The Remitly Review: Insights from Divisadero's $95 Million Exit on the Digital Currency Landscape
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 03 2025
0mins
Should l Buy RELY?
Source: NASDAQ.COM
Divestment Details: Divisadero Street Capital Management, LP sold 5,036,343 shares of Remitly Global, reducing its position by approximately $94.68 million, which now accounts for only 0.04% of the fund's $2.29 billion AUM.
Impact on Remitly Global: The significant sell-off removes a major institutional holder, prompting investors to reassess Remitly's current market position and future profitability in the competitive digital remittance landscape.
Company Overview: Remitly Global specializes in digital cross-border remittance services, primarily targeting immigrant families, and aims to provide secure and efficient money transfer solutions across approximately 150 countries.
Market Challenges: The company faces increased competition from digital-first rivals and traditional banks, alongside high customer acquisition costs and tightening regulatory requirements, necessitating a focus on profitability and customer retention.
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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: 17.080
Low
17.00
Averages
22.67
High
28.00
Current: 17.080
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.
Remitly Reports Strong Q4 Results, Stock Up 35%
- Significant Performance Growth: Remitly's Q4 revenue increased by 26% year-over-year to $41 million, with send volume surging by 35% and active customers rising by 19%, indicating strong performance in the international remittance market that is likely to attract more investor interest.
- Profit Turnaround: The company reported a net income of $41 million, a substantial improvement from a net loss of $6 million in the same quarter last year, demonstrating the effectiveness of its business model and increased market demand, which enhances investor confidence.
- Optimistic Future Outlook: Remitly anticipates revenue growth of 19% to 20% by 2026, alongside positive net income, with adjusted EBITDA expected to rise by 25% to 32%, laying a solid foundation for long-term growth and drawing more investor attention.
- Positive Market Reaction: Wall Street analysts have set an average price target of $21 per share for Remitly, suggesting a potential upside of about 20%, which further fuels investor buying sentiment and reflects the market's optimistic expectations for its future performance.
See More
Remitly Stock Surges 35% with Positive Outlook
- Strong Financial Performance: Remitly reported a 26% year-over-year revenue increase in Q4, with send volume surging 35% and active customers rising 19%, indicating robust growth potential in the international remittance market that is likely to attract more investor interest.
- Improved Profitability: The company achieved a net income of $41 million, a significant turnaround from a $6 million net loss in the same quarter last year, demonstrating the effectiveness of its business model and increased market demand, which boosts investor confidence.
- Optimistic Future Outlook: Remitly anticipates revenue growth of 19% to 20% by 2026, alongside positive net income and a projected 25% to 32% increase in adjusted EBITDA, laying a solid foundation for long-term development.
- Capital One's Growth Potential: Despite a 19% decline in Capital One's stock year-to-date, its acquisition of Discover is expected to yield annual synergies of $2.5 billion to $2.7 billion, showcasing strong growth potential in the credit card market, with analysts setting a 12-month price target of $280, suggesting a 42% upside.
See More
Remitly Global Shares Surge 26.3% Following Strong Earnings Report
- Significant Revenue Growth: Remitly's revenue surged 26% year-over-year in Q4 2025 to $442 million, driven by a 19% increase in active customers and a 35% rise in send volume, indicating strong performance and heightened market demand in the mobile remittance sector.
- Improved Profitability: The operating margin reached a record 9% in the quarter, showcasing steady improvement in profitability as the business scales, which is promising news for shareholders and highlights the company's potential for earnings growth.
- Future Growth Expectations: Management anticipates a 19%-20% revenue increase in 2026, nearing $2 billion, and if the operating margin climbs to 10%, it could yield $200 million in GAAP earnings, suggesting significant growth potential compared to the current market cap of $3.67 billion.
- Broad Market Opportunities: Although Remitly remains a small player in the global remittance market, its rapid growth and the introduction of new features, such as 'send now, pay later', indicate substantial potential for market expansion and revenue increase, with expectations of doubling revenue over the next five years to generate $800 million in annual earnings.
