Remitly (RELY) Q3 2025 Earnings Call Transcript

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Date

Wednesday, November 5, 2025 at 5:00 p.m. ET

Call participants

• Chief Executive Officer — Matthew B. Oppenheimer
• Chief Financial Officer — Vikas Mehta
• Head of Investor Relations — Dave Beckel

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Risks

• Chief Financial Officer Vikas Mehta noted, “recent immigration headwinds in key send countries such as the US and Canada could potentially weigh on new customer acquisition.”
• High comparable revenue growth periods in fiscal Q3 2024 (period ended Sept. 30, 2024) create a “toughest comp for the year,” according to Vikas Mehta, potentially impacting perceived growth rates in the second half.

Takeaways

• Revenue -- $419.5 million in revenue, up 25% year-over-year, exceeding prior guidance by $7 million at the midpoint.
• Adjusted EBITDA -- $61.2 million adjusted EBITDA (non-GAAP), corresponding to a 15% margin and also $7 million above the guidance midpoint.
• GAAP net income -- $8.8 million net income, up significantly from $1.9 million in fiscal Q3 2024 (period ended Sept. 30, 2024).
• Send volume -- $19.5 billion in send volume, representing 35% year-over-year growth.
• Quarterly active customers -- Nearly 8.9 million quarterly active customers, an increase of 21% year-over-year.
• Send volume per active customer -- Send volume per active customer increased 11% year-over-year, supported by gains in both transaction frequency and average transaction size.
• Take rate -- 2.15% take rate, stable with prior expectations.
• U.S. revenue -- U.S. revenue grew 28% year-over-year, outpacing the 20% year-over-year growth seen in the rest of the world segment.
• Mexico received corridor -- Revenue growth exceeded the overall company rate, with QR code-based cash pickup cited as an innovation driver.
• Business customer send volume -- Nearly doubled sequentially, with active business users rising to nearly 10,000 and average transaction sizes are roughly twice those of core consumers.
• High amount sender volume -- Customers sending over $1,000 experienced 40% year-over-year send volume growth and more than a 200 basis-point increase in product mix year-over-year.
• RemitlyOne Flex product -- Over 100,000 active Flex users by period end, with Flex revenue nearly doubling sequentially, and nearly 90% of $20.8 million in receivables were current.
• Transaction expenses -- $146.7 million, or 35% of revenue; other transaction expenses (excluding provision for losses) improved by 38 basis points year-over-year as a percentage of revenue.
• Provision for transaction losses -- $25 million provision for transaction losses, representing 12.8 basis points of send volume.
• RLTE (revenue less transaction expense) -- $272.8 million, up 23.4% year-over-year and 65% of revenue, illustrating scale and customer activity.
• Marketing spend -- $87.5 million in marketing spend, 25% higher year-over-year compared to fiscal Q3 2024 (period ended Sept. 30, 2024), or 20.8% of revenue, with spend per active customer up 3% to $9.88.
• Customer support and operations expense -- $25.9 million in customer support and operations expense, 6.2% of revenue, down 21 basis points year-over-year, aided by AI-driven virtual assistant adoption.
• Technology and development expense -- $55.4 million in technology and development expense, up 20% year-over-year, improving 53 basis points as a percent of revenue year-over-year compared to fiscal Q3 2024 (period ended Sept. 30, 2024).
• G&A expenses -- $42.8 million in G&A expenses, a 35 basis-point improvement year-over-year as a percentage of revenue.
• Share repurchase -- $11.9 million in repurchases, utilizing the company’s $200 million authorization.
• Platform reliability -- 99.99% uptime, over 94% of transactions completed in under an hour, and greater than 97% of transactions completed without customer support contact.
• Stablecoin initiatives -- Company has tokenized portions of US dollar liquidity and integrated stablecoins into payout networks in Nigeria and Argentina for improved treasury management and customer flexibility.
• Outlook -- Anticipates full-year revenue of $1.619-$1.621 billion (28% growth), with Q4 revenue of $426-$428 million (21%-22% growth), and adjusted EBITDA (non-GAAP) of $234-$236 million (15% margin).
• 2026 preliminary view -- Management expects high-teen percentage revenue growth for 2026, with “modest tailwind” according to Vikas Mehta from digital-first model and tax, but notes early-stage contributions from new products.

Summary

Remitly Global (NASDAQ:RELY) delivered above-guidance revenue and adjusted EBITDA (non-GAAP), driven by substantial send volume growth, increased average transaction sizes, and a rising active customer base. The business segment’s rapid expansion—marked by a near doubling of business send volume and increased participation from high amount senders—indicates the company’s success in diversifying revenue streams and scaling new customer categories. Strategic investment in product innovation, including the Flex and RemitlyOne launches and initial stablecoin deployments, has started to broaden engagement and improve platform efficiency. Persistent cost leverage was visible as both technology/development and support/operations expenses improved as a percentage of revenue, despite incremental investments in marketing and compliance. Looking forward, management signaled a continued focus on profitable growth, prudent capital deployment, and readiness to benefit from regulatory changes favoring digital remittances, but acknowledged headwinds due to tougher prior-year comparables and evolving immigration policies.

