Remitly’s fourth quarter results were met with strong approval from the market, reflecting both operational gains and robust customer growth. Management credited high-volume sender momentum and wider adoption of new products such as Flex and Remitly Business for driving send volume and revenue higher. CEO Matthew Oppenheimer emphasized the impact of AI-powered fraud prevention and efficiency measures on profitability, noting, “A recently upgraded fraud model, leveraging AI and integrated data across our platform, helped drive record low transaction losses.” The company also highlighted disciplined marketing spending and improved customer retention as additional contributors to outperformance.
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Remitly (RELY) Q4 CY2025 Highlights:
- Revenue: $442.2 million vs analyst estimates of $427.3 million (25.7% year-on-year growth, 3.5% beat)
- Adjusted EPS: $0.39 vs analyst estimates of $0.16 (significant beat)
- Adjusted EBITDA: $88.58 million vs analyst estimates of $51.49 million (20% margin, 72.1% beat)
- Revenue Guidance for Q1 CY2026 is $437 million at the midpoint, above analyst estimates of $429.2 million
- EBITDA guidance for the upcoming financial year 2026 is $350 million at the midpoint, above analyst estimates of $310.9 million
- Operating Margin: 8.8%, up from -1.1% in the same quarter last year
- Active Customers: 9.3 million, up 1.5 million year on year
- Market Capitalization: $3.41 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are 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.
Our Top 5 Analyst Questions From Remitly’s Q4 Earnings Call
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Tien-Tsin Huang (JPMorgan) asked incoming CEO Sebastian Gunningham how his experience would inform leading Remitly’s smaller, consumer-focused platform. Gunningham emphasized his payments and product leadership at Amazon and Santander, saying these roles prepared him for scaling Remitly’s business.
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Ramsey El-Assal (Cantor Fitzgerald) questioned CFO Vikas Mehta about macroeconomic and regulatory impacts. Mehta responded that execution and product momentum, combined with customer resilience, helped Remitly “grow through” geopolitical and regulatory headwinds.
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Aditya Buddhavarapu (Bank of America) requested more details on the cadence of revenue and margin guidance for 2026. Mehta explained that Q1 benefits from a new 1% remittance tax on cash, while full-year margins reflect both normalized transaction loss rates and increased investment in new products.
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William Nance (Goldman Sachs) asked incoming CEO Gunningham about his planned areas of focus. Gunningham said he would prioritize accelerating product development velocity and tailoring offerings to both consumer and business segments.
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Alexander Markgraff (KBCM) wanted insight on customer willingness to pay for Flex and Remitly One. Mehta noted Flex’s positive impact on wallet share and higher transaction volume among Flex users, with early data showing strong customer adoption and engagement.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be closely monitoring (1) the pace of adoption and revenue contribution from new products like Remitly credit and expanded Wallet features; (2) the effectiveness of AI investments in driving further efficiency and lowering fraud-related costs; and (3) continued momentum in acquiring high-amount senders and business customers across new geographies. Execution on these priorities will be pivotal to realizing Remitly’s medium-term growth targets.
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