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Remitly (RELY) - 2025 Q2 - Quarterly Report

Special Note Regarding Forward-Looking Statements 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 objectives8 - 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' section9 - 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 needs11 Part I. Financial Information 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) 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 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 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) 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 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 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 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 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 payments29 - 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 movement30 Note 2. Basis of Presentation and Summary of Significant Accounting Policies 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 statements32 - Management uses estimates and assumptions for financial reporting, including revenue recognition, transaction loss reserves, stock-based compensation, and asset valuations35 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 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 recipient42 - The company acts as the principal in fulfilling payment transactions, bearing primary responsibility and controlling service aspects47 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 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 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 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 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, 202457 - 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 value58 Note 8. Debt 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, 203059 - The 2025 facility supports customer flow prefunding and general corporate purposes, with capitalized debt issuance costs of $3.1 million59 - 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 covenants6361 Note 9. Net Income (Loss) Per Common Share 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 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 vote71 - No dividends were declared or paid during the six months ended June 30, 2025, and 202471 - 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, respectively73 Note 11. Stock-Based Compensation 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 ESPP75 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 years82 Note 12. Restructuring Initiatives 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, 202583 - 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 Q3 202384 Note 13. Income Taxes 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 benefits87 - The Company maintains a full valuation allowance against U.S. net deferred tax assets, expecting it to continue for the foreseeable future88 Note 14. Commitments and Contingencies 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 commitments93 - During Q2 2025, new lease agreements for corporate facilities were entered into, with terms of one to seven years and contractual commitments of $12.6 million94 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 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 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 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 profitability9899 - 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 Operations101 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 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 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 transparency105 - 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 support106107108109 - Revenue is generated from transaction fees and foreign exchange spreads, which are reduced by customer promotions and sales incentives110111112113 Key Performance Metrics 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 countries116 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 Philippines119118 Key Factors Affecting Our Performance 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 needs120121 - Attracting new customers is crucial for long-term growth, achieved through new corridors, product innovation, digital marketing, and word-of-mouth referrals122 - Operating results are subject to seasonality, with active customers and send volume typically peaking in Q4 due to holidays, leading to higher marketing costs and transaction losses125 - 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 growth126 - 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 impact128130 Components of Results of Operations 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 delivery132 - Transaction expenses include fees to disbursement partners and payment processors, provisions for transaction losses, chargebacks, and fraud prevention tools133 - Technology and development expenses cover personnel, professional services, and software subscriptions for product development and infrastructure, excluding capitalized internal-use software amortization136 - General and administrative expenses include personnel for finance, legal, compliance, HR, facilities, professional services, and other corporate costs, including acquisition and integration expenses138 Results of Operations 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 disbursements146 - 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, respectively148149150 - 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 gains154155156 - 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)160161162 - Depreciation and amortization increased 62% (QoQ) and 55% (YTD), primarily due to increased amortization of intangibles and internal-use software163 Non-GAAP Financial Measures 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 costs169 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, respectively171 Liquidity and Capital Resources 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 Facility173 - 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 development174175 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 H1 2025, a significant improvement from net cash used of $7.9 million in H1 2024, driven by growth and timing impacts on customer funds working capital179180 - Net cash used in investing activities increased to $32.6 million in H1 2025 from $8.6 million in H1 2024, primarily due to increased purchases of property and equipment, including leasehold improvements for corporate headquarters182 - Net cash used in financing activities decreased to $3.9 million in H1 2025 from $118.6 million in H1 2024, mainly due to a reduction in net repayments on revolving credit facilities184 - The Company has no material off-balance sheet arrangements as of June 30, 2025189 Item 3. Quantitative and Qualitative Disclosures About Market Risk 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 arrangements194 - Principal foreign exchange rate risk exposures include fluctuations between transaction initiation and disbursement, and translation risk from international operations denominated in foreign currencies195196 - 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 liabilities196 - 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 hedging197 Item 4. Controls and Procedures 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, 2025198 - 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 reporting199 Part II. Other Information This part covers legal proceedings, risk factors, equity sales, defaults, mine safety, other information, and exhibits filed with the report Item 1. Legal Proceedings 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 claims200 - Management believes that any liability from these proceedings would not have a material adverse effect on the business or financial condition200 Item 1A. Risk Factors 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, 2024201 - These risks could materially affect the company's business, financial condition, operating results, reputation, future prospects, or stock trading price201 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 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 securities202 - There were no issuer purchases of equity securities203 Item 3. Defaults Upon Senior Securities This section states that there are no applicable defaults upon senior securities for the reporting period - This item is not applicable203 Item 4. Mine Safety Disclosures This section indicates that mine safety disclosures are not applicable to the company - This item is not applicable204 Item 5. Other Information 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 arrangements205 Item 6. Exhibits 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 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