Remitly's Profitability Shows Significant Improvement
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 03 2026
0mins
Source: Fool
- Profitability Shift: Remitly achieved positive adjusted EBITDA in 2023, marking a significant turnaround in profitability, with expectations to reach GAAP profitability by 2025, reflecting the success of its business model transformation.
- Strong User Growth: From 2021 to 2025, Remitly's active customer base surged from 2.8 million to 9.3 million, while send volume skyrocketed from $20.4 billion to $74.9 billion, and annual revenue tripled from $459 million to $1.64 billion, indicating substantial market penetration.
- Competitive Advantage: Despite fierce competition from Western Union and MoneyGram, Remitly maintains a last-mile advantage in cross-border payments through partnerships with banks and popular apps, strengthening its market position.
- Future Growth Potential: Analysts project Remitly's revenue to grow at a 19% CAGR from 2025 to 2028, with adjusted EBITDA and GAAP EPS increasing at CAGRs of 30% and 54%, respectively, highlighting its robust growth prospects.
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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: 20.430
Low
17.00
Averages
22.67
High
28.00
Current: 20.430
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.
Investment Choices in Digital Payments Sector
- Mastercard's Market Position: Operating in over 200 countries, Mastercard processed transactions generating nearly $32.8 billion in revenue for FY 2025, reflecting a growth rate of approximately 16.4% and a net income of around $15 billion, underscoring its strong profitability and leadership in the digital payments sector.
- Remitly's Growth Potential: Focusing on the international remittance market, Remitly achieved approximately $1.6 billion in revenue for FY 2025, marking a 29.4% increase and a first-time net income of about $67.9 million, with a net margin of 4.2%, indicating its competitive edge in the rapidly expanding digital remittance space.
- Regulatory and Risk Challenges: Both companies face regulatory pressures, including potential caps on interchange fees and data localization mandates, with Mastercard's robust network effect providing relative safety in competition, while Remitly relies on global money transfer licenses and must navigate complex anti-money laundering laws.
- Valuation Comparison: Mastercard's price-to-sales ratio stands at 13.5x, while Remitly's forward P/E is at 31.8x, highlighting significant differences in market valuations, prompting investors to consider their risk tolerance and return expectations when making investment decisions.
See More
Remitly's Global Remittance Business Sees Significant Growth
- Significant User Growth: In the last quarter, Remitly attracted 9.6 million users who sent $22.1 billion, with year-over-year growth rates of 20%, 37%, and 25%, demonstrating its strong expansion capabilities in the international remittance market.
- Revenue and Profitability Surge: The company reported nearly $453 million in quarterly revenue, with net income soaring 332% from $11.4 million to $49.1 million year-over-year, indicating the sustainability and profitability of its business model.
- Technology-Driven Convenience: By integrating complex remittance processes into its app, Remitly has simplified user experience, achieving high ratings of 4.9 on Apple and 4.8 on Android, further solidifying its market position.
- Optimistic Industry Outlook: The global remittance market is projected to grow at an average annual rate of 12.4% through 2031, positioning Remitly as a key player in this rapidly evolving sector as a new technology company.
See More
Remitly's Global Remittance Business Shows Significant Growth
- Significant User Growth: In the last quarter, Remitly attracted 9.6 million users who sent $22.1 billion in cross-border remittances, achieving year-over-year growth rates of 20% and 37%, indicating strong potential in the international remittance market.
- Revenue Surge: The company reported $453 million in revenue for the recent quarter, a 25% increase year-over-year, while its quarterly net income skyrocketed by 332%, rising from $11.4 million to $49.1 million, showcasing a substantial improvement in profitability.
- Expansive Market Opportunity: With an estimated $200 billion in annual remittance demand from the U.S., Remitly is effectively capturing this market by simplifying the remittance process and reducing costs, as the global remittance industry is projected to grow at an annualized rate of 12.4%.
- Analyst Optimism: All analysts covering Remitly rate it as a strong buy, with a consensus price target of $28.25, representing a 50% upside from the current stock price, reflecting confidence in its future growth prospects.
