Industry Overview - The mobile payments market is experiencing rapid growth due to the shift from cash to digital transactions, driven by convenience and security [1][9] - Increased internet penetration and smartphone usage are contributing to the adoption of digital payments, transforming everyday transactions [3] - The industry is diversifying with contactless payment options such as mobile wallets, biometrics, and QR codes, enhancing the global digital payments market [4] Company Insights - **PayPal Holdings Inc. (PYPL)**: - Benefiting from robust growth in total payment volume and strengthening customer engagement [10][11] - Expected revenue and earnings growth rates of 4% and 12% respectively for the current year [12] - **JPMorgan Chase & Co. (JPM)**: - Projected net interest income (NII) growth at a CAGR of 2.9% by 2027, supported by business expansion and loan demand [13] - Expected revenue and earnings growth rates of -0.2% and -1.3% respectively for the current year [15] - **Intuit Inc. (INTU)**: - Strong momentum in Online Services revenues driven by Mailchimp, payroll, and Money [16] - Expected revenue and earnings growth rates of 11.7% and 13.7% respectively for the current year [19] - **ACI Worldwide Inc. (ACIW)**: - Powers electronic payments for over 5,000 organizations globally, executing $14 trillion in payments daily [21][22] - Expected revenue and earnings growth rates of 8% and 7.6% respectively for the current year [22] - **Remitly Global Inc. (RELY)**: - Engaged in providing digital financial services, with an expected revenue growth rate of 27.9% and earnings growth of over 100% for the current year [23][24]

Core Viewpoint - Remitly Global, Inc. (RELY) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][9]. Earnings Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding the company's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, the earnings estimate is $0.02 per share, representing a 100.0% increase from the previous year, with a 33.33% rise in the Zacks Consensus Estimate over the last 30 days [6]. - For the full year, the earnings estimate stands at $0.12 per share, marking a 163.2% increase from the prior year, with two estimates moving up recently and no negative revisions [7]. Zacks Rank and Performance - Remitly Global has achieved a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock outperformance [3][8]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500, with Zacks 1 stocks averaging a +25% annual return since 2008 [3][8]. Recent Stock Performance - Over the past four weeks, Remitly Global shares have increased by 9.5%, suggesting investor confidence in the company's earnings growth prospects due to the favorable estimate revisions [9].

Core Viewpoint - The article discusses the potential growth and market share gains of fintech companies SoFi Technologies and Remitly Global, suggesting they will outperform Upstart Holdings in the coming years [1][5][13]. Group 1: SoFi Technologies - SoFi Technologies has shown a strong recovery, generating positive earnings and reaching a customer base of 11.75 million, growing at a 51% compound annual rate since 2021 [3][4]. - The company's total revenue grew by 44% to $855 million in the last quarter, with net income increasing by 479% year over year to just under $100 million [4][5]. - SoFi's market cap is currently around $25 billion, with a price-to-earnings ratio (P/E) of 46, indicating potential for future growth as it expands its operations as an online bank [5]. Group 2: Remitly Global - Remitly Global, with a market cap of $3.3 billion, is a remittance services provider that has faced challenges but continues to show promise [8]. - The company reported a 34% year-over-year revenue growth to $334 million, with net income of $11 million, supported by strong unit economics and low fixed costs [11]. - With a revenue base of $1.356 billion, Remitly has the potential to achieve a market cap larger than Upstart if it continues to gain market share in the remittance sector [12]. Group 3: Upstart Holdings - Upstart Holdings has struggled to generate sufficient profit, projecting only $35 million in total net income for 2025, leading to a forward P/E of over 100 [14]. - The company has a high cost base due to significant spending on customer support, technology development, and marketing, limiting its ability to disrupt traditional lending methods [14][15]. - Upstart remains a niche player in the lending space, with a challenging path ahead compared to the brighter prospects of SoFi and Remitly [13][15].

Group 1 - Remitly Global, Inc. (RELY) closed at $18.95, with a 3.7% gain over the past four weeks, and a mean price target of $27.11 suggests a 43.1% upside potential [1] - The average price target ranges from a low of $21.00 to a high of $32.00, with a standard deviation of $3.48, indicating variability among analysts' estimates [2] - Analysts show strong agreement on RELY's ability to report better earnings than previously predicted, which supports the potential for stock upside [4][11] Group 2 - The Zacks Consensus Estimate for the current year has increased by 11.1% over the past month, with no negative revisions [12] - RELY holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimates [13] - While consensus price targets may not be reliable for predicting exact gains, they can indicate the direction of price movement [14]

Group 1 - Remitly Global, Inc. will present at a webinar and investor conference focusing on stablecoins and cross-border payment outlook [1] - The post-earnings webinar with Goldman Sachs is scheduled for August 13, 2025, at 1 p.m. Eastern Time [1] - The Goldman Sachs Communacopia + Technology Conference will take place on September 10, 2025, at 12:30 p.m. Eastern Time [1] Group 2 - Remitly operates in over 170 countries, providing digital financial services that facilitate cross-border payments [2] - The company aims to enhance its product offerings to fulfill its vision of transforming lives globally [2]

Core Insights - Remitly delivered strong Q2 results, exceeding expectations in both revenue and net income, leading to a significant increase in stock price [1][3][7] Financial Performance - Revenue grew by 34% to $411.9 million, surpassing expectations of $384.5 million [3] - Net income reached $6.5 million, a turnaround from a loss of $12.1 million in the same quarter last year, translating to a per-share profit of $0.03 [4] - Adjusted EBITDA increased from $26.2 million to $64 million [4] Customer and Market Growth - The company reported a 40% increase in send volume, totaling $18.5 billion [3] - Quarterly active customers rose by 24% to 8.5 million [3] Future Outlook - The company raised its full-year revenue guidance from $1.57 billion to a range of $1.61 billion to $1.62 billion [6][7] - Expected Q3 revenue is projected to be between $411 million and $413 million, indicating a growth of 22% to 23% [6] - A $200 million share buyback program was announced to help offset share-based compensation [7] Innovations and Strategic Initiatives - Recent innovations include Remitly Business, expanding the addressable market from $2 trillion to $22 trillion, and the upcoming Remitly One membership program [5] - The company is leveraging new technologies such as stablecoins and agentic AI to enhance services and explore new markets [6]

