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    RELY
    Earnings call· Mar 2026(Q1 FY26)

    Remitly Global Q1 FY26 earnings call RELY

    May 6, 2026 Source

    Executive summary

    Remitly Q1 FY26 — Record Revenue & Adjusted EBITDA Driven by Digital Shift and Growth Accelerators

    Remitly delivered exceptional Q1 FY26 results, driven by a resilient business model, growing contributions from new business categories, and continued expense discipline. The company is accelerating its strategy by leveraging AI for efficiency and product development, focusing on high-value senders, businesses, and receivers, and expanding its card-based offerings to diversify revenue and enhance customer loyalty.

    Highlights

    5

    • Record revenue of $453 million, up 25% YoY, exceeding guidance.

    • Record adjusted EBITDA of $102 million, exceeding guidance and marking the first time over $100 million.

    • Quarterly active customers (QAU) grew 20% YoY to over 9.6 million, ahead of expectations.

    • Send volume grew 37% to $22.1 billion, with Send volume per active customer up 14% to nearly $2,300.

    • RLTE dollars grew 28% to $308 million, outpacing revenue growth, with RLTE as a percentage of revenue improving 156 bps YoY to 68%.

    Concerns

    2

    • Q2 revenue growth expected to decelerate to 17-18% due to timing shifts of Ramadan/Easter, elevated Q1 tax refunds, and tougher comps.

    • Stock-based compensation expected to be elevated in Q2 due to hiring activity shifted from Q1 and challenging prior-year comparisons.

    Guidance & targets

    14
    CategoryTargetConfidence
    Q2 FY26 Revenue
    $483 million to $485 million
    high materiality
    High
    Q2 FY26 Revenue Growth
    17% to 18%
    high materiality
    High
    Q2 FY26 Adjusted EBITDA
    $86 million and $88 million
    high materiality
    High
    Q2 FY26 Adjusted EBITDA Margin
    around 18%
    high materiality
    High
    Full-year FY26 Revenue
    $1.96 billion and $1.975 billion
    high materiality
    High
    Full-year FY26 Revenue Growth
    20% to 21%
    high materiality
    High
    Full-year FY26 Adjusted EBITDA
    $370 million and $385 million
    high materiality
    High
    Full-year FY26 Adjusted EBITDA Margin
    around 19%
    high materiality
    High
    Full-year FY26 RLTE margins
    broadly in line with 2025 on a normalized basis
    medium materiality
    Medium
    Full-year FY26 Stock-based compensation
    increase in absolute terms year-over-year, but decrease as a percentage of revenue
    low materiality
    High
    Growth accelerators revenue contribution
    around 5% of total revenue
    medium materiality
    High
    Growth accelerators revenue contribution
    exceed 10% of total revenue
    medium materiality
    High
    New products revenue growth
    more than double this year
    medium materiality
    High
    GAAP Net Income
    positive each quarter this year
    medium materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    U.S. Send Revenue
    Driven by continued share gains and the shift from offline to online conversions due to recent regulatory changes.
    		—25%——
    Rest of the World Send Revenue
    Showcases geographic diversification. Notable strength in the UAE with volumes up over 150% YoY due to a short-term surge from geopolitical events.
    		—31%——
    Receive Revenue (ex-India, Philippines, Mexico)
    Further diversifying the business by growing faster than overall revenue and now comprising over half of the total revenue mix.
    % of revenue mix: over half
    		—faster than overall revenue growth——

    Operational metrics

    23
    Adjusted EBITDA
    $102 million$19 million above midpoint of guidance
    Q1 FY26

    First time exceeding $100 million. Outperformance driven by higher-than-expected revenue, lower-than-expected transaction losses, and short-term pause in hiring.

    GAAP Net Income
    $49 millionmore than 300% growth compared to Q1 FY25
    Q1 FY26

    Compared to $11 million in Q1 FY25.

    RLTE (Revenue Less Transaction Expenses)
    $308 millionup 28%
    Q1 FY26

    Outpacing revenue growth, reflecting strong customer activity, improved partner economics, routing optimization, and economies of scale.

    Transaction Expenses (excluding provisions for transaction losses)
    $124 millionimproved 114 bps YoY as a percentage of revenue
    Q1 FY26

    Reflecting improved network economics. Total transaction expenses were $145 million or 32% of revenue.

