Remitly (RELY) Q2 FY26 earnings call: guidance and Q&A

Sebastian Gunningham outlined his operating philosophy focusing on smaller teams, clearer ownership, customer-first design, AI integration, and speed. This quarter saw progress towards a flatter, faster-moving company, consolidating product teams into fewer locations for quicker feature design and launch. This rapid evolution is expected to drive more products and revenue, while maintaining a strong customer-focused culture.

Remitly expanded its global pay-in and payout network by adding 5 countries (New Zealand, Niger, Mali, Angola, Botswana), bringing the total to 179 received geographies, with 32 enabled for both send and receive. Speed and reliability were enhanced with new real-time pay-in rails (FedNow, Real-Time Payments in the U.S.), resulting in nearly 70% of global funded transfers delivered in under 20 seconds. Payments and customer onboarding improvements also drove record pay-in acceptance and low defect rates.

The company reported significant traction across its growth accelerators, which are on track to comprise around 5% of total revenue in 2026 and exceed 10% by 2028. High-value sender volume more than doubled in the U.S.-Mexico corridor, aided by lowered friction and new funding options like bank wires. Remitly Business saw sequential acceleration in volume and revenue, ending Q2 with over 25,000 users, with over 80% of new customers being new to Remitly. The receiver offering generated revenue for the first time, expanding from 6 to 130 countries.

A major milestone was the launch of the Remitly Global Card, an all-in-one product enabling customers to borrow, spend, save, and send money from the same account. This offering combines features like best remittance prices, no-fee everyday spending, a bank account, multi-currency holding (fiat or USDC), and a line of credit. The card aims to provide frictionless access to financial services for cross-border communities and will be expanded to additional countries in coming quarters.

AI is benefiting Remitly through increased speed in development, enhanced customer trust, and significant cost efficiencies. AI-driven productivity allowed the company to hold headcount below plan, contributing to a record adjusted EBITDA and the first year-over-year decline in G&A expense as a public company. Benefits were also seen in transaction loss prevention, customer support, and technology & development, with management optimistic about continued efficiencies.

The company generated over $130 million in free cash flow this quarter, nearly tripling year-over-year. Management is balancing reinvestment in profitable growth with executing share buybacks within Board-set limits. Remitly repurchased $21 million worth of stock (over 1.1 million shares) in Q2 and almost 4 million shares year-to-date, reflecting conviction in long-term growth and a disciplined, opportunistic approach to capital deployment.