Remitly's 2028 Rule-of-40 Goal Could Shift the Investment Perspective on Remitly Global (RELY)
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Should l Buy RELY?
Source: Yahoo Finance
Remitly's Financial Outlook: Remitly Global projects high-teens revenue growth and aims for adjusted EBITDA of $300-$320 million by 2026, with long-term targets of $2.6-$3 billion in revenue and $575-$600 million in EBITDA by 2028.
Rule of 40 Goal: The company plans to achieve the "Rule of 40" by 2028, focusing on products like Remitly One and Remitly Business to enhance customer engagement and justify its premium valuation.
Investment Risks: Investors must consider the risks of fee competition and rising customer acquisition costs, which could impact profitability despite the optimistic growth projections.
Valuation Estimates: Fair value estimates for Remitly's stock vary significantly, with projections ranging from $21 to nearly $69 per share, indicating differing opinions on the company's growth potential and associated risks.
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Analyst Views on RELY
Wall Street analysts forecast RELY stock price to rise
5 Analyst Rating
5 Buy
0 Hold
0 Sell
Strong Buy
Current: 12.790
Low
17.00
Averages
22.67
High
28.00
Current: 12.790
Low
17.00
Averages
22.67
High
28.00
About RELY
Remitly Global, Inc. is a provider of digital financial services that transcend borders, in over 170 countries around the world. Its cross-border payments app helps customers with a fast, reliable, and transparent money movement experience. The Company’s technology platform is purpose-built to localize consumer experiences, enables a robust network of partner integrations, and uses data to optimize business performance. The Company provides a digital cross-border remittance product that is accessible via its mobile app or the Web. It offers a mobile-centric suite of products, global network, localization expertise at scale and a data-driven approach. Its mobile app for cross-border remittances provides an easy-to-use, end-to-end process. The Company's global network of funding and disbursement partnerships enables it to complete money transfers in over 5,100 corridors without the need to deploy local operations in each country.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Profitability Improvement: The adjusted EBITDA margin reached 15%, indicating that the company is achieving continued operating leverage as it scales, enhancing its profitability and suggesting future financial health.
- Market Expansion: The expansion of Remitly Business into the U.K. and Canada nearly doubled business send volumes, reflecting the company's rapid penetration and growth opportunities in international markets, further driving revenue growth.
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See More
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- Conference Call Timing: Management will host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day to present financial results and answer questions from the financial analyst community, highlighting the company's proactive communication with investors.
- Participation Details: Investors are advised to register at least 10 minutes prior to the call to receive dial-in information and a unique access code, ensuring smooth participation and reflecting the company's focus on enhancing investor experience.
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- Improved Profitability: The company reported a net income of $8.8 million in Q3, achieving profitability under GAAP, although margins remain minimal, highlighting ongoing challenges in cost management.
- Future Growth Expectations: At its Investor Day, Remitly forecasted high teens revenue growth for 2026, projecting revenues of $2.6 billion to $3 billion by 2028, implying a 20% compound annual growth rate over the next three years.
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See More
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- Tesla's Declining Performance: Tesla's overall revenues have been flat to down since the end of 2023, with operating income slumping by over 50% in recent years, indicating that the company's electric vehicle sales volumes have stopped growing, which may impact its future market competitiveness.
- Challenges in New Business Lines: While Tesla is pivoting towards autonomous vehicles and humanoid robots, it has struggled to gain significant traction in these areas, and it may take years for these new business lines to impact the company's bottom line, increasing uncertainty for investors.
- Growth Potential for Remitly: Remitly's active customers grew by 21% year-over-year to 8.9 million, with revenue increasing by 25% to $420 million, and management expects total revenue to double to $3 billion in the coming years, showcasing its strong growth potential in the international remittance market.
- Nintendo's Market Opportunity: Nintendo's newly released Switch 2 has seen sales increase by nearly 100% year-over-year, and despite challenges from rising chip prices and a lack of flagship games, its increased investment in game development is expected to drive future revenue growth, with annual earnings projected to exceed $5 billion, making it a potential buy for investors.
