RELY

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Remitly Global (RELY) is back in focus after its 8 August special call, which followed a busy earnings week that included second quarter results, raised 2026 guidance and an update on share repurchases. See our latest analysis for Remitly Global. At a share price of $25.44, Remitly Global has seen strong positive momentum this year, with a year to date share price return of 92.44% and a 1 year total shareholder return of 34.96%, even after a 1 day decline of 3.27% following the earnings, guidance and buyback updates. If Remitly Global has you looking closer at financial technology and digital platforms, it can also be useful to broaden your search with a curated list of 21 top founder-led companies After a near doubling year to date and eye catching earnings and buyback headlines, Remitly Global now asks a simple question: Does the current risk reward still lean toward new buyers or favour investors waiting for a better entry point? The most followed Remitly Global narrative pegs fair value at $28.56, which sits above the last close of $25.44 and frames the current upside case around long term earnings power. Read the complete narrative. The fair value hinges on a specific path for revenue, margins and future earnings multiples. The narrative lays out a detailed earnings bridge and assumes investors keep paying up for that growth profile. It explores what would need to occur over the next few years for those numbers to align. Result: Fair Value of $28.56 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, the Remitly Global upside case still hinges on competition and regulation not biting harder, with fee pressure or tighter stablecoin rules posing potential spoilers for this narrative. Find out about the key risks to this Remitly Global narrative. The analyst narrative frames Remitly Global as 10.9% undervalued at $28.56 using forward earnings, margins and P/E assumptions. A simpler check using today’s P/E of 17.7x versus a fair ratio of 12.2x instead points to an expensive stock, even though it is roughly in line with the US Diversified Financial industry at 17.9x and far below the 45.7x peer average. Which lens do you trust more when the story and the simple ratio disagree? See what the numbers say about this price — find out in our valuation breakdown. Given the mixed signals around Remitly Global, it makes sense to review the full picture yourself and move quickly while sentiment is still shifting using 4 key rewards and 2 important warning signs If Remitly Global has sharpened your interest in finding strong setups, do not stop here. Fresh ideas filtered by clear rules can help you explore additional opportunities. Target potential turnaround stories by scanning 21 elite penny stocks with strong financials that pair low share prices with stronger fundamentals than many expect. Focus on quality at a sensible price by reviewing the 50 high quality undervalued stocks that combine solid cash flows with balance sheet strength. Reinforce the defensive side of your portfolio by checking 11 dividend fortresses that focus on higher yielding companies with resilient profiles. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include RELY. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Remitly Global, Inc. (RELY) could be a solid choice for investors given the company's remarkably improving earnings outlook. While the stock has been a strong performer lately, this trend might continue since analysts are still raising their earnings estimates for the company. Analysts' growing optimism on the earnings prospects of this company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool -- the Zacks Rank -- is principally built on this insight. The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Consensus earnings estimates for the next quarter and full year have moved considerably higher for Remitly Global, Inc., as there has been strong agreement among the covering analysts in raising estimates. The chart below shows the evolution of forward 12-month Zacks Consensus EPS estimate: The company is expected to earn $0.33 per share for the current quarter, which represents a year-over-year change of +725.0%. The Zacks Consensus Estimate for Remitly Global has increased 50% over the last 30 days, as one estimate has gone higher compared to no negative revisions. The company is expected to earn $1.57 per share for the full year, which represents a change of +390.6% from the prior-year number. The revisions trend for the current year also appears quite promising for Remitly Global, with one estimate moving higher over the past month compared to no negative revisions. The consensus estimate has also received a boost over this time frame, increasing 37.1%. Thanks to promising estimate revisions, Remitly Global currently carries a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500. Remitly Global shares have added 9% over the past four weeks, suggesting that investors are betting on its impressive estimate revisions. So, you may consider adding it to your portfolio right away to benefit from its earnings growth prospects. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Remitly Global, Inc. (RELY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Remitly’s second quarter was marked by strong customer growth and broad product momentum, leading to results that surpassed Wall Street expectations and a significant positive market reaction. Management pointed to robust execution in both its core digital money transfer business and newer growth initiatives, citing record new customer additions and improved transaction speeds as key drivers. CEO Sebastian Gunningham highlighted, “Nearly 70% of global funded transfers were delivered in under 20 seconds, an all-time high,” emphasizing operational progress and customer trust. Is now the time to buy RELY? Find out in our full research report (it’s free). Revenue: $495.2 million vs analyst estimates of $486.5 million (20.2% year-on-year growth, 1.8% beat) Adjusted EPS: $1.12 vs analyst estimates of $0.31 (significant beat) Adjusted EBITDA: $114.7 million vs analyst estimates of $88.1 million (23.2% margin, 30.2% beat) The company slightly lifted its revenue guidance for the full year to $1.98 billion at the midpoint from $1.97 billion EBITDA guidance for the full year is $412.5 million at the midpoint, above analyst estimates of $383.1 million Operating Margin: 13.5%, up from 3.6% in the same quarter last year Active Customers: 10.2 million, up 1.7 million year on year Market Capitalization: $5.00 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Tien-Tsin Huang (JPMorgan) asked CEO Sebastian Gunningham which new initiative excites him most. Gunningham replied that the overall momentum across products and geographies is compelling, avoiding singling out one area. Ramsey El-Assal (Cantor Fitzgerald) questioned the scale and pacing of marketing investments for high-value senders. CFO Vikas Mehta responded that spend would increase gradually and be tied to learnings from early campaign results, emphasizing discipline. Cristopher Kennedy (William Blair) probed the sustainability of AI-driven productivity gains and their impact on margins. Gunningham and Mehta detailed broad-based cost benefits, especially in engineering and G&A, but cautioned that the full trajectory of AI benefits will emerge over time. Alexander Markgraff (KBCM) asked about the differentiation and monetization of receiver products. Gunningham said it’s early days but highlighted the unique position Remitly holds due to direct sender-receiver relationships and ongoing product experimentation. David Scharf (Citizens Capital Markets) challenged whether growth accelerators could comprise more than 10% of revenue by 2028. Both Gunningham and Mehta reiterated that these are long-term bets in large markets, with the goal of building much larger multi-revenue stream businesses over time. In the coming quarters, our team will closely monitor (1) the adoption and monetization rates of the Remitly Global Card and receiver-focused products, (2) ongoing operating leverage and cost savings derived from further AI and automation deployment, and (3) the ability to capture additional market share in key remittance corridors as legacy competitors adjust their strategies. The pace of growth accelerators and regional licensing developments will also be important to track. Remitly currently trades at $23.84, in line with $24.07 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+214% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5 p.m. ET Head of Investor Relations - David Beckel Chief Executive Officer - Sebastian J. Gunningham Chief Financial Officer - Vikas Mehta Operator: Good day, and thank you for standing by. Welcome to the Remitly Second Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. There will be a Q&A session. To ask a question during the session, will need to press *11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Beckel. Head of Investor Relations. Please go ahead. David Beckel: Good afternoon, and thank you for joining us for Remitly's second quarter 2026 earnings call. Joining me on the call today are Sebastian J. Gunningham, Chief Executive Officer of Remitly and Vikas Mehta, Chief Financial Officer. Results and additional management commentary are available in the earnings release and presentation slides, which can be found at ir.remitly.com. Please note that this call will be simultaneously webcast on the Investor Relations website. Before we start, I would like to remind you that we will be making forward-forward-looking statements within the meaning of the federal securities laws including, but not limited to, statements regarding Remitly's future financial