Financial Data and Key Metrics Changes - In Q2 2025, revenue reached $411.9 million, a 34% year-over-year increase, and adjusted EBITDA was $64 million, representing a 16% margin [30] - The company achieved GAAP profitability with a net income of $6.5 million, a significant improvement from a net loss of $12.1 million in 2024 [44] - Send volume grew by 40% to $18.5 billion, with SAN volume per active customer increasing by 12% year-over-year [32][30] Business Line Data and Key Metrics Changes - Remitly Business expanded its total addressable market (TAM) from approximately $2 trillion to over $22 trillion, targeting freelancers and small businesses [10] - The average transaction size for Remitly Business customers is nearly double that of core consumers, with retention signals tracking ahead of expectations [12] - The company onboarded thousands of businesses in Q2, indicating strong early momentum for Remitly Business [12] Market Data and Key Metrics Changes - Revenue from regions outside of India, the Philippines, and Mexico grew by 41% year-over-year, with the Mexican received business revenue growth outpacing overall revenue growth [34] - The U.S. revenue grew by 35%, driven by continued share gains, while the rest of the world grew by 40% year-over-year [34] - High amount senders saw a record year-over-year send volume growth of over 45%, with the volume mix from these customers increasing by 300 basis points [35] Company Strategy and Development Direction - The company aims to transform lives with trusted financial services that transcend borders, focusing on product innovation and expanding its customer base [7][26] - Key initiatives include the launch of Remitly One, a membership program, and the introduction of stablecoin capabilities to enhance cross-border financial services [13][20] - The company is leveraging AI to improve customer experience and drive revenue growth, with a focus on reducing friction in transactions [23][24] Management's Comments on Operating Environment and Future Outlook - Management views the upcoming remittance tax legislation as a tailwind for the business, expecting it to accelerate the shift from offline to online transactions [31] - The company is confident in its ability to sustain revenue growth and profitability, with a full-year revenue outlook of $1.61 billion to $1.62 billion, reflecting a growth rate of 27% to 28% [46] - Management emphasized the importance of innovation and customer engagement in driving long-term growth and shareholder value [28][52] Other Important Information - The company closed on a $550 million secured revolving credit facility to support rising customer transaction volumes [51] - A share repurchase program of $200 million was authorized to manage dilution and build long-term value for shareholders [51] Q&A Session Summary Question: Timeline and geographic phasing for new products - Management expressed excitement about expanding to new customer segments and does not expect new initiatives to impact marketing line items [55][57] Question: Customer profile for Remitly Wallet - The company aims to serve existing customers and capture demand from new customers moving to different countries, addressing their financial service needs [62][64] Question: Marketplace demand for stablecoins - Management noted a modest current demand for stablecoins but sees potential for future adoption, particularly in emerging markets [67][71] Question: Unit economics of stablecoin transactions - The revenue model for stablecoin transactions is expected to remain similar, leveraging the company's existing infrastructure and regulatory expertise [76][78] Question: Competition and pricing dynamics in remittances - Management highlighted the optimization of unit economics for small businesses and the potential to move upmarket over time [80][83]

Financial Performance - Remitly achieved \$412 million in revenue for 2Q25, a 34% year-over-year increase[10] - The company reported GAAP net income of \$65 million for 2Q25[10] - Adjusted EBITDA for 2Q25 was \$64 million, representing a 16% adjusted EBITDA margin[10] - Send volume grew by 40% year-over-year to reach \$185 billion in 2Q25[28] - Quarterly active customers increased by 24% year-over-year, totaling 85 million[28] Future Outlook - Remitly projects full-year 2025 revenue to be between \$1610 billion and \$1620 billion, indicating a 27% to 28% year-over-year growth[39] - The company anticipates full-year 2025 adjusted EBITDA to be between \$225 million and \$230 million[39] - For 3Q 2025, Remitly expects revenue to range from \$411 million to \$413 million, a 22% to 23% year-over-year increase[42] - 3Q 2025 adjusted EBITDA is projected to be between \$53 million and \$55 million[42] Strategic Initiatives - Remitly is expanding its total addressable market (TAM) from \$2 trillion to \$22 trillion with Remitly Business[15]

[Special Note Regarding Forward-Looking Statements](index=4&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements) This section highlights the inherent risks and uncertainties in forward-looking statements, advising caution as actual results may differ materially - This report contains forward-looking statements that involve substantial risks and uncertainties, covering future events, financial condition, business strategies, and management objectives[8](index=8&type=chunk) - Readers should not place undue reliance on these statements as actual results could differ **materially** due to various risks, including those detailed in the 'Risk Factors' section[9](index=9&type=chunk) - Key forward-looking statements concern revenue, expenses, customer acquisition and retention, product development, profitability, strategic relationships, **growth** management, market trends, employee attraction, macroeconomic conditions, security, regulatory licenses, international operations, and technology needs[11](index=11&type=chunk) [Part I. Financial Information](index=5&type=section&id=Part%20I%20Financial%20Information) This part presents the company's unaudited condensed consolidated financial statements and management's discussion and analysis of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Remitly Global, Inc. for the periods ended June 30, 2025, and December 31, 2024, prepared in accordance with GAAP and SEC interim reporting rules. It includes the balance sheets, statements of operations, comprehensive income (loss), stockholders' equity, and cash flows, along with detailed notes explaining the company's organization, accounting policies, revenue recognition, and other financial details [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This section presents the company's financial position, detailing assets, liabilities, and equity as of June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $515,896 | $368,097 | | Total current assets | $1,037,031 | $897,514 | | Total assets | $1,166,171 | $1,012,871 | | Total current liabilities | $363,749 | $329,008 | | Total liabilities | $401,249 | $347,400 | | Total stockholders' equity | $764,922 | $665,471 | [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) This section details the company's revenues, costs, and net income or loss for the three and six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Operations (in thousands, except share and per share data) | (in thousands, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $411,852 | $306,423 | $773,476 | $575,541 | | Total costs and expenses | $397,209 | $322,185 | $746,600 | $611,256 | | Income (loss) from operations | $14,643 | $(15,762) | $26,876 | $(35,715) | | Net income (loss) | $6,536 | $(12,091) | $17,888 | $(33,171) | | Basic net income (loss) per share | $0.03 | $(0.06) | $0.09 | $(0.17) | | Diluted net income (loss) per share | $0.03 | $(0.06) | $0.08 | $(0.17) | [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) This section presents the company's comprehensive income or loss, including net income and foreign currency translation adjustments Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $6,536 | $(12,091) | $17,888 | $(33,171) | | Foreign currency translation adjustments | $4,109 | $(97) | $5,842 | $(739) | | Comprehensive income (loss) | $10,645 | $(12,188) | $23,730 | $(33,910) | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This section outlines changes in the company's stockholders' equity, including common stock, additional paid-in capital, and accumulated deficit Condensed Consolidated Statements of Stockholders' Equity (in thousands, except share data) | (in thousands, except share data) | Balance as of January 1, 2025 | Balance as of June 30, 2025 | | :--- | :--- | :--- | | Common Stock (Shares) | 200,534,626 | 206,091,275 | | Common