    Provision for Transaction Losses
    $21 millionbetter than expectations
    Q1 FY26

    Benefited from efficiencies afforded by AI-driven fraud prevention and detection model deployed late last year.

    Marketing Expense
    $82 millionup 20.7% YoY
    Q1 FY26

    Due to continued efficiencies.

    Customer Support and Operations Expense
    $25 millionimproved 69 bps YoY as a percentage of revenue
    Q1 FY26

    Continuing a multiyear trend of steady operating leverage.

    Technology and Development Expense
    $58 millionup 14% YoY
    Q1 FY26

    Meaningfully below the pace of revenue growth, seeing benefits from embedding Agentic AI.

    G&A Expense
    $41 millionup 2% YoY
    Q1 FY26

    Lowest growth rate ever as a public company, reflecting deliberate and disciplined attention to cost structure.

    Stock-based Compensation
    6.1%down 382 bps YoY
    Q1 FY26

    Partially aided by forfeitures associated with headcount reductions in Q1.

    Share Repurchases
    $44 millionnearly double shares repurchased since program launch
    Q1 FY26

    Opportunistically buying back shares, reflecting conviction in long-term growth opportunities.

    Cash on Hand
    around $650 million
    Q1 FY26

    Used to fund customer transactions and satisfy regulatory safeguarding requirements.

    Send Volume
    $22.1 billionup 37% YoY
    Q1 FY26

    Supporting strong volume growth.

    Send Volume per Active Customer
    nearly $2,300up 14% YoY
    Q1 FY26

    Driven by growth in transactions per active customer and record growth in average transaction size.

    Remitly Business Users
    over 20,000
    Q1 FY26

    Ended Q1 with this count.

    RLTE Contribution per Business Customer
    more than 2x highervs core
    Q1 FY26

    Compared to core customers during the quarter.

    Quarterly Active Customers (QAU)
    over 9.6 millionup 20% YoY
    Q1 FY26

    Ahead of expectations. Growth accelerated QoQ, reflecting shift from offline to online conversions and improved retention.

    Corporate Workforce Reduction
    more than 10%
    Q1 FY26

    Part of a broader effort to sharpen organizational focus and drive efficiencies.

    Marketing Spend per Active Customer
    $8.56up 0.7% YoY
    Q1 FY26

    In line with expectations.

    LTV to CAC Ratio
    above 6x
    Q1 FY26

    Continued efficiencies reflect growth in customer acquisition through unpaid channels and word of mouth.

    Payback Period
    under 12 months
    Q1 FY26

    Continued efficiencies reflect growth in customer acquisition through unpaid channels and word of mouth.

    Transactions Completed Without Agent Contact
    over 97%
    Q1 FY26

    A remarkable milestone reflecting reliability and AI-driven support capabilities.

    Outstanding Shares
    210 milliondown QoQ
    Q1 FY26

    First time down quarter-over-quarter in company's history, reflecting disciplined approach to dilution management.

    Industry KPIs

    4
    MetricValueDetails
    Capital returns$44 millionUSD
    Payments volume gdv$22.1 billionUSD
    Net revenue yield take rate2.05%%
    Value added services revenue—

    Product announcements

    14
    ProductTypeDetails
    WhatsApp Integrationupdate
    ChatGPT Integrationlaunch
    Bre-B (Colombia Central Bank-backed instant payment rail)expansion
    Banco Bolivariano (Ecuador)expansion
    KBZPay (Myanmar)expansion
    Rocket (Bangladesh)expansion
    Coins.ph (Philippines)expansion
    UAE Receive Marketexpansion
    Discover Card Acceptanceexpansion
    FedNow and RTP Access (U.S.)launch
    Business Receiver Productlaunch
    Business Payment Initiation Featurelaunch
    Receiver & Request Productlaunch
    Card-based Send Now, Pay Later Offeringlaunch

    Risks & headwinds

    4
    Geopolitical UncertaintyQ1 FY26

    short-term surge in volumes

    Seasonal/Timing ShiftsQ2 FY26

    Q2 revenue growth impacted by shifting timing of Ramadan and Easter to earlier in the year, and elevated U.S. tax refunds benefiting Q1.

    Mitigation: Management accounts for this in Q2 guidance.

    Tougher ComparablesQ2 FY26

    Q2 revenue growth impacted by tougher comps due to strong Q1 performance and geopolitical events.