results and management's expectations and plans. These statements are neither promises nor guarantees, and involve risks and uncertainties that may cause actual results to vary materially from those presented here. You should not place undue reliance on any forward-looking statement. Please refer to the earnings release and SEC filings for more information regarding the risk factors that may affect results. Any forward-forward-forward-looking statements made in this conference call, including responses to your questions, are based on current expectations as of today. And Remitly assumes no obligation to update or revise them whether as a result of new developments or otherwise except as required by law. The following presentation contains non GAAP financial measures. For a reconciliation of non GAAP financial measures to the most directly comparable GAAP metric, please see the earnings press release and the appendix to the earnings presentation which are available on the IR section of our website. Now I will turn the call over to Sebastian to begin. Sebastian J. Gunningham: Thank you for joining our second quarter earnings call. My first 6 months as CEO have been intense. And they have confirmed something I already knew. Remitly matters deeply to its customers. This quarter's results prove it. Record revenue, record adjusted EBITDA, both above the high end of guidance again. We also achieved an important milestone for the company. Over 10 million quarterly active users aided by record new customer additions. that is a direct reflection of the trust and confidence customers place in Remitly and our team's ability to execute. This quarter's strong results were reflect 3 enduring attributes of our business. First, a strategy that works. Providing affordable, fast, and trusted money movement for a wide range of global customers. Second, a competitive position that is strong and defensible. We continue to gain share and the advantages of lower cost network breadth and operating scales are compounding. And third, a cost discipline that is structural. The operating leverage in this business is real. And AI is driving genuine productivity gains that can be redeployed to invest in growth, strengthening our confidence in the top line while we continue to expand adjusted EBITDA margins. Today, I will provide an update on my operating philosophy, discuss our progress across our core business and growth accelerators, and explain how AI is reshaping the economics of our business model, and share our latest view on capital allocation. When I joined, I was clear about how I wanted this organization to work. Smaller teams, clearer ownership, customer first design, AI embedded everywhere, speed as the default. This quarter, we kept building towards that. The result is a flatter, faster moving company. Product teams are being consolidated into fewer locations to take advantage of fast speeds to design, build and launch features. Fewer layers mean clearer ownership and faster decisions. Faster decisions mean more products, and more products mean more revenue. And through this rapid evolution, our culture has held. Our team continues to obsess over building the most affordable, fastest, and most trusted way to move money. They understand every transaction matters to a real family, and I am proud to confirm what I see every day. Everybody at Remitly cares deeply about our customer focused mission. Moving on to an update on our business. Last quarter, I introduced a framework for how we think about our opportunities. Call centers high value senders, business senders, and receivers against 4 offerings, which are send, borrow, spend, and save. Everything outside our core send, we call growth accelerators. This quarter, we shipped against all these boxes. As we broaden our offerings beyond remittances, we build a powerful flywheel. Driving better loyalty, higher volumes, and more diversified revenue. This quarter's results are evidence that the flywheel is turning. I will now cover key customer and product updates across CoreSend and our growth accelerators. Our global pay in and payout network is our strongest competitive advantage. This quarter, we expanded our network on the dimensions customers care about most, reach, speed and reliability. We added 5 countries, New Zealand, Niger, Mali, Angola, and Botswana, bringing the total received geographies to 179. 32 of these countries are now send and receive enabled. Speed and reliability matter to our customers and are important drivers of retention. This quarter, new real time pay in rails, FedNow, and time payments in The US, improved our pay in funding speeds. And in the second quarter, nearly 70% of Remitly's global funded transfers were delivered in under 20 seconds, an all time high. Further, payments and customer onboarding improvements drove record pay in acceptance and record low defect rates. Reinforcing the basics that drive customer trust in the Remitly platform. Last month, we announced our participation in OpenUSD, a stablecoin consortium, as a founding member. This new stablecoin has the potential to cut pay and settlement times by up to 1 day, and lets us share in stablecoin wallet economics. Since our last earnings call, we strengthened our regulatory foundation across 3 important geographies: We received a stored value facilities license from the Central Bank in the UAE, an electronic money institution license in The UK, and an extension of our EU payments institution license. These licenses open the door to new products designed specifically for customers in these regions. Each of our growth accelerated gained important traction this quarter. Our approach to investing in growth is deliberate. We start small and scale only when we see product market fit and a clear return. Vikas will cover the financials, I will cover the operating highlights. High value senders are those who send $5 thousand or more in a single transaction. Often for property investments or larger transfers to family. For them, reliability matters most. And the economics of earning their loyalty are strong. In Q2, we lowered friction across a number of dimensions for these customers, and added bank wires as a funding option. And in Latin America, a key growth region for this customer category, we raised send limits and eliminated unnecessary customer actions. As a result, high value send volume more than doubled in the US-Mexico corridor. Remitly business grew strongly again this quarter with sequential revenue and volume growth both accelerating quarter over quarter. New features like Bulk Send and the addition of 23 new countries in the European Union are helping broaden our customer base. More than 80% of customers added to the business platform this quarter are new to Remitly. And usage is sticky with the average business customer sending money 10x a quarter. This quarter, we grew the receiver product from 6 to 130 countries. it is still early, but we are optimistic about its potential to drive send revenue and eventually spend and save. The bet with receivers is simple. Build direct relationships with receivers, and senders will follow. In countries where stable currencies and dependable financial services are scarce, we think we can serve receivers better than anyone. We recently launched a global stablecoin wallet with a debit card, starting our rollout in Latin America. A first of its kind offering lets receivers get paid, hold, and spend in USDC. Longer term, we want to be a big part of our receivers' financial lives, not just where a transaction lands. This is a first step. Last week, we launched the Remitly Global Card. An all in 1 product for our customers to borrow, spend, and to save as easily as they can send money home. Remitly Global Card is the next step in our journey from a remittance company to a broader suite of products our customers need and want. The Remitly Global Card combines 1 of a kind features including our best remittance prices, faster and lower fee sends, no fee everyday spending, a bank account for everyone, the ability to hold and move money in fiat currency or USDC, instant transfers between Remitly Global Cardholders, no foreign transaction fees, direct deposit, global ATM access, and a line of credit through the Remitly Global Card membership plan. Among other valuable new features for our global customers. The launch of this card marks an important milestone for our company. For millions of people, banking was not built for them. This card is. With the Remitly Global card, we are giving communities who live across borders frictionless access to borrowing spending, saving, and sending. No paperwork. No bank branch. No waiting. All card members get default access to the lowest cost fastest remittance options on Remitly. Our customers should not have to shop for the best rate every time they send money home. The Remitly Global Card allows us to more fully address the financial needs of tens of millions of customers who have sent or received money via Remitly, and our intent is to put the Remitly Global Card in the hands of each and every Remitly customer over time. In the coming quarters, we plan to expand the Remitly Global Card to additional countries, enabling seamless direct payouts for global workers and broader multicurrency holding capabilities for consumers and businesses worldwide. Finally, an update on AI. There are 3 ways AI benefits Remitly, speed, trust, cost. Speed, we build and ship faster, Trust, we deliver a better, more personal experience. And cost, We are 1 leader. This quarter, all 3 move forward. Speed and trust gains are starting to show up in the top line faster launches and a better customer experience. Cost remains the clearest AI win so far. AI driven productivity