Remitly Global (NASDAQ:RELY) Releases Quarterly Earnings Results, Beats Expectations By $0.81 EPS

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

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

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

Remitly Global Trading Up 3.8%

NASDAQ RELY opened at $24.97 on Thursday. The business’s 50-day moving average price is $22.03 and its two-hundred day moving average price is $18.96. Remitly Global has a 12 month low of $12.08 and a 12 month high of $26.01. The firm has a market capitalization of $5.26 billion, a PE ratio of 50.07 and a beta of 0.34.

Wall Street Analysts Forecast Growth

Several analysts recently issued reports on the stock. Wolfe Research reiterated an “outperform” rating and set a $31.00 price target on shares of Remitly Global in a research report on Thursday. Cantor Fitzgerald lifted their price target on Remitly Global from $24.00 to $28.00 and gave the company an “overweight” rating in a research note on Monday, May 11th. The Goldman Sachs Group upped their price objective on Remitly Global from $27.00 to $30.00 and gave the stock a “buy” rating in a research report on Thursday, July 9th. Citigroup reissued an “outperform” rating on shares of Remitly Global in a research note on Thursday. Finally, Monness Crespi & Hardt lifted their price target on shares of Remitly Global from $30.00 to $33.00 and gave the company a “buy” rating in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $27.44.

Insider Buying and Selling

In other news, insider Ankur Sinha sold 7,596 shares of the stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $21.07, for a total transaction of $160,047.72. Following the completion of the sale, the insider directly owned 1,222,718 shares in the company, valued at $25,762,668.26. This represents a 0.62% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Vikas D. Mehta sold 25,000 shares of the stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $21.07, for a total value of $526,750.00. Following the sale, the chief financial officer owned 988,004 shares of the company’s stock, valued at approximately $20,817,244.28. The trade was a 2.47% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last 90 days, insiders sold 170,388 shares of company stock worth $3,725,510. Corporate insiders own 6.53% of the company’s stock.

Hedge Funds Weigh In On Remitly Global

A number of institutional investors have recently modified their holdings of RELY. Virtu Financial LLC acquired a new stake in shares of Remitly Global in the 4th quarter worth about $268,000. Corient Private Wealth LLC boosted its position in Remitly Global by 4.2% during the fourth quarter. Corient Private Wealth LLC now owns 205,978 shares of the financial services provider’s stock worth $2,843,000 after purchasing an additional 8,300 shares during the period. Creek Drive Management Group LLC purchased a new position in Remitly Global in the 4th quarter valued at approximately $2,036,000. Mercer Global Advisors Inc. ADV grew its position in shares of Remitly Global by 102.4% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 562,835 shares of the financial services provider’s stock valued at $7,767,000 after purchasing an additional 284,713 shares in the last quarter. Finally, Vident Advisory LLC lifted its holdings in shares of Remitly Global by 25.0% in the fourth quarter. Vident Advisory LLC now owns 86,038 shares of the financial services provider’s stock worth $1,187,000 after buying an additional 17,206 shares in the last quarter. 74.25% of the stock is owned by institutional investors and hedge funds.

More Remitly Global News

Here are the key news stories impacting Remitly Global this week:

• Positive Sentiment: Remitly reported record second-quarter results: revenue rose 20.2% year over year to $495.2 million, exceeding the $486.3 million consensus estimate, while reported EPS was $0.93 versus expectations of $0.12. Adjusted earnings were reported at $1.07 per share, compared with the Zacks consensus estimate of $0.29. Remitly Global earnings results
• Positive Sentiment: Operating momentum remained strong, with quarterly send volume increasing 27% and active customers surpassing 10 million. Adjusted EBITDA climbed 79% year over year to $114.7 million, supporting the investment case for continued scale and improving profitability. Remitly Reports Record Second Quarter Results and Raises Full Year 2026 Outlook
• Positive Sentiment: Third-quarter revenue guidance of $505 million to $507 million is above the approximately $503.8 million analyst consensus, indicating management expects growth to continue. The company also raised its full-year 2026 outlook, with revenue guidance of approximately $2.0 billion. Remitly Global Q2 earnings and revenues top estimates
• Neutral Sentiment: The earnings call highlighted continued customer and transaction growth, but investors also focused on execution requirements and the risks associated with sustaining rapid expansion. Remitly Global earnings call highlights growth and risks
• Negative Sentiment: Although net income reached $205.9 million, $140.6 million came from a discrete tax benefit. That benefit is unlikely to recur, making underlying profitability less impressive than the headline EPS figure. With RELY trading near its 12-month high and at an elevated earnings multiple, investors may have expected a more substantial guidance increase, contributing to the weaker share price reaction.

About Remitly Global

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

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