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Remitly Global, Inc. (RELY)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue of $361.6M (+34% YoY) and Adjusted EBITDA of $58.4M (16.2% margin) both exceeded internal expectations and prior outlook; management raised FY 2025 revenue and Adjusted EBITDA guidance, citing durable cohort retention, high-amount senders, and marketing efficiency .
  • KPIs were strong: active customers 8.0M (+29% YoY), send volume $16.2B (+41% YoY), gross take rate 2.24%; RLTE dollars rose to $240.2M (66.4% of revenue) .
  • Street revenue consensus for Q1 was $347.5M*, implying a beat; Street FY 2025 revenue consensus is $1.620B*, modestly above the company’s raised $1.574–$1.587B guidance, suggesting room for further revisions contingent on H2 comps and macro [GetEstimates]* .
  • Guidance: Q2 2025 revenue $383–$385M and Adjusted EBITDA $45–$47M; FY 2025 Adjusted EBITDA raised to $195–$210M (12–13% margin); GAAP net income expected positive for FY 2025, with a Q2 net loss as investments step up .
  • Key catalysts: raised FY revenue/EBITDA guidance, continued mix shift to high-amount senders, and direct network integrations improving speed/cost; watch Q3 comps (tougher) and transaction loss volatility as near-term swing factors .

What Went Well and What Went Wrong

What Went Well

  • Rule of 50 achieved: “revenue growing 34% and adjusted EBITDA margins surpassing 16%” with a strong beat vs guidance; FY revenue/EBITDA guidance raised on confidence in durability and execution .
  • Mix shift to larger transactions: send volume >$1K grew >45% YoY in Q1; tailored risk limits and direct integrations enabled higher sending limits and lower friction, boosting send per active (+9% YoY) .
  • Operating leverage from marketing and AI: non-GAAP marketing spend fell 473 bps as % of revenue; AI-driven virtual assistant reduced contact rates, contributing to record >95% transactions without support and >93% disbursed <1hr .

What Went Wrong

  • Near-term margin outlook: Q2 Adjusted EBITDA margin guided to ~12% (down from 16.2% in Q1) as marketing and tech investments step up; management also expects a GAAP net loss in Q2 despite an overall profitable FY target .
  • Take rate headwind from high-amount senders: management highlighted lower take rates as volume outpaces revenue; gross take rate was 2.24% in Q1, down vs Q3/Q4 .
  • Transaction loss variability: provision for transaction losses was $17.9M (11.1 bps of send volume); management cautioned losses can be volatile QoQ even as ML improves risk .

Financial Results

Quarterly Trend (Company-Reported)

MetricQ3 2024Q4 2024Q1 2025
Revenue ($USD Millions)$336.5 $351.9 $361.6
Net Income ($USD Millions)$1.9 $(5.7) $11.4
Adjusted EBITDA ($USD Millions)$47.4 $44.7 $58.4
Adjusted EBITDA Margin (%)14.1% 12.7% 16.2%

EPS (GAAP)

MetricQ3 2024Q4 2024Q1 2025
Diluted EPS ($)——$0.05

KPIs and Unit Economics

KPI / MetricQ3 2024Q4 2024Q1 2025
Quarterly Active Customers (Millions)7.3 7.8 8.0
Send Volume ($USD Billions)$14.5 $15.4 $16.2
Gross Take Rate (%)2.32% 2.28% 2.24%
RLTE Dollars ($USD Millions)$221.0 $233.5 $240.2
RLTE as % of Revenue (%)—66.4% 66.4%

Geographic Growth (YoY)

MetricQ3 2024Q4 2024Q1 2025
U.S. Revenue YoY Growth+36% +33% +35%
Rest of World YoY Growth+58% +41% +41%
Receipts Outside Mexico/India/Philippines YoY Growth>50% of revenue mix >60% of new customers +45% YoY

vs Estimates (S&P Global)

ItemPeriodCompany Actual/GuidanceStreet Consensus*Delta
Revenue ($USD Millions)Q1 2025$361.6 $347.5*+$14.1 (beat)*
Primary EPS ($)Q1 2025GAAP Diluted $0.05 0.1733* vs S&P “actual” 0.1939*S&P normalized EPS shows beat*
Revenue ($USD Millions)Q2 2025$383–$385 (guidance) $384.5*In-line*
Revenue ($USD Millions)FY 2025$1,574–$1,587 (guidance) $1,620.3*Street above guide*

Values with asterisks retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Billions)FY 2025$1.565–$1.580 $1.574–$1.587 Raised
Adjusted EBITDA ($USD Millions)FY 2025$180–$200 $195–$210 Raised
Revenue ($USD Millions)Q2 2025—$383–$385 New
Adjusted EBITDA ($USD Millions)Q2 2025—$45–$47 New
GAAP Net IncomeQ2 2025—Net loss expected New
GAAP Net IncomeFY 2025Positive starting Q3 and full-year positive Full-year positive; Q2 net loss Maintained FY, clarified Q2