Stock (Amount) | $20 | $21 | | Additional Paid-in Capital | $1,195,390 | $1,271,110 | | Accumulated Other Comprehensive Income (Loss) | $(1,658) | $4,184 | | Accumulated Deficit | $(528,281) | $(510,393) | | Total Stockholders' Equity | $665,471 | $764,922 | Condensed Consolidated Statements of Stockholders' Equity (in thousands, except share data) | (in thousands, except share data) | Balance as of January 1, 2024 | Balance as of June 30, 2024 | | :--- | :--- | :--- | | Common Stock (Shares) | 188,435,952 | 195,095,978 | | Common Stock (Amount) | $19 | $20 | | Additional Paid-in Capital | $1,020,286 | $1,103,760 | | Accumulated Other Comprehensive Loss | $335 | $(404) | | Accumulated Deficit | $(491,303) | $(524,474) | | Total Stockholders' Equity | $529,337 | $578,902 | [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This section summarizes the company's cash flows from operating, investing, and financing activities for the six months ended June 30, 2025, and 2024 Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $174,094 | $(7,909) | | Net cash used in investing activities | $(32,565) | $(8,570) | | Net cash used in financing activities | $(3,899) | $(118,631) | | Effect of foreign exchange rate changes on cash, cash equivalents, and restricted cash | $10,182 | $(1,229) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $147,812 | $(136,339) | | Cash, cash equivalents, and restricted cash at end of period | $517,629 | $188,690 | [Notes to Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements, covering accounting policies and specific financial items [Note 1. Organization and Description of Business](index=11&type=section&id=1.%20Organization%20and%20Description%20of%20Business) This note describes Remitly Global, Inc. as a Delaware-incorporated digital financial services provider specializing in cross-border payments - Remitly Global, Inc. is a Delaware-incorporated company headquartered in Seattle, Washington, providing digital financial services for cross-border payments[29](index=29&type=chunk) - The company operates a digitally native, cross-border payments app with a global footprint spanning over **170 countries**, focusing on fast, reliable, and transparent money movement[30](index=30&type=chunk) [Note 2. Basis of Presentation and Summary of Significant Accounting Policies](index=11&type=section&id=2.%20Basis%20of%20Presentation%20and%20Summary%20of%20Significant%20Accounting%20Policies) This note outlines the basis for preparing the unaudited financial statements and summarizes key accounting policies and management estimates - The unaudited condensed consolidated financial statements adhere to GAAP and SEC interim reporting rules, with year-end data derived from audited statements[32](index=32&type=chunk) - Management uses estimates and assumptions for financial reporting, including revenue recognition, transaction loss reserves, stock-based compensation, and asset valuations[35](index=35&type=chunk) Advertising Expenses (in millions) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Advertising expenses | $64.5 | $56.8 | $118.1 | $108.5 | [Note 3. Revenue](index=12&type=section&id=3.%20Revenue) This note details the company's revenue recognition policies, primarily from transaction fees and foreign exchange spreads, and provides geographical revenue breakdown - Primary revenue sources are transaction fees and foreign exchange spreads, recognized when funds are delivered to the recipient[42](index=42&type=chunk) - The company acts as the principal in fulfilling payment transactions, bearing primary responsibility and controlling service aspects[47](index=47&type=chunk) Sales Incentives (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Reduction to revenue | $11,348 | $9,051 | $21,111 | $17,829 | | Marketing expenses | $6,281 | $5,023 | $10,733 | $11,642 | | Total sales incentives | $17,629 | $14,074 | $31,844 | $29,471 | Revenue by Geography (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | United States | $272,427 | $201,884 | $509,727 | $377,277 | | Canada | $41,858 | $34,710 | $80,504 | $67,659 | | Rest of world | $97,567 | $69,829 | $183,245 | $130,605 | | Total revenue | $411,852 | $306,423 | $773,476 | $575,541 | [Note 4. Prepaid Expenses & Other Current Assets](index=13&type=section&id=4.%20Prepaid%20Expenses%20%26%20Other%20Current%20Assets) This note provides a breakdown of the company's prepaid expenses and other current assets as of June 30, 2025, and December 31, 2024 Prepaid Expenses and Other Current Assets (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Prepaid expenses | $25,028 | $22,529 | | Tenant improvement allowance and other receivables | $19,405 | $4,128 | | Payment card receivable | $13,722 | $11,677 | | Tax receivable | $3,419 | $3,250 | | Prepaid compensation arrangements | $2,254 | $2,099 | | Restricted cash | $664 | $658 | | Other prepaid expenses and other current assets | $2,958 | $2,177 | | Total | $67,450 | $46,518 | [Note 5. Property and Equipment](index=14&type=section&id=5.%20Property%20and%20Equipment) This note details the company's property and equipment, net, including capitalized internal-use software and depreciation expenses Property and Equipment, Net (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Capitalized internal-use software | $47,967 | $39,627 | | Computer and office equipment | $10,815 | $8,440 | | Furniture and fixtures | $5,001 | $2,853 | | Leasehold improvements | $20,683 | $8,720 | | Projects in process | $999 | $7,672 | | Total gross property and equipment | $85,465 | $67,312 | | Less: Accumulated depreciation and amortization | $(38,202) | $(35,746) | | Property and equipment, net | $47,263 | $31,566 | Depreciation and Amortization Expense (Property and Equipment) (in millions) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Depreciation and amortization expense | $4.2 | $2.7 | $7.6 | $5.2 | Capitalized Internal-Use Software Costs and Amortization (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Total capitalized internal-use software costs | $4,293 | $4,406 | $8,340 | $9,262 | | Stock-based compensation costs capitalized | $1,230 | $1,281 | $2,328 | $2,768 | | Amortization expense | $2,871 | $1,845 | $5,277 | $3,494 | Long-Lived Assets by Geography (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | United States | $45,373 | $30,141 | | Israel | $3,423 | $4,245 | | Rest of world | $11,332 | $10,182 | | Total long-lived assets | $60,128 | $44,568 | [Note 6. Intangible Assets](index=15&type=section&id=6.%20Intangible%20Assets) This note provides information on the company's identifiable intangible assets, their net carrying amounts, and amortization schedules Identifiable Intangible Assets, Net (in thousands) | (in thousands) | Gross Carrying Amount (June 30, 2025) | Accumulated Amortization (June 30, 2025) | Net Carrying Amount (June 30, 2025) | Weighted Average Estimated Remaining Useful Life (Years) (June 30, 2025) | | :--- | :--- | :--- | :--- | :--- | | Trade name | $1,000 | $(833) | $167 | 0.5 | | Customer relationships | $8,500 | $(5,313) | $3,187 | 1.5 | | Developed technology | $12,000 | $(9,060) | $2,940 | 0.5 | | Total | $21,500 | $(15,206) | $6,294 | | Identifiable Intangible Assets, Net (in thousands) | (in thousands) | Gross Carrying Amount (December 31, 2024) | Accumulated Amortization (December 31, 2024) | Net Carrying Amount (December 31, 2024) | Weighted Average Estimated Remaining Useful Life (Years) (December 31, 2024) | | :--- | :--- | :--- | :--- | :--- | | Trade name | $1,000 | $(667) | $333 | 1.0 | | Customer relationships | $8,500 | $(4,250) | $4,250 | 2.0 | | Developed technology | $12,000 | $(6,120) | $5,880 | 1.0 | | Total | $21,500 | $(11,037) | $10,463 | | Intangible Asset Amortization Expense (in millions) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Amortization expense | $2.1 | $1.2 | $4.2 | $2.4 | Expected Future Intangible Asset Amortization (as of June 30, 2025) (in thousands) | (in thousands) | Amount | | :--- | :--- | | Remainder of 2025 | $4,169 | | 2026 | $2,125 | | Total | $6,294 | [Note 7. Fair Value Measurements](index=15&type=section&id=7.