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Remitly Global (RELY)
NASDAQ:RELY
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Remitly Global (RELY) AI Stock Analysis

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Remitly Global

(NASDAQ:RELY)

Rating:69Neutral
Price Target:
$18.50
▲(8.70%Upside)
Remitly Global's strong financial performance and positive earnings call are key strengths, supported by a solid balance sheet and improved cash flow. However, the stock is currently in a bearish technical phase, and challenges in achieving profitability affect its valuation score. The recent credit agreement is a strategic positive, but market uncertainties and increased marketing spend may pressure margins.
Positive Factors
Financial Performance
Revenue grew +34% YoY, while EBITDA grew >150% YoY, benefiting from impressive marketing efficiency.
Market Opportunity
The global remittance market exceeds $2 trillion annually, offering Remitly a massive opportunity to increase its market share and grow revenues.
Regulation Impact
The Senate bill appears less onerous to the remittance market than initially feared, which is a positive development for Remitly.
Negative Factors
Conservative Guidance
Remitly delivered strong beats on topline/EBITDA and provided guidance slightly behind consensus which is considered conservative.
Legislative Challenges
Recent stock pressure is tied to the House’s passage of the One Big Beautiful Bill Act, which would require remittance providers to collect a 3.5% tax on transfers beginning in 2026.
Market Uncertainty
The current U.S. immigration policies and growing consumer uncertainty represent headline risks, and have likely pressured valuation in recent months.

Remitly Global (RELY) vs. SPDR S&P 500 ETF (SPY)

Remitly Global Business Overview & Revenue Model

Company DescriptionRemitly Global, Inc. provides digital financial services for immigrants and their families. It primarily offers cross-border remittance services in approximately 150 countries. The company was incorporated in 2011 and is headquartered in Seattle, Washington.
How the Company Makes MoneyRemitly generates revenue primarily through transaction fees charged to customers who use its platform to send money internationally. The company applies a fee to each transfer, which can vary based on factors such as the transfer amount, the destination country, and the currency exchange rate. In addition to transaction fees, Remitly may earn revenue from foreign exchange spreads, which are the differences between the exchange rate offered to customers and the rate at which Remitly can obtain currency from financial institutions. The company also partners with various banks and financial institutions to facilitate its transactions, which can enhance its service offerings and expand its customer base. Remitly's focus on digital solutions and strategic partnerships helps it maintain a competitive edge in the global remittance market.

Remitly Global Key Performance Indicators (KPIs)

Any
Any
Active Customers
Active Customers
Reflects the number of individuals using Remitly's services, indicating customer base size, engagement, and potential for revenue growth through increased transactions.
Chart InsightsRemitly's active customer base has grown significantly, reaching over 8 million, a 29% increase year-over-year. This growth is fueled by strong customer retention and acquisition, alongside geographic expansion into regions like Nigeria and Mali. The earnings call highlights robust revenue growth and operational efficiency, with a notable increase in high-dollar transactions. However, macroeconomic uncertainties and anticipated marketing spend increases could pressure future margins. The company's strategic expansion and improved customer metrics suggest a positive outlook, but investors should monitor potential impacts on profitability.
Data provided by:Main Street Data

