RELY — Remitly Global, Inc.

Summary of Remitly's Q3 2025 Earnings Call

1. Key Financial Results and Metrics

• Revenue: $419.5 million, up 25% year-over-year.
• Adjusted EBITDA: $61.2 million, representing a 15% margin.
• Send Volume: Grew 35% to $19.5 billion.
• Quarterly Active Customers: Increased 21% year-over-year to nearly 8.9 million.
• Take Rate: 2.15%, consistent with expectations.
• GAAP Net Income: $8.8 million, up from $1.9 million in Q3 2024.
• Stock-Based Compensation: $40 million, 9.5% of revenue, down from the previous year.

2. Strategic Updates and Business Highlights

• Remitly Business: Rapid scaling with nearly 10,000 businesses using the platform, doubling business send volume sequentially.
• High Amount Senders: Expanded send limits to $100,000 for certain U.S. customers, resulting in over 40% year-over-year send volume growth for transactions over $1,000.
• Product Innovations: Launched Remitly One, Flex (a flexible funding solution), and enhanced digital wallet features, with over 100,000 active Flex users.
• Reliability Metrics: Achieved 99.99% uptime, with over 94% of transactions completed in under an hour.

3. Forward Guidance and Outlook

• Q4 2025 Revenue Guidance: Expected between $426 million and $428 million, reflecting 21% to 22% growth.
• Full Year 2025 Revenue: Anticipated between $1.619 billion and $1.621 billion, indicating a 28% growth rate.
• Adjusted EBITDA for Q4: Projected between $50 million and $52 million, translating to 12% margins.
• 2026 Initial Outlook: Revenue growth expected in the high teens range, influenced by new products and the upcoming remittance tax on cash transfers.

4. Bad News, Challenges, or Points of Concern

• Tough Comparisons: Q4 2025 faces challenging year-over-year comparisons due to strong performance in Q4 2024.
• Immigration Headwinds: Recent immigration restrictions in key sending countries (U.S. and Canada) could impact new customer acquisition.
• Take Rate Compression: Decline attributed to a shift in customer mix towards larger transactions and pricing investments for new markets.
• Potential Risks: Economic uncertainties and competitive pressures in the remittance space.

5. Notable Q&A Insights

• Incremental Margins: Management emphasized a balanced approach to investments and profitability, with expectations of continued margin expansion.
• Flex Product Economics: The credit profile for Flex users is promising, with 90% current balances and minimal charge-offs, indicating strong repayment behavior.
• Market Expansion: The company is strategically focused on balancing investments in new markets and product initiatives, leveraging AI for efficiency.
• Long-Term Growth Potential: Management expressed confidence in capturing a larger share of the $22 trillion total addressable market, particularly through digital remittance growth.

Overall, Remitly demonstrated strong financial performance in Q3 2025, driven by strategic initiatives and product innovations, while also acknowledging challenges ahead in the competitive landscape and economic environment.