See More
Remitly Reports Strong Growth in Q4
- Significant Revenue Growth: In Q4 2025, Remitly's revenue surged 26% year-over-year to $442 million, driven by a 19% increase in active customers and a 35% rise in send volume, indicating strong performance and market share expansion in the mobile remittance sector.
- Improved Profitability: The operating margin reached a record 9% during the quarter, reflecting steady progress as the business scales, which is promising for shareholders and highlights the company's future earnings potential.
- Optimistic Future Outlook: Management anticipates a 19%-20% revenue growth in 2026, nearing $2 billion, and if the operating margin climbs to 10%, it could yield $200 million in GAAP earnings, showcasing the company's growth potential and investment appeal.
- Broad Market Opportunities: Although Remitly remains a small player in the global remittance market, its rapid growth and the introduction of new features, such as 'send now, pay later' and a mobile wallet, suggest future double-digit revenue growth and margin expansion, making it attractive for long-term investors.
See More
Remitly Stock Drops 5% Amid AI Disruption Fears
- Market Panic Impact: Remitly's stock fell 5% to $16.25 due to panic triggered by a blog post discussing AI's potential disruption of the financial payments sector, reflecting investor anxiety about future payment methods.
- Analyst Rating Upgrade: Despite market pressures, Cantor Fitzgerald raised Remitly's price target from $17 to $20 while reiterating an overweight rating, indicating analysts' confidence in the company's future performance.
- Stablecoin Experimentation: Remitly has begun experimenting with stablecoins to mitigate potential market disruption; however, customers remain cautious about using stablecoins for remittances, highlighting the company's reliance on trust in its operational model.
- Improving Profitability: Despite poor stock market performance, Remitly reported strong growth and improving profitability in Q4, with a positive outlook for 2026, suggesting resilience in the cross-border payments sector.
See More
Remitly Faces Potential AI Disruption Risks
- Stock Decline: Despite Cantor Fitzgerald raising Remitly's price target from $17 to $20, the stock fell 5% due to market panic over AI potentially disrupting the financial payments sector, highlighting the fragility of market sentiment.
- Analyst Optimism: Cantor Fitzgerald reiterated an overweight rating on Remitly, citing strong fourth-quarter results and a positive outlook for 2026, indicating potential for sustained growth despite market challenges.
- AI Disruption Concerns: A hypothetical scenario from Citrini Research suggested that AI could replace credit cards with stablecoins, although Remitly's resilience in cross-border payments shows some capacity to withstand such pressures, yet market confidence is shaken.
- Competitive Market Pressure: Despite improvements in profitability, Remitly's stock performance remains weak, and it was not included in the analyst's recommended best stocks list, reflecting cautious investor sentiment regarding its future growth prospects.
See More
Remitly Reports Strong Q4 Results, Stock Up 35%
- Significant Performance Growth: Remitly's Q4 revenue increased by 26% year-over-year to $41 million, with send volume surging by 35% and active customers rising by 19%, indicating strong performance in the international remittance market that is likely to attract more investor interest.
- Profit Turnaround: The company reported a net income of $41 million, a substantial improvement from a net loss of $6 million in the same quarter last year, demonstrating the effectiveness of its business model and increased market demand, which enhances investor confidence.
- Optimistic Future Outlook: Remitly anticipates revenue growth of 19% to 20% by 2026, alongside positive net income, with adjusted EBITDA expected to rise by 25% to 32%, laying a solid foundation for long-term growth and drawing more investor attention.
- Positive Market Reaction: Wall Street analysts have set an average price target of $21 per share for Remitly, suggesting a potential upside of about 20%, which further fuels investor buying sentiment and reflects the market's optimistic expectations for its future performance.
See More
Remitly Stock Surges 35% with Positive Outlook
- Strong Financial Performance: Remitly reported a 26% year-over-year revenue increase in Q4, with send volume surging 35% and active customers rising 19%, indicating robust growth potential in the international remittance market that is likely to attract more investor interest.
- Improved Profitability: The company achieved a net income of $41 million, a significant turnaround from a $6 million net loss in the same quarter last year, demonstrating the effectiveness of its business model and increased market demand, which boosts investor confidence.
- Optimistic Future Outlook: Remitly anticipates revenue growth of 19% to 20% by 2026, alongside positive net income and a projected 25% to 32% increase in adjusted EBITDA, laying a solid foundation for long-term development.
