Remitly Global (RELY) AI Stock Analysis

• Market Cap: $3.82B
• Dividend Yield: N/A
• Average Volume (3M): 4.24M
• Price to Earnings (P/E): 297.0
• Beta (1Y): 0.53
• Revenue Growth: 35.12%
• EPS Growth: N/A
• Country: US
• Employees: 2,800
• Sector: Technology
• Sector Strength: 87
• Industry: Software - Infrastructure
• EPS (TTM): 0.20
• Shares Outstanding: 206,193,220
• 10 Day Avg. Volume: 3,125,865
• 30 Day Avg. Volume: 4,241,594
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 2.48
• Enterprise Value/Gross Profit: 4.19
• Enterprise Value/Ebitda: 64.78
• 1Y Price Target: $28.40
• Price Target Upside: 53.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 66 Neutral
• Price Target: $19.50 ▲(5.23% Upside)

Remitly Global's strong financial performance and positive earnings call sentiment are the primary drivers of its score. However, the high P/E ratio and bearish technical indicators weigh down the overall score. The company's strategic initiatives and growth prospects are promising, but valuation concerns and technical trends present risks.

Positive Factors

Financial Performance

Remitly delivered broad outperformance on volume, revenue, and EBITDA, with a consistent +35% EBITDA margin for four consecutive quarters.

Market Opportunity

Remitly has 3% share of a $2 trillion global market and has multiple levers to sustain strong growth, including gaining share in existing markets and expanding into new ones.

Share Repurchase

The board authorized a $200 million share repurchase program, indicating confidence in the company's financial health.

Negative Factors

Stock Underperformance

Stock underperformance is attributed to investor concerns about immigration policy, remittance taxes, stablecoins, and competition.

US Outbound Weakness

US outbound weakness into LatAm, particularly Mexico, is clear, but digital performance is believed to have held up better.

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 makes money primarily through transaction fees charged to customers for sending money internationally. The company has a tiered pricing model where fees can vary based on factors such as the sending amount, destination country, and payment method (e.g., bank transfer, debit card, or credit card). Additionally, Remitly earns revenue from foreign exchange spreads, where they charge a markup on the exchange rate when converting currencies. Strategic partnerships with banks and local payment providers enhance their service offerings and expand their reach, contributing to customer acquisition and retention. Furthermore, Remitly's subscription-based services, which provide users with benefits like reduced fees or enhanced features, also serve as a significant revenue stream.

Remitly Global Financial Statement Overview

Summary

Remitly Global exhibits strong revenue growth and efficient cash flow management, supported by a solid balance sheet with low leverage. While profitability margins are improving, there remains potential for further enhancement. The company's financial health is stable, with a positive trajectory in operational performance and cash generation.

Income Statement

Remitly Global has shown a positive revenue growth trend with a TTM growth rate of 7.77%, indicating strong sales momentum. The gross profit margin remains healthy at 59.17%, reflecting efficient cost management. However, the net profit margin is low at 0.96%, suggesting limited profitability after expenses. The EBIT and EBITDA margins have improved to 2.34% and 3.83% respectively, showing operational improvements but still indicating room for further profitability enhancements.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.042, indicating minimal leverage and financial risk. The return on equity is modest at 2.02%, suggesting moderate efficiency in generating returns from equity. The equity ratio stands at 65.61%, highlighting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Remitly Global has demonstrated robust cash flow performance with a positive free cash flow growth rate of 3.80% TTM. The operating cash flow to net income ratio is strong at 1.04, indicating effective cash generation relative to net income. The free cash flow to net income ratio is also high at 0.98, reflecting efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.46B	1.26B	944.28M	653.56M	458.61M	256.96M
Gross Profit	865.03M	748.44M	532.65M	326.63M	221.47M	121.11M
EBITDA	55.97M	-8.96M	-96.47M	-104.95M	-31.20M	-25.12M
Net Income	14.08M	-36.98M	-117.84M	-114.02M	-38.76M	-32.56M
Balance Sheet
Total Assets	1.17B	1.01B	1.04B	695.95M	625.66M	362.99M
Cash, Cash Equivalents and Short-Term Investments	773.29M	368.10M	323.71M	300.63M	403.26M	186.69M
Total Debt	32.37M	16.29M	142.99M	9.20M	6.15M	86.97M
Total Liabilities	401.25M	347.40M	506.97M	215.87M	145.34M	186.61M
Stockholders Equity	764.92M	665.47M	529.34M	480.09M	480.33M	176.38M
Cash Flow
Free Cash Flow	367.36M	176.78M	-62.69M	-115.72M	-22.93M	-118.58M
Operating Cash Flow	376.49M	194.49M	-53.59M	-108.66M	-18.39M	-114.21M
Investing Cash Flow	-41.70M	-17.70M	-50.04M	-7.31M	-4.53M	-4.37M
Financing Cash Flow	-12.71M	-127.44M	126.65M	11.07M	238.20M	122.22M

Remitly Global Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 18.53
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 18.53 is below the 20-day moving average (MA) of 18.60, above the 50-day MA of 18.21, and below the 200-day MA of 20.89, indicating a neutral trend. The MACD of 0.13 indicates Positive momentum. The RSI at 50.59 is Neutral, neither overbought nor oversold. The STOCH value of 20.96 is Neutral, 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
PAYO	77 Outperform	$2.50B	26.40	13.86%	―	13.02%	-2.57%
DLO	77 Outperform	$4.13B	34.72	26.10%	―	14.70%	-18.45%
PAGS	73 Outperform	$2.95B	7.20	14.59%	1.54%	0.09%	5.38%
RELY	66 Neutral	$3.82B	296.96	2.10%	―	35.12%	―
AVPT	62 Neutral	$3.47B	―	-2.60%	―	24.41%	40.20%
Sector *	61 Neutral	$35.45B	7.89	-10.11%	1.88%	8.47%	-9.45%
STNE	56 Neutral	$4.47B	8.73	-8.77%	―	-20.82%	-154.29%

Remitly Global Corporate Events

Remitly Global Reports Strong Q2 2025 Financial Results

On August 6, 2025, Remitly Global reported its second quarter results for 2025, showing significant growth with a 40% increase in send volume and a 34% rise in revenue compared to the previous year. The company achieved a net income of $6.5 million and an Adjusted EBITDA of $64.0 million, marking a substantial improvement from a net loss in the same quarter of 2024. Additionally, Remitly’s Board of Directors authorized a $200 million share repurchase program, aiming to return capital to stockholders and manage equity compensation dilution. The company also raised its full-year financial outlook, expecting revenue growth of 27% to 28% year over year, indicating a strong market position and positive future prospects.

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.

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.