has allowed us to hold headcount below plan, as I reoriented the company towards speed and tested our growth bets. I asked every team the same question. Show me the number that proves your function is more self driving than it was 1 quarter ago. The answers are getting better. Before I hand the call to Vikas, I wanna say a word on capital allocation. This quarter, we generated $130 million in free cash flow. Today, this management team is balancing 2 things. Reinvesting in profitable growth and executing share buybacks within the limits set by our board. We believe this is the right plan, and we will continue to update our shareholders as our thinking evolves. Let me close with this. We delivered an excellent quarter. We are gaining ground with customers in geographies that matter. We are doing it more efficiently than ever. Our products are working for customer. I am optimistic. Not because of a forecast, but because of what I see in the business every day. Thank you. Vikas Mehta: Thank you, Sebastian, and good afternoon, everyone. We delivered another excellent quarter of profitable growth and strong free cash flow. Reflecting solid execution and a rigorous attention to cost discipline. Second quarter revenue was $495 million, $11 million above the midpoint of our guidance. And up 20% year-over-year. Adjusted EBITDA was $115 million, $28 million above the midpoint of our guidance at a 23% margin. Let me share an overview of our second quarter results. And then provide our outlook for the third quarter of 2026 and our updated guidance for the full year. Strong top line results this quarter reflected momentum in CoreSend and the continued scaling of our growth accelerators. Revenue outperformance this quarter was driven by a number of factors. Regulatory changes in The United States continued to support a shift towards digital remittances. Driving another quarter of record new customers acquired. And Mother's Day weekend volumes strongly exceeded expectations. As noted last quarter, the pacing of Q2 growth relative to Q1 was due to a shift in the timing of Ramadan and Easter to earlier in the year. Unpacking revenue growth drivers for Q2, Send volume grew 27% to $23.5 billion Send volume per active customer reached a record $2.3 thousand up 6% year over year. Driven by growth in high-value senders and business customers. As well as higher average transaction sizes among core senders. Quarterly active customers grew 20% year-over-year to 10.2 million. This was our first quarter above 10 million QAU, an important milestone which validates the strength and durability of our business model. Quarterly active customer growth remains strong due to effectiveness of our Skip the Line campaign which targets customers seeking alternative to cash based remittance methods. Our take rate this quarter was 2.11%. Now let me dive deeper into our revenue performance from a geographic and new product perspective. From a spend perspective, U.S. revenue grew 24% reflecting continued share gains in key geographies. Rest of the world revenue grew 18% year-over-year. On the receive side, revenue from transactions to regions outside of India, the Philippines, and Mexico once again grew faster than overall revenue growth. And comprised over half of our revenue mix. I will now discuss the performance of our growth accelerators. As a reminder, growth accelerators include all customer categories and offerings outside of Core Send. Our growth accelerators continue to gain traction and scale and are well on track to comprise around 5% of total revenue. in 2026, And exceed 10% of total revenue by 2028. Let me take a few minutes to provide more detail on the performance of each of our primary growth accelerators. Let me start with high-value senders. High value sender volume grew 37% year-over-year a 70-basis-point increase in mix. Year over year. We achieved a number of milestones with high value senders this quarter, including our first transaction of $300 thousand and our first customer to send more than $1 million in a single quarter. This quarter, we also expanded how customers can fund transfers by adding bank wires. Customers can now wire funds directly to Remitly. Which we then deliver instantly through our global network. Avoiding the cost and delays of traditional international wire. This gives more customers particularly high-value senders, a flexible way to fund transactions and is already resonating. Customers using wires send nearly 3x more per transaction. This quarter, high-value sender volume growth was softer in June due to fluctuations in the Indian rupee relative to primary send currencies, as well as short term foreign currency mobilization measures announced by the Reserve Bank of India. We expect trends affecting Indian corridors to normalize over the course of the year. Further, we have a robust pipeline of high-value sender product enhancements And in the second half of the year, we are expanding our marketing and targeting efforts for this important customer category. Now moving on to Remitly business. Remitly business performance continues to exceed our expectations. We ended Q2 with over 25 thousand Remitly for Business users and saw sequential acceleration quarter over quarter growth for both volume and revenue. Growth was supported by the continued reduction in friction associated with onboarding and transaction flows. Shifting to receivers. Our receiver offering generated revenue for the first time this quarter an important inflection point for this business. The receiver product allows us to unlock a direct relationship with more than 30 million receivers on our platform. Creating a new flywheel at little to no marketing cost. Finally, our fourth growth accelerator Spend, Save and Borrow. We are excited to share an important milestone, the launch of the Remitly Global Card. With this offering, card members can send, spend, and save money from the same account. The Remitly Global Card is an important strategic offering and enabler of revenue diversification. As we extend the value of the Remitly platform, further into our customers' financial lives. The Remitly Global Card comes with no monthly fees or minimums. Customer can further upgrade to our membership plan which for $9.99 per month contains valuable benefits. Including access to an open-end line of credit that customers can use to remit money home, before payday and payback over time. We plan to evolve our liquidity offerings, which more than doubled year-over-year. To a card focused format over time. The new card plan format is showing strong early customer uptake. With response and conversion rates exceeding prior benchmarks. Lines of credit associated with the Remitly Global Card are funded by a third party bank partner. As a result, we expect receivables associated with our liquidity products to reduce over time. Turning to our focus on driving profitable growth. On Slide 13. This quarter, we are replacing the term revenue less transaction expense, an abbreviation RLTE, with transaction margin. Which we believe is a more intuitive description of this metric. Transaction margin is calculated in the same manner as the measure we previously referred to as revenue less transaction expense in prior periods. Transaction margin dollars grew 25% to $334 million outpacing revenue growth. Transaction margin dollar growth reflects strong customer activity as well as improved partner economics. Routing optimization, and economies of scale. Transaction margins were 67% improving 35 basis points year over year. Transaction expenses this quarter were $161 million and as a percentage of revenue, were 33%. Excluding provisions for transaction losses, other transaction expenses, were $137 million, improving 51 basis points year over year. As a percentage of revenue. This reflects improved network economics as well as continued shift in mix toward digital receive volume. We continue to see early benefits from the use of stablecoins in our treasury settlement operations. But the impact remains modest in absolute terms. Provision for transaction losses was $24.5 million, or 10.4 basis points as a percentage of send volume. This was better than expected as we continue to benefit from efficiencies afforded by the AI driven fraud prevention and detection model deployed late last year. With that, let me walk you through the specific non GAAP expense category. Marketing investments remain disciplined and growth focused. We spent $96.5 million on marketing in Q2, up 20.9% year-over-year. As a percentage of revenue, marketing expense was 19.5%, roughly in line with prior year levels. Marketing spend per active customer was $9.46, up 0.9% year over year. And in line with our expectations. Marketing consists primarily of advertising and promotions. This quarter's notable brand campaigns included the expansion of our Skip The Line campaign, to new US cities. A World Cup promotion featuring Cristo Fernández, of Ted Lasso fame. And additional marketing investment in The UAE. Promotions, including those in contra revenues, grew 35% year over year reflecting a deliberate focus on driving higher retention and win back among our back book of customers. Our LTV to CAC ratio was about 6x while our payback period remained under 12 months. Continued efficiencies reflect growth in customer acquisition through unpaid channels and word-of-mouth. As a reminder, our marketing investments drive returns for many years beyond initial investment. Due to our growing base of repeat users. Customer support and operations expense was $26.2 million as a percentage of revenue was 5.3%, improving 68 basis points year over year and continuing a multiyear trend of steady operating leverage. Technology and development expense were $55.5 