Remitly Global Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -19.30%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call was predominantly positive, with strong revenue and adjusted EBITDA growth, as well as successful diversification and operational efficiency. However, there are concerns about macroeconomic uncertainties and the expected increase in marketing spend, which could impact future margins.
Q1-2025 Updates
Positive Updates
Strong Revenue Growth
Revenue for Q1 2025 was $361.6 million, up 34% year-over-year. This growth exceeded expectations and was driven by strong retention and new customer acquisition.
Adjusted EBITDA Surpasses Expectations
Adjusted EBITDA for Q1 2025 was $58.4 million, surpassing 16% in adjusted EBITDA margins and achieving a Rule of 50 quarter.
Geographic and Product Diversification
The company expanded its footprint by launching services in new regions like Nigeria, Burkina Faso, and Mali, and introduced integrations with local payment partners. The top three receiving countries (India, the Philippines, and Mexico) saw revenue diversification with a 45% growth rate in other regions.
High-Dollar Sender Growth
Send volume related to transactions of more than $1,000 grew by more than 45% year-over-year, and the mix increased by approximately 200 basis points.
Operational Efficiency
93% of transactions were processed in less than an hour, and 95% proceeded without customer support contact.
Negative Updates
Macro Uncertainty
The macroeconomic and geopolitical environment remains uncertain, with no assumptions of material changes reflected in the guidance.
Stock-Based Compensation
Stock-based compensation was $35.8 million, though it was approximately 280 basis points lower than the prior year.
Seasonal Marketing Spend Increase Expected
Marketing investments are expected to increase in Q2 and the second half of 2025 to drive growth, which may affect margins.
Company Guidance
In the first quarter of 2025, Remitly reported a revenue growth of 34% year-over-year, reaching $361.6 million, with an adjusted EBITDA margin surpassing 16%. The company exceeded the Rule of 50, indicating strong growth and profitability. Remitly saw a 9% increase in send volume per active customer, and send volume for transactions over $1,000 grew by more than 45% year-over-year. The company managed nearly $60 billion in send volume over the last 12 months and achieved a gross take rate of 2.24%. Remitly's quarterly active customers increased by 29% to over 8 million. Marketing spend as a percentage of revenue improved by 473 basis points year-over-year, while customer support and operations expenses improved by 89 basis points. The company also launched remittance services to new regions, including Nigeria, Burkina Faso, and Mali, and expanded disbursement options. Remitly is raising its full-year revenue and adjusted EBITDA outlook due to the strong results.

Remitly Global Financial Statement Overview

Summary
Remitly Global demonstrates strong revenue growth and improved cash flow performance, underscoring its potential in the software infrastructure industry. While profitability metrics remain a challenge, the company's robust balance sheet and cash position provide stability and opportunities for future growth and investment.
Income Statement
75
Positive
The income statement shows strong revenue growth, with a TTM revenue of $1.36 billion, up from $653.56 million in 2022. Gross profit margin is robust at 59.5%, indicating effective cost management. However, the company has yet to achieve profitability, as reflected by the negative net profit margin of -0.33% and negative EBIT and EBITDA margins. Despite this, the narrowing losses suggest improvements in operational efficiency.
Balance Sheet
72
Positive
The balance sheet is solid with a strong equity position, as evidenced by a high equity ratio of 65.7%. The debt-to-equity ratio is low at 0.03, indicating prudent leverage management. Although there is an improvement in stockholders' equity, the return on equity remains negative due to the ongoing net losses. The large cash reserves provide a buffer for ongoing operations.
Cash Flow
80
Positive
Cash flow statements are impressive, showing a significant positive shift with a TTM operating cash flow of $384.2 million, up from negative levels in prior years. The free cash flow has also shown strong growth, supporting the company's liquidity and investment potential. The operating cash flow to net income ratio is favorable, highlighting efficient cash management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.26B944.28M653.56M458.61M256.96M
Gross Profit748.44M532.65M326.63M221.47M121.11M
EBITDA-8.96M-96.47M-104.95M-31.20M-25.12M
Net Income-36.98M-117.84M-114.02M-38.76M-32.56M
Balance Sheet
Total Assets1.01B1.04B695.95M625.66M362.99M
Cash, Cash Equivalents and Short-Term Investments368.10M323.71M300.63M403.26M186.69M
Total Debt16.29M142.99M9.20M6.15M86.97M
Total Liabilities347.40M506.97M215.87M145.34M186.61M
Stockholders Equity665.47M529.34M480.09M480.33M176.38M
Cash Flow
Free Cash Flow176.78M-62.69M-115.72M-22.93M-118.58M
Operating Cash Flow194.49M-53.59M-108.66M-18.39M-114.21M
Investing Cash Flow-17.70M-50.04M-7.31M-4.53M-4.37M
Financing Cash Flow-127.44M126.65M11.07M238.20M122.22M