• Chief Executive Officer Matthew B. Oppenheimer stated, we are well-positioned to benefit from a powerful shift from cash to digital remittances aided by the one big beautiful bill going into effect on January 1, 2026, which imposes a 1% tax on cash and other physical remittance instruments but exempts digitally funded transactions. This legislation significantly amplifies the advantage of our digital-first model.
• Management confirmed over 5,300 transaction corridors are now supported, linking more than 5.4 billion bank accounts and mobile wallets and over 490,000 cash pickup locations globally.
• Chief Financial Officer Vikas Mehta clarified that “RLTE dollars grew 23.4%,” positioning this as the key performance metric above gross take rate, given changing product and customer mixes.
• Unit economics for Flex remain positive, with provision for credit loss rates in line with expectations. Nearly 90% of receivables were current, supporting measured portfolio expansion.

Industry glossary

• Corridor: A specific pair of countries or regions between which remittance transactions are sent and received.
• Flex: Remitly Global’s “send now, pay later” product, offering interest-free advances for cross-border payments, primarily to existing, proven customers.
• KYB: "Know Your Business," a risk management process ensuring proper identification and vetting of business account holders to prevent fraud and maintain regulatory compliance.
• RLTE: Revenue less transaction expense, a company-defined metric highlighting residual revenues after direct costs of remittance transactions.
• Stablecoin: A blockchain-based digital token designed to maintain a stable value against a reference asset (typically the US dollar), used for treasury and cross-border disbursement functions.
• Take rate: The percentage of total send volume retained by Remitly Global as revenue.
• QAU: Quarterly active user—customer who has completed at least one transaction during the fiscal quarter.

Full Conference Call Transcript

Dave Beckel: Thank you. Good afternoon, and thank you for joining us for Remitly Global, Inc.'s third quarter 2025 earnings call. Joining me on the call today are Matthew B. Oppenheimer, Co-Founder and Chief Executive Officer of Remitly Global, Inc., and Vikas Mehta, Chief Financial Officer. Results and additional management commentary are available in the earnings release, and presentation slides can be found at ir.remitly.com. Please note that this call will be simultaneously webcast on the Investor Relations website. Before we start, I would like to remind you that we will be making forward-looking statements within the meaning of the federal securities laws, including, but not limited to, statements regarding Remitly Global, Inc.'s future financial results and management's expectations and plans.

These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to vary materially from those presented here. You should not place undue reliance on any forward-looking statements. Please refer to the earnings release and SEC filings for more information regarding the risk factors that may affect results. Any forward-looking statements made in this conference call, including responses to your questions, are based on current expectations as of today, and Remitly Global, Inc. assumes no obligation to update or revise them, whether as a result of new developments or otherwise, except as required by law. The following presentation contains non-GAAP financial measures. We will reference non-GAAP operating expenses and adjusted EBITDA in this call.

These metrics exclude items such as stock-based compensation, payroll taxes related to stock-based compensation, our pledge 1% contribution, integration, restructuring, and other costs, and other income and expense. For a reconciliation of non-GAAP financial measures to the most direct comparable GAAP metric, please see the earnings press release and the appendix to the earnings presentation, which are available on the IR section of our website. Now I will turn the call over to Matthew B. Oppenheimer to begin.

Matthew B. Oppenheimer: Thank you, Dave, and welcome to Remitly Global, Inc. Thank you to everyone joining us for our third quarter earnings call. In Q3, we exceeded our guidance, reflecting momentum from last quarter and the early benefits of our growth initiatives, further demonstrating the strength and durability of our business model. Remitly Global, Inc. is a structurally advantaged financial platform built for durable growth. Revenue growth of 25% and adjusted EBITDA margins of 15% reflect our disciplined execution focus on sustainable profitable growth even as we continue to invest and expand.

Today, I will focus on how our third quarter success directly validates our ambition to expand from being a leader in money movement to capturing a larger portion of the $22 trillion total addressable market. Our performance in the third quarter reflects the value of trust as the engine and competitive advantage that secures our enduring relationship with the customer. At Remitly Global, Inc., trust means something very specific. It is about mastering the difficulty of delivering a seamless end-to-end experience, at a fair customer-centric price with near-instant delivery, and the protection provided by stringent risk management. We deliver trust by mastering complexity on the inside so we can deliver radical simplicity on the outside.

The underlying mechanics behind every transaction lead to that peace of mind. We are obsessed with eliminating the customer's core anxiety: delivery uncertainty. In the third quarter, our reliability metrics improved even further. 99.99% uptime across the app and web, and speed metrics that underscore the value of instant delivery. With over 94% of all transactions completed in under an hour, and over 97% of transactions completed without customer support contact. Our platform is built on a powerful foundation with trust at its core. We want to communicate today how that platform is extending across two main fronts: new customer categories and new products as shown on slide five.

