Remitly Global (RELY) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: N/A
• Average Volume (3M): 3.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.28
• Revenue Growth: 34.37%
• EPS Growth: 95.80%
• Country: US
• Employees: 2,800
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): 0.21
• Shares Outstanding: 203,858,600
• 10 Day Avg. Volume: 4,007,827
• 30 Day Avg. Volume: 3,630,735
• PEG Ratio: -8.69
• Price to Book (P/B): 4.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.00
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 0.63
• Enterprise Value/Gross Profit: 3.80
• Enterprise Value/Ebitda: -32.94
• 1Y Price Target: $28.29
• Price Target Upside: 66.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10

• Rating: 69 Neutral
• 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 Business Overview & Revenue Model

Company Description

Remitly 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 Money

Remitly 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 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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.26B	944.28M	653.56M	458.61M	256.96M
Gross Profit	748.44M	532.65M	326.63M	221.47M	121.11M
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 Assets	1.01B	1.04B	695.95M	625.66M	362.99M
Cash, Cash Equivalents and Short-Term Investments	368.10M	323.71M	300.63M	403.26M	186.69M
Total Debt	16.29M	142.99M	9.20M	6.15M	86.97M
Total Liabilities	347.40M	506.97M	215.87M	145.34M	186.61M
Stockholders Equity	665.47M	529.34M	480.09M	480.33M	176.38M
Cash Flow
Free Cash Flow	176.78M	-62.69M	-115.72M	-22.93M	-118.58M
Operating Cash Flow	194.49M	-53.59M	-108.66M	-18.39M	-114.21M
Investing Cash Flow	-17.70M	-50.04M	-7.31M	-4.53M	-4.37M
Financing Cash Flow	-127.44M	126.65M	11.07M	238.20M	122.22M

Remitly Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DLO	81 Outperform	$3.11B	24.09	26.10%	―	―	―
PAYO	74 Outperform	$2.46B	22.78	15.97%	―	14.86%	-0.94%
RELY	69 Neutral	$3.47B	―	-0.71%	―	34.37%	95.80%
AVPT	65 Neutral	$3.98B	―	-8.39%	―	21.70%	-67.95%
PAGS	64 Neutral	$2.61B	6.44	14.36%	1.74%	2.38%	9.88%
Sector *	63 Neutral	$34.60B	5.43	-11.64%	2.14%	5.30%	-18.55%
STNE	56 Neutral	$3.71B	8.73	-8.85%	―	-14.03%	-167.03%

Remitly Global Corporate Events

Remitly Global Secures New $550M Credit Agreement

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.

Remitly Global Holds 2025 Annual Stockholders Meeting

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.

Remitly Global Reports Strong Q1 2025 Financial Results

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.