Remitly Global (RELY) AI Stock Analysis

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Remitly Global

(NASDAQ:RELY)

Select Model

Neutral 69 (OpenAI - 4o)

Rating:69Neutral

Price Target:

$20.50

▲(26.15% Upside)

Remitly Global's strong financial performance and impressive earnings call results are the primary drivers of its stock score. The company's robust revenue growth and product innovations are significant strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators show neutral momentum. Challenges such as a recent fraud incident and tough revenue comparisons also pose risks.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, enhancing long-term financial stability.

Product Innovation

Innovative products expand market reach and customer base, potentially driving future revenue and competitive advantage.

Geographic Diversification

Geographic diversification reduces dependency on single markets, providing resilience against regional economic fluctuations.

Negative Factors

Fraud Incident

Fraud incidents can undermine trust and lead to increased costs, impacting profitability and operational focus.

Tough Revenue Comparisons

Challenging revenue comparisons may pressure growth rates, affecting investor confidence and strategic planning.

Low Net Profit Margin

Low net profit margins indicate potential inefficiencies and limited room for absorbing cost increases, affecting long-term profitability.

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

Market Cap

$3.36B

Dividend YieldN/A

Average Volume (3M)3.45M

Price to Earnings (P/E)260.4

Beta (1Y)0.48

Revenue Growth35.12%

EPS GrowthN/A

CountryUS

Employees2,800

SectorTechnology

Sector Strength88

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.20

Shares Outstanding206,193,220

10 Day Avg. Volume3,607,379

30 Day Avg. Volume3,447,994

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap1.08

Enterprise Value/Revenue2.48

Enterprise Value/Gross Profit4.19

Enterprise Value/Ebitda64.78

Forecast

1Y Price Target

$26.60

Price Target Upside63.69% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering6

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 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 Key Performance Indicators (KPIs)

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:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

The earnings call reflected a strong performance with significant revenue growth, product innovation, and successful geographic and customer diversification. However, challenges such as a fraud incident and upcoming tough revenue comparisons were noted.

Q2-2025 Updates

Positive Updates

Exceptional Financial Performance

Second quarter revenue was $411.9 million, up 34% year-over-year, with an adjusted EBITDA of $64 million, representing a 16% margin. GAAP profitability was sustained, exceeding expectations with revenue $28 million above and adjusted EBITDA $18 million above the midpoint of Q2 guidance.

Successful Product Innovations

Introduction of Remitly Business, Remitly One membership, Stablecoin initiatives, and Agentic AI. Remitly Business expanded TAM more than tenfold, with strong early momentum, onboarding thousands of businesses in Q2.

Geographic and Customer Diversification

U.S. revenue grew 35%, rest of the world grew 40% year-over-year, and regions outside of India, the Philippines, and Mexico grew 41% year-over-year. High amount senders' volume growth was over 45% year-over-year.

Strong Customer Metrics

Quarterly active customers increased 24% year-over-year to over 8.5 million, driven by continued retention and new customer acquisition. Send volume grew 40% to $18.5 billion.

Negative Updates

Sophisticated Fraud Incident

A fraud incident in May led to a discrete nonrecurring loss of $3.8 million, affecting provision for transaction losses, which was above expectations.

Tough Revenue Comps Ahead

The third quarter faces the toughest revenue comp of the year, with expectations of revenue growth in the range of 22% to 23%, and marketing spend per QAU expected to grow by mid-single digits.

Company Guidance

In Remitly's Second Quarter 2025 Earnings Call, the company delivered impressive financial results and introduced significant product innovations. Revenue for the quarter was reported at $411.9 million, marking a 34% year-over-year increase, with adjusted EBITDA reaching $64 million, representing a 16% margin. This performance exceeded expectations, with revenue and adjusted EBITDA surpassing the midpoint of their Q2 guidance by $28 million and $18 million, respectively. Remitly's active customer base grew to over 8.5 million, and send volume increased by 40% to $18.5 billion. The company highlighted four key areas of product innovation, including Remitly Business, which expanded their total addressable market (TAM) from $2 trillion to over $22 trillion, and the upcoming launch of Remitly One, a membership program for cross-border financial needs. Additionally, Remitly is advancing its stablecoin initiatives and Agentic AI to enhance customer experiences and drive further growth. Looking ahead, the company revised its full-year 2025 revenue guidance to $1.61 billion to $1.62 billion, reflecting a 27% to 28% growth rate, with expectations of maintaining positive GAAP net income.

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

Positive

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

Positive

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

Positive

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 Price16.25

Price Trends

50DMA

18.02

Negative

100DMA

19.29

Negative

200DMA

20.68

Negative

Market Momentum

MACD

-0.58

Positive

RSI

33.34

Neutral

STOCH

5.60

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 16.25 is below the 20-day moving average (MA) of 18.12, below the 50-day MA of 18.02, and below the 200-day MA of 20.68, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 33.34 is Neutral, neither overbought nor oversold. The STOCH value of 5.60 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 (61)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAYO	75 Outperform	2.33B	24.27	12.95%	―	13.02%	-2.57%
DLO	73 Outperform	4.36B	28.58	32.57%	―	22.02%	12.42%
PAGS	73 Outperform	3.41B	8.32	15.03%	1.37%	0.09%	5.38%
RELY	69 Neutral	$3.36B	260.42	2.10%	―	35.12%	―
AVPT	62 Neutral	3.24B	-299.61	-1.90%	―	24.41%	40.20%
STNE	56 Neutral	5.10B	-27.53	-10.95%	―	-20.82%	-154.29%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

* Technology Sector Average

Performance Comparison

RELY

Remitly Global

16.25

2.60

19.05%

PAGS

Pagseguro Digital

10.05

1.37

15.78%

STNE

Stoneco

18.57

7.10

61.90%

AVPT

AvePoint

15.22

3.51

29.97%

PAYO

Payoneer

6.39

-1.22

-16.03%

DLO

DLocal

14.51

6.91

90.92%

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: Sep 11, 2025