Remitly Global, Inc. Q3 FY2025 earnings call

Key Points

• Matt Oppenheimer highlighted that Q3 results exceeded guidance, with trust as a competitive advantage. The company is expanding into new customer categories (business, high amount senders) and new products (Remitly One, Flex, stablecoins).
• Remitly Business expanded to the U.K. and Canada, with nearly 10,000 businesses on the platform, and business send volume nearly doubling sequentially.
• High amount senders saw expanded send limits and marketing campaigns, leading to growth in send volume.
• Flex, a flexible funding solution, has over 100,000 active users, with revenue nearly doubling sequentially, driving growth and engagement.
• Stablecoins are leveraged for FX, treasury, cash management, and disbursements, enhancing operations and customer offerings.

In Q3, Remitly's revenue was $419.5 million, up 25% year-over-year, with adjusted EBITDA of $61.2 million, a 15% margin. Send volume grew 35% to $19.5 billion. Quarterly active customers reached nearly 8.9 million, up 21% year-over-year. Remitly Business saw nearly 10,000 businesses using the platform, with business send volume nearly doubling sequentially. For high amount senders, send volume for customers sending over $1,000 grew 40% year-over-year, and the mix from these customers increased by over 200 basis points. Flex had over 100,000 active users by the end of Q3, with revenue nearly doubling sequentially.

Q4 2025

• Expected revenue of $426 million to $428 million, 21%-22% growth.
• Expected adjusted EBITDA of $50 million to $52 million, 12% margin.

Full-Year 2025

• Expected revenue between $1.619 billion and $1.621 billion, 28% growth.
• Expected adjusted EBITDA between $234 million and $236 million, 15% margin.

2026

• Initial view of revenue growth in the high teens, with tailwinds from remittance tax, product innovation, but cautious optimism due to factors like immigration headwinds.

• Immigration headwinds in key send countries could impact new customer acquisition.
• Macro uncertainties affecting overall business performance.
• Credit risk associated with new products like Flex, including potential changes in portfolio performance as it seasons.

Q: Tien-Tsin Huang asked about 2026 outlook and assumptions.

A: Matthew Oppenheimer said FY '25 sets a strong foundation, remittance tax is a net benefit, and new products/customer categories show promise but cautious due to immigration and macro uncertainties.

Q: Gus Gala inquired about incremental margin swing and marketing spend.

A: Matthew Oppenheimer discussed the flywheel of the business, leveraging brand and user base for cost leverage, and Vikas Mehta mentioned revenue trends consistent with prior quarters and focus on productivity gains.

Q: Cris Kennedy asked about balancing investment in new send markets vs new initiatives.

A: Matthew Oppenheimer said Remitly is a growth company with multiple opportunities, using a North Star Architecture and AI to drive efficiency across existing markets, new markets, new segments, and new products.

Q: David Scharf questioned Flex's credit profile.

A: Vikas Mehta and Matthew Oppenheimer discussed Flex's positive momentum, 90% current receivables, minimal incremental cost, and expertise in underwriting to ensure creditworthy customers.

Q: Zoe Deng asked about business economics and comparison to high dollar centers.

A: Matthew Oppenheimer explained Remitly's extensible product, growth into high dollar senders and business with higher average transaction sizes, and progress in refining risk and verification for these segments.