%20Fair%20Value%20Measurements) This note discusses the fair value measurements of financial instruments, noting that carrying values approximate fair values due to short maturities - **No financial assets or liabilities were measured at fair value** on a recurring basis as of **June 30, 2025**, and **December 31, 2024**[57](index=57&type=chunk) - The carrying values of certain financial instruments (disbursement prefunding, customer funds receivable, accounts payable, accrued expenses, customer liabilities, short-term and long-term debt) approximate their fair values due to short maturities and would be classified as Level **2** if measured at fair value[58](index=58&type=chunk) [Note 8. Debt](index=15&type=section&id=8.%20Debt) This note details the company's revolving credit facility, including its terms, outstanding borrowings, and compliance with financial covenants - In **June 2025**, Remitly entered into a new **$550.0 million** **2025** Revolving Credit Facility, replacing the previous **2021** facility, with a maturity date of **June 24, 2030**[59](index=59&type=chunk) - The **2025** facility supports customer flow prefunding and general corporate purposes, with capitalized debt issuance costs of **$3.1 million**[59](index=59&type=chunk) - As of **June 30, 2025**, the Company had **no outstanding borrowings** and **$497.2 million** in unused borrowing capacity under the **2025** Revolving Credit Facility, and was in **compliance with all financial covenants**[63](index=63&type=chunk)[61](index=61&type=chunk) [Note 9. Net Income (Loss) Per Common Share](index=17&type=section&id=9.%20Net%20Income%20(Loss)%20Per%20Common%20Share) This note presents the calculation of basic and diluted net income or loss per common share, including the impact of dilutive securities Net Income (Loss) Per Common Share (in thousands, except share and per share data) | (in thousands, except share and per share data) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) attributable to common stockholders | $6,536 | $(12,091) | $17,888 | $(33,171) | | Weighted-average shares (Basic) | 204,693,035 | 193,452,628 | 203,226,963 | 191,650,713 | | Effect of dilutive securities | 14,284,526 | — | 15,477,375 | — | | Weighted-average shares (Diluted) | 218,977,561 | 193,452,628 | 218,704,338 | 191,650,713 | | Basic EPS | $0.03 | $(0.06) | $0.09 | $(0.17) | | Diluted EPS | $0.03 | $(0.06) | $0.08 | $(0.17) | Anti-Dilutive Securities Not Included in Diluted EPS | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Stock options outstanding | 1,250 | 9,406,325 | 1,250 | 9,406,325 | | RSUs outstanding | 1,443,143 | 25,198,287 | 1,443,143 | 25,198,287 | | ESPP | 378,790 | 1,128,472 | 378,790 | 1,128,472 | | Unvested common stock (acquisition-related) | — | 52,040 | — | 52,040 | | Total | 1,823,183 | 35,785,124 | 1,823,183 | 35,785,124 | [Note 10. Common Stock](index=17&type=section&id=10.%20Common%20Stock) This note provides information on authorized and outstanding common stock, dividend policies, and charitable contributions of shares - As of **June 30, 2025**, the Company has **725,000,000** authorized shares of common stock (**$0.0001** par value), with each share granting **one** vote[71](index=71&type=chunk) - **No dividends were declared or paid** during the six months ended **June 30, 2025**, and **2024**[71](index=71&type=chunk) - The Company donated **45,490** shares of common stock to the Remitly Philanthropy Fund on **March 7, 2025**, and **June 12, 2025**, resulting in a **$0.9 million** and **$1.9 million** charge to 'General and administrative expenses' for the three and six months ended **June 30, 2025**, respectively[73](index=73&type=chunk) [Note 11. Stock-Based Compensation](index=19&type=section&id=11.%20Stock-Based%20Compensation) This note details the company's stock-based compensation plans, including option and RSU activity, and the associated compensation expense - As of **June 30, 2025**, **17,676,055** awards remain available for issuance under the **2021** Plan and **8,429,925** under the ESPP[75](index=75&type=chunk) Stock Option Activity (Six Months Ended June 30, 2025) (in thousands, except share and per share data) | (in thousands, except share and per share data) | Number of Options Outstanding | Weighted-Average Exercise Price | | :--- | :--- | :--- | | Balances as of January 1, 2025 | 8,240,251 | $4.58 | | Exercised | (1,365,728) | $3.34 | | Forfeited | (11,190) | $7.53 | | Balances as of June 30, 2025 | 6,863,333 | $4.82 | | Vested and exercisable as of June 30, 2025 | 6,862,831 | $4.82 | Restricted Stock Unit Activity (Six Months Ended June 30, 2025) | | Number of Shares | Weighted-Average Grant-Date Fair Value Per Share | | :--- | :--- | :--- | | Unvested at January 1, 2025 | 23,886,131 | $15.81 | | Granted | 6,324,001 | $20.95 | | Vested | (4,165,864) | $15.01 | | Cancelled/forfeited | (1,902,346) | $15.97 | | Unvested at June 30, 2025 | 24,141,922 | $17.28 | Stock-Based Compensation Expense (Net of Capitalized Amounts) (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Customer support and operations | $453 | $259 | $709 | $612 | | Marketing | $4,747 | $4,521 | $8,874 | $8,500 | | Technology and development | $21,873 | $20,354 | $43,110 | $39,981 | | General and administrative | $10,993 | $12,023 | $21,165 | $22,152 | | Total | $38,066 | $37,157 | $73,858 | $71,245 | - Total unamortized compensation cost for non-vested equity awards was **$338.0 million** as of **June 30, 2025**, to be amortized over approximately **2.6 years**[82](index=82&type=chunk) [Note 12. Restructuring Initiatives](index=21&type=section&id=12.%20Restructuring%20Initiatives) This note discusses the company's restructuring activities, including costs incurred for severance, primarily in the prior year period - The Company had **no material restructuring initiatives** for the three and six months ended **June 30, 2025**[83](index=83&type=chunk) - In the six months ended **June 30, 2024**, the Company incurred **$0.8 million** in restructuring costs, primarily for severance, completing initiatives that began in Q**3** **2023**[84](index=84&type=chunk) [Note 13. Income Taxes](index=23&type=section&id=13.%20Income%20Taxes) This note explains the company's effective tax rates and the factors influencing them, including foreign income tax rates and valuation allowances Effective Tax Rates | | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Effective tax rate | 19.4% | (37.4)% | 22.4% | (14.8)% | - Differences from the U.S. federal statutory rate (**21.0%**) are due to foreign income tax rates, changes in U.S. valuation allowance, non-deductible stock-based compensation, and discrete income tax benefits[87](index=87&type=chunk) - The Company maintains a **full valuation allowance** against U.S. net deferred tax assets, expecting it to continue for the foreseeable future[88](index=88&type=chunk) [Note 14. Commitments and Contingencies](index=23&type=section&id=14.%20Commitments%20and%20Contingencies) This note outlines the company's contractual commitments, including cloud infrastructure and lease agreements, and the reserve for transaction losses - The Company has entered into a **five-year** cloud infrastructure arrangement in **July 2025** for **$134.5 million**, **increasing** future minimum purchase commitments[93](index=93&type=chunk) - During Q**2** **2025**, new lease agreements for corporate facilities were entered into, with terms of **one** to **seven years** and contractual commitments of **$12.6 million**[94](index=94&type=chunk) Reserve for Transaction Losses (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Beginning balance | $4,612 | $3,388 | $3,585 | $3,359 | | Provisions for transaction losses | $28,016 | $16,292 | $45,922 | $27,660 | | Losses incurred, net of recoveries | $(26,447) | $(15,996) | $(43,326) | $(27,335) | | Ending balance | $6,181 | $3,684 | $6,181 | $3,684 | [Note 15. Accrued Expenses & Other Current Liabilities](index=24&type=section&id=15.