million and as a percentage of revenue was 11.2%, improving 175 basis points year over year and reflecting the benefits of embedding Agentic AI into our engineering and product team. Despite a modest increase in AI related spend, the benefits of AI related labor productivity have outweighed the direct AI spend. A trend we expect will continue. G&A expense was $41 million, declining 11% year over year our first year over year decline in G&A ever as a public company. We delivered significant leverage this quarter, 295 basis points as a percentage of revenue year over year. Reflecting lower than expected hiring as we evaluate business priorities along with the continued rigorous focus on operating discipline. Strong revenue growth combined with operating leverage and cost discipline led to a record level of adjusted EBITDA of $115 million Adjusted EBITDA outperformance was driven by higher than expected revenue lower than expected transaction losses and lower than expected expenses due to the ongoing assessment of business initiatives. Following Sebastian's arrival. Net income was $206 million, which included $140.6 million release of tax valuation allowance. Our North Star is growth in free cash flow. While managing dilution. And Q2 demonstrated continued progress on both counts. Free cash flow nearly tripled year over year to over $130 million This was aided by strong operating leverage, favorable working capital, as well as lower property and equipment spending as we lap the build out of our new headquarters from last year. Outstanding shares were 212 million, up 3% year over year reflecting our disciplined approach to dilution management and share repurchase activity. Stock based compensation was lower year over year for a second consecutive quarter, and it declined 9% year-over-year coming in at 7% of revenue. Which is 28 basis points lower than the second quarter of 2025. Due in part to lower than planned hiring. For all of 2026, we continue to expect stock based compensation to increase modestly in absolute terms year over year. But decrease as a percentage of revenue. We continued repurchasing shares in Q2 buying back $21 million worth of stock. Or over 1.1 million shares. Year to date, we have repurchased almost 4 million shares. This reflects conviction in our long term growth opportunities and a view that share repurchases are an attractive use of capital. We will continue to be disciplined and opportunistic in how we deploy capital toward buybacks. With that, I will move to our outlook. For the third quarter of 2026, we expect revenue of $505 million to $507 million or 20% to 21% growth. We continue to see strong momentum in our core, and we expect the continued shift toward digital remittances growth in new geographies and the scaling of our growth accelerators to contribute to total company revenue growth of over 20% in the second half of the year. An increase relative to prior expectations. Breaking down our revenue growth, in Q3 we anticipate send volume growth to exceed revenue growth, and revenue growth to modestly exceed quarterly active customer growth. Send volume per active customer is expected to grow in the mid to high single digits range supported by the continued shift in mix towards high-value senders and businesses. For the full year, we expect revenue between $1.978 billion and $1.988 billion a growth rate of 21% to 22% reflecting strong demand in our core and growing levels of contributions from our growth accelerators. As a reminder, we are lapping a particularly strong holiday season in Q4 which drove outsized volume growth in the prior year. Now let us pivot to profitability and expense guidance. Starting with transaction margins, we expect Q3 transaction margins to be slightly higher than the prior year. Note transaction loss rate may fluctuate quarter to quarter We remain disciplined about optimizing customer value while rigorously managing risk across our platform. For the full year, we continue to expect transaction margins to be broadly in line with 2025 levels on a normalized basis. Shifting to marketing. We expect continued marketing efficiencies in the back half of 2026 as we prioritize high ROI marketing opportunity. For Q3, we expect marketing spend for QAU to be slightly higher year over year as we extend our Skip the Line campaign and increase brand marketing in the UAE. Please note marketing expense per QAU faces a tough comparison in Q4, as last year benefited from a focused and intentional approach to holiday period spend. Putting this all together, we expect Q3 adjusted EBITDA to be between $92 million and $94 million translating to an adjusted EBITDA margin of around 18% to 19%. An expansion of over 350 basis points year over year. For the full year, we expect adjusted EBITDA to be between $410 million and $415 million representing an adjusted EBITDA margin of around 21%, an expansion of over 400 basis points year over year. This improved adjusted EBITDA outlook reflects a more favorable outlook for revenue Sebastian's deliberate assessment of the business in the first half of the year, and our commitment to continued cost discipline leveraging AI as we invest in growth. As always, we remain rigorously focused on balancing growth and profitability and will continue to look to further leverage the benefits of AI as we invest in top line growth. Our outlook also assumes normal levels of transaction losses for the remainder of the year. To summarize, in Q2, we delivered another excellent quarter with results that were strong across our key financial metrics. We achieved over 20% revenue growth and over 23% adjusted EBITDA margins. We delivered record GAAP profitability and record free cash flow underscoring the power and scalability of our business model. With that, Sebastian and I will open up the call for your questions. Operator? Operator: Thank you. At this time, we will conduct a Q&A session. As a reminder, to ask a question, you will need to press *11 on your telephone and wait for your name to be announced. We kindly ask that you limit yourself to 1 question. Our first question comes from Tien-Tsin Huang with JPMorgan. Please go ahead. Tien-Tsin Huang: Thanks so much. Nice results here. Sebastian, I thought given your prepared remarks kind of triggered me to think of asking you about what you are excited about the most amongst some of the things you talked about where you are leaning in more. We heard about Global Card, USDC, AI. It sounds like business also outperformed. what is changed in the last 90 days in terms of your excitement and where you are leading in more? Thanks. Sebastian J. Gunningham: Good question. Thank you. I think I would say that, you know, the sum of the parts I think, you know, we are hitting on many cylinders right now. I think the sum of the parts look really good. to us. We are a very diversified business globally. As I have said before, you get these puts and takes on different corridors I really like the rhythm that we are gaining on upgrading the products, the new launches. So it is hard for me to pick 1 specific piece, but I would say that today, standing here today, I am very pleased with the momentum on many pieces of the business. Of course, you know, you look under the cover, you know, as you look you know, under the hood of the business, there are many pieces that make up the delivery of this money movement and whether it be on the network side, on the risk side, on the compliance side, there is just a lot of good momentum across the company. So you forced me to pick 1 piece. I am avoiding your question and saying, I think it is the sum of everything right now. Thank you. Operator: Our next question comes from Ramsey El-Assal with Cantor Fitzgerald. Please go ahead. Ramsey El-Assal: Hi, thank you so much for taking my question this evening. Vikas, you mentioned that you will be expanding your marketing efforts for the high-value senders in the second half. Can you help us think through kind of the cadence and the magnitude of that investment? Is it kind of a gradual ramp through the balance of the year, a more meaningful step up in marketing spend later in the year? How should we think about that from a modeling perspective? Vikas Mehta: So overall, I would say that we remain very confident in our high value sender business. And the long term growth potential of that business. As we have shared in the prior few quarters, we are just getting started there. You know, raising the sand limits, making product enhancements. In fact, this quarter, you saw some very interesting highlights. We had our first set of 300 thousand plus transfers. that is a pretty big milestone compared to where we were 12 months back. And within the same construct, you know, 1 of our customers sent more than a million dollars in the recent quarter. And that just shows that you know, the demand is there. Our network is set up for that. And it is just a matter of focus and marketing for us. And once we can be more targeted, we can see a lot of benefits here. We have not invested a lot in the marketing in the specific high value sender market. And, again, we will be very deliberate. We will be gradual. And we will be thoughtful how we increase the marketing We will learn from our early marketing campaigns before we expand more in FY 2027. But overall, I would say disciplined, but at the same time, focused and thoughtful marketing in the HVS segment. Thank you. Operator: Our next question comes from Chris Kennedy with William Blair. Please go ahead. Cristopher Kennedy: Good afternoon. Thanks for taking the question. I think productivity gains from AI is a key theme from the call and incremental EBITDA margins were over 60% in the quarter. I think that is nearly double kind of what you have