RELY — Remitly Global, Inc.

Summary of Remitly Q4 2025 Earnings Call

1. Key Financial Results and Metrics:

• Q4 Revenue: $442 million, up 26% year-over-year.
• Full Year Revenue: $1.635 billion, representing a 29% increase.
• Adjusted EBITDA: $89 million for Q4, with a margin of 20%, and $272 million for the full year, reflecting a margin of nearly 17%.
• Net Income: $68 million for the full year, marking the first year of GAAP profitability.
• Free Cash Flow: Tripled to $283 million in 2025.
• Quarterly Active Users: Nearly 9.3 million, up 19% year-over-year.
• Send Volume: Grew 35% to $21 billion in Q4, with average transaction size increasing to over $2,200.

2. Strategic Updates and Business Highlights:

• New CEO Announcement: Sebastian Gunningham appointed as CEO, succeeding Matt Oppenheimer, who transitions to Chairman.
• Product Innovations:
  • Launched "Flex," a Send Now, Pay Later product, which gained 120,000 users.
  • Introduced "Remitly Business," targeting small and medium businesses, with over 15,000 customers onboarded.
  • Rolled out "Remitly One," a membership program integrating various services.
• AI Integration: Enhanced operational efficiency and fraud detection through AI, contributing to record low transaction losses.
• Market Expansion: Continued geographical growth with plans to expand services in the UAE, Japan, Saudi Arabia, and Brazil.

3. Forward 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 2026: Expected between $340 million and $360 million, with a margin around 18%.
• New Products Contribution: Anticipated to more than double in 2026, contributing 5% to 10% of total revenue by 2028.

4. Bad News, Challenges, or Points of Concern:

• Transaction Loss Rates: While Q4 saw a record low, future rates are expected to fluctuate, which could impact profitability.
• Margin Expectations: The projected adjusted EBITDA margin for 2026 is lower than Q4 2025, reflecting anticipated volatility in transaction losses and increased investments in new products.
• Macroeconomic Factors: While the company performed well, external factors such as FX rates and immigration policies could pose risks, though management expressed confidence in customer resilience.

5. Notable Q&A Insights:

• Sebastian Gunningham's Experience: Highlighted his background in product and operational roles at Amazon and Santander, emphasizing his readiness to lead Remitly.
• Market Dynamics: Management noted strong performance among high amount senders, with significant growth in transaction volumes, particularly from high and very high amount senders.
• Customer Retention: Strong retention rates attributed to product improvements and customer experience enhancements.
• AI's Role: Both management and analysts expressed optimism about AI's potential to drive efficiencies and product innovation moving forward.

Overall, Remitly demonstrated strong financial performance in 2025, with significant growth in revenue and profitability, while also laying out ambitious plans for future product development and market expansion under new leadership.