Remitly’s second quarter results were marked by robust customer growth and expanding product offerings, fueling the company’s ability to outperform market expectations. Management pointed to the successful launch of Remitly Business, early traction in new customer categories like high-value senders, and increased transaction sizes as central drivers of this performance. CEO Matt Oppenheimer highlighted that expanding use cases—especially among small businesses and freelancers—helped diversify revenue streams, while Chief Financial Officer Vikas Mehta noted that improved marketing efficiency and increased digital transactions supported margin gains. Management also acknowledged that a one-time loss from a sophisticated fraud incident temporarily impacted transaction losses, but emphasized that enhanced fraud detection systems are now in place.
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Remitly (RELY) Q2 CY2025 Highlights:
- Revenue: $411.9 million vs analyst estimates of $384.4 million (34.4% year-on-year growth, 7.2% beat)
- Adjusted EPS: $0.19 vs analyst estimates of $0.18 (in line)
- Adjusted EBITDA: $64 million vs analyst estimates of $46.07 million (15.5% margin, 38.9% beat)
- The company lifted its revenue guidance for the full year to $1.62 billion at the midpoint from $1.58 billion, a 2.2% increase
- EBITDA guidance for the full year is $227.5 million at the midpoint, above analyst estimates of $207.5 million
- Operating Margin: 3.6%, up from -5.1% in the same quarter last year
- Active Customers: 8.51 million, up 1.66 million year on year
- Market Capitalization: $4 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Remitly’s Q2 Earnings Call
- Tien-Tsin Huang (JPMorgan) asked for clarification on the timeline and geographic rollout of Remitly Business, Remitly One, and stablecoin initiatives. CEO Matt Oppenheimer explained that while product launches are phased, early results are promising and future marketing investment for these initiatives is already included in guidance.
- William Alfred Nance (Goldman Sachs) inquired about the customer profile for Remitly Wallet and whether it targets existing or new users. Oppenheimer responded that Wallet serves both current and new customers, especially those needing multicurrency storage when relocating internationally.
- Ramsey Clark El-Assal (Barclays) questioned the current demand for stablecoins among Remitly’s customers. Oppenheimer shared that demand is emerging, especially in markets facing currency instability, but broader adoption will take time as financial services evolve.
- David Scharf (Citizens Capital Markets) asked how stablecoin transactions impact Remitly’s unit economics and fee model. Oppenheimer said the core revenue model remains similar, with the company’s infrastructure enabling competitive currency conversion across fiat and stablecoins.
- Alexander Wexler Markgraff (KBCM) wanted insight on Remitly Business competition and pricing versus peer-to-peer remittance. Oppenheimer explained the business segment is underserved and Remitly’s product is optimized for reliability and affordability, with plans to move upmarket as features expand.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the initial uptake and engagement metrics for Remitly One and its impact on customer retention, (2) the pace of international expansion for Remitly Business and subsequent growth in transaction size and customer mix, and (3) progress in stablecoin adoption and AI-driven customer onboarding. The company’s ability to manage fraud risks and sustain marketing efficiency will also be critical milestones.
Remitly currently trades at $19.37, up from $16.50 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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