Specifically, I will share an update on our success with customer categories including business and high amount senders. I will also provide an update on new products with an update on RemitlyOne, including Flex, and Stablecoin. Moving to slide six. Remitly Global, Inc. business continues to scale rapidly as we execute against a large opportunity. As we highlighted in Q2 with Remitly Global, Inc. business, we expanded our TAM more than tenfold, from approximately $2 trillion to $22 trillion as we aim to serve millions of small businesses paying international contractors, vendors, and employees.

Following the successful launch in the US, in Q2, we expanded into the UK and Canada, marking a major step in building a global small business payments platform. Our product allows small businesses to onboard and send internationally in minutes. A seamless extension of the trusted experience we have built for consumers as we pursue a low-touch, product-led go-to-market approach for business customers designed to drive efficient scalable growth of this important customer category. The number of total businesses using the Remitly Global, Inc. platform grew sequentially this quarter to nearly 10,000. And average transaction sizes are roughly twice those of our core consumer category.

We have continued to strengthen our trust and KYB engine resulting in higher approval rates, and lower onboarding friction for businesses while keeping our platform secure, and our customer experience world-class. As a direct result of these improvements, business send volume has nearly doubled on the platform sequentially.

Matthew B. Oppenheimer: To show this, let me share Derek Jefferson's story. A Remitly Global, Inc. user since 2019 who recently became a Remitly Global, Inc. business user. Derek runs a small business, HTDB Comics, in the US, creating comic books that feature a superhero who protects the vulnerable. Derek leverages three consultants in Nigeria to help him storyboard and illustrate the comic. Derek loves Remitly Global, Inc. because our custom business experience makes it, quote, super easy, end quote, to pay the team in Nigeria. Derek has already sent thousands of dollars across dozens of transactions in 2025.

Looking ahead, we are seeing exciting customer adoption, and we remain confident that Remitly Global, Inc. business will be a contributor to sustainable revenue growth, margin expansion, and long-term shareholder value as it expands our reach from individuals to the millions of entrepreneurs and small companies powering the global economy. Now on the high amount senders on slide seven. Remitly Global, Inc.'s global payments platform has ably served both small and large transactions for years, but we have put additional focus on this growing category given our unique ability to serve these customers with a fast and affordable product.

Throughout Q3, we continue to expand send limits on our platform for certain US customers, now unlocking up to $100,000 per transfer. This targeted expansion enables a larger portion of the customer base to move more significant amounts seamlessly while maintaining our high standards for compliance and security. To accelerate awareness and adoption, we launched marketing campaigns in key high-volume send countries and in-app notifications targeted to high amount senders. We also made deliberate strategic investments in pricing to attract and retain customers sending over $1,000 per transfer within specific corridors like the US and Canada to India. These transactions led to over 40% year-over-year send volume growth for customers sending more than $1,000.

An increase in mix from these customers of more than 200 basis points year-over-year. As we continue to remove friction, increase transparency, and deliver best-in-class service for high amount senders, we are positioning Remitly Global, Inc. to become the most trusted global payments platform for high-value cross-border money movement. Unlocking a massive, underpenetrated opportunity that will continue to contribute to our growth. Now shifting from new customer categories to new products. I will start with an update on RemitlyOne on slide eight. RemitlyOne represents the next chapter in our product evolution from a transactional to a more long-term financial relationship.

At our reimagine event in September, we introduced RemitlyOne as a bold new way for the millions of people who live their financial lives across borders to move, manage, and grow money in one trusted platform. Flex is our flexible funding solution that lets customers send now, pay later, addressing a key customer pain point: timing mismatches between earnings and transfer needs, especially for those that are credit invisible. With over 100,000 active users at the end of Q3, this product is designed to bring liquidity to our customers underserved by the broader financial system.

Our proprietary data allows us to identify a valuable category among our 8.9 million customers who demonstrate consistent and responsible financial behavior, enabling us to prudently match their liquidity access with their past cross-border payments behavior. Flex provides an essential safety net for time-sensitive payments like medical emergencies or tuition, as well as a deeper long-term relationship with these customers. Remitly Wallet, which allows direct deposit and multicurrency balances and our digital debit card compatible with Apple Pay and Google Pay, have shown healthy early adoption. These products expand engagement beyond send events and are expected to diversify revenue over time through interchange, while reinforcing our core value proposition.

We continue to leverage stablecoins to enable growth in cross-border finance, potential in three main areas: FX treasury and cash management, improved disbursement rails, and digital wallet features as shown on slide nine.

Matthew B. Oppenheimer: Within our treasury operations, we have tokenized portions of our US dollar liquidity to move funds across markets in near real-time. This capability enhances our ability to fund operations globally, improves capital efficiency by reducing idle flow, and strengthens our FX treasury and cash management, all while maintaining the transparency and control expected from a regulated platform. On the customer side, stablecoins enable a hybrid network that combines our already scaled fiat infrastructure with blockchain interoperability. We initially launched USTC in the United States to rapidly build the foundation infrastructure and compliance framework for our wallet. And we have since integrated stablecoins into our payout network for disbursements in partnership with Bridge, a Stripe company.