historically talked about. Can you just talk about the levers there in what that means going forward and the opportunities to reinvest back in the business? Sebastian J. Gunningham: Yeah. I think, what we are on this I think we are all on this AI journey and I just reflect that I do not you know, a day does not go by that you do not get some kind of wow moment. On what you can do inside the company with AI. We and it varies across obviously, the most obvious ones are some of the fact that you can constrain some of your people growth But, you know, speed is money. Productivity is money. Simplifying the organization is money also. So it slowly compounds. And as you get you know, we track almost every piece of our AI usage, of our AI usage you know, down to the individuals, to the production of code and the use across the company, and we are launching all different agents that do different tasks within the company. So I you know, what this is a snapshot in time. You are seeing the benefits. Your question is, is this going to accelerate over time? it is hard to say. I certainly do not see it decelerating. And I think that we can look over the next few years, and we are just going to keep learning how this is gonna change our company, how it changes the management. So it is it is a theme. We live it every day, and I think I am optimistic about the future trajectory on the efficiencies that we can get with AI. Vikas Mehta: And if I were to add, on the, you know, expense categories, if you look at Chris, if you look at all the expense categories, we got benefits across the board. Whether you think about transaction loss and the AIML capabilities that we are building that has definitely you know, we have seen that over the last couple of quarters. If you go further into customer support, that is a key area of benefit that we have been harvesting. This quarter, specifically, the 2 standouts were the technology and development spend. Which just grew in mid single digits, thanks to the net AI benefits that we were getting in spite of a modest increase in the AI spend. And finally, G&A, that was the biggest 1. Of the first year over year decline as we are able to, you know, harness that benefit across all our support functions, whether it is legal, HR, finance, and the platform. So you know, AI net benefit for us has been a positive. You know, clearly early days. And we will be very mindful and thoughtful here. Thank you. Operator: Our next question comes from Alexander Markgraff with KBCM. Please go ahead. Alexander Markgraff: Hi, everyone. Thanks for taking my question. I wanted to ask about the receiver side. Monetization. it is obviously a compelling opportunity. I was hoping, maybe just to discuss the sort of right to earn wallet share with these folks, the receivers. I am curious what sort of wedge or value proposition that is distinct from local or other global peers would be that you would you would point to with Remitly card and other offerings? Thanks. Sebastian J. Gunningham: it is very, thank you for the question. it is very early days. You know, your question is what earns us the right to offer services to this receiver. it is a very unique transaction when somebody in some part of the world receives money from a sender in Remitly. And so at that point, you know, whether in all the mechanisms, we know the money, we know the receiver, And so there are many things that we could do to encourage that receiver to either spend the money. We could put the money in USDC. We could put it in cards. We can keep it in accounts. We can offer we can offer savings products. So the theory of it is very compelling. And, you know, we have, as we have said about somewhere in the order of 30 or 40 million receivers around the world The we have not proven that yet. We have a team rapidly iterating. We see some really good signals. We have launched a bunch of products. And then I would also remind you that I think, you know, there is some large portion of our transactions are peer-to-peer transactions, which is that they repeat often. So every month, sender a sends to receiver b, and those 2 that pair is connected many times during the year. So you could imagine all kinds of products that we could offer to that pair. So, early days. I we feel it is 1 of the investments that we are making. We feel there is an opportunity here. We have not proven it. So we will keep you updated on how that advances. Thank you. Operator: Our next question comes from David Scharf with Citizens Capital Markets. Please go ahead. David Scharf: Hi, good afternoon. Thanks for know what, the results were so strong. I guess I will I will ask a devil's advocate question just to kind of mix things up a little. And you know, it relates to the growth accelerators. Did I hear correctly? And I think this dated from the Investor Day. Maybe it is unchanged. It Did I hear correctly, Vikas,, that the expectation is 10% of revenue by 2028? that is correct. More than 10%. Okay. More than 10%. I guess the devil's advocate question is, why is not that large?? I mean, it seems like these are tremendous opportunities particularly on the business side. Obviously, you spend a lot of focus in these presentations. Highlighting these 4 distinct categories or silos. Can you-- I am just trying to get a sense if you know, 10% is a reflection of a conservatism. B, just the core C2C business so strong secularly. That you know, that by definition kind of weighs down that mix. Am I kind of incorrect in thinking that is a number that 2 years from now is actually gonna end up being higher? Vikas Mehta: David, first of all, thank you for your optimism. We share that optimism. And what I would say is that you know, we want to be very thoughtful with the new products to get the product market fit right. We want to test them out in a way that they are really battle tested. And then once we have that validation, we are to pour marketing. And, you know, really drive the acceleration. And rather than putting a very tight time frame to it, We look at the bigger prize than the total addressable market. And if you look at all of our bets, they are huge and massive. it is the Remitly for Business. That is bigger than our, you know, core consumer business. If you look at high value senders, the network remains the same in the upside is massive. If you look at the Remitly Global Card and Receivers, everything Sebastian said that you know, there are so many use cases that could really unlock and create a massive potential And I would say these are you know, 5 year, 10 year bets that could really diversify our business make it a multi revenue stream business, and our objective right now is to invest in them in a way that we make them long term successful rather than trying to get some short- or medium-term wins. But at the same time, we feel really confident to get to the 10%-plus threshold We keep updating you, but overall, we feel you know, that the focus is really on the long term. Sebastian J. Gunningham: Yeah. I think well said. I would not-- I mean, if you take we have given this time frame of 2028, but let's take the time frame. I think we would probably be disappointed over a longer time frame if they were not much bigger businesses. All the bets we are making are in very large markets. And so the fact that we are still in the bet and growing and excited about it means that we are not going for 10%. You know, what is 10%, what are we, a $2 billion revenue company, 10%. We are we are going for much bigger opportunities here So, you know, I think it is a fair question. We will obviously keep updating you. With all the signals we see, we will kill any business that does not, you know, be on a trajectory to get really large. We have plenty of opportunities and plenty of businesses. We have a lot on our plate right now. So we will just keep you posted on we are gonna stick to the to the response that the cast gave for now, but we are working hard to make it a lot bigger. Thank you. Operator: Our next question comes from Gustavo Gala with Monness, Crespi, Hardt. Please go ahead. Gustavo Gala: Hi. it is Matthew. Hi, Sebastian. Hi, Vikas. Thank you for taking my question. So I think an interesting topic to get into would be you are seeing some let's say, changes in pricing actions, maybe a little bit of distress. From larger legacy peers in North America. I mean, that is really the core business Is there-- can you talk about the opportunity there in terms of the lower cap rate because it sounds like pricing being taken back, maybe not a leap to think digital marketing competition is coming down a little bit. And then if we think about the second half of 2026, just on the margin, just I will squeeze in my question a 19% margin versus 23%, versus 23% this quarter, plus 50% in the first half. You are guiding to 23% incremental in the back half. I get the incremental investment in HVS, but that our math is kind of low double digit of total volume. And you are assuming consistent transaction loss rate anywhere else in OpEx we should be thinking about, or investment? Thanks. Vikas Mehta: Good. Thank you for your question. I would say that you know, if you I will I will answer your second part of the question first and then and move to the first, and Sebastian can add more to that first part as well. If you think about the you know, EBITDA margin guidance, it is it is something that we have put a lot of thought into it, and even as you see that and if you look at the year over year, increment, it is 350 bps just in Q3. And if you take that 2026 guide, it is a, you know, 4-percentage-point increase year over year. So, clearly, we are making a lot of progress when it comes to expanding EBITDA margins. If you see the first half of the year, I