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    RELY
    Earnings call· Jun 2026(Q2 FY26)

    Remitly Global Q2 FY26 earnings call RELY

    Aug 5, 2026 Source

    Executive summary

    Remitly Q2 FY26 — Record Revenue, Adjusted EBITDA, and User Growth

    Remitly delivered a strong quarter, exceeding guidance for both revenue and adjusted EBITDA, driven by robust core business momentum and early traction from growth accelerators. The company achieved a significant milestone with over 10 million quarterly active users, reflecting effective customer acquisition and retention strategies. Management emphasized structural cost discipline, leveraging AI for productivity gains, and a balanced capital allocation approach focused on profitable growth and share repurchases, while aggressively pursuing market share.

    Highlights

    5

    • Record revenue of $495 million, up 20% year-over-year, $11 million above midpoint of guidance.

    • Record adjusted EBITDA of $115 million, $28 million above midpoint of guidance, with a 23% margin.

    • Achieved over 10 million quarterly active users (QAUs) for the first time, up 20% year-over-year.

    • Free cash flow nearly tripled year-over-year to over $130 million.

    • G&A expense declined 11% year-over-year, the first year-over-year decline as a public company.

    Concerns

    1

    • High-value sender volume growth was softer in June due to fluctuations in the Indian rupee and short-term foreign currency mobilization measures by the Reserve Bank of India.

    Guidance & targets

    12
    CategoryTargetConfidence
    Q3 FY26 Revenue
    $505 million to $507 million
    high materiality
    High
    Q3 FY26 Adjusted EBITDA
    $92 million and $94 million
    high materiality
    High
    FY26 Revenue
    $1.978 billion and $1.988 billion
    high materiality
    High
    FY26 Adjusted EBITDA
    $410 million and $415 million
    high materiality
    High
    FY26 Transaction Margins
    broadly in line with the 2025 numbers on a normalized basis
    medium materiality
    Medium
    FY26 Stock-based compensation
    increase modestly in absolute terms year-over-year, but decrease as a percentage of revenue
    low materiality
    Medium
    Growth Accelerators Revenue Contribution
    around 5% of total revenue
    medium materiality
    High
    Growth Accelerators Revenue Contribution
    exceed 10% of total revenue
    high materiality
    Medium
    Q3 FY26 Send Volume Growth
    to exceed revenue growth
    medium materiality
    Medium
    Q3 FY26 Revenue Growth
    to modestly exceed quarterly active customer growth
    medium materiality
    Medium
    Q3 FY26 Send Volume per Active Customer Growth
    mid- to high single digit range
    medium materiality
    Medium
    Q3 FY26 Marketing Spend per QAU
    slightly higher year-over-year
    low materiality
    Medium

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    U.S.
    U.S. revenue growth reflects continued share gains in key geographies.
    		—24%——
    Rest of the world
    Revenue growth for regions outside of the U.S.
    		—18%——
    Regions outside India, Philippines, Mexico
    Revenue from transactions to these regions comprised over half of the total revenue mix and grew faster than overall revenue growth.
    Revenue mix: over half
    		—grew faster than overall revenue growth——

    Operational metrics

    27
    Adjusted EBITDA
    $115 million
    Q2 FY26

    Record adjusted EBITDA, above the high end of guidance.

    Send Volume per Active Customer
    $2,300up 6% year-over-year
    Q2 FY26

    Reached a record, driven by growth in high-value senders and business customers, as well as higher average transaction sizes among core senders.

    High-Value Sender Volume
    37%year-over-year
    Q2 FY26

    Growth in high-value sender volume.

    High-Value Sender Mix
    70increase year-over-year
    Q2 FY26

    Increase in the mix of high-value sender volume.

    Remitly Business Users
    25,000
    Q2 FY26

    Number of users for Remitly Business.

    Transaction Margin Dollars
    $334 millionup 25% year-over-year
    Q2 FY26

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

    Transaction Margin Percentage
    67%improved 235 basis points year-over-year
    Q2 FY26

    Improved margin percentage.

    Transaction Expenses
    $161 million
    Q2 FY26

    Total transaction expenses.

    Other Transaction Expenses (ex-provisions)
    $137 millionimproved 51 basis points year-over-year
    Q2 FY26

    Improved as a percentage of revenue, reflecting improved network economics and shift towards digital receive volume.

    Provision for Transaction Losses
    $24.5 million
    Q2 FY26

    Better than expected, benefiting from AI-driven fraud prevention and detection models.

    Marketing Expense
    $96.5 millionup 20.9% year-over-year
    Q2 FY26

    Marketing investments remain disciplined and growth focused.

    Marketing Spend per Active Customer
    $9.46up 0.9% year-over-year
    Q2 FY26

    In line with expectations.

    LTV to CAC Ratio
    6x
    Q2 FY26

    Reflects continued efficiencies and growth in customer acquisition through unpaid channels and word of mouth.

    Payback Period
    under 12 months
    Q2 FY26

    Remained under 12 months.