Recently expanding this capability into two key volatile currency environments, Nigeria and Argentina, where customers seek stability and flexibility. Looking ahead, we are focused on enabling customers to manage and hold more stable, digital currency balances within a Remitly Global, Inc. wallet. As we look ahead to 2026, we remain deeply optimistic about our position. We have built a formidable platform that still commands only a small share of a massive and growing market with significant upside ahead. Three key factors will drive our growth next year. First, our new customer expansion efforts continue to unlock new corridors and customer categories such as Remitly Global, Inc. business customers, extending our reach and reinforcing our global network effects.

Second, our product portfolio expansion is gaining momentum. As early successes with Flex and RemitlyOne laid the groundwork for broader offerings such as credit and multicurrency accounts for our nearly 8.9 million customers. And third, we are well-positioned to benefit from a powerful shift from cash to digital remittances aided by the one big beautiful bill going into effect on January 1, 2026, which imposes a 1% tax on cash and other physical remittance instruments but exempts digitally funded transactions. This legislation significantly amplifies the advantage of our digital-first model. In closing, at Remitly Global, Inc., we start with the recognition that financial services do not naturally transcend borders. And we are designed to do exactly that.

That is why we are built unlike other digital payment providers that create local market ecosystems and stitch them together. Our borderless global network is a key component of our unique competitive advantage. Remitly Global, Inc. now supports more than 5,300 corridors with more than 5.4 billion bank accounts and mobile wallets and over 490,000 cash pickup locations. Finally, we hope you will join us either virtually or in person at Remitly Global, Inc.'s first Investor Day since our IPO, on December 9, 2025, where we will be sharing more of our long-term vision and detailed roadmap. Now I will hand it over to Vikas Mehta to walk through our financial and operating highlights from the quarter.

Vikas Mehta: Thank you, Matthew, and good afternoon, everyone. We delivered another strong quarter of profitable growth. As shown on Slide 12, third quarter revenue was $419.5 million, up 25% year-over-year. And adjusted EBITDA was $61.2 million, representing a 15% margin. Despite facing the toughest comp for the year, results exceeded expectations, with revenue and adjusted EBITDA both $7 million above the midpoint of our Q3 guidance. We continued our track record of GAAP profitability in Q3, reflecting disciplined execution across the business. Now, I will begin with an overview of our third quarter results, and then share our outlook for 2025. As we did last year, we will also provide some early perspective on 2026.

Let me unpack the revenue growth drivers. Send volume grew 35% to $19.5 billion. Supporting this strong volume growth, send volume per active customers increased 11% year-over-year. This was driven by growth in both transactions per active and average transaction size as we continue to win share and gain traction with higher amount senders and business customers. Quarterly active customers increased 21% year-over-year, to nearly 8.9 million. In line with expectations. Our retention levels continue to remain strong. Take rate was 2.15% in line with expectations. Now let me dive deeper into our revenue outperformance from a geographic and new products perspective. From a send side, US revenue grew 28% driven by continued share gains.

Rest of the world grew 20% year-over-year, a sequential deceleration reflecting the toughest comp of the year, in Q3. Note the Rest of the World revenue grew 58% year-over-year, in Q3 2024. On the receive side, revenue from regions outside of India, The Philippines, and Mexico grew 31% year-over-year. Similar to last quarter, our Mexico received revenue growth outpaced overall revenue growth. We are continuing to outperform in the Mexico received corridor, growing meaningfully faster in that corridor than the broader industry. Our outperformance showcases how our focus on localized innovation, including offering QR code-based cash pickup, is driving share gains in Mexico.

Before moving to a review of profitability, I would like to highlight our progress with new customer categories and products. As Matthew noted, we are seeing strong momentum with new customer categories. Enhancements to the Remitly Global, Inc. business platform and market expansion efforts drove near doubling of business send volumes sequentially in Q3. And new marketing campaigns and product enhancements targeting high amount senders resulted in 40% year-over-year send volume growth, for customers sending more than $1,000, an increase in mix of more than 200 basis points. I will focus my commentary around product momentum on Flex, which continues to scale rapidly and is becoming an important driver of growth and engagement for Remitly Global, Inc.

Flex is our flexible, funding solution that lets customers send now, pay later, with a no-interest cash advance. RemitlyOne members get access to funds, multiple withdrawals, and repayment on their own schedule over ninety days. As Matthew highlighted, we have over 100,000 active Flex users at the end of Q3. Flex revenue has also nearly doubled sequentially in Q3, supported by three monetization levers: instant funding fees from nonmembers, membership revenue, and cross-border payment revenue as funds are exclusively used to send money. Early results show that Flex users transact more frequently, reinforcing its role in deepening customer relationships. On the cost side, Flex operates with minimal incremental cost to serve.