Earnings Call Themes & Trends

TopicQ3 2024 (Q-2)Q4 2024 (Q-1)Q1 2025 (Current)Trend
AI/Technology initiativesAI virtual assistant reduced contact rates; ML improved losses Continued AI efficiencies in CS and G&A AI tools in marketing/CS; ML for dynamic risk limits Expanding scope/impact
Macro/tariffs/FXFX tailwinds in key corridors; prudence on forward FX Mixed FX offsets; guidance excludes FX assumptions Resilience to tariffs/macro; diversified footprint Resilient, diversified
Product performanceFaster bank-linked pay-ins, direct disbursement rails Platformization, new features roadmap WhatsApp Send, direct integrations (Plin/MACH/Orange/Vodafone) Broader, faster
High-amount sendersSend per active hit 9-quarter high Send per active at 3-year high >45% YoY growth in >$1K transactions; raised limits Accelerating
Regional trendsROW growth accelerated to +58% YoY ROW +41% YoY; >60% new customers outside top 3 U.S. +35%; ROW +41%; Mexico grew faster than total Sustained broad-based
Regulatory/compliance—Cohort durability; license footprint Centralized KYC/AML, bank-linked funding, robust controls Reinforced compliance
R&D/Tech & Dev spend—Investment for long-term product bets Tech & Dev guided up in Q2; efficiency + innovation Investment ramp

Management Commentary

  • “We delivered an outstanding start to the year… Based on these strong results, we are raising our full year 2025 outlook for both revenue and Adjusted EBITDA.” — Matt Oppenheimer, CEO .
  • “We delivered our second quarter of GAAP profitability… revenue more than $15 million above and adjusted EBITDA more than $20 million above the midpoint of our first quarter guidance.” — Vikas Mehta, CFO .
  • On resilience and FX: “Our treasury function… decouple funding from FX risk and reduce the need for prefunding… respond quickly to market shifts while protecting margins.” — CEO .
  • On diversification: “Launched services to Nigeria, Burkina Faso and Mali… integrations like Plin in Peru and MACH in Chile; Orange Money and Vodafone Cash additions.” — CEO .
  • On trust and experience: “>93% of transactions disbursed in <1 hour… >95% without customer support contact… uptime 99.99%.” — CEO .

Q&A Highlights

  • Send per active up 9% YoY: Driven by frictionless UX, high-amount senders, and ML-enabled dynamic risk limits; management expects trends to sustain prudently .
  • Direct partner integrations: Faster, lower-cost, more reliable transactions (e.g., MACH, Plin); reduced exceptions and compliance data collection at source .
  • Mexico and macro tensions: Digital channel share gains; Mexico grew faster than overall; diversified mix outside top three receive countries .
  • WhatsApp Send channel: Early focus on Latin America, leveraging virtual AI agent for acquisition and service; broader ambitions ahead .
  • Margin drivers: Q1 margin strength largely from marketing efficiencies; Q2 margins guide lower on step-up investments; tech/dev prioritized for long-term returns .

Estimates Context

  • Q1 2025 revenue beat Street: $361.6M vs $347.5M consensus*; Adjusted EBITDA beat internal guidance; Street normalized EPS shows a beat, though company GAAP diluted EPS was $0.05 (definitions differ)* [GetEstimates]*.
  • FY 2025: Company raised revenue guide to $1.574–$1.587B and Adjusted EBITDA to $195–$210M; Street revenue consensus is $1.620B*, modestly above guide, reflecting cautious company stance on tougher H2 comps and macro* [GetEstimates]*.
  • Q2 2025: Revenue guidance $383–$385M aligns with Street $384.5M*, but margin guide (~12%) reflects investment prioritization; expect potential Street model adjustments to margin cadence and RLTE trajectory* [GetEstimates]*.

Values with asterisks retrieved from S&P Global.*

Key Takeaways for Investors

  • Durable growth with profitability: Q1 delivered Rule of 50; FY guidance raised; watch Q2 investment-driven margin dip as a deliberate growth choice .
  • Mix shift to high-amount senders and SMB/micro-business is increasingly material, boosting volume growth and RLTE dollars even as take rates moderate .
  • Execution on direct integrations and faster pay-in rails remains a core lever for speed, reliability, and cost advantages that support retention and word-of-mouth acquisition .
  • Street models likely maintain above-guide FY revenue trajectory, but margin cadence may flatten in Q2 before ramping in H2; monitor transaction loss variability and FX .
  • Near-term trading implication: Raised FY guidance and Q1 beats are positives; Q2 margin guidance could temper momentum—focus on cohort durability and RLTE as underpinning for H2 .
  • Medium-term thesis: Scale advantages, compliance rigor, and AI/ML deployment position Remitly to gain share across a fragmented $2T market with expanding use cases (high-amount, micro-business, WhatsApp channel) .
  • Risk watchlist: regulatory shifts, FX volatility, and transaction loss variability; company’s diversification and treasury function mitigate but do not eliminate exposures .