%20Accrued%20Expenses%20%26%20Other%20Current%20Liabilities) This note provides a breakdown of the company's accrued expenses and other current liabilities as of June 30, 2025, and December 31, 2024 Accrued Expenses and Other Current Liabilities (in thousands) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Trade settlement liability | $56,365 | $33,946 | | Accrued transaction expense | $25,919 | $21,949 | | Accrued marketing expense | $17,921 | $19,258 | | Accrued salary, benefits, and related taxes | $17,194 | $11,704 | | Reserve for transaction losses | $6,181 | $3,585 | | Accrued taxes and taxes payable | $6,070 | $5,888 | | ESPP employee contributions | $4,691 | $4,043 | | Accrued property and equipment purchases | $883 | $2,755 | | Other accrued expenses | $15,762 | $13,524 | | Total | $150,986 | $116,652 | [Note 16. Supplemental Cash Flow Information](index=24&type=section&id=16.%20Supplemental%20Cash%20Flow%20Information) This note provides additional details on non-cash investing and financing activities and other supplemental cash flow disclosures Supplemental Cash Flow Information (Six Months Ended June 30) (in thousands) | (in thousands) | 2025 | 2024 | | :--- | :--- | :--- | | Cash paid for interest | $3,523 | $1,269 | | Cash paid for income taxes, net of refunds | $2,050 | $3,239 | | Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $3,290 | $5,310 | | Stock-based compensation expense capitalized to internal-use software | $2,328 | $2,768 | | Unpaid property and equipment purchases in accounts payable and accrued expenses and other current liabilities | $1,301 | $142 | | Unpaid taxes related to net share settlement of equity awards in accrued expenses and other current liabilities | $1,061 | — | [Note 17. Segment Reporting](index=25&type=section&id=17.%20Segment%20Reporting) This note clarifies that the company operates as a single operating segment, with the CEO reviewing consolidated results for profitability assessment - The Company operates as **one operating segment**, with the CEO reviewing consolidated operating results and net income (loss) as the primary measure of segment profitability[98](index=98&type=chunk)[99](index=99&type=chunk) - The CODM is regularly provided with **significant** segment expenses, including advertising expense and stock-based compensation expense, in addition to those reported in the Consolidated Statements of Operations[101](index=101&type=chunk) Reconciliation of Significant Segment Expenses to Net Income (Loss) (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $411,852 | $306,423 | $773,476 | $575,541 | | Transaction expenses | $(143,756) | $(107,780) | $(265,149) | $(197,661) | | Customer support and operations, excluding stock-based compensation expense | $(24,621) | $(19,740) | $(46,938) | $(39,506) | | Marketing, excluding stock-based compensation expense and advertising expense | $(15,685) | $(15,703) | $(31,398) | $(28,039) | | Technology and development, excluding stock-based compensation expense | $(55,623) | $(47,200) | $(108,237) | $(90,779) | | General and administrative, excluding stock-based compensation expense | $(48,588) | $(33,866) | $(91,245) | $(67,910) | | Advertising expense | $(64,544) | $(56,832) | $(118,053) | $(108,531) | | Stock-based compensation expense, net | $(38,066) | $(37,157) | $(73,858) | $(71,245) | | Depreciation and amortization | $(6,326) | $(3,907) | $(11,722) | $(7,585) | | Interest income | $2,061 | $1,942 | $3,848 | $4,168 | | Interest expense | $(1,650) | $(745) | $(2,949) | $(1,514) | | Provision for income taxes | $(1,578) | $(3,290) | $(5,168) | $(4,288) | | Other segment income (expense), net | $(6,940) | $5,764 | $(4,719) | $4,178 | | Net income (loss) | $6,536 | $(12,091) | $17,888 | $(33,171) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on Remitly's financial condition and results of operations for the three and six months ended June 30, 2025, compared to the same periods in 2024. It covers the company's business overview, key performance metrics, factors influencing performance, detailed analysis of revenue and expenses, non-GAAP financial measures, and liquidity and capital resources [Overview](index=27&type=section&id=Overview) This section provides a business overview of Remitly, highlighting its digital financial services for cross-border payments and key operational differentiators - Remitly is a digital financial services provider specializing in cross-border payments, operating in over **170 countries** with a focus on speed, reliability, and transparency[105](index=105&type=chunk) - The company's differentiated approach includes broad and high-quality disbursement options (**5.0 billion** bank accounts/mobile wallets, **460,000** cash pick-up options), a mobile-first app with high user ratings (**4.9 iOS**, **4.8 Android**), a global money movement network, and superior technology leveraging AI/ML for fraud, pricing, and customer support[106](index=106&type=chunk)[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) - Revenue is generated from transaction fees and foreign exchange spreads, which are reduced by customer promotions and sales incentives[110](index=110&type=chunk)[111](index=111&type=chunk)[112](index=112&type=chunk)[113](index=113&type=chunk) [Key Performance Metrics](index=28&type=section&id=Key%20Performance%20Metrics) This section presents key operational metrics, including active customers and send volume, illustrating the company's growth and market penetration Active Customers (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | | Active customers | 8,511 | 6,851 | 24% increase | - The **increase** in active customers was driven by new customer acquisition, mobile app investments, **efficient** marketing, customer experience focus, global disbursement network expansion, and diversification across send and receive countries[116](index=116&type=chunk) Send Volume (in millions) | (in millions) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (YoY) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (YoY) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Send volume | $18,477 | $13,241 | 40% increase | $34,635 | $24,705 | 40% increase | - Send volume **growth** was primarily driven by the **increase** in active customers, with major receive countries including India, Mexico, and the Philippines[119](index=119&type=chunk)[118](index=118&type=chunk) [Key Factors Affecting Our Performance](index=29&type=section&id=Key%20Factors%20Affecting%20Our%20Performance) This section discusses critical factors influencing the company's financial performance, such as customer retention, new customer acquisition, seasonality, technology investments, and macroeconomic conditions - Performance is driven by customer retention and high engagement, with existing customers providing recurring revenue due to non-discretionary needs[120](index=120&type=chunk)[121](index=121&type=chunk) - Attracting new customers is crucial for long-term **growth**, achieved through new corridors, product innovation, digital marketing, and word-of-mouth referrals[122](index=122&type=chunk) - Operating results are subject to seasonality, with active customers and send volume typically peaking in Q**4** due to holidays, leading to higher marketing costs and transaction losses[125](index=125&type=chunk) - The company continues to invest **significantly** in technology to introduce new products, enhance customer experience, expand its network, and improve risk/security infrastructure, expecting **increased** expenses but long-term **growth**[126](index=126&type=chunk) - Macroeconomic and geopolitical factors, including inflation, currency fluctuations, and regulatory changes (like the U.S. OBBBA tax on outbound remittances), impact demand and operations, though the company expects the OBBBA tax to have an **immaterial** impact[128](index=128&type=chunk)[130](index=130&type=chunk) [Components of Results of Operations](index=31&type=section&id=Components%20of%20Results%20of%20Operations) This