And early cohorts show strong repayment activity with provision for credit loss rates in line with expectations as we continue our measured rollout. While Flex is still nascent, membership cohorts have demonstrated strong unit economic progress. Importantly, notional cost of capital is considered when measuring unit economics of the Flex product. Flex is designed to be capital efficient with high transaction volumes, and minimal balance sheet exposure. Flex is offered primarily to existing customers with established cross-border payment history, giving us access to rich first-party data and control over customer receivables balance. As a result, nearly 90% of over $20.8 million of outstanding receivables are current, which allows us to recycle capital efficiently.

We expect loan balances growth to be measured, balancing a controlled and deliberate pace of expansion along with improving unit economics. As cohorts mature, we will continue to scale Flex, a product that deepens customer engagement, and expands our platform for future value-added services. Turning to our focus on driving profitable growth on Slide 13. Transaction expenses this quarter were $146.7 million and as a percentage of revenue was 35%. Excluding provision for transaction losses, other transaction expenses were $121.7 million, improving 38 basis points year-over-year as a percentage of revenue. The mix of digital receipt transactions increased year-over-year by more than 200 basis points, continuing a trend that has been positive for our business and customers.

While early days, we have started leveraging stablecoins to unlock network efficiencies. Provision for transaction losses was $25 million or 12.8 basis points as a percentage of send volume, in line with our expectations. Our ongoing investments in AI-driven risk models enable us to proactively mitigate fraud trends while preserving the trusted seamless experience our customers expect. As I shared in prior quarters, revenue less transaction expense, or RLTE expansion, is an indicator of the long-term business model success. RLTE dollars grew 23.4% to $272.8 million, reflecting strong customer activity and economies of scale. RLTE as a percentage of revenue this quarter was 65%, consistent with what we have seen in the second quarter.

We are focusing on long-term RLTE dollar growth as we continue to attract new customers, innovate with new use cases, and scale. With that, let me walk you through the specific non-GAAP expense categories on slide 14. Marketing investments remain disciplined and growth-focused. Marketing spend was $87.5 million, up 25% year-over-year. And at 20.8% of revenue, which is consistent with what we had in the same quarter prior year. Q3 also marked the first quarter where we began comping marketing efficiencies achieved in 2024. Marketing spend per active customer was $9.88, up 3% year-over-year, reflecting ongoing high ROI investments in growth initiatives. We continue to invest strategically behind high amount senders and business customers.

Our LTV to CAC was about 6x, while the payback period remained under twelve months. As a reminder, marketing investments drive returns for many years beyond our initial investment given repeat behavior. Customer support and operations expense was $25.9 million, and as a percentage of revenue, was 6.2%, improving 21 basis points year-over-year, continuing a trend we have seen over the past couple of years. Our AI-based virtual assistant and product improvements have enabled lower agent contact rates while maintaining strong customer satisfaction ratings. Technology and development expense was $55.4 million, and as a percentage of revenue, improved by 53 basis points year-over-year.

Technology and development expenses grew 20% year-over-year as we become more efficient in managing our spend while delivering robust product innovation. Our technology investments continue to deliver on the metrics that matter most. As Matthew shared, in Q3, over 94% of transactions were disbursed in under an hour, more than 97% completed without customer support contact, and our platform delivered 99.99% uptime. These results demonstrate the reliability and trust we are earning as we scale globally. G&A expenses were $42.8 million, improving 35 basis points as a percentage of revenue, year-over-year, reflecting continued leverage across the business. We are also investing in AI across the organization, from writing code to writing documents to reimagining our internal operations and processes.

For investors, that means we are building a smarter, more agile Remitly Global, Inc. One that scales faster, serves customers better, and delivers long-term shareholder value. Overall, we continue to maintain rigorous discipline on hiring and non-headcount spend, while investing in compliance, geographic expansion, and AI tools. Strong revenue growth combined with efficiency and discipline led to adjusted EBITDA of $61.2 million. Once again, delivered a positive GAAP net income quarter, with $8.8 million GAAP net income, a significant improvement compared to a $1.9 million net income in 2024. Stock-based compensation was $40 million, and as a percentage of revenue was at 9.5%, approximately 214 basis points lower than 2024.

In Q3, we repurchased $11.9 million of shares under our $200 million authorization, reflecting our confidence in Remitly Global, Inc.'s future and our commitment to building lasting value for both customers and shareholders. With that, I will move on to our outlook shown on Slide 15. For 2025, we expect revenue of $426 to $428 million, or 21% to 22% growth. The majority of our revenue in 2025 comes from prior year cohorts, giving us greater visibility into the durability of our revenue growth. The expected trend in our revenue growth drivers remains consistent with recent quarters.

We anticipate send volume growth to exceed revenue growth and revenue growth to outpace quarterly active customer growth, driven by the continued momentum among business and high amount senders. Send volume per active customer is expected to grow in the mid-single digits, supported by higher transaction frequency. For the full year, we expect revenue between $1.619 and $1.621 billion, reflecting a growth rate of 28%. Now, let us pivot to profitability and expense guidance. Starting with transaction expenses, we expect Q4 transaction expenses as a percentage of revenue to be slightly higher than Q3. As a reminder, in 2024, we had significantly low transaction losses at nine basis points as a percentage of send volume.