would say there has been some, you know, call it, specifics over there. First of all, you know, Sebastian joined us. In that first quarter and has been, you know, evaluating the business in a rigorous way. And that created, you know, a little bit of a pause as we decided which ones we wanna go and invest deeper into. In addition to that, you know, revenue outperformance as well as the lower transaction loss that we have seen. Which we you know, our assumptions going into the out quarters, we are normalizing that to 11 bps. But that creates some, you know, call it, added first half benefit for us, which especially in the transaction loss, we are normalizing for second half. Outside of that, you know, we feel there are opportunities in marketing investments that, again, we will be evaluating on a very specific basis, but, you know, that goes to your first part of the question. We see massive opportunity for market share gains. We saw that in the first half with the remittance tax, and we leveraged our Skip the Line campaign And we did that in the first quarter, but we saw remarkable benefits. And we decided to extend that in the second quarter. And we shared that with you last quarter. And we are further taking it forward in the second half of the year. So we share the same thoughts where we feel the opportunity to grab share is there. And we are going to be front footed as we look at the second half in FY 2027. Sebastian J. Gunningham: Yeah. And I will you know, we intend to be very aggressive in pursuing this market share, which is there. You know, there is no from a customer perspective, there is no magic here. The customer wants sharper pricing, wants to move money faster, and wants a better service, and we are very focused on all 3 We are on those 3. Our pricing is getting sharper. We are moving money faster. And our service is getting better every day. So the result of that is just gonna be continued market share gains. And this happens across the world. We have many corridors where we already have a very good market share, but we see opportunity in the larger corridors. In the smaller corridors, and I think that this is a good moment for us to be quite aggressive in pursuing that market. Thank you. Operator: I am showing no further questions at this time. Thank you for your participation in today's conference. This concludes the program. You may now disconnect. Before you buy stock in Remitly Global, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Remitly Global wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Remitly (RELY) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Interested in Remitly Global, Inc.? Here are five stocks we like better. Strong second-quarter performance: Revenue rose 20% year over year to $495 million, while adjusted EBITDA reached a record $115 million with a 23% margin. Quarterly active customers surpassed 10 million, and send volume increased 27% to $23.5 billion. Expansion beyond core remittances: Remitly expanded its network to 179 receive geographies and reported traction in high-value transfers, Remitly Business and receiver products. It also launched the Global Card and expanded stablecoin offerings, though monetization of newer products remains early. Raised full-year outlook: The company increased its 2025 revenue forecast to $1.978 billion–$1.988 billion and expects adjusted EBITDA of $410 million–$415 million, supported by operating leverage, AI-driven efficiency and strong free cash flow. Old Money, New Tech: Western Union's Crypto Reboot Remitly Global (NASDAQ:RELY) reported second-quarter results above its guidance range, with revenue rising 20% year over year to $495 million and adjusted EBITDA reaching a record $115 million, or a 23% margin. Chief Executive Officer Sebastian Gunningham said the company also surpassed 10 million quarterly active users for the first time, supported by record new-customer additions. Quarterly active customers increased 20% from a year earlier to 10.2 million, while send volume rose 27% to $23.5 billion. Send volume per active customer reached a record $2,300, up 6% year over year. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 3 Stocks Well Below 52-Week Highs With Strong Growth Projections “Record revenue, record adjusted EBITDA, both above the high end of guidance again,” Gunningham said. He attributed the results to the company’s remittance strategy, network scale and what he described as structural cost discipline. Remitly added five receive countries during the quarter—New Zealand, Niger, Mali, Angola and Botswana—bringing its network to 179 receive geographies. Thirty-two countries are now enabled for both sending and receiving, according to the company. → 3 Drone Stocks That Should Soar After the Summer Slump The company said new real-time pay-in rails, including FedNow and real-time payments in the U.S., helped improve funding speeds. Nearly 70% of globally funded transfers were delivered in less than 20 seconds during the quarter, an all-time high, Gunningham said. The company also cited record pay-in acceptance rates and record-low defect rates. In the U.S., revenue grew 24% year over year, while revenue from the rest of the world rose 18%, Chief Financial Officer Vikas Mehta said. Revenue from receive regions outside India, the Philippines and Mexico grew faster than overall company revenue and accounted for more than half of the revenue mix. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Mehta said regulatory changes in the U.S. continued to support a shift toward digital remittances, contributing to record customer acquisition. He also said volume over Mother’s Day weekend exceeded the company’s expectations. Remitly continued expanding products beyond its core consumer remittance service, which it calls “growth accelerators.” These include high-value senders, Remitly Business, receiver products, and offerings to spend, save and borrow. The company expects these categories to represent about 5% of total revenue in 2026 and more than 10% by 2028. High-value sender volume, defined as transfers of $5,000 or more, increased 37% year over year and gained 70 basis points of mix. The company completed its first $300,000 transfer and had a customer send more than $1 million in a single quarter. Remitly added bank wires as a funding method, with customers using wires sending nearly three times more per transaction, Mehta said. Gunningham said high-value send volume more than doubled in the U.S.-Mexico corridor after the company reduced customer friction, raised send limits and added Wise as a funding option. Mehta noted, however, that high-value volume growth softened in June because of Indian rupee fluctuations and foreign-currency mobilization measures announced by the Reserve Bank of India. He said the company expects those trends affecting Indian corridors to normalize during the year. Remitly Business ended the quarter with more than 25,000 users, with sequential growth in both revenue and volume accelerating from the prior quarter. More than 80% of customers added to the business platform were new to Remitly, and the average business customer sent money 10 times per quarter, Gunningham said. The company expanded its receiver product from six countries to 130 countries. The offering generated revenue for the first time in the second quarter. Management said the product could provide direct access to more than 30 million receivers on its platform, although Gunningham said monetization remains in its early stages. Remitly launched the Remitly Global Card last week, offering customers a single account for sending, spending, saving and receiving money. The product includes no-fee everyday spending, direct deposit, global ATM access, multicurrency and USDC capabilities, instant transfers between cardholders, and no foreign transaction fees, according to Gunningham. The company also offers a $9.99 monthly membership plan that includes an open-end line of credit, which customers can use to remit money before payday and repay over time. Mehta said the associated lines of credit are funded by a third-party bank partner and that the newer card plan format has shown response and conversion rates above prior benchmarks. Separately, Remitly launched a global stablecoin wallet with a debit card in Latin America, allowing receivers to receive, hold and spend USDC. The company also joined the OpenUSD stablecoin consortium as a founding member. Gunningham said the stablecoin could potentially reduce pay and settlement times by up to one day. Mehta said stablecoins are already producing early treasury-settlement benefits, though the absolute impact remains modest. Management emphasized artificial intelligence as a contributor to productivity and operating leverage. Technology and development expense increased in the mid-single digits, while declining 175 basis points as a percentage of revenue to 11.2%. General and administrative expense fell 11% year over year to $41 million, its first annual decline as a public company, Mehta said. The company said AI-driven fraud prevention and detection helped keep provisions for transaction losses below expectations. Transaction margin, formerly called revenue less transaction expense, increased 25% to $334 million, with margin improving 235 basis points to 67%. Net income was $206 million, including a $140.6 million release of a tax valuation allowance. Free cash flow nearly tripled from a year earlier to more than $130 million, aided by operating leverage, favorable working capital and lower property and equipment spending. Remitly repurchased $21 million of stock, or more than 1.1 million shares, during the quarter. Year to date, it has repurchased nearly 4 million shares. For the third quarter, the company forecast revenue of $505 million to $507 million, representing 20% to 21% growth, and adjusted EBITDA of $92 million to $94 million, implying an 18% to 19% margin. For the full year, Remitly raised its revenue outlook to $1.978 billion to $1.988 billion, or 21% to 22% growth, and projected adjusted EBITDA of $410 million to $415 million, for an approximately 21% margin. Gunningham said the company intends to pursue market-share gains aggressively through sharper pricing, faster money movement and improved service, while continuing to invest selectively in its newer products. