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, 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.

2. Strategic 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.

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 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.

4. Bad 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.

5. Notable 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.