Remitly’s Earnings Test of Sustained Growth and Softer Guidance Might Change The Case For Investing In RELY

• Earlier this week, online money transfer platform Remitly Global (NASDAQ: RELY) announced it would release its latest earnings results after Wednesday’s market close, following a prior quarter in which revenue rose 24.7% year on year and active customers reached 8.9 million, up 21.9% year on year.
• The upcoming report will test whether Remitly can sustain this recent pace of revenue and customer growth while addressing slightly softer revenue guidance that previously fell short of analyst expectations.
• Now we’ll examine how Remitly’s strong recent revenue and customer growth, alongside slightly cautious guidance, shapes its broader investment narrative.

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Remitly Global Investment Narrative Recap

To own Remitly, you need to believe that digital remittances and adjacent services can keep attracting more customers and higher volumes, even as competition tightens and fees face pressure. The latest earnings setup, with strong recent growth but slightly softer revenue guidance, matters because it tests whether Remitly can balance expansion with profitability. The biggest near term risk remains margin pressure from higher acquisition costs and pricing, and this week’s report is unlikely to change that fundamentally.

Among recent announcements, Remitly’s 2025 guidance for positive GAAP net income stands out, given the current focus on revenue growth versus profitability. For investors watching this week’s results, that shift toward sustained profitability is an important catalyst, because it frames how to interpret any slowdown in revenue growth or conservative guidance. Whether Remitly can keep growing while staying profitable will be central to how the stock is viewed after the print.

Yet behind the growth story, rising fee competition and regulatory scrutiny are risks investors should be aware of if…

Read the full narrative on Remitly Global (it’s free!)

Remitly Global’s narrative projects $2.6 billion revenue and $130.1 million earnings by 2028. This requires 20.4% yearly revenue growth and about a $116 million earnings increase from $14.1 million today.

Uncover how Remitly Global’s forecasts yield a $19.86 fair value, a 52% upside to its current price.

Exploring Other Perspectives

The most optimistic analysts were expecting revenue to reach about US$2.7 billion and earnings of roughly US$268 million by 2028, which is far more upbeat than consensus and assumes risks like stablecoin regulation and pricing pressure ease rather than intensify, so you should treat this earnings release as a fresh data point that could shift those expectations in either direction.

Explore 11 other fair value estimates on Remitly Global – why the stock might be worth just $18.00!

Form Your Own Verdict

Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

• A great starting point for your Remitly Global research is our analysis highlighting 2 key rewards that could impact your investment decision.
• Our free Remitly Global research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Remitly Global’s overall financial health at a glance.

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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.

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