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Remitly Global Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a 10 million quarterly active user milestone, driven by a structural shift toward digital remittances and the success of the 'Skip the Line' marketing campaign. Implemented a flatter organizational structure focused on speed, consolidating product teams to accelerate the design and launch of new features. Leveraged AI-driven productivity to hold headcount below plan while simultaneously improving engineering output and customer support efficiency. Expanded the global network to 179 receive countries, with nearly 70% of transfers now delivered in under 20 seconds due to new real-time pay-in rails. Advanced the 'growth accelerator' flywheel by broadening offerings beyond core remittances into high-value sending, business payments, and receiver-focused products. Strengthened the regulatory foundation with new licenses in the UAE and UK, enabling the launch of region-specific financial products. Prioritized capital allocation toward profitable growth and opportunistic share repurchases, supported by record free cash flow generation. Expects revenue growth to exceed 20% in the second half of 2026, supported by digital remittance shifts and scaling growth accelerators. Projects growth accelerators to comprise over 10% of total revenue by 2028, focusing on long-term product-market fit over short-term gains. Anticipates continued marketing efficiencies by prioritizing high-ROI opportunities, including targeted efforts for high-value senders. Assumes transaction loss rates will normalize to approximately 11 basis points for the remainder of the year following recent AI-driven outperformance. Plans to expand the Remitly Global Card to additional countries to enable direct payouts for global workers and multi-currency capabilities. Launched the Remitly Global Card, a comprehensive suite for borrowing, spending, and saving designed to deepen relationships with the existing customer base. Joined the OpenUSD stablecoin consortium to potentially reduce settlement times by up to one day and share in wallet economics. Noted temporary volume softness in Indian corridors during June due to rupee fluctuations and Reserve Bank of India currency mobilization measures. Recorded a $140.6 million release of tax valuation allowance, significantly impacting GAAP net income for the quarter. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management emphasized that momentum is broad-based across the network, risk, and compliance functions rather than tied to a single product. The 'sum of the parts' is viewed as the primary driver, with diversified global corridors providing a resilient rhythm for new launches. Investment will be gradual and deliberate, focusing on learning from early campaigns before a broader expansion in 2027. The segment shows massive potential, evidenced by the first single-customer transfers exceeding $300 thousand and $1 million. AI benefits are appearing across all expense categories, particularly in technology development and G&A, which saw its first year-over-year decline. Management does not see these efficiencies decelerating and intends to reinvest gains into aggressive market share acquisition. The strategy leverages the existing relationship with 30 million to 40 million receivers to offer USDC, cards, and savings products. Management aims to capture the recurring peer-to-peer pair (sender and receiver) to build a long-term financial services relationship.

Quarterly Active Customers surpass 10 million Second quarter send volume up 27% and revenue up 20% year over yearSecond quarter net income of $205.9 million, inclusive of a $140.6 million discrete tax benefit Adjusted EBITDA of $114.7 million up 79% year over year SEATTLE, Aug. 05, 2026 (GLOBE NEWSWIRE) -- Remitly Global, Inc. (NASDAQ: RELY), a trusted provider of financial services that transcend borders, reported results for the second quarter ended June 30, 2026. “We delivered another excellent quarter, achieving record revenue, Adjusted EBITDA, and net income, while surpassing 10 million quarterly active customers for the first time in our company's history, a direct reflection of the trust and confidence customers place in Remitly,” said Sebastian Gunningham, Chief Executive Officer. “Our results reflect the compounding advantages of a trusted global network, a strategy that resonates with customers, and rigorous cost discipline. AI-driven operating efficiencies are creating additional capacity to invest in growth while improving margins, giving us more confidence in the opportunities ahead.” Second Quarter 2026 Highlights and Key Operating Data(All comparisons relative to the second quarter of 2025) Active customers increased to 10.2 million, compared to 8.5 million, up 20%. Send volume increased to $23.5 billion, compared to $18.5 billion, up 27%. Revenue totaled $495.2 million, compared to $411.9 million, up 20%. Net income was $205.9 million, inclusive of a $140.6 million discrete tax benefit from the U.S. valuation allowance release. Adjusted EBITDA was $114.7 million, compared to $64.0 million, up 79%. 2026 Financial OutlookFor fiscal year 2026, Remitly currently expects: Total revenue in the range of $1.978 billion to $1.988 billion, representing a growth rate of 21% to 22% year over year. Year over year growth in net income, and Adjusted EBITDA in the range of $410 million to $415 million. For the third quarter of 2026, Remitly currently expects: Total revenue in the range of $505 million to $507 million, representing a growth rate of 20% to 21% year over year. Year over year growth in net income, and Adjusted EBITDA in the range of $92 million to $94 million. Reconciliation of GAAP to Non-GAAP Financial MeasuresA reconciliation of accounting principles generally accepted in the United States of America (“GAAP”) to non-GAAP financial measures has been provided in the financial statement tables included in this earnings release. An explanation of these measures is also included below under the heading “Non-GAAP Financial Measures.” We have not provided a quantitative reconciliation of forecasted Adjusted EBITDA to forecasted GAAP net income (loss) or to forecasted GAAP income (loss) before income taxes within this earnings release because we cannot, without unreasonable effort, calculate certain reconciling items with confidence due to the variability, complexity, and limited visibility of the adjusting items that would be excluded from forecasted Adjusted EBITDA. These items include, but are not limited to, income taxes, stock-based compensation expense, and payroll taxes related to stock-based compensation expense, which are directly impacted by unpredictable fluctuations in the market price of our common stock. The variability of these items could have a significant impact on our future GAAP financial results. Note: All percentage changes described within this press release are calculated using amounts in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the “SEC”), for which revenue and active customers are presented in thousands and send volume is presented in millions. Rounding differences may occur when individually calculating percentages or totals from rounded amounts included within the press release body as compared to the amounts included within the Company’s SEC filings. Webcast InformationRemitly will host a webcast at 5:00 p.m. Eastern Time on Wednesday, August 5, 2026, to discuss its second quarter 2026 financial results. The live webcast and investor presentation will be accessible on Remitly’s website at https://ir.remitly.com. A webcast replay will be available on our website at https://ir.remitly.com following the live event. We have used, and intend to continue to use, the Investor Relations section of our website at https://ir.remitly.com as a means of disclosing material nonpublic information and for complying with our disclosure obligations under Regulation FD (Fair Disclosure). Non-GAAP Financial MeasuresSome of the financial information and data contained in this earnings release, such as Adjusted EBITDA, non-GAAP operating expenses, transaction margin dollars, transaction margin, and free cash flow, have not been prepared in accordance with GAAP. We regularly review our key business metrics and non-GAAP financial measures to evaluate our performance, identify trends affecting our business, prepare financial projections, and make strategic decisions. We believe that these key business metrics and non-GAAP financial measures provide meaningful supplemental information for management and investors in assessing our historical and future operating performance. Specifically, the company believes the non-GAAP measures provide useful information to both management and investors by excluding certain items that may not be indicative of its recurring core operating results and business outlook. Our non-GAAP financial measures may be different from non-GAAP financial measures used by other companies. The presentation of non-GAAP financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial measures determined in accordance with GAAP. Because of the limitations