    Mitigation: Management accounts for this in Q2 guidance.

    Elevated Stock-Based CompensationQ2 FY26

    elevated

    Mitigation: Expected to decrease as a percentage of revenue for the full year. Partially offset by higher forfeitures.

    What to watch in Q2 FY26

    5

    Q2 Revenue Growth

    Q2 FY26
    CurrentQ1 FY26 revenue growth: 25%
    Target17% to 18%

    Why it matters

    Verifies the impact of seasonal shifts and tougher comps on the company's growth trajectory.

    For the second quarter of 2026, we expect revenue of $483 million to $485 million or 17% to 18% growth.

    Q&A highlights

    7

    Asked for more detail on the specific factors driving Q1 outperformance (remittance tax, tax refunds, geopolitical events) and how these impact seasonal trends and future guidance, including any new risks or opportunities.

    Vikas Mehta attributed Q1 strength to the positive impact of remittance tax driving offline-to-online shifts, higher U.S. tax refunds, earlier timing of holidays (Easter, Ramadan), and increased volumes in the UAE due to geopolitical uncertainty. He noted that Q1's record new customer acquisition provides a strong foundation for the full year, with reacceleration expected in H2 driven by core business strength and growth accelerators.

    “Some of the highlights in the quarter included just the positive impact that we got from remittance tax and the shift from offline to online customers that aided our record new customer acquisitions. In addition to that, the higher U.S. tax refunds as we have seen, especially in the core sender segment, this is a really positive impact that we saw.”

    asked by Tien-Tsin Huang · answered by Vikas Mehta

    2 min read6 chapters

    Detailed Narrative

    01

    CEO's First 90 Days & Operating Priorities

    New CEO Sebastian Gunningham spent his first 90 days understanding the business, traveling globally, and speaking with customers. This led to clear operating priorities: smaller teams for ownership, distinguishing core remittance from growth initiatives, disciplined product building from customer needs, embedding AI, and prioritizing speed. These changes are aimed at accelerating the business trajectory.

    02

    Strategic Framework & Growth Accelerators

    Remitly's strategy is framed around a 4x4 matrix: four customer categories (core senders, high-value senders, businesses, receivers) and four product offerings (sending, borrowing, spending, saving money). While Core Send drives most revenue, Borrow, Spend, and Save products are 'growth accelerators' designed to create a flywheel effect, driving loyalty, higher remittance volumes, and revenue diversification.

    03

    AI Integration and Impact

    The company is aggressively integrating AI across its operations, expecting three main benefits: cost savings through efficiency (e.g., 250 headcount reductions, 50 redeployments), increased speed in product development (knowledge development engineers compressing cycles from months to days), and enhanced customer trust through personalized localization and improved service. Management believes AI will enable significantly more revenue with roughly the same headcount in 3-4 years.

    04

    New Product Initiatives & Expansion

    Remitly expanded its network reach in Latin America, Asia, Africa, and the Middle East, adding new receive markets and payment rails. On the send side, it enabled Discover card acceptance and access to FedNow/RTP in the U.S. The company launched a new card-based 'Send Now, Pay Later' offering in the U.S. with a bank partner, providing a global debit card, wallet, short-term credit line, and rewards for a monthly fee, targeting short-term liquidity needs.

    05

    High-Value Senders & Business Segment Growth

    Remitly redefined high-value senders as those sending $5,000+ per transaction, a segment that saw 73% YoY volume growth in Q1. The business offering scaled ahead of expectations, ending Q1 with over 20,000 users and 30%+ QoQ growth in send volume, with RLTE contribution per business customer more than 2x core customers. The Receiver product also launched in 6 countries, enabling direct access for 30 million individuals and businesses who receive funds.

    06

    Operational Efficiency & Capital Allocation

    The company achieved leverage across all expense categories in Q1, including a 10%+ reduction in corporate workforce. Marketing expense as a percentage of revenue improved by 67 bps YoY to 18.2%, with LTV to CAC ratio above 6x and payback under 12 months. Technology and development expenses grew 14% YoY, well below revenue growth, due to AI-assisted code generation. Remitly repurchased $44 million (2.8 million shares) in Q1, nearly doubling prior activity, reflecting confidence in long-term growth and disciplined dilution management.

    AI-generated summary of the company’s earnings call. Not investment advice.