section defines the primary components of the company's results of operations, including revenue, transaction expenses, marketing, technology and development, and general and administrative expenses - Revenue is derived from transaction fees and foreign exchange spreads, recognized upon fund delivery[132](index=132&type=chunk) - Transaction expenses include fees to disbursement partners and payment processors, provisions for transaction losses, chargebacks, and fraud prevention tools[133](index=133&type=chunk) - Technology and development expenses cover personnel, professional services, and software subscriptions for product development and infrastructure, excluding capitalized internal-use software amortization[136](index=136&type=chunk) - General and administrative expenses include personnel for finance, legal, compliance, HR, facilities, professional services, and other corporate costs, including acquisition and integration expenses[138](index=138&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) This section provides a detailed analysis of the company's consolidated financial performance, including revenue, costs, and net income or loss for the reported periods Consolidated Results of Operations Summary (dollars in thousands) | (dollars in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change (Amount) | Change (Percent) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change (Amount) | Change (Percent) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | $411,852 | $306,423 | $105,429 | 34% | $773,476 | $575,541 | $197,935 | 34% | | Total costs and expenses | $397,209 | $322,185 | $75,024 | 23% | $746,600 | $611,256 | $135,344 | 22% | | Income (loss) from operations | $14,643 | $(15,762) | $30,405 | nm | $26,876 | $(35,715) | $62,591 | nm | | Net income (loss) | $6,536 | $(12,091) | $18,627 | nm | $17,888 | $(33,171) | $51,059 | nm | - Revenue **increased** **34%** for both the three and six months ended **June 30, 2025**, driven by a **24% increase** in active customers, strong retention, favorable foreign currency movement, and a shift towards digital disbursements[146](index=146&type=chunk) - Transaction expenses **increased** **33% (QoQ)** and **34% (YTD)**, primarily due to higher transaction volumes and an **increase** in the provision for transaction losses, remaining flat at **35%** and **34%** of revenue, respectively[148](index=148&type=chunk)[149](index=149&type=chunk)[150](index=150&type=chunk) - Marketing expenses **increased** **10% (QoQ)** and **9% (YTD)**, driven by advertising and personnel costs, but **decreased** as a percentage of revenue to **21% (QoQ)** and **20% (YTD)** due to efficiency gains[154](index=154&type=chunk)[155](index=155&type=chunk)[156](index=156&type=chunk) - General and administrative expenses **increased** **30% (QoQ)** and **25% (YTD)**, mainly due to **increased** provisions for collectability from processing partners, personnel costs, and charitable contributions, but **decreased** as a percentage of revenue to **14% (QoQ)** and **15% (YTD)**[160](index=160&type=chunk)[161](index=161&type=chunk)[162](index=162&type=chunk) - Depreciation and amortization **increased** **62% (QoQ)** and **55% (YTD)**, primarily due to **increased** amortization of intangibles and internal-use software[163](index=163&type=chunk) [Non-GAAP Financial Measures](index=34&type=section&id=Non-GAAP%20Financial%20Measures) This section presents non-GAAP financial measures, specifically Adjusted EBITDA, and reconciles them to the most directly comparable GAAP financial measures - Adjusted EBITDA is used to supplement net income (loss) and is calculated by adjusting for interest, taxes, depreciation, amortization, other income/expense, common stock donations, stock-based compensation, payroll taxes, and certain integration/restructuring costs[169](index=169&type=chunk) Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $6,536 | $(12,091) | $17,888 | $(33,171) | | Interest income, net | $(411) | $(1,197) | $(899) | $(2,654) | | Provision for income taxes | $1,578 | $3,290 | $5,168 | $4,288 | | Depreciation and amortization | $6,326 | $3,907 | $11,722 | $7,585 | | Other (income) expense, net | $6,940 | $(5,962) | $4,719 | $(4,393) | | Donation of common stock | $907 | — | $1,866 | — | | Stock-based compensation expense, net | $38,066 | $37,157 | $73,858 | $71,245 | | Payroll taxes related to stock-based compensation expense, net | $1,519 | $1,144 | $4,659 | $4,659 | | Integration, restructuring, and other costs | $2,536 | — | $3,444 | $1,468 | | Adjusted EBITDA | $63,997 | $26,248 | $122,425 | $49,027 | - Adjusted EBITDA **increased** **significantly** to **$64.0 million (QoQ)** and **$122.4 million (YTD)** from **$26.2 million** and **$49.0 million** in the prior year periods, respectively[171](index=171&type=chunk) [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) This section discusses the company's financial liquidity, capital resources, cash flow activities, and ability to meet its short-term and long-term obligations - As of **June 30, 2025**, principal liquidity sources were **$515.9 million** in cash and cash equivalents and funds available under the **$550.0 million** **2025** Revolving Credit Facility[173](index=173&type=chunk) - The company believes current liquidity is **sufficient** for working capital requirements for at least the next **twelve months**, with future capital needs dependent on revenue **growth**, market expansion, and product development[174](index=174&type=chunk)[175](index=175&type=chunk) Summary of Condensed Consolidated Statements of Cash Flows (in thousands) | (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $174,094 | $(7,909) | | Net cash used in investing activities | $(32,565) | $(8,570) | | Net cash used in financing activities | $(3,899) | $(118,631) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $147,812 | $(136,339) | - Net cash provided by operating activities was **$174.1 million** for H**1** **2025**, a **significant** **improvement** from net cash used of **$7.9 million** in H**1** **2024**, driven by **growth** and timing impacts on customer funds working capital[179](index=179&type=chunk)[180](index=180&type=chunk) - Net cash used in investing activities **increased** to **$32.6 million** in H**1** **2025** from **$8.6 million** in H**1** **2024**, primarily due to **increased** purchases of property and equipment, including leasehold improvements for corporate headquarters[182](index=182&type=chunk) - Net cash used in financing activities **decreased** to **$3.9 million** in H**1** **2025** from **$118.6 million** in H**1** **2024**, mainly due to a reduction in net repayments on revolving credit facilities[184](index=184&type=chunk) - The Company has **no material** off-balance sheet arrangements as of **June 30, 2025**[189](index=189&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=39&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section outlines Remitly's exposure to market risks, specifically credit risk and foreign currency exchange rate risk, and the strategies employed to mitigate these risks. It details how the company manages potential losses from payment provider defaults and currency fluctuations inherent in its cross-border payment operations - The Company is exposed to credit risk from pay-in payment providers and disbursement partners, mitigated by engaging reputable partners, performing credit reviews, and negotiating postfunding arrangements[194](index=194&type=chunk) - Principal foreign exchange rate risk exposures include fluctuations between transaction initiation and disbursement, and translation risk from international operations denominated in foreign currencies[195](index=195&type=chunk)[196](index=196&type=chunk) - A hypothetical **10% strengthening or weakening** of the U.S. dollar would result in an approximate **$15.6 million (June 30, 2025)** or **$17.4 million (December 31, 2024)** change in the fair value of unhedged customer transaction-related assets and liabilities[196](index=196&type=chunk) - The