See More
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- Remitly's Growth Potential: Remitly Global (RELY) successfully facilitated $19.5 billion in transfers in Q3 last year, a 35% year-over-year increase, generating $419.5 million in revenue with EBITDA of $61.2 million, up 29%, and analysts expect this growth momentum to continue through 2028, showcasing its strong competitive position in the international payments market.
- The Trade Desk's Value Recovery: The Trade Desk (TTD) has been impacted by the overall market downturn, but its revenue is projected to grow by 16% in 2023, with a current P/E ratio of only 12 times, indicating investment value, as the market has yet to recognize its necessity.
- Market Environment Challenges: While the overall market faces uncertainty, stocks like Qualcomm, Remitly, and The Trade Desk demonstrate strong resilience, suggesting that investors may consider these potential stocks for long-term gains amid market volatility.
See More
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- Shopify Upgrade: MoffettNathanson upgraded Shopify from neutral to buy, citing an attractive entry point due to market fears surrounding software companies, and believes Shopify will emerge as a long-term winner in the AI commerce landscape.
- Nvidia Outlook: Bernstein reiterated Nvidia as outperform, emphasizing that the AI growth trend remains robust, particularly in the AI compute sector, suggesting continued benefits for Nvidia and its peers.
- Thomson Reuters Upgrade: RBC upgraded Thomson Reuters from sector perform to outperform, indicating that the company's potential in the AI space will drive a rebound in stock price, creating an asymmetric upside opportunity in a complex market.
- Micron Price Target Increase: Deutsche Bank raised Micron's price target from $300 to $500 per share, asserting that the current market environment remains favorable for Micron's performance in the upcoming quarters, indicating strong growth potential.
See More
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- Revenue Growth: Remitly Global, Inc. reported $419.5 million in revenue for Q3 2025, marking a 25% year-over-year increase, which underscores the company's strong growth potential in the digital international money transfer sector and solidifies its market position.
- Profitability Improvement: The adjusted EBITDA margin reached 15%, indicating that the company is achieving continued operating leverage as it scales, enhancing its profitability and suggesting future financial health.
- Market Expansion: The expansion of Remitly Business into the U.K. and Canada nearly doubled business send volumes, reflecting the company's rapid penetration and growth opportunities in international markets, further driving revenue growth.
- Investment Outlook: Although Goldman Sachs lowered its price target for Remitly to $17, it maintained a Buy rating, indicating ongoing confidence in the company's underlying operating performance and suggesting that investors should monitor its long-term growth potential.
See More
Remitly to Report Q4 and Full Year 2025 Financial Results on February 18
- Earnings Announcement: Remitly Global, Inc. will report its fourth quarter and full year 2025 financial results after market close on February 18, 2026, demonstrating the company's commitment to transparency and investor engagement.
- Conference Call Timing: Management will host a conference call at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) on the same day to present financial results and answer questions from the financial analyst community, highlighting the company's proactive communication with investors.
- Participation Details: Investors are advised to register at least 10 minutes prior to the call to receive dial-in information and a unique access code, ensuring smooth participation and reflecting the company's focus on enhancing investor experience.
- Live Webcast and Replay: The live webcast and replay of the call will be accessible from the Investor Relations section of the company's website, further improving information accessibility and transparency for stakeholders.
See More
Remitly Global's Growth and Market Outlook Analysis
- Significant Revenue Growth: Remitly's revenue increased by 25% to $419.5 million, with a 35% rise in send volume to 19.5 million transactions, indicating a strategic shift to expand market share despite a lower take rate.
- Improved Profitability: The company reported a net income of $8.8 million in Q3, achieving profitability under GAAP, although margins remain minimal, highlighting ongoing challenges in cost management.
- Future Growth Expectations: At its Investor Day, Remitly forecasted high teens revenue growth for 2026, projecting revenues of $2.6 billion to $3 billion by 2028, implying a 20% compound annual growth rate over the next three years.
- Attractive Market Valuation: With a market cap of $2.9 billion, Remitly's stock trades at just 5 times its 2028 EBITDA forecast, suggesting potential for stock recovery if targets are met, making it an appealing option for investors.
See More
