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Remitly Global, Inc. (RELY)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered Rule-of-50 performance: revenue up 34% YoY to $411.9M, GAAP net income of $6.5M, and adjusted EBITDA of $64.0M; management raised full-year revenue and EBITDA outlooks .
  • Material beats vs consensus: revenue beat by ~$27.4M and EPS beat modestly; adjusted EBITDA materially above prior Q2 guidance, despite a discrete $3.8M fraud event absorbed in provisions . Values retrieved from S&P Global.*
  • Catalysts: launch of Remitly One membership (Wallet, Flex, early Card) and stablecoin capabilities (USDC via Circle, payout via Bridge), plus agentic AI/WhatsApp expansion and SMB traction .
  • Capital actions: $200M share repurchase authorization and upsized $550M secured revolver to support peak liquidity needs .

What Went Well and What Went Wrong

What Went Well

  • Strong topline and profitability: send volume +40% YoY to $18.5B; revenue +34% YoY to $411.9M; adjusted EBITDA $64.0M with ~16% margin (CFO: 16%; non-GAAP calc: 15.5%) .
  • Product innovation momentum: formalized Remitly Business with thousands onboarded; average transaction nearly 2x consumer; early retention ahead expectations; LTV ~6x consumer .
  • Strategic initiatives: Remitly One membership (Wallet with rewards, Flex “send now, pay later”), stablecoin storage/disbursement (USDC with Circle; Bridge/Stripe), and agentic AI on WhatsApp driving offline-to-online conversion .
    • “Q2 was a defining quarter… breakthrough innovation… positioning us to shape the future of global financial services.” — Matt Oppenheimer .

What Went Wrong

  • Fraud incident raised provisions: provision for transaction losses was $28.0M (15.2 bps of send volume) due to a sophisticated incident in May; discrete non-recurring loss of $3.8M; ex-item provisions were $24.2M (13.1 bps), in line with expectations .
  • Mexico macro softness: industry-wide remittance market to Mexico remained soft; Remitly growth outpaced overall rev growth in Mexico, but backdrop remains a monitored headwind .
  • Near-term margin optics: non-GAAP T&D spend grew (+15% YoY) to support innovation; marketing raised to back high-amount senders, SMB, and membership initiatives (LTV/CAC ~6x; payback <12 months) .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$306.4 $361.6$411.9
GAAP Net Income ($USD Millions)-$12.1 $11.4$6.5
Adjusted EBITDA ($USD Millions)$26.2 $58.4$64.0
Adjusted EBITDA Margin (%)8.6%16.2%15.5%
Diluted EPS ($USD)-$0.06 —$0.03
Send Volume ($USD Billions)$13.2 $16.2 $18.5
Quarterly Active Customers (Millions)6.9 —8.5
Gross Take Rate (%)—2.24% 2.23%

Operating expenses detail (Q2 YoY):

Operating Expense ($USD Millions)Q2 2024Q2 2025
Transaction Expenses$107.8 $143.8
Customer Support & Operations$20.0 $25.1
Marketing$77.1 $85.0
Technology & Development$67.6 $77.5
General & Administrative$45.9 $59.6
Provision for Transaction Losses (detail)—$28.0; ex-one-time $24.2

KPI and unit economics:

KPIQ4 2024Q1 2025Q2 2025
RLTE Dollars ($USD Millions)$233.5 $240.2 $268.1
RLTE as % of Revenue66.4% 66.4% 65.1%
% Transactions <1 Hr—>93% >93%
No Support Contact (%)—>95% >97%
Uptime—99.99% 99.99%

EPS detail (vs prior year):

