Summary of Remitly Q4 2025 Earnings Call

1Key Financial Results and Metrics

Q4 Revenue: $442 million, up 26% year-over-year.

Full Year Revenue: $1.635 billion, a 29% increase.

Adjusted EBITDA: $89 million for Q4, with a margin of 20%; full year adjusted EBITDA reached $272 million, a margin of nearly 17%, up over 500 basis points year-over-year.

Net Income: $68 million for the full year, marking the first full year of GAAP profitability.

Free Cash Flow: Tripled to $283 million in 2025.

Quarterly Active Users (QAU): Nearly 9.3 million, a 19% increase year-over-year.

Send Volume: Grew 35% to $21 billion in Q4.

2Strategic Updates and Business Highlights

Appointment of Sebastian Gunningham as the new CEO, succeeding Matt Oppenheimer, who transitions to Chairman.

Strong growth in high amount senders, with volumes from this category growing 14% year-over-year and very high amount senders (over $10,000) growing 105%.

Launch of new products:

Flex: (Send Now, Pay Later) reached 120,000 users.

Remitly Business: attracted over 15,000 business customers.

Remitly One: membership program integrates multiple services and rewards.

Continued investment in AI to enhance operational efficiency and customer experience.

3Forward Guidance and Outlook

Q1 2026 Revenue Guidance: Expected between $436 million and $438 million, reflecting 21% growth.

Full Year 2026 Revenue Guidance: Projected between $1.94 billion and $1.96 billion, indicating a growth rate of 19% to 20%.

Adjusted EBITDA for Q1 2026: Expected between $82 million and $84 million, with a margin around 19%.

Anticipation of doubling revenue from new products in 2026, contributing 5% to 10% of total revenue by 2028.

4Bad News, Challenges, or Points of Concern

Transaction Loss Rates: Although Q4 saw a record low of 7.3 basis points, future volatility in transaction losses is a concern.

Margin Expectations: The implied adjusted EBITDA margin for 2026 is lower than Q4 2025, raising questions about profitability sustainability amidst ongoing investments in new products.

Macro Factors: Potential impacts from geopolitical volatility and regulatory changes, particularly concerning remittance policies, could affect future performance.

5Notable Q&A Insights

Sebastian Gunningham's Background: His experience in leading product and engineering teams at major companies like Amazon and Santander positions him well to drive Remitly's growth.

Macro Impact: CFO Vikas Mehta noted that while the company had a strong performance despite macroeconomic challenges, the recent 1% remittance tax on cash remittances is expected to provide a tailwind.

Focus on High Amount Senders: The company is strategically targeting high amount senders, which are expected to drive significant growth moving forward.

AI Utilization: Gunningham emphasized the transformative potential of AI for operational efficiency and product development, indicating a strong focus on leveraging AI capabilities. Overall, Remitly's Q4 2025 results reflect strong growth and operational improvements, with a clear strategy for future expansion under new leadership, although challenges related to transaction losses and margin sustainability remain.