Company minimizes foreign currency exposures through natural hedges between current assets and liabilities in similar foreign currencies and does not currently use derivatives for hedging[197](index=197&type=chunk) [Item 4. Controls and Procedures](index=40&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on management's evaluation of the effectiveness of the company's disclosure controls and procedures and confirms no material changes in internal control over financial reporting during the quarter ended June 30, 2025 - Management, including the CEO and CFO, concluded that disclosure controls and procedures were **effective** at a reasonable assurance level as of **June 30, 2025**[198](index=198&type=chunk) - There were **no changes** in internal control over financial reporting during the quarter ended **June 30, 2025**, that **materially** affected or are reasonably likely to **materially** affect internal control over financial reporting[199](index=199&type=chunk) [Part II. Other Information](index=41&type=section&id=Part%20II%20Other%20Information) This part covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits filed with the report [Item 1. Legal Proceedings](index=41&type=section&id=Item%201.%20Legal%20Proceedings) This section addresses the company's involvement in legal proceedings, stating that any potential liability from such matters is not expected to have a material adverse effect on the business or financial condition - The Company is occasionally involved in various legal proceedings in the ordinary course of business, including intellectual property, labor, and contract claims[200](index=200&type=chunk) - Management believes that any liability from these proceedings would not have a **material** adverse effect on the business or financial condition[200](index=200&type=chunk) [Item 1A. Risk Factors](index=41&type=section&id=Item%201A.%20Risk%20Factors) This section directs readers to the comprehensive discussion of risk factors in the company's Annual Report on Form 10-K for the year ended December 31, 2024, emphasizing their potential impact on the business, financial condition, and operating results - Readers should carefully consider the risk factors discussed in Part I, Item **1A** of the Annual Report on Form **10-K** for the year ended **December 31, 2024**[201](index=201&type=chunk) - These risks could **materially** affect the company's business, financial condition, operating results, reputation, future prospects, or stock trading price[201](index=201&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=41&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section confirms that there were no unregistered sales of equity securities or issuer purchases of equity securities during the reporting period - There were **no unregistered sales** of equity securities[202](index=202&type=chunk) - There were **no issuer purchases** of equity securities[203](index=203&type=chunk) [Item 3. Defaults Upon Senior Securities](index=41&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section states that there are no applicable defaults upon senior securities for the reporting period - This item is **not applicable**[203](index=203&type=chunk) [Item 4. Mine Safety Disclosures](index=41&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section indicates that mine safety disclosures are not applicable to the company - This item is **not applicable**[204](index=204&type=chunk) [Item 5. Other Information](index=41&type=section&id=Item%205.%20Other%20Information) This section reports that no officers or directors adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended June 30, 2025 - During the three months ended **June 30, 2025**, **none of the company's officers or directors adopted, modified, or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements**[205](index=205&type=chunk) [Item 6. Exhibits](index=42&type=section&id=Item%206.%20Exhibits) This section provides a list of exhibits filed as part of the Form 10-Q, including corporate governance documents, the new credit agreement, and various certifications required by the Securities Exchange Act Key Exhibits Filed | Exhibit Number | Description | | :--- | :--- | | 3.1 | Amended and Restated Certificate of Incorporation | | 3.2 | Amended and Restated Bylaws | | 10.1 | Credit Agreement dated as of June 24, 2025 | | 31.1 | Certification of Principal Executive Officer (Section 302) | | 31.2 | Certification of Principal Financial Officer (Section 302) | | 32.1* | Certification of Principal Executive Officer (Section 906) | | 32.2* | Certification of Principal Financial Officer (Section 906) | | 101.INS | Inline XBRL Instance Document | | 104 | Cover Page Interactive Data File | [Signatures](index=43&type=section&id=Signatures) This section includes the required signatures of the company's principal executive, financial, and accounting officers, certifying the accuracy of the report - The report is signed on **August 6, 2025**, by Matthew Oppenheimer (Chief Executive Officer), Vikas Mehta (Chief Financial Officer), and Luke Tavis (Chief Accounting Officer)[212](index=212&type=chunk)

[Executive Summary & Business Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Highlights) Remitly reported strong Q2 2025 results, exceeding outlook, achieving GAAP profitability, raising full-year guidance, and authorizing a $200 million share repurchase program [Second Quarter 2025 Performance Highlights](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Highlights) Remitly reported strong second quarter 2025 results, exceeding its outlook, with significant year-over-year growth in key operating metrics and a return to GAAP profitability Second Quarter 2025 Key Operating Data (YoY Comparison) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :---------------------- | :---------- | :---------- | :--------- | | Active customers | 8.5 million | 6.9 million | Up 24% | | Send volume | $18.5 billion | $13.2 billion | Up 40% | | Revenue | $411.9 million | $306.4 million | Up 34% | | Net income | $6.5 million | $(12.1) million | N/A (loss to profit) | | Adjusted EBITDA | $64.0 million | $26.2 million | Up 144% | - The CEO highlighted achieving "**Rule of 50 performance again along with GAAP profitability**" and "**breakthrough innovation that positions us to shape the future of global financial services**"[2](index=2&type=chunk) [2025 Financial Outlook](index=1&type=section&id=2025%20Financial%20Outlook) Remitly raised its full-year 2025 revenue and Adjusted EBITDA outlook, projecting positive GAAP net income for the full year and a modest GAAP net income for the third quarter of 2025 2025 Financial Outlook | Metric | Full Year 2025 Outlook | Prior Outlook | Q3 2025 Outlook | | :---------------------- | :--------------------- | :--------------------- | :-------------------- | | Total Revenue | $1.61B - $1.62B (27-28% YoY) | $1.574B - $1.587B | $411M - $413M (22-23% YoY) | | GAAP Net Income | Positive | N/A | Modest positive | | Adjusted EBITDA | $225M - $230M | $195M - $210M | $53M - $55M | [Share Repurchase Program](index=1&type=section&id=Share%20Repurchase%20Program) Remitly's Board of Directors authorized a $200 million share repurchase program to return capital to stockholders and offset dilution associated with employee equity compensation - The Board of Directors authorized a share repurchase program of up to **$200 million** of outstanding common stock[1](index=1&type=chunk)[3](index=3&type=chunk) - The program aims to opportunistically repurchase shares to return capital to stockholders and offset a portion of dilution from employee equity compensation[3](index=3&type=chunk) - The share repurchase program does not expire and may be suspended, discontinued, or modified at any time without notice at Remitly's discretion[4](index=4&type=chunk) [Financial Statements](index=7&type=section&id=Financial%20Statements) This section presents Remitly's condensed consolidated statements of operations, balance sheets, and cash flows, highlighting significant