See More
Remitly Executive Sells 50,000 Shares for $1.17 Million
- Executive Stock Sale: Ankur Sinha, Chief Product and Technology Officer of Remitly, sold 50,000 shares on May 14, 2026, for approximately $1.17 million at a weighted average price of $23.42 per share, representing a 3.83% reduction in his direct holdings, leaving him with 1,255,566 shares post-transaction.
- Consistency in Trading Pattern: This sale aligns with Sinha's established pattern of periodic stock disposals, indicating that he still has sufficient share capacity following prior sales, which suggests his confidence in the company's future remains intact.
- Market Performance and Competition: While Remitly has achieved strong growth and profits in Q1 2026 and is gaining market share against traditional money transfer companies like Western Union, its stock has experienced significant volatility, prompting investors to exercise caution.
- Investor Focus: Although Sinha's stock sale may raise concerns, his status as a major shareholder means investors should focus more on the company's fundamentals and market performance rather than the actions of a single executive.
See More
Remitly Executive Sells Shares, Raises Investor Concerns
- Executive Stock Sale: Remitly's Chief Product and Technology Officer, Ankur Sinha, sold 50,000 shares of common stock for approximately $1.17 million, indicating his liquidity management strategy within the company.
- Shareholding Reduction: This transaction reduced Sinha's direct holdings by 3.83%, leaving him with 1,255,566 shares valued at about $29.27 million, confirming his status as a major shareholder.
- Company Financial Overview: Remitly reported a revenue of $1.73 billion and a net income of $105.63 million in Q1 2026, maintaining growth despite fierce competition in the remittance market.
- Investor Considerations: While Sinha's stock sale may raise concerns, his substantial remaining holdings suggest investors should focus on Remitly's overall market performance and competitive advantages in the international remittance sector.
See More
Remitly's Profitability Shows Significant Improvement
- Profitability Shift: Remitly achieved positive adjusted EBITDA in 2023, marking a significant turnaround in profitability, with expectations to reach GAAP profitability by 2025, reflecting the success of its business model transformation.
- Strong User Growth: From 2021 to 2025, Remitly's active customer base surged from 2.8 million to 9.3 million, while send volume skyrocketed from $20.4 billion to $74.9 billion, and annual revenue tripled from $459 million to $1.64 billion, indicating substantial market penetration.
- Competitive Advantage: Despite fierce competition from Western Union and MoneyGram, Remitly maintains a last-mile advantage in cross-border payments through partnerships with banks and popular apps, strengthening its market position.
- Future Growth Potential: Analysts project Remitly's revenue to grow at a 19% CAGR from 2025 to 2028, with adjusted EBITDA and GAAP EPS increasing at CAGRs of 30% and 54%, respectively, highlighting its robust growth prospects.
See More
Investment Choices in Digital Payments Sector
- Mastercard's Market Position: Operating in over 200 countries, Mastercard processed transactions generating nearly $32.8 billion in revenue for FY 2025, reflecting a growth rate of approximately 16.4% and a net income of around $15 billion, underscoring its strong profitability and leadership in the digital payments sector.
- Remitly's Growth Potential: Focusing on the international remittance market, Remitly achieved approximately $1.6 billion in revenue for FY 2025, marking a 29.4% increase and a first-time net income of about $67.9 million, with a net margin of 4.2%, indicating its competitive edge in the rapidly expanding digital remittance space.
- Regulatory and Risk Challenges: Both companies face regulatory pressures, including potential caps on interchange fees and data localization mandates, with Mastercard's robust network effect providing relative safety in competition, while Remitly relies on global money transfer licenses and must navigate complex anti-money laundering laws.
- Valuation Comparison: Mastercard's price-to-sales ratio stands at 13.5x, while Remitly's forward P/E is at 31.8x, highlighting significant differences in market valuations, prompting investors to consider their risk tolerance and return expectations when making investment decisions.
See More
Remitly's Global Remittance Business Sees Significant Growth
- Significant User Growth: In the last quarter, Remitly attracted 9.6 million users who sent $22.1 billion, with year-over-year growth rates of 20%, 37%, and 25%, demonstrating its strong expansion capabilities in the international remittance market.
- Revenue and Profitability Surge: The company reported nearly $453 million in quarterly revenue, with net income soaring 332% from $11.4 million to $49.1 million year-over-year, indicating the sustainability and profitability of its business model.