EPS ($USD)Q2 2024Q2 2025
Diluted EPS-$0.06 $0.03

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$1.574B–$1.587B $1.61B–$1.62B Raised
Adjusted EBITDAFY 2025$195M–$210M $225M–$230M Raised
GAAP Net IncomeFY 2025Positive starting Q3 2025; positive FY 2025 Modest positive in Q3 2025; positive FY 2025 Affirmed/clarified
RevenueQ3 2025—$411M–$413M New
Adjusted EBITDAQ3 2025—$53M–$55M (≈13% margin) New
Transaction Expense (% Rev)Q3 2025In line with FY 2024 In line with FY 2024 Maintained
Marketing InvestmentsH2 2025Modest YoY decline per QAU (H1) Increase to support high-amount senders, SMB, membership; marketing per QAU to grow mid-single digits in H2 Raised spend plan
Share RepurchaseN/A—$200M authorization New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
AI/Technology InitiativesAI virtual assistant reduced CS/Ops % of revenue; WhatsApp Send launched; >93% under 1 hr and 99.99% uptime Agentic AI embedded across support and WhatsApp; highest conversion in previously offline customers; expanding to Messenger; platformizing AI Expanding scope and channels
StablecoinsCircle sandbox/Circle innovation; treasury/FX process enhancements USDC storage in Wallet (Circle); stablecoin payouts via Bridge; internal USDC for treasury settlement; Sept launches From pilots to product launches
Product PerformanceHigh-amount senders: >45% YoY volume growth and +200 bps mix in Q1 >45% YoY growth and +300 bps mix; new “send to self” and multi-corridor features Accelerating higher-value cohorts
Regional TrendsU.S. revenue +35%; RoW +41%; receive outside MX/PH/IN +45% U.S. +35%; RoW +40%; non-top-3 receive +41%; Mexico market soft, but Remitly outpaced overall Broad-based growth; resilient share gains
Regulatory/MacroResilience across cycles; tariffs/immigration monitored; diversified footprint “Remittance tax” (1% on cash/physical) from 01/01/2026; digital transfers exempt; tailwind to offline-to-online shift Likely favorable structural tailwind
Platform/R&D ExecutionDirect integrations (Plin, MACH, Orange Money, Interac, PayTo, Plaid); scale lowers cost & boosts experience SMB onboarding, bulk/recurring payouts; onboarding in UK/CA/AU/EU; eKYB automation; WhatsApp scaling Execution ramping across features

Management Commentary

  • “We are becoming the modern financial platform for globally connected people and businesses… Q2 represents an inflection point for Remitly.” — Matt Oppenheimer .
  • “Results exceeded expectations… We again delivered GAAP profitability, an important milestone that we expect to sustain.” — Vikas Mehta .
  • “Remitly One… a bold new relationship… anchored with Remitly Wallet and Remitly Flex.” — Matt Oppenheimer .
  • “Our stablecoin initiatives… position us to lead the next wave… store stablecoin balances; receive in stablecoin wallets; treasury efficiencies.” — Matt Oppenheimer .
  • “Provision for transaction losses… above expectations due to a sophisticated fraud incident… discrete non-recurring loss of $3.8M.” — Vikas Mehta .

Q&A Highlights

  • Rollout cadence and economics: Management expects SMB, membership (Wallet/Flex) investments within updated guides; targeted marketing increases in H2 to support these initiatives .
  • Wallet use cases and unit economics: Focused initially on cross-sell to 8.5M QAU; multi-currency storage and rewards for members; early feedback strong .
  • Stablecoin economics: Disbursement option broadly comparable; Wallet economics may add NII/benefits; partnerships (Circle, Bridge/Stripe) support scale .
  • High-amount senders strategy: AI-optimized risk, raised transaction limits, pricing investments; features like “send to self” and multi-corridor tailored for expats/professionals .
  • Marketing: LTV/CAC ~6x, payback <12 months; expect mid-single-digit increase in marketing per QAU in H2 as product innovation is supported .

Estimates Context

MetricConsensus (Q2 2025)*Actual (Q2 2025)Surprise
Revenue ($USD Millions)$384.46*$411.85 Beat
Primary EPS ($USD)$0.1837*$0.1881 Beat
Adjusted EBITDA ($USD Millions)$46.07*$64.00 Beat

Values retrieved from S&P Global.*

Forward consensus snapshot (context):

  • Next quarter revenue consensus: ~$413.73M*; EPS consensus: ~$0.177* [GetEstimates]. Values retrieved from S&P Global.*

Key Takeaways for Investors

  • Remitly’s Q2 2025 showed durable growth and profitability, with beats vs consensus and raised FY guidance—driven by high-amount senders, SMB, and diversified corridor strength .
  • New product catalysts (Remitly One, Wallet, Flex, stablecoin capabilities) plus agentic AI should support engagement, cross-sell, and marketing efficiency into H2—watch the Sept 9 event .
  • Near-term watch items: provision volatility (post-fraud hardening), transaction expense lapping 2024 partner benefits, and increased marketing intensity for new segments .
  • Mexico softness continues industry-wide, but Remitly is gaining share; broader geo mix (U.S. +35%, RoW +40%) and non-top-3 receive growth provide resilience .
  • Capital posture supportive: upsized $550M revolver for peak liquidity needs and $200M buyback authorization can help manage dilution and offer downside support .
  • Narrative likely to move the stock: innovation roadmap and membership economics, stablecoin productization at scale, and sustained GAAP profitability trajectory .
  • Estimate revisions are likely upward for FY revenue/EBITDA after Q2 beats and guidance raise; monitor H2 marketing leverage and take-rate mix as high-amount/SMB cohorts scale .