For Q4, we expect transaction losses to remain consistent with Q3 2025. As always, these metrics may fluctuate quarter to quarter, and we remain disciplined in optimizing customer lifetime value while rigorously managing risk across our platform. Shifting to marketing. We expect marketing investments in Q4 will continue to deliver strong ROI. We will make these investments while prioritizing efficiency. Recall, we began delivering the meaningful marketing for QAU efficiencies in 2024. So as we lap those improvements in 2025, we would expect marketing per QAU to grow by mid-single digits, especially as we support new product adoption. Putting this all together, we expect Q4 adjusted EBITDA to be between $50 million and $52 million, translating to 12% margins.

For the full year, we expect adjusted EBITDA to be between $234 and $236 million, representing an adjusted EBITDA margin of 15%. We expect to generate modest positive GAAP net income in 2025. As we plan to make growth-enhancing investments, improve adjusted EBITDA, as well as manage dilution, net burn rate, and stock compensation expense effectively. Now let me share some early thoughts on 2026. There are a few puts and takes to consider at this stage. As Matthew highlighted, on the positive side, the federal remittance tax on cash transfers, continued product innovation, and early progress in new geographies should provide modest tailwind for the business.

While these growth tailwinds are still in the early innings and will not be major contributors next year, they are laying a strong foundation for future growth. At the same time, the recent immigration headwinds in key send countries such as the US and Canada could potentially weigh on new customer acquisition. Taking all these factors into account, we currently expect revenue growth to be in the high teens range for 2026. This remains an initial view, and Q4 results will be important in shaping our formal guidance for next year. As always, we remain focused on balancing growth with disciplined execution under the same profitable growth framework that has guided us in the past.

To summarize, in Q3, we delivered strong results across our key financial metrics, achieving 25% revenue growth, and 15% adjusted EBITDA margins. We also delivered another quarter of GAAP profitability under the strength and scalability of our model. Looking ahead, we are excited to share more about our long-term business model, including the durability of our growth and margin profile, at our first Investor Day in New York City on December 9. We remain confident in the long-term growth potential and disciplined in our capital allocation approach. With that, Matthew and I will open up the call for your questions. Operator?

Operator: Certainly. And ladies and gentlemen, as a reminder, if you do have a question at this time, please press star 1. And our first question comes from the line of Tien-Tsin Huang from JPMorgan. Your question, please.

Tien-Tsin Huang: Great. Thanks so much for the update. Took a lot of notes here. Just thinking about 2026 in the high teens outlook that you are initially setting here. I appreciate you called out some of the tailwinds, but it does not sound like you are assuming much contribution from some of the new products or maybe the tax tailwind, that kind of thing. Just want to better understand what you have assumed or have not assumed in the high teens outlook. Thank you.

Vikas Mehta: Yeah. Tien-Tsin, thank you for the question. I would start with FY 2025 first, because that sets a strong foundation for a strong FY 2026. Clearly, Q1 as well as Q3 were strong proof points of our execution. As you saw, Q3 revenue grew 25%, margin at 15%. And strong performance trends across the board, whether it was, you know, send per QAU growth, as well as send volume growth. As we look at FY 2026, we still have Q4 remaining, and that sets a strong foundation. But the early view that we have right now gives us a lot of optimism. It starts with the strong foundation and the durability of Remitly Global, Inc.'s business, in general.

Beyond that, we believe that, you know, remittance tax which will take shape starting 2026, will be a net benefit for us. Again, early days and we will see how that progresses. But behind the scenes, our marketing efforts, our execution is tailored to take share more and more from the physical to the digital space. Secondly, I would say the new products and customer categories, you know, early days. But we are very excited about what we are seeing. Across the board, whether you look at the Remitly Global, Inc. business momentum, or you look at on the product side from a Flex perspective.

Overall, we want to be prudent and thoughtful, especially with the restrictive immigration stance we have seen, as well as just the broader macro uncertainties. And that is why sort of early initial view we wanted to give you. To just start, you know, thinking ahead. Overall, we remain very focused on balanced growth, profitability, and investments. Most importantly, we want to deliver expanding margins as we go along. So overall, feel great about the setup for FY 2026.

Tien-Tsin Huang: Great. And maybe I will just follow up on that since you mentioned it. Just thinking about incremental margins, in the next several quarters given what you have learned so far from the launch of the new products and some of the initiatives? Again, I know it is early, but just the discipline and the safeguards that you have in place to guide you to some level of incremental margin? Any thoughts on that? Thank you.

Vikas Mehta: Yeah. I would say that we remain very balanced, as I said, with just an overall approach where we want to, you know, deploy capital very thoughtfully. To drive growth, profitability, and at the same time investing in the future bets. And you have seen us execute in FY 2025 very, very thoughtfully, where we have invested in these big bets. But at the same time, we have continued to leverage on the big expense categories. Continue to drive margin expansion. So our approach even going into FY 2026, will be similar where we want to really drive productivity gains, we want to drive efficiencies while we prioritize the important bets.

