Remitly (RELY) - 2025 Q2 - Quarterly Results

Executive Summary & Business Highlights 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 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] 2025 Financial Outlook 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 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][3] - The program aims to opportunistically repurchase shares to return capital to stockholders and offset a portion of dilution from employee equity compensation[3] - The share repurchase program does not expire and may be suspended, discontinued, or modified at any time without notice at Remitly's discretion[4] Financial Statements 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 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 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 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 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 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] - 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] - 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] Reconciliation of Net Income (Loss) to Adjusted EBITDA 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 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 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 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] - 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] Forward-Looking Statements 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] - 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] About Remitly 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] - 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] Contacts Contact information for media and investor relations inquiries is provided - Media inquiries can be directed to press@remitly.com[16] - Investor Relations inquiries can be directed to Luv Sodha at ir@remitly.com[16]