of non-GAAP financial measures, you should consider the non-GAAP financial measures presented herein in conjunction with our financial statements and the related notes thereto. Please refer to the non-GAAP reconciliations in this press release for a reconciliation of these non-GAAP financial measures to the most comparable financial measure prepared in accordance with GAAP. We calculate Adjusted EBITDA as net income (loss) adjusted by (i) interest (income) expense, net; (ii) (benefit from) provision for income taxes; (iii) noncash charges of depreciation and amortization; (iv) other (income) expense, net; (v) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment; (vi) noncash stock-based compensation expense, net; (vii) payroll taxes related to stock-based compensation expense, net; and (viii) certain restructuring and other costs. We calculate non-GAAP operating expenses as our GAAP operating expenses adjusted by (i) noncash stock-based compensation expense, net; (ii) payroll taxes related to stock-based compensation expense, net; (iii) noncash charges associated with our donation of common stock in connection with our Pledge 1% commitment; as well as (iv) certain restructuring and other costs. Adjusted EBITDA and non-GAAP operating expenses are key output measures used by our management to evaluate our operating performance, inform future operating plans, and make strategic long-term decisions, including those relating to operating expenses and the allocation of internal resources. We believe that the use of Adjusted EBITDA and non-GAAP operating expenses provides additional tools to assess operational performance and trends in, and in comparing our financial measures with, other similar companies, many of which present similar non-GAAP financial measures to investors. We calculate transaction margin dollars as income from operations, excluding expenses related to (i) customer support and operations; (ii) marketing; (iii) technology and development; (iv) general and administrative; and (v) depreciation and amortization. Transaction margin dollars can also be calculated as revenue less transaction expenses. We calculate transaction margin as transaction margin dollars divided by revenue. Transaction margin dollars and transaction margin are non-GAAP financial measures that management uses to evaluate the economic returns generated by the company's platform. We believe that transaction margin dollars provides useful information in understanding and evaluating our financial results. We calculate free cash flow as net cash provided by operating activities, adjusted for capitalized expenditures that include purchases of property and equipment and capitalized internal-use software. Free cash flow is a key measure used by our management to understand the strength of our liquidity and available cash, and we believe that the presentation of this measure is useful because we are focused on growing our free cash flow generation over time. Free cash flow is not intended to represent the total increase or decrease in our cash balance for the period. Forward-Looking StatementsThis press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements. These statements include, but are not limited to, statements regarding future events or our future results of operations and financial position, including our fiscal year and third quarter 2026 financial outlook, including forecasted fiscal year and third quarter 2026 revenue, net income (loss), and Adjusted EBITDA, anticipated future expenses and investments, expectations relating to certain of our key financial and operating metrics, our business strategy and plans, our growth, our position and potential opportunities, and our objectives for future operations. The words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “likely,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will,” “would,” or similar expressions and the negatives of those terms are intended to identify forward-looking statements. Forward-looking statements are based on management’s expectations, assumptions, and projections based on information available at the time the statements were made. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including risks and uncertainties related to our expectations regarding our revenue, expenses, and other operating results; our ability to acquire new customers and successfully retain existing customers; our ability to continue to develop new products and services in a timely manner; our ability to sustain our profitability; our ability to maintain and expand our strategic relationships with third parties; our business plan and our ability to effectively manage our growth; anticipated trends, growth rates, and challenges in our business and in the market segments in which we operate; our ability to effectively integrate and leverage artificial intelligence and machine learning technologies; our ability to attract, integrate, and retain qualified employees, including key members of our management team; uncertainties regarding the impact of geopolitical and macroeconomic conditions, including currency fluctuations, inflation, regulatory changes (including as may be related to immigration, fiscal and tax policy, foreign trade, or foreign investment), regional and global conflicts or related government sanctions, or legislative or regulatory developments; our ability to maintain the security and availability of our solutions; our ability to maintain our money transmission licenses and other regulatory clearances or obtain new licenses and regulatory clearances; our ability to maintain and expand international operations; our expectations regarding anticipated technology needs and developments and our ability to address those needs and developments with our solutions; and our stock repurchase program, the timing and number of shares of our common stock to be repurchased, and the potential benefits thereof. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties, and assumptions, our actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. Further information on risks that could cause actual results to differ materially from forecasted results is included in our quarterly report on Form 10-Q for the quarter ended June 30, 2026, to be filed with the SEC, and within our annual report on Form 10-K for the year ended December 31, 2025, filed with the SEC, which are or will be available on our website at https://ir.remitly.com and on the SEC’s website at www.sec.gov. Except as required by law, we assume no obligation to update these forward-looking statements, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. About RemitlyRemitly is a trusted provider of financial services that transcend borders. With a footprint spanning more than 175 countries, Remitly has built one of the world’s leading global money movement platforms, trusted by millions of customers. Remitly continues to evolve beyond a remittance company into a diversified, cross-border financial services provider, serving both consumers and businesses across a growing set of use cases. Contacts Media Inquiries:[email protected] Investor Relations:[email protected] __________(1) Exclusive of depreciation and amortization, shown separately. __________(1) Beginning in the fourth quarter of 2025, the Company changed the presentation of certain cash activity related to customer funds assets and liabilities, which is comprised of disbursement prefunding, customer funds receivable, customer liabilities, and trade settlement liability included within the line item ‘Accrued expenses and other current liabilities’ on the Consolidated Balance Sheets. Certain components of this activity were reclassified from cash flows from operating activities to cash flows from financing activities, reflected within the line item ‘Net change in customer funds assets and liabilities.’ __________(1) Restructuring and other costs for the three and six months ended June 30, 2026 and June 30, 2025 consisted primarily of termination benefits. These costs are not indicative of ongoing operating performance.

Remitly Global, Inc. (RELY) came out with quarterly earnings of $1.07 per share, beating the Zacks Consensus Estimate of $0.29 per share. This compares to earnings of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +268.97%. A quarter ago, it was expected that this company would post earnings of $0.12 per share when it actually produced earnings of $0.23, delivering a surprise of +91.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Remitly Global, which belongs to the Zacks Financial Transaction Services industry, posted revenues of $495.16 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.19%. This compares to year-ago revenues of $411.85 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Remitly Global shares have added about 78.5% since the beginning of the year versus the S&P 500's gain of 13%. While Remitly Global has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Remitly Global was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.30 on $502.62 million in revenues for the coming quarter and $1.38 on $1.97 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial Transaction Services is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, PagSeguro Digital Ltd. (PAGS), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly earnings of $0.40 per share in its upcoming report, which represents a year-over-year change of +17.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. PagSeguro Digital Ltd.'s revenues are expected to be $1.05 billion, up 17.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Remitly Global, Inc. (RELY) : Free Stock Analysis Report PagSeguro Digital Ltd. (PAGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research