- Capital One's Growth Potential: Despite a 19% decline in Capital One's stock year-to-date, its acquisition of Discover is expected to yield annual synergies of $2.5 billion to $2.7 billion, showcasing strong growth potential in the credit card market, with analysts setting a 12-month price target of $280, suggesting a 42% upside.
See More
Remitly Global Shares Surge 26.3% Following Strong Earnings Report
- Significant Revenue Growth: Remitly's revenue surged 26% year-over-year in Q4 2025 to $442 million, driven by a 19% increase in active customers and a 35% rise in send volume, indicating strong performance and heightened market demand in the mobile remittance sector.
- Improved Profitability: The operating margin reached a record 9% in the quarter, showcasing steady improvement in profitability as the business scales, which is promising news for shareholders and highlights the company's potential for earnings growth.
- Future Growth Expectations: Management anticipates a 19%-20% revenue increase in 2026, nearing $2 billion, and if the operating margin climbs to 10%, it could yield $200 million in GAAP earnings, suggesting significant growth potential compared to the current market cap of $3.67 billion.
- Broad Market Opportunities: Although Remitly remains a small player in the global remittance market, its rapid growth and the introduction of new features, such as 'send now, pay later', indicate substantial potential for market expansion and revenue increase, with expectations of doubling revenue over the next five years to generate $800 million in annual earnings.
See More
Remitly Reports Strong Growth in Q4
- Significant Revenue Growth: In Q4 2025, Remitly's revenue surged 26% year-over-year to $442 million, driven by a 19% increase in active customers and a 35% rise in send volume, indicating strong performance and market share expansion in the mobile remittance sector.
- Improved Profitability: The operating margin reached a record 9% during the quarter, reflecting steady progress as the business scales, which is promising for shareholders and highlights the company's future earnings potential.
- Optimistic Future Outlook: Management anticipates a 19%-20% revenue growth in 2026, nearing $2 billion, and if the operating margin climbs to 10%, it could yield $200 million in GAAP earnings, showcasing the company's growth potential and investment appeal.
- Broad Market Opportunities: Although Remitly remains a small player in the global remittance market, its rapid growth and the introduction of new features, such as 'send now, pay later' and a mobile wallet, suggest future double-digit revenue growth and margin expansion, making it attractive for long-term investors.
See More
Remitly Stock Drops 5% Amid AI Disruption Fears
- Market Panic Impact: Remitly's stock fell 5% to $16.25 due to panic triggered by a blog post discussing AI's potential disruption of the financial payments sector, reflecting investor anxiety about future payment methods.
- Analyst Rating Upgrade: Despite market pressures, Cantor Fitzgerald raised Remitly's price target from $17 to $20 while reiterating an overweight rating, indicating analysts' confidence in the company's future performance.
- Stablecoin Experimentation: Remitly has begun experimenting with stablecoins to mitigate potential market disruption; however, customers remain cautious about using stablecoins for remittances, highlighting the company's reliance on trust in its operational model.
- Improving Profitability: Despite poor stock market performance, Remitly reported strong growth and improving profitability in Q4, with a positive outlook for 2026, suggesting resilience in the cross-border payments sector.
See More
Remitly Faces Potential AI Disruption Risks
- Stock Decline: Despite Cantor Fitzgerald raising Remitly's price target from $17 to $20, the stock fell 5% due to market panic over AI potentially disrupting the financial payments sector, highlighting the fragility of market sentiment.
- Analyst Optimism: Cantor Fitzgerald reiterated an overweight rating on Remitly, citing strong fourth-quarter results and a positive outlook for 2026, indicating potential for sustained growth despite market challenges.
- AI Disruption Concerns: A hypothetical scenario from Citrini Research suggested that AI could replace credit cards with stablecoins, although Remitly's resilience in cross-border payments shows some capacity to withstand such pressures, yet market confidence is shaken.
- Competitive Market Pressure: Despite improvements in profitability, Remitly's stock performance remains weak, and it was not included in the analyst's recommended best stocks list, reflecting cautious investor sentiment regarding its future growth prospects.
See More