- Technology-Driven Convenience: By integrating complex remittance processes into its app, Remitly has simplified user experience, achieving high ratings of 4.9 on Apple and 4.8 on Android, further solidifying its market position.
- Optimistic Industry Outlook: The global remittance market is projected to grow at an average annual rate of 12.4% through 2031, positioning Remitly as a key player in this rapidly evolving sector as a new technology company.
See More
Remitly's Global Remittance Business Shows Significant Growth
- Significant User Growth: In the last quarter, Remitly attracted 9.6 million users who sent $22.1 billion in cross-border remittances, achieving year-over-year growth rates of 20% and 37%, indicating strong potential in the international remittance market.
- Revenue Surge: The company reported $453 million in revenue for the recent quarter, a 25% increase year-over-year, while its quarterly net income skyrocketed by 332%, rising from $11.4 million to $49.1 million, showcasing a substantial improvement in profitability.
- Expansive Market Opportunity: With an estimated $200 billion in annual remittance demand from the U.S., Remitly is effectively capturing this market by simplifying the remittance process and reducing costs, as the global remittance industry is projected to grow at an annualized rate of 12.4%.
- Analyst Optimism: All analysts covering Remitly rate it as a strong buy, with a consensus price target of $28.25, representing a 50% upside from the current stock price, reflecting confidence in its future growth prospects.
See More
Remitly Executive Sells 50,000 Shares for $1.17 Million
- Executive Stock Sale: Ankur Sinha, Chief Product and Technology Officer of Remitly, sold 50,000 shares on May 14, 2026, for approximately $1.17 million at a weighted average price of $23.42 per share, representing a 3.83% reduction in his direct holdings, leaving him with 1,255,566 shares post-transaction.
- Consistency in Trading Pattern: This sale aligns with Sinha's established pattern of periodic stock disposals, indicating that he still has sufficient share capacity following prior sales, which suggests his confidence in the company's future remains intact.
- Market Performance and Competition: While Remitly has achieved strong growth and profits in Q1 2026 and is gaining market share against traditional money transfer companies like Western Union, its stock has experienced significant volatility, prompting investors to exercise caution.
- Investor Focus: Although Sinha's stock sale may raise concerns, his status as a major shareholder means investors should focus more on the company's fundamentals and market performance rather than the actions of a single executive.
See More
Remitly Executive Sells Shares, Raises Investor Concerns
- Executive Stock Sale: Remitly's Chief Product and Technology Officer, Ankur Sinha, sold 50,000 shares of common stock for approximately $1.17 million, indicating his liquidity management strategy within the company.
- Shareholding Reduction: This transaction reduced Sinha's direct holdings by 3.83%, leaving him with 1,255,566 shares valued at about $29.27 million, confirming his status as a major shareholder.
- Company Financial Overview: Remitly reported a revenue of $1.73 billion and a net income of $105.63 million in Q1 2026, maintaining growth despite fierce competition in the remittance market.
- Investor Considerations: While Sinha's stock sale may raise concerns, his substantial remaining holdings suggest investors should focus on Remitly's overall market performance and competitive advantages in the international remittance sector.
See More
Remitly's Profitability Shows Significant Improvement
- Profitability Shift: Remitly achieved positive adjusted EBITDA in 2023, marking a significant turnaround in profitability, with expectations to reach GAAP profitability by 2025, reflecting the success of its business model transformation.
- Strong User Growth: From 2021 to 2025, Remitly's active customer base surged from 2.8 million to 9.3 million, while send volume skyrocketed from $20.4 billion to $74.9 billion, and annual revenue tripled from $459 million to $1.64 billion, indicating substantial market penetration.
- Competitive Advantage: Despite fierce competition from Western Union and MoneyGram, Remitly maintains a last-mile advantage in cross-border payments through partnerships with banks and popular apps, strengthening its market position.
- Future Growth Potential: Analysts project Remitly's revenue to grow at a 19% CAGR from 2025 to 2028, with adjusted EBITDA and GAAP EPS increasing at CAGRs of 30% and 54%, respectively, highlighting its robust growth prospects.
See More
