Remitly Global Inc. (NASDAQ:RELY) is one of the best new tech stocks to invest in now. On February 18, Remitly Global recorded revenue of $1.635 billion in the full year 2025, which was a 29% increase year-over-year. Q4 was particularly strong with $442 million in revenue and $41 million in net income, driven by a 19% increase in active users to over 9 million. A significant highlight was the surge in high-value transactions, with volume from very high amount senders skyrocketing 105% in the quarter. The ...

The transition to Sebastian Gunningham as CEO is intended to institutionalize operational excellence and accelerate the conversion of product proofs into broad market adoption.Strategic positioning is shifting from a global payments company to a broader provider of financial services, utilizing a digital-first platform to lower friction and costs for underserved populations.Management attributes operational leverage to a disciplined hiring approach and the integration of agentic AI systems which have reduce ...

Remitly Global (NasdaqGS:RELY) Q4 2025 Earnings call February 18, 2026 05:00 PM ET Company ParticipantsDavid Beckel - VP of Investor RelationsMatt Oppenheimer - Co-founder and CEOSebastian Gunningham - Incoming CEOVikas Mehta - CFOConference Call ParticipantsAditya Buddhavarapu - VP and Equity Research AnalystAlex Markgraff - VP and Equity Research AnalystChris Kennedy - Senior Equity Research AnalystDarrin Peller - Managing Director and Senior Equity Research AnalystRamsey El-Assal - Managing Director and ...

Remitly Global (NasdaqGS:RELY) Q4 2025 Earnings call February 18, 2026 05:00 PM ET Company ParticipantsDavid Beckel - VP of Investor RelationsMatt Oppenheimer - Co-founder and CEOSebastian Gunningham - CEOVikas Mehta - CFOConference Call ParticipantsAditya Buddhavarapu - VP and Equity Research AnalystAlex Markgraff - VP and Equity Research AnalystDarrin Peller - Managing Director and Senior Equity Research AnalystRamsey El-Assal - Managing Director and Senior Equity Research AnalystTien-Tsin Huang - Managin ...

Remitly Global (NasdaqGS:RELY) Q4 2025 Earnings call February 18, 2026 05:00 PM ET Speaker5Good day, and thank you for standing by. Welcome to the Remitly fourth quarter and full year 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raise ...

Core Insights - Remitly Global Inc. is identified as an overlooked growth stock with potential for investment despite recent price target adjustments by analysts [1][3] Group 1: Analyst Ratings and Price Targets - Goldman Sachs analyst Will Nance lowered the price target for Remitly Global from $19 to $17 while maintaining a Buy rating [1] - Citizens reaffirmed a Market Outperform rating with a price target of $20, highlighting Remitly as a leader in the digital remittance sector [2] Group 2: Business Expansion and Performance - In Q3 2025, Remitly expanded its product categories, notably with Remitly Business entering the UK and Canada, increasing the total addressable market (TAM) from $2 trillion to $22 trillion [3] - By the end of Q3, approximately 10,000 businesses were active on the platform, with transaction sizes averaging twice those of traditional consumers [3] - The Flex product reached around 100,000 active users, with revenue doubling sequentially, and there was a 40% increase in send volume from high-value customers [3] Group 3: Company Overview - Remitly Global Inc. provides digital financial services, including cross-border remittances and complementary financial services, through a mobile application and website [4]

Group 1 - Remitly Global, Inc. is considered one of the best FinTech stocks to buy in 2026, with a maintained price target of $20 by Citizens, indicating the stock has "overcorrected" [1] - The company is positioned as a leading all-digital remittance provider, with management's margin guidance suggesting an easier path to medium-term profitability [1][2] - Remitly's Investor Day highlighted targets for high-teens revenue growth and adjusted EBITDA of $300 million to $320 million by 2026, with extended targets for 2028 of $2.6 billion to $3.0 billion in revenue and $575 million to $600 million in adjusted EBITDA, implying a 20%–22% margin [2] Group 2 - The company operates a cross-border payments app focused on digital remittances, aiming to broaden into additional financial services while improving profitability over time [3] - Initiatives like Remitly One and Remitly Business are part of the strategy to push into adjacent categories and deepen customer engagement [2]

Core Insights - Remitly Global, Inc. is hosting its Investor Day to share its vision for building a global financial services company focused on value-added services and high-growth categories [1][2] - The company aims to transform lives with trusted financial services and is committed to delivering meaningful customer impact and long-term shareholder returns through innovation and disciplined execution [3] Financial Outlook - For the full year 2026, Remitly expects revenue growth primarily driven by its core remittance business, with adjusted EBITDA growth projected to exceed 30% at the midpoint [5] - The medium-term financial targets for 2028 include achieving a Rule of 40 framework, aiming for a combined 3-year revenue CAGR and adjusted EBITDA margins of at least 40% [6] - Revenue is anticipated to be in the range of $2.6 billion to $3.0 billion for 2026, with adjusted EBITDA expected between $300 million and $320 million, reflecting a margin of 20%-22% [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].

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]