    Customer Support and Operations Expense
    $26.2 million
    Q2 FY26

    Continuing a multiyear trend of steady operating leverage.

    Technology and Development Expense
    $55.5 million
    Q2 FY26

    Reflecting the benefits of embedding Agentic AI into engineering and product teams.

    G&A Expense
    $41 milliondeclining 11% year-over-year
    Q2 FY26

    First year-over-year decline as a public company, reflecting lower-than-expected hiring and rigorous operating discipline.

    Net Income
    $206 million
    Q2 FY26

    GAAP net income, including a significant tax valuation allowance release.

    Outstanding Shares
    212 millionup 3% year-over-year
    Q2 FY26

    Reflecting disciplined approach to dilution management and share repurchase activity.

    Stock-Based Compensation
    7%declined 9% year-over-year
    Q2 FY26

    As a percentage of revenue, lower than Q2 2025 due in part to lower-than-planned hiring.

    Share Repurchases
    $21 millionover 1.1 million shares
    Q2 FY26

    Opportunistic buying back of stock, reflecting conviction in long-term growth.

    Real-time transfers
    nearly 70%
    Q2 FY26

    Percentage of global funded transfers delivered in under 20 seconds, an all-time high.

    High-value sender wire users transaction size
    3x more
    Q2 FY26

    Customers using bank wires send nearly 3x more per transaction.

    Remitly Business new customers
    More than 80%
    Q2 FY26

    Percentage of customers added to the business platform this quarter who are new to Remitly.

    Remitly Business average customer sending frequency
    10 times
    quarterly

    Average business customer sending money frequency.

    Remitly Global Card membership plan price
    $9.99
    monthly

    Monthly fee for the membership plan, which includes access to an open-end line of credit.

    Liquidity offerings growth
    more than doubledyear-over-year
    Q2 FY26

    Growth of liquidity offerings, which are evolving to a card-focused format.

    Industry KPIs

    7
    MetricValueDetails
    Capital returns$21 millionUSD
    Active consumers10.2 millionusers
    Cross border volumeover half%
    Payments volume gdv$23.5 billionUSD
    Client incentives rebates35%%
    Net revenue yield take rate2.11%%
    Value added services revenuearound 5%%

    Product announcements

    6
    ProductTypeDetails
    Open USDlaunch
    Stored Value Facilities License (UAE)milestone
    Electronic Money Institution License (U.K.)milestone
    EU Payments Institution License Extensionmilestone
    Global Stablecoin Wallet + Debit Card (Receivers)launch
    Remitly Global Cardlaunch

    Deals & partnerships

    2
    Open USDFounding member of a stablecoin consortium.

    Remitly announced its participation as a founding member of the Open USD stablecoin consortium.

    Third-party bank partnerFunding lines of credit for the Remitly Global Card.

    Lines of credit associated with the Remitly Global Card are funded by a third-party bank partner.

    Risks & headwinds

    2
    Indian Rupee Fluctuations / RBI MeasuresQ2 FY26, expected to normalize over the course of the year

    Softer high-value sender volume growth in June

    Mitigation: Expects normalization over the year; robust pipeline of high-value product enhancements and expanded marketing efforts in H2.

    Q4 Marketing ComparisonQ4 FY26

    Marketing expense for QAU faces a tough comparison

    Mitigation: Last year benefited from a focused and intentional approach to holiday period spend, implying current year spend is strategic.

    What to watch in Q3 FY26

    5

    High-value sender marketing impact

    Second half of 2026
    CurrentSofter growth in June due to FX/RBI measures
    TargetNormalized growth, positive impact from expanded marketing efforts

    Why it matters

    High-value senders are a key growth accelerator with strong economics; successful marketing expansion will drive future revenue.

    High-value sender volume growth was softer in June due to fluctuations in the Indian rupee relative to primary send currencies as well as short-term foreign currency mobilization measures announced by the Reserve Bank of India. We expect [ sends ] affecting Indian corridors to normalize over the course of the year. Further, we have a robust pipeline of high-value [ standard ] product enhancements. And in the second half of the year, we are expanding our marketing and targeting efforts for this important customer category.

    Q&A highlights

    6

    What is Sebastian most excited about and leaning into more among the various initiatives?

    Sebastian expressed excitement about the 'sum of the parts,' highlighting the company's diversified business, rhythm of product upgrades, and momentum across network, risk, and compliance. He noted it's hard to pick one specific piece but is pleased with the overall momentum.

    “I think I'd say the sum of the parts, I think we are hitting on many cylinders right now. I think the sum of the parts look really good to us.”

    asked by Tien-Tsin Huang · answered by Sebastian Gunningham

    2 min read6 chapters

    Detailed Narrative

    01

    CEO's Operating Philosophy and Organizational Evolution

    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.

    02

    Network Expansion and Speed Improvements

    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.

    03

    Growth Accelerators Traction

    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.

    04

    Remitly Global Card Launch

    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.

    05

    AI-Driven Productivity and Cost Discipline

    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.

    06

    Capital Allocation Strategy

    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.

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