Cantor Fitzgerald Overweight on Remitly (RELY) Due to Good Q4 and Better-Than-Expected 2026 Guidance

Core Viewpoint - Remitly Global Inc. is identified as one of the most undervalued NASDAQ stocks, with Cantor Fitzgerald raising its target price by 17.6% to $20, citing strong Q4 results and optimistic management guidance for FY 2026 as key factors [1][4]. Financial Performance - In Q4 2025, Remitly Global reported an adjusted EBITDA of $89 million, nearly doubling from $45 million, driven by high-teens growth in quarterly active customers and mid-teens growth in average transaction volume per user, resulting in over 30% growth in total send volumes [2][5]. - The "very high amount senders" customer segment saw volumes more than double, significantly contributing to the overall growth [2]. Profitability Factors - Profit margin expansion played a crucial role in the earnings increase, primarily due to lower transaction-related expenses and improved network economics from higher volumes [5]. - A more focused customer acquisition strategy, relying on word-of-mouth and unpaid methods, along with a decline in general and administrative expenses as a percentage of revenue, also supported margin expansion [5]. Future Growth Expectations - Management anticipates continued growth, projecting revenue growth of 19% to 20% and adjusted EBITDA growth of 25% to 32% for 2026 [6]. - Over the next three years, the company expects annual revenue growth of 17% to 22% and adjusted EBITDA growth of 28% to 30% [6][7].