Remitly Global (NASDAQ:RELY) Announces Earnings Results

Remitly Global (NASDAQ:RELY) posted its earnings results on Wednesday. The financial services provider reported $0.93 earnings per share for the quarter, beating the consensus estimate of $0.12 by $0.81, FiscalAI reports. Remitly Global had a net margin of 6.12% and a return on equity of 12.90%. The company had revenue of $495.16 million for the quarter, compared to analyst estimates of $486.25 million. During the same period in the previous year, the business posted $0.03 EPS. Remitly Global’s revenue was up 20.2% on a year-over-year basis.

Here are the key takeaways from Remitly Global’s conference call:

• Record Q2 results exceeded guidance: Revenue rose 20% year over year to $495 million, adjusted EBITDA reached a record $115 million with a 23% margin, and quarterly active users surpassed 10 million.
• Core momentum remained strong, with send volume up 27% to $23.5 billion, U.S. revenue up 24%, and transaction margin improving 235 basis points to 67%. Management raised its full-year revenue outlook to $1.978-$1.988 billion and expects more than 20% growth in the second half.
• Growth accelerators are gaining traction, including High-Value Senders, Remitly Business, receivers, and the newly launched Remitly Global Card. These initiatives are expected to contribute about 5% of 2026 revenue and exceed 10% by 2028, although management emphasized that the longer-term opportunity could be substantially larger.
• AI-driven productivity and operating discipline supported substantial leverage across technology, customer support, fraud prevention, and G&A. Free cash flow nearly tripled year over year to more than $130 million, while the company repurchased $21 million of stock in Q2 and expects full-year adjusted EBITDA of $410-$415 million.
• Management expects transaction-loss rates to normalize in the second half after better-than-expected Q2 performance, contributing to a sequential decline in Q3 adjusted EBITDA margin to approximately 18%-19%. High-Value Sender growth also softened in June because of foreign-exchange volatility and temporary measures affecting Indian corridors.

Remitly Global Price Performance

Shares of RELY stock traded down $0.56 during trading hours on Wednesday, hitting $24.07. The company had a trading volume of 2,786,951 shares, compared to its average volume of 2,618,342. The stock has a market capitalization of $5.07 billion, a PE ratio of 49.12 and a beta of 0.34. The company’s fifty day moving average is $22.03 and its 200 day moving average is $18.96. Remitly Global has a fifty-two week low of $12.08 and a fifty-two week high of $25.75.

Insider Transactions at Remitly Global

In other Remitly Global news, Director Joshua Hug sold 16,800 shares of the company’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $22.97, for a total transaction of $385,896.00. Following the transaction, the director directly owned 3,385,457 shares in the company, valued at $77,763,947.29. This represents a 0.49% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Bora Chung sold 12,000 shares of the firm’s stock in a transaction on Wednesday, May 20th. The stock was sold at an average price of $21.42, for a total value of $257,040.00. Following the transaction, the director owned 125,317 shares of the company’s stock, valued at approximately $2,684,290.14. This represents a 8.74% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 170,388 shares of company stock worth $3,725,510 in the last three months. Company insiders own 6.53% of the company’s stock.

Institutional Investors Weigh In On Remitly Global

Institutional investors and hedge funds have recently modified their holdings of the company. Quarry LP acquired a new position in Remitly Global during the 3rd quarter worth about $42,000. Aster Capital Management DIFC Ltd boosted its holdings in Remitly Global by 1,597.8% during the 4th quarter. Aster Capital Management DIFC Ltd now owns 4,669 shares of the financial services provider’s stock valued at $64,000 after acquiring an additional 4,394 shares during the period. Raymond James Financial Inc. purchased a new position in Remitly Global during the 2nd quarter valued at about $89,000. Parallel Advisors LLC acquired a new position in Remitly Global in the 4th quarter valued at about $96,000. Finally, Advisors Asset Management Inc. grew its position in Remitly Global by 29.6% in the 4th quarter. Advisors Asset Management Inc. now owns 7,698 shares of the financial services provider’s stock valued at $106,000 after acquiring an additional 1,758 shares in the last quarter. Hedge funds and other institutional investors own 74.25% of the company’s stock.

Analyst Ratings Changes

Several research firms have recently commented on RELY. Citizens Jmp lifted their price target on shares of Remitly Global from $26.00 to $30.00 and gave the company a “market outperform” rating in a research report on Thursday, July 16th. The Goldman Sachs Group lifted their target price on Remitly Global from $27.00 to $30.00 and gave the company a “buy” rating in a research report on Thursday, July 9th. Zacks Research lowered Remitly Global from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 20th. Weiss Ratings upgraded Remitly Global from a “hold (c-)” rating to a “hold (c)” rating in a report on Wednesday, June 3rd. Finally, Citigroup reissued an “outperform” rating on shares of Remitly Global in a research report on Thursday, July 16th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Remitly Global presently has an average rating of “Moderate Buy” and a consensus price target of $25.50.

About Remitly Global

Remitly Global, Inc operates as a digital financial services company specializing in cross-border money transfers. Through its proprietary online platform and mobile applications, the company enables immigrants, expatriates and international workers to send remittances swiftly and securely to their families abroad. By focusing on fast deliverability and transparent pricing, Remitly seeks to streamline a process traditionally dominated by cash-based methods and legacy money transfer operators.

Founded in 2011 by Matt Oppenheimer and headquartered in Seattle, Washington, Remitly has grown from a startup into a publicly traded corporation listed on NASDAQ under the ticker RELY.