Why Remitly Global Stock Plunged Today
Key Points
Remitly beat top-line estimates in the third quarter.
The company's take rate shrunk.
It sees revenue growth slowing to the high teens in 2026.
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Shares of Remitly Global (NASDAQ: RELY) were tumbling today after the digital remittance specialist delivered solid third-quarter results, but its preliminary 2026 guidance on the earnings call seemed to throw off investors.
As of 3:20 p.m. ET, the stock was down 23.7% on the news.
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Remitly hits a 52-week low
Remitly, which helps millions of people around the world send money internationally, said that active customers in the quarter rose 21% to 8.9 million, driving send volume up 35% to $19.5 billion.
That led to a 25% increase in revenue to $419.5 million, showing the company's take rate is falling, though that beat estimates at $413.7 million.
On the bottom line, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 29% to $61.2 million.
On a generally accepted accounting principles (GAAP) basis, the company reported a profit of $0.04 per share, or $8.8 million in net income. Backing out $40 million in stock-based compensation, adjusted net income would have been significantly higher.
CEO Matt Oppenheimer said, "In Q3, we built on the momentum from last quarter, delivering innovation across the product portfolio."
Guidance sparks a sell-off
Remitly actually raised its full-year guidance, calling for revenue of $1.619 billion to $1.621 billion, up from a previous range of $1.61 billion to $1.62 billion, representing a growth rate of 28%.
It also expects GAAP net income to be positive for the year, and sees adjusted EBITDA of $234 million to $236 million, up from an earlier range of $225 million to $230 million.
However, investors seem spooked initial guidance for 2026 that called for revenue growth of high teens, which marks a substantial slowdown from 2025 and compares to the average analyst estimate at 19.2% growth.
Profitability could start to take center stage if revenue growth fades, and after the sell-off, Remitly looks well priced at a forward P/E of just 12, based on 2026 adjusted EPS estimates.
That looks like a great price for a stock that is still a promising growth story.
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Jeremy Bowman has positions in Remitly Global. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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