Remitly Global Inc (RELY) Q4 2025 Earnings Call Highlights: Strong Revenue Growth and Strategic …

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Thu, February 19, 2026 at 2:00 PM GMT+9 4 min read

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  RELY

  +4.05%

This article first appeared on GuruFocus.

**Revenue:** $1.635 billion for the full year 2025, up 29% year over year.

**Adjusted EBITDA:** $272 million for 2025, with a margin of nearly 17%.

**Net Income:** $68 million for the full year 2025, with $41 million in Q4 alone.

**Q4 Revenue:** $442 million, up 26% year over year.

**Q4 Adjusted EBITDA:** $89 million, resulting in a 20% margin.

**Send Volume:** $75 billion annual send volume for 2025.

**Quarterly Active Users:** Over 9 million, with a 19% year-over-year increase.

**High Amount Sender Volume Growth:** 40% year over year in Q4.

**Very High Amount Sender Volume Growth:** 105% year over year in Q4.

**Free Cash Flow:** $283 million in 2025, more than tripling from the prior year.

**Stock-Based Compensation:** 9.5% of revenue for 2025, down 250 basis points from 2024.

**Q1 2026 Revenue Guidance:** $436 to $438 million, reflecting 21% growth.

**Full Year 2026 Revenue Guidance:** $1.94 to $1.96 billion, reflecting 19% to 20% growth.

**Q1 2026 Adjusted EBITDA Guidance:** $82 to $84 million, with a margin of around 19%.

**Full Year 2026 Adjusted EBITDA Guidance:** $340 to $360 million, with a margin of around 18%.

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Release Date: February 18, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Remitly Global Inc (NASDAQ:RELY) achieved a 29% revenue growth in 2025, reaching $1.6 billion, exceeding their guidance.

The company reported an adjusted EBITDA of $272 million, surpassing expectations.

Quarterly active users grew nearly fivefold since 2020, now serving over 9 million customers.

The introduction of new products like Flex and Remitly Business showed strong early adoption, with Flex surpassing 100,000 users.

AI-driven improvements led to record low transaction losses and enhanced operational efficiency, contributing to profitability.

Negative Points

Despite strong growth, Remitly Global Inc (NASDAQ:RELY) holds less than 4% of the consumer total addressable market, indicating significant competition.

The company's take rate was influenced by a shift towards high amount senders, which may impact future revenue metrics.

Transaction loss rates, although improved, remain volatile and could affect future financial performance.

The company faces macroeconomic challenges, including geopolitical volatility and potential regulatory changes in new markets.

Marketing expenses, while managed efficiently, still represent a significant portion of revenue, indicating ongoing investment needs.

 






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Q & A Highlights

Q: How does your prior experience prepare you to lead Remitly, given its smaller consumer platform compared to larger enterprises you’ve led? A: Sebastian Gunningham, Incoming CEO: My experience includes leading product and engineering organizations at top companies, running complex businesses globally, and leading Amazon’s payments business. These roles have equipped me to scale Remitly effectively in its next chapter.

Q: What macro impacts are affecting the business, such as FX or immigration policy? A: Vikas Mehta, CFO: We had a strong year due to excellent execution and marketing efficiencies. Our customers are resilient despite geopolitical volatility. The new 1% remittance tax on cash remittances is a positive tailwind for us.

Q: Can you explain the revenue growth cadence for 2026, given Q1’s 21% growth and full-year guidance of 19-20%? A: Vikas Mehta, CFO: Q1 benefits from the remittance tax and Ramadan timing. Growth rates typically moderate in H2 as the business scales. We aim for balanced profitability and growth, investing in new product momentum.

Q: What will be your main areas of focus as you take over as CEO? A: Sebastian Gunningham, Incoming CEO: I will focus on product development velocity to capitalize on large market opportunities in consumer and business segments. It’s early for specifics, but I’m excited about the potential.

Q: What opportunities do you see for AI at Remitly? A: Sebastian Gunningham, Incoming CEO: AI offers customer-facing, internal efficiency, and software product opportunities. With Remitly’s strong business model and customer base, AI adoption will provide significant tailwinds.

Q: What benefits have you observed from new products like Flex and Remitly One? A: Vikas Mehta, CFO: Flex opens a new category with “send now, pay later,” addressing timing mismatches for low-amount senders. We’ve seen promising results with 120,000 users and strong unit economics. Flex users tend to send more, reducing friction.

Q: What drove the strong performance in the quarter, particularly among higher spenders? A: Vikas Mehta, CFO: High-amount senders are sending more, aided by product improvements and marketing campaigns. We’ve seen record send per active user and significant growth in high and very high amount senders.

Q: How do you plan to leverage AI for operational benefits? A: Sebastian Gunningham, Incoming CEO: AI will enhance customer interactions, internal efficiencies, and product development. It will be a strong multiplier for Remitly, driving growth and operational improvements.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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