Remitly Global Technical Analysis

Technical Analysis Sentiment
Negative
Last Price17.02
Price Trends
50DMA
20.41
Negative
100DMA
20.55
Negative
200DMA
20.45
Negative
Market Momentum
MACD
-0.85
Positive
RSI
27.26
Positive
STOCH
12.24
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RELY, the sentiment is Negative. The current price of 17.02 is below the 20-day moving average (MA) of 18.46, below the 50-day MA of 20.41, and below the 200-day MA of 20.45, indicating a bearish trend. The MACD of -0.85 indicates Positive momentum. The RSI at 27.26 is Positive, neither overbought nor oversold. The STOCH value of 12.24 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RELY.

Remitly Global Risk Analysis

Remitly Global disclosed 65 risk factors in its most recent earnings report. Remitly Global reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Remitly Global Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
DLDLO
81
Outperform
$3.11B24.0926.10%
74
Outperform
$2.46B22.7815.97%14.86%-0.94%
69
Neutral
$3.47B-0.71%34.37%95.80%
65
Neutral
$3.98B-8.39%21.70%-67.95%
64
Neutral
$2.61B6.4414.36%1.74%2.38%9.88%
63
Neutral
$34.60B5.43-11.64%2.14%5.30%-18.55%
56
Neutral
$3.71B8.73-8.85%-14.03%-167.03%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RELY
Remitly Global
17.02
3.54
26.26%
PAGS
Pagseguro Digital
7.92
-5.08
-39.08%
STNE
Stoneco
13.67
0.24
1.79%
AVPT
AvePoint
18.78
8.09
75.68%
PAYO
Payoneer
6.81
1.29
23.37%
DLO
DLocal
10.88
3.41
45.65%

Remitly Global Corporate Events

Private Placements and FinancingBusiness Operations and Strategy
Remitly Global Secures New $550M Credit Agreement
Positive
Jun 27, 2025

On June 24, 2025, Remitly Global entered into a new Credit Agreement with JPMorgan Chase Bank, replacing its previous credit agreement from 2021. The new agreement establishes a $550 million secured revolving credit facility, aimed at supporting the prefunding of customer flows in Remitly’s global remittance business and general corporate purposes. The facility is secured by a first priority lien on the assets of Remitly and its subsidiaries, with interest rates based on various SOFR rates or an alternate base rate. The agreement includes customary covenants and a leverage ratio requirement, indicating a strategic move to strengthen financial operations.

The most recent analyst rating on (RELY) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Remitly Global stock, see the RELY Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Remitly Global Holds 2025 Annual Stockholders Meeting
Neutral
Jun 13, 2025

On June 11, 2025, Remitly Global, Inc. held its 2025 Annual Meeting of Stockholders, where three key proposals were voted on and approved. The election of directors for terms expiring in 2028, the advisory vote on executive compensation, and the ratification of PricewaterhouseCoopers LLP as the independent registered public accounting firm were all passed. Additionally, CEO Matthew Oppenheimer declined an equity compensation award to prioritize employee and executive performance awards and address stockholder concerns about dilution.

The most recent analyst rating on (RELY) stock is a Buy with a $21.00 price target. To see the full list of analyst forecasts on Remitly Global stock, see the RELY Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Remitly Global Reports Strong Q1 2025 Financial Results
Positive
May 7, 2025

On May 7, 2025, Remitly Global reported its first quarter 2025 financial results, showcasing a significant increase in send volume and revenue, with net income reaching $11.4 million. The company exceeded its expectations for the quarter, leading to an upward revision of its full-year 2025 outlook for both revenue and Adjusted EBITDA. This performance underscores the growing trust of its customers and the company’s ability to scale efficiently, which has positive implications for its market positioning and stakeholder confidence.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 19, 2025