Matthew B. Oppenheimer: Yeah. And overall, Tien-Tsin, the only other thing I would add is you just think about the overall, both 2026 and long-term, potential of the business, I think that, you know, the $22 trillion market share where we are less than 1% huge opportunities there. And especially as we expand and go kind of up market as we think about higher, dollar senders, as we think about small businesses. We continue to win share as there is a shift continues from cash-based remittance players to digital remittance players, and I think that will be aided by the remittance tax in 2026.

And then as we think about leverage on the bottom line and just increase velocity, think that there is a lot of really reimagining what is possible at Remitly Global, Inc. when it comes to leveraging tools like AI. So as we go into 2026, very excited, and, obviously, we want to give an early view in terms of guidance. But when you think about the overall trajectory of the business, on top and bottom line, we are very optimistic and very excited about what is to come. And we are excited to talk more about that as well at our Investor Day in December.

Operator: Thank you. And our next question comes from the line of Gustavo Gala from Monness Crespi Hart and Company. Your question, please.

Gustavo Gala: Hey guys, thanks for taking my question. I want to go back to the incremental margin swing. You are kind of pointing towards in Q4. I guess that a lot of it is the marketing queue purchase that you are coming up. Can you help us understand the magnitude of it coming from more top funnel spending versus maybe CPC, the bottom funnel coming up? And then is that kind of high single-digit incremental margin? I will ask you more point-blank. Is that kind of the right bogey we should be thinking about in the first half of 2026, although growth we are thinking high teens? Thanks.

Matthew B. Oppenheimer: Yeah. I think at a strategic level, when you look at the overall flywheel of our business in terms of, you know, I think this is true of most payments businesses. But certainly, as we get more scale, the center of the flywheel that we have shared in the past and then we will talk about more at Investor Day, is, you know, ultimately, adjusted free cash flow. And when you think about it from an overall scale and growth standpoint, the flywheel is very much spinning.

And so we are able to not only be able to drive down costs, both variable costs and fixed costs, but we are also able to leverage the ability to drive more to the bottom line as we think about the investments we have made to build a brand that, obviously, if you look at last quarter, 8.9 million customers used our product. But if you look at the word-of-mouth effects, gives us the ability whether it is, you know, on the variable cost component and continuing to drive leverage there on the marketing component. And being able to leverage the trusted brand and user base that we have.

And then, obviously, as we think about just all of the investments that we are making to deliver both a fundamentally different way of completing international payments as well as a fundamentally different way to provide cross-border financial services. We are just getting a lot of leverage as we are accomplishing that very exciting vision. So I will let Vikas talk about more specifically how we think about expanding margins in 2026. But the punch line from my standpoint is the flywheel is spinning with more scale. We generated a lot of cash this year. As we head into next year, we have a lot of levers at our disposal. To both grow on the top and bottom line.

Vikas Mehta: Yeah. And just to follow-up, I would say that Q4, Gus, as you think about it from a revenue perspective, the trends will be consistent with what we have seen in prior quarters. And what that means is that our send volume growth will continue to outpace revenue growth. You know, if you look from a QAU perspective, especially as we mix shift into the high amount senders as well as business. You know, every QAU will be driving a lot more from a send per QAU. Which means that revenue growth will be greater than QAU growth. And again, you know, we feel really great about our send per QAU trajectory.

I will just share a few stats of what we saw this quarter, for example. We saw a record send per QAU. Right? Like, really, really solid performance there. And this was backed by our record average transaction size growth as well as the highest average transaction we have seen in ten quarters. In addition to that, we have seen record transaction per active customer. So it is a lot of really good foundation there, and we continue in Q4 with a similar optimism. So the revenue trends continue to be similar. And as you know, the majority of our cohort revenue after the first full year continues through.

So we feel good that once we have a strong foundation, it just drives, you know, continuous momentum. As you look at the expense side of the house, as Matthew said, we will continue to leverage technologies from AI to stablecoin to improve, you know, call it, G&A leverage as well as transaction expense improvements. And as we do that, we will be very thoughtful about a very important aspect, which is investment. Which builds our long-term shareholder value. So it will just be a balance, as I said, and we remain very optimistic.

Operator: Thank you. As a reminder, ladies and gentlemen, we ask that you please limit yourselves to one question. Our next question comes from the line of Cristopher Kennedy from William Blair. Your question, please.

Cristopher Kennedy: Yes, good afternoon. Thanks for taking the question. It seems like you have got a lot of opportunities. Can you just talk about how you balance investment going into new send markets versus kind of some of the newer initiatives that you are working on?

Matthew B. Oppenheimer: Yeah. Thanks, Chris. Yeah. I will take that one. I think that, you know, what I said a few quarters ago, which remains more true today than ever, is we are a growth company with no shortage of growth opportunities. And so I think that the good news is that we get more efficient at a variety of different growth areas, whether that is continuing to launch and expand new markets, which we will continue to do as we head into 2026. Whether it is continuing to grow in our existing markets, of which there are very large opportunities there. It is continuing to grow in new segments, or new customer categories.

