Remitly (US:RELY)2026-02-18 23:02Financial Data and Key Metrics Changes - The company reported a revenue growth of 29% year-over-year, reaching $1.635 billion for the full year 2025, with an Adjusted EBITDA of $272 million, exceeding guidance [7][35] - The fourth quarter revenue was $442 million, up 26% year-over-year, with an Adjusted EBITDA margin of 20%, the highest quarterly margin ever [34][35] - The company achieved its first full year of cash profitability with a net income of $68 million, compared to a net loss of $37 million the previous year [15][35] Business Line Data and Key Metrics Changes - The core money movement product saw significant growth, with over 9 million quarterly active users and close to $75 billion in annual send volume [12][34] - New products, including Remitly Business and the Send Now, Pay Later product, Flex, contributed to revenue growth, with Flex reaching around 120,000 users [13][41] - High amount senders (those sending over $1,000) grew 40% year-over-year, while very high amount senders (over $10,000) grew 105% year-over-year [38][39] Market Data and Key Metrics Changes - US revenue grew by 28%, while revenue from the rest of the world grew by 26% year-over-year, indicating strong geographic diversification [40] - The company saw strong adoption in the UAE, with over 160% quarter-over-quarter growth in new customers [40] - Revenue from transactions to regions outside of India, the Philippines, and Mexico now comprises over half of the revenue mix [40] Company Strategy and Development Direction - The company aims to generate up to $3 billion in revenue and $600 million in Adjusted EBITDA by 2028, focusing on profitable growth and strong free cash flow [11][17] - AI is seen as a significant enabler for improving platform efficiency and product development, with plans to expand its use across the organization [17][22] - The company plans to continue expanding its presence in high amount sender markets and geographical regions, including Japan and Saudi Arabia [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their customer base despite geopolitical volatility, supported by strong execution and marketing efficiencies [69] - The introduction of a 1% remittance tax on cash remittances is expected to provide a tailwind for growth in early 2026 [69] - The company anticipates revenue growth of 19%-20% for the full year 2026, with Q1 expected to be at 21% growth due to favorable conditions [55][72] Other Important Information - The company successfully managed to reduce stock-based compensation as a percentage of revenue to 9.5%, a 250 basis point improvement from the previous year [54] - Free cash flow for 2025 was $283 million, more than tripling from the prior year, with a focus on share repurchase as a top priority [53][59] - The transition to a new CEO, Sebastian Gunningham, is expected to accelerate product delivery and operational execution [23][24] Q&A Session Summary Question: How does Sebastian's prior experience prepare him for leading Remitly? - Sebastian highlighted his extensive experience in leading product and engineering organizations, including running the payments business at Amazon, which positions him well for Remitly's next chapter [63][64] Question: What macro impacts are being observed on the business? - Vikas noted that the company had an exceptional year, with strong execution driving results, and highlighted the resilience of customers amid geopolitical volatility [68][69] Question: Can you elaborate on the revenue cadence for 2026? - Vikas explained that Q1 is expected to be stronger due to the 1% remittance tax, and the company has visibility into revenue growth driven by prior year cohorts [72]