Written by Emily J. Thompson, Senior Investment Analyst
Revenue
Second quarter revenue was $411.9 million, up 34% year-over-year. The increase was driven by a 40% growth in send volume to $18.5 billion, a 12% increase in send volume per active customer, and a 24% increase in quarterly active customers to over 8.5 million. Geographic diversification and growth in high amount senders also contributed to the revenue growth.
Adjusted EBITDA
Adjusted EBITDA was $64 million, representing a 16% margin, and exceeded expectations by $18 million. This was achieved through strong revenue growth, improved efficiency in marketing spend, and disciplined cost management.
Send Volume
Send volume grew 40% year-over-year to $18.5 billion. This growth was driven by a 12% increase in send volume per active customer and a 24% increase in quarterly active customers. High amount senders contributed significantly, with a 45% year-over-year growth in send volume from customers sending more than $1,000.
Quarterly Active Customers
Quarterly active customers increased 24% year-over-year to over 8.5 million. This growth was attributed to strong retention and new customer acquisition.
Transaction Expenses
Transaction expenses were $143.8 million, or 34.9% of revenue. Excluding provision for transaction losses, other transaction expenses were $115.7 million, improving 175 basis points year-over-year. Provision for transaction losses was $28 million, including a one-time fraud incident cost of $3.8 million.
Marketing Spend
Marketing spend was $79.8 million, up 10.4% year-over-year. As a percentage of revenue, it declined by 422 basis points to 19.4%, reflecting improved efficiency. Marketing spend per quarterly active customer was $9.38, an 11% year-over-year decline.
Technology and Development Expense
Technology and development expense was $53.4 million, improving by 225 basis points year-over-year as a percentage of revenue. This reflects efficiency gains while delivering product innovation.
General and Administrative Expense
G&A expense was $46.3 million, modestly higher as a percentage of revenue due to provisions related to collectability of amounts due from certain processing partners.
Stock-Based Compensation
Stock-based compensation was $38.1 million, representing 9.2% of revenue, which is approximately 288 basis points lower than the second quarter of 2024.
RELY.O$15.920-15.364%Past 6 months
Analyst Views on RELY
Wall Street analysts forecast RELY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RELY is 25.58 USD with a low forecast of 20.50 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Wall Street analysts forecast RELY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RELY is 25.58 USD with a low forecast of 20.50 USD and a high forecast of 32.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
Current: 15.830
Current: 15.830
downgrade
$32 -> $23
Reason
Citizens JMP lowered the firm's price target on Remitly Global to $23 from $32 and keeps an Outperform rating on the shares. Remitly is one of the strongest secular growth vehicles in FinTech, and a business that has scaled more quickly and more profitably than many had anticipated, but there are factors that may be weighing on shares near-term, including recent suggestions by management that Q3 guidance is accurate and not a \"beat and raise\" setup and that the Street's 2026 revenue forecasts may be too high, the analyst tells investors in a research note. Additionally, the introduction of new lending products leaves unanswered questions about unit economics, long-term funding strategy, and credit exposure, while news flow on the downstream impact of ICE-related immigration enforcement remains constant, Citizens says.
Wolfe Research
Darrin Peller
Peer Perform -> Outperform
upgrade
$25
Reason
Wolfe Research
Darrin Peller
Peer Perform -> Outperform
Reason
Wolfe Research analyst Darrin Peller upgraded Remitly Global to Outperform from Peer Perform with a $25 price target. The company's initiatives to diversify its revenue streams and increased profitability should erase Remitly's discounted multiple relative to peers, the analyst tells investors in a research note. Wolfe believes the stock could benefit from \"numerous catalysts\" in the second half of 2025, including the Remitly Reimagine product day tonight, the Q3 earnings report, and an expected investor day.
Overweight
maintain
$27 -> $28
Reason
KeyBanc raised the firm's price target on Remitly Global to $28 from $27 and keeps an Overweight rating on the shares. The firm notes Remitly's results were solid, as usual. Guidance for FY25 was raised in excess of upside in the quarter.
Barclays analyst Ramsey El-Assal raised the firm's price target on Remitly Global to $27 from $24 and keeps an Overweight rating on the shares.
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.
