 million increase in personnel-related expenses[166] - General and administrative expenses increased by $5.1 million, or 10%, for the three months ended September 30, 2025, driven by a $2.3 million increase in provisions related to collectability from processing partners[169] Profitability and Cash Flow - Adjusted EBITDA for the three months ended September 30, 2025, was $61.2 million, compared to $47.4 million for the same period in 2024, reflecting a significant increase in operating performance[180] - As of September 30, 2025, cash and cash equivalents were $476.9 million, up from $368.1 million as of December 31, 2024, indicating improved liquidity[182] - For the nine months ended September 30, 2025, net cash provided by operating activities was $175.5 million, an increase from $138.9 million in the same period of 2024[188][189] - The cash generated from operations for the nine months ended September 30, 2025, included a net income of $26.7 million, excluding $142.0 million of noncash charges[188] - The company experienced a decrease in cash flow due to customer funds working capital changes of $38.0 million for the nine months ended September 30, 2025[188] Shareholder Actions - The company repurchased $11.9 million of its common stock during the three months ended September 30, 2025, as part of a $200 million share repurchase program approved in July 2025[183] Technology and Development - Investments in technology and development are expected to increase expenses but are projected to contribute to long-term growth[135] - The company expects to continue investing in technology and development to enhance customer experience and attract new customers[146] - Technology and development expenses as a percentage of revenue decreased to 19% for both the three and nine months ended September 30, 2025, from 20% and 22% in the same periods of 2024, respectively[168] Risk Management - The company’s risk management includes proprietary models and machine learning processes to address fraud and compliance risks[136] - The company mitigates foreign currency exchange rate risk by maintaining natural hedges and deploying derivatives, which have not materially impacted operations[205] Regulatory Environment - The impact of recent regulatory changes, including the One Big Beautiful Bill Act, is being evaluated, but no significant impact on business is anticipated[139][140] Financial Position - The company maintains a diversified cash balance portfolio to mitigate foreign currency risks associated with its international operations[138] - Net cash used in investing activities was $51.6 million for the nine months ended September 30, 2025, compared to $12.5 million for the same period in 2024, reflecting a $39.1 million increase[191] - Net cash used in financing activities decreased to $23.7 million for the nine months ended September 30, 2025, down from $128.9 million in 2024, a reduction of $105.2 million[193] - The company had no material off-balance sheet arrangements as of September 30, 2025, that would materially affect its financial condition[198] Currency Impact - A hypothetical 10% strengthening or weakening of the U.S. dollar would have resulted in a fair value change of approximately $25.4 million for customer transaction-related assets and liabilities as of September 30, 2025[204]

Customer Growth - Active customers increased to 8.9 million, up 21% from 7.3 million[5] Financial Performance - Revenue totaled $419.5 million, representing a 25% increase from $336.5 million[5] - Net income was $8.8 million, a 361% increase from $1.9 million[5] - Adjusted EBITDA was $61.2 million, up 29% from $47.4 million[5] - Net income for the nine months ended September 30, 2025, was $26,717, compared to a net loss of $31,254 for the same period in 2024[21] - Adjusted EBITDA for the nine months ended September 30, 2025, was $183,606, a significant increase from $96,468 in 2024, reflecting a 90.4% year-over-year growth[24] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $175,464, compared to $138,850 in 2024, a 26.3% increase[21] Revenue Outlook - Full year 2025 revenue outlook raised to a range of $1.619 billion to $1.621 billion, reflecting a growth rate of 28% year over year[5] - Fourth quarter 2025 revenue expected in the range of $426 million to $428 million, representing a growth rate of 21% to 22% year over year[5] - Adjusted EBITDA for 2025 expected to be in the range of $234 million to $236 million, an increase from prior outlook[5] - GAAP net income expected to be positive for 2025 and the fourth quarter[5] Asset and Liability Management - Total assets increased to $1,213,684, up from $1,012,871, representing a 19.8% growth year-over-year[19] - Total liabilities increased to $416,517 from $347,400, indicating a 19.9% rise year-over-year[19] - Stockholders' equity rose to $797,167, up from $665,471, reflecting a 19.7% increase[19] Expense Management - Customer support and operations expenses for the three months ended September 30, 2025, were $26,386, up from $21,792 in 2024, a 21.8% increase[26] - Marketing expenses for the nine months ended September 30, 2025, totaled $250,103, compared to $219,862 in 2024, reflecting a 13.7% increase[26] - Technology and development expenses for the three months ended September 30, 2025, were $80,421, an increase from $68,446 in 2024, representing a 17.5% growth[26] Strategic Focus - Company continues to focus on sustainable, profitable growth while investing in innovation[2]

Core Insights - Remitly Global, Inc. will host its first Investor Day since its IPO on December 9, 2025, at 10:00 am ET in New York City [1] - The event will include a live webcast, presentation, and on-demand replay available after the event [1] Company Overview - Remitly is a provider of digital financial services operating in over 170 countries, focusing on cross-border payments [2] - The company aims to enhance customer experience with fast, reliable, and transparent money movement [2] - Remitly is expanding its product offerings to further its vision of transforming lives globally [2]