Core Insights - Remitly Global Inc. (NASDAQ: RELY) is viewed positively by Wall Street analysts, holding a Strong Buy consensus from 7 analysts, all issuing Buy ratings, with an average price target of $24.20, indicating a potential upside of 78.66% from the current price of $13.55 [1][2]. Financial Performance - In Q3 2025, Remitly reported a revenue increase of 25% to $419.5 million, up from $336.5 million in the same quarter last year, while net income surged 361% to $8.8 million compared to $1.9 million in the previous year [3]. - The company has raised its full-year revenue guidance to between $1.619 billion and $1.621 billion, reflecting a 28% year-over-year increase, and net income expectations have been adjusted to range between $234 million and $236 million, up from previous guidance of $225 million to $230 million [5]. Strategic Focus - The CEO, Matt Oppenheimer, emphasized the company's commitment to sustainable, profitable growth and efficient execution, while continuing to invest in innovation [4].

Company Overview - Remitly Global focuses on leveraging digital infrastructure to provide secure, efficient, and accessible money transfer services, particularly targeting immigrant communities worldwide [1][5] - The company operates a technology-driven platform that facilitates international money transfers across approximately 150 countries [4][5] Recent Developments - As of November 13, 2025, shares of Remitly Global were priced at $12.49, reflecting a decline of 38.3% over the past year, underperforming the S&P 500 by 48.83 percentage points [2] - Divisadero Street Capital Management, LP significantly reduced its position in Remitly Global by selling 5,036,343 shares, resulting in a remaining stake of just 61,463 shares valued at $1,001,847 as of September 30, 2025 [3][4] Financial Impact - The divestment represented a decrease in position value of approximately $94.68 million, accounting for 0.04% of the fund's $2.29 billion reportable assets under management (AUM) [2][3][4] - The transaction indicated a 3.94% change relative to the fund's reportable AUM [3][4] Market Context - The digital remittance market is becoming increasingly competitive, with rivals like Wise and various fintech wallets driving prices lower, while traditional banks and money-transfer operators are enhancing their offerings through promotions and loyalty programs [7] - High customer acquisition costs and tightening regulatory requirements are challenges that the company faces in maintaining its market position [7] Future Outlook - Investors are now focused on Remitly's path to profitability and the stability of customer behavior across economic cycles, with the potential for the company to expand its role in the evolving remittance ecosystem if it can widen margins without losing core users [8]

Core Insights - Divisadero Street Capital Management's significant selloff of Remitly Global shares signals a shift in investor confidence regarding the company's position in the digital remittance market [1][8] - The reduction in holdings from approximately $94.68 million to just $1.00 million indicates a reevaluation of Remitly's long-term growth potential amidst changing market dynamics [2][3] Company Overview - Remitly Global has a market capitalization of $2.61 billion and reported a revenue of $1.54 billion with a net income of $20.99 million for the trailing twelve months [4] - The company's share price as of November 13, 2025, was $12.49, reflecting a 38.3% decline over the past year, significantly underperforming the S&P 500 by 48.83 percentage points [3] Business Model and Strategy - Remitly operates in the digital remittance industry, providing services across approximately 150 countries, primarily targeting immigrant families with cross-border financial needs [5][7] - The company's strategy focuses on leveraging technology to deliver secure and efficient money transfer services, emphasizing customer experience and addressing the unique needs of its target demographic [5][7] Market Dynamics - The competitive landscape has evolved, with digital-first competitors like Wise and various fintech wallets driving prices lower, while traditional banks and money-transfer operators are enhancing their offerings through promotions [9] - High customer acquisition costs and tightening regulatory requirements pose challenges for Remitly, necessitating a focus on expanding contribution margins as transaction volumes increase [9] Future Outlook - Investors are now closely monitoring Remitly's path to profitability and the stability of its customer base across different economic conditions [10] - If Remitly can successfully widen its margins without alienating core users, it may solidify its position in the evolving remittance ecosystem [10]

Core Viewpoint - Remitly Global's strong earnings report was overshadowed by concerns over slowing growth and rising credit risk, leading to a significant sell-off in its stock despite solid performance metrics [1][6]. Financial Performance - In the third quarter, Remitly reported a 21% increase in active customers, reaching 8.9 million, and a 35% rise in send volume to $19.5 billion, resulting in a 25% revenue increase to $419.5 million, surpassing the consensus estimate of $413.7 million [5]. - Adjusted EBITDA rose by 29% to $61.2 million, indicating strong operational performance [5]. Market Reaction - The stock hit a 52-week low and finished down 16% for the month, reflecting investor disappointment despite the positive earnings report [2][4]. - The sell-off was exacerbated by management's guidance for the fourth quarter, projecting revenue of $426 million to $428 million, which was below the consensus estimate of $430.5 million [7]. Growth Outlook - Management indicated that revenue growth is slowing, with expectations of high teens growth in 2026, suggesting potential maturation of the core business [8]. - Despite the slowing growth, Remitly is currently trading at a price-to-sales ratio of less than 2 and 12 times its expected EBITDA for the full year, indicating it may be undervalued [8]. Strategic Initiatives - The company is expanding its platform with new products like Remitly Business and the Remitly One membership program, which includes features such as "send now, pay later" and stablecoin transfers [6]. - Targeting high-value senders and recent product expansions suggest that there is still significant upside potential for the stock [9].

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]