financial performance improvements and changes in financial position [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Remitly's Q2 2025 operations show significant revenue growth and a shift from a net loss to net income compared to Q2 2024, driven by increased revenue outpacing cost increases Key Income Statement Data (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $411,852 | $306,423 | $773,476 | $575,541 | | Total costs and expenses | $397,209 | $322,185 | $746,600 | $611,256 | | Income (loss) from operations | $14,643 | $(15,762) | $26,876 | $(35,715) | | Net income (loss) | $6,536 | $(12,091) | $17,888 | $(33,171) | | Diluted Net income (loss) per share | $0.03 | $(0.06) | $0.08 | $(0.17) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Remitly's balance sheet shows an increase in total assets, primarily driven by higher cash and cash equivalents, and a corresponding increase in stockholders' equity compared to December 31, 2024 Key Balance Sheet Data (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :------------------------- | :------------ | :---------------- | | Total assets | $1,166,171 | $1,012,871 | | Cash and cash equivalents | $515,896 | $368,097 | | Total liabilities | $401,249 | $347,400 | | Total stockholders' equity | $764,922 | $665,471 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, Remitly generated substantial net cash from operating activities, a significant improvement from the prior year, while investing activities increased and financing activities resulted in a net cash outflow Key Cash Flow Data (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------------------------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by (used in) operating activities | $174,094 | $(7,909) | | Net cash used in investing activities | $(32,565) | $(8,570) | | Net cash used in financing activities | $(3,899) | $(118,631) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | $147,812 | $(136,339) | [Non-GAAP Financial Measures & Reconciliations](index=3&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Reconciliations) This section explains Remitly's use of non-GAAP financial measures and provides detailed reconciliations of net income to Adjusted EBITDA and GAAP operating expenses to non-GAAP operating expenses [Explanation of Non-GAAP Measures](index=3&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Remitly uses non-GAAP financial measures like Adjusted EBITDA and non-GAAP operating expenses to evaluate performance, identify trends, and make strategic decisions, believing they provide meaningful supplemental information for management and investors - Non-GAAP financial measures, such as Adjusted EBITDA and non-GAAP operating expenses, are regularly reviewed to evaluate performance, identify trends, prepare financial projections, and make strategic decisions[11](index=11&type=chunk) - Adjusted EBITDA is calculated as net income (loss) adjusted for interest, income taxes, depreciation and amortization, other income/expense, stock donation charges, stock-based compensation expense, payroll taxes related to stock-based compensation, and certain integration/restructuring costs[12](index=12&type=chunk) - Non-GAAP operating expenses are calculated by adjusting GAAP operating expenses for noncash stock-based compensation expense, related payroll taxes, stock donation charges, and certain integration/restructuring costs[12](index=12&type=chunk) [Reconciliation of Net Income (Loss) to Adjusted EBITDA](index=11&type=section&id=Reconciliation%20of%20Net%20Income%20(Loss)%20to%20Adjusted%20EBITDA) Remitly's Adjusted EBITDA significantly increased in Q2 2025 and for the six months ended June 30, 2025, primarily due to the shift from net loss to net income and adjustments for non-cash expenses and other items Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | $6,536 | $(12,091) | $17,888 | $(33,171) | | Adjusted EBITDA | $63,997 | $26,248 | $122,425 | $49,027 | [Reconciliation of Operating Expenses to Non-GAAP Operating Expenses](index=12&type=section&id=Reconciliation%20of%20Operating%20Expenses%20to%20Non-GAAP%20Operating%20Expenses) This section provides detailed reconciliations of GAAP operating expenses (Customer support and operations, Marketing, Technology and development, General and administrative) to their non-GAAP counterparts, primarily by excluding stock-based compensation and related payroll taxes Non-GAAP Customer Support and Operations Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--------------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Customer support and operations (GAAP) | $25,074 | $19,999 | $47,647 | $40,118 | | Non-GAAP customer support and operations | $24,613 | $19,736 | $46,922 | $38,734 | Non-GAAP Marketing Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Marketing (GAAP) | $84,976 | $77,056 | $158,325 | $145,070 | | Non-GAAP marketing | $79,796 | $72,299 | $148,072 | $135,841 | Non-GAAP Technology and Development Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Technology and development (GAAP) | $77,496 | $67,554 | $151,347 | $130,760 | | Non-GAAP technology and development | $53,356 | $46,580 | $103,989 | $88,147 | Non-GAAP General and Administrative Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | General and administrative (GAAP) | $59,581 | $45,889 | $112,410 | $90,062 | | Non-GAAP general and administrative | $46,334 | $33,582 | $86,919 | $65,916 | [Additional Information](index=4&type=section&id=Additional%20Information) This section provides details on the Q2 2025 earnings webcast, forward-looking statements, an overview of Remitly's business, and contact information for media and investor relations [Webcast Information](index=4&type=section&id=Webcast%20Information) Remitly hosted a webcast on August 6, 2025, to discuss its second quarter 2025 financial results, with the live event and replay accessible on its investor relations website - Remitly hosted a webcast on **August 6, 2025, at 5:00 p.m. Eastern time** to discuss its second quarter 2025 financial results[8](index=8&type=chunk) - The live webcast, investor presentation, and replay are accessible on Remitly's investor relations website at https://ir.remitly.com[8](index=8&type=chunk) - The Investor Relations section of the website is used for disclosing material nonpublic information and complying with Regulation FD obligations[9](index=9&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section contains standard forward-looking statements regarding future financial results, business strategy, growth, and the share repurchase program, which are subject to various risks and uncertainties - The press release contains forward-looking statements regarding future events, results of operations, financial position, fiscal year and third quarter 2025 financial outlook, business strategy, growth, and the share repurchase program[13](index=13&type=chunk) - These statements are subject to risks and uncertainties, including those related to customer acquisition and retention, product development, profitability, strategic relationships, macroeconomic conditions, and regulatory changes[13](index=13&type=chunk) [About Remitly](index=6&type=section&id=About%20Remitly) Remitly is a trusted provider of digital financial services, offering a cross-border payments app across over 170 countries and expanding its product suite to transform lives globally - Remitly is a trusted provider of digital financial services that transcend borders, with a global footprint spanning more than **170 countries**[15](index=15&type=chunk) - The company's core offering is a digitally native, cross-border payments app, and it is expanding its suite of products to further its vision[15](index=15&type=chunk) [Contacts](index=6&type=section&id=Contacts) Contact information for media and investor relations inquiries is provided - Media inquiries can be directed to press@remitly.com[16](index=16&type=chunk) - Investor Relations inquiries can be directed to Luv Sodha at ir@remitly.com[16](index=16&type=chunk)