Like, Remitly Global, Inc. business or high dollar senders. And then finally, when it comes to investing in new products to accomplish the vision around financial services that transcend borders. And what I would say, Chris, is if you look over the last couple of years, we have invested in a much more extensible platform to do so. I mentioned something called the North Star architecture that our technology team put together a couple of years ago now. And then as we have been building and deploying code both in our existing core remittance business, as well as new products, had company-level goals where we have been basically driving endpoint compliance to the North Star architecture.

So we have been able to deliver results for the business while making progress against this North Star architecture. And what that means is that across those areas I mentioned are, you know, existing markets, new markets, new customer categories, and new products. It is just getting more efficient and more effective. And then you layer on AI as a tool, which the company is very much embracing across all aspects. And it is not as much of an either-or component. It is more about where do we strategically focus within those four areas, and there are growth opportunities across all four.

Operator: Thank you. And our next question comes from the line of David Scharf from Citizens Capital Markets. Your question, please.

David Scharf: Hi, good afternoon. Thanks for taking my questions. Maybe just shifting to the new products. And specifically Flex, which it seems like, you know, has quite a bit of early momentum. You know, based on the number of users that we were, was about 100,000. I am wondering, can you provide us with a sense for maybe at maturity, you know, what the credit profile of this product is? You know, I think you had mentioned 90% current. I am interpreting as a 10% maybe thirty-plus day delinquency rate early on. You know, as a portfolio seasons, that is going to come down.

But I am trying to get a sense relative to maybe other short-term buy now pay later products with sort of a one to 3% delinquency rate. Just how we ought to assess ultimately, you know, what the kind of risk-adjusted returns are of this product.

Vikas Mehta: Thank you, David. Let me start and Matthew can add to that. So I will share the same excitement you did in terms of just, you know, overall momentum of the business, 100,000 plus active users, revenue almost doubling sequentially, as well as, you know, just a minimal incremental cost that this business needs. From just getting to that next stage. So really great diversification opportunity for us as a company, and we are very excited about it. I will just clarify a couple of things that help you think better. With regards to the aging. As well as the balances.

So the first thing I would say is that, you know, the way the program works, is send now, pay later, and there is a particular duration whether for membership or for the non-membership. And based on what we have seen from the cohorts, we are very pleased with the cohort aging of receivables. And that we have 90% current balance for members and non-members compared. And what we are particularly happy is that there is negligible balance that remains over ninety days past due. And that the charge-offs have been immaterial since the program's inception. So the way it works is slightly different than what you were narrating.

And, you know, the charge-off is, call it, beyond one hundred and twenty days. And, you know, the repayments that we have seen in that zero to 30, 30 to 60, 60 to 90 have been very promising. And these details are available in the 10-Q. So you can look into more detail there.

Matthew B. Oppenheimer: Yeah. The only thing I would add, David, is when you look at the overall Flex product, it is our flexible funding solution. Obviously, it is send now, pay later. And, Remitly Global, Inc. one members get access to funds like multiple withdrawals, repayment on their own terms and schedule. And it is adjacent to our core, cross-border payments business. And you were right to call out that, you know, we now look at more than 100,000 active users as of September 30. So we are really pleased with the progress there. And I think that the second point is providing liquidity to our customers and underwriting is complex.

And so as CEO, the way to be successful in complex areas, is having the right expertise on the team, and that is critical. And it is important to note we have decades of experience in the underwriting space. From the board level to the Flex leadership to the team broadly. To help guide our strategic direction there. And we can leverage a lot of proprietary data from 8.9 million customers to where uniquely positioned to bridge the underwriting variance customers that moved to a new country and just do not have credit history, but may have very high credit worthiness. And so we are excited about the traction there.

I think we will go into more depth at Investor Day in December on this point. I would not impute the 10% that you mentioned to 10% losses. And I would also keep in mind that given the expertise that we have, given how it is adjacent to our payments business, we can very much throttle who we let into that, and we can be very selective in terms of making sure that we are offering that to creditworthy customers. And so a lot of levers at our disposal there, a lot of expertise.

We will go into more detail on Investor Day, but really excited about having 100,000 active users and really excited about the unit economics and overall creditworthiness that we are seeing of our customer base.

Operator: Thank you. And our next question comes from the line of Zheqian Deng from KeyBanc Capital Markets. Your question, please.

Zheqian Deng: Hi. This is Zoe on for Alex. Thank you for taking my question. And could you talk a little bit about the economics of remittance and how they compare to the high dollar senders, I think, example. Thank you.

Matthew B. Oppenheimer: Okay. I think the question was related to Remitly Global, Inc. business and how that compares to high dollar senders. And so I am happy to go into that. I think that, you know, the interesting thing that I have mentioned, but just to reinforce is the fact that our product is very much so we started the business serving kind of lower income, lower average transaction size customers. And in order to do that, getting the unit economics, getting the variable cost down, getting the speed and reliability right is foundational. And so if you kind of think about it from a classic innovator's dilemma standpoint, moving up market is easier for us.

And so we have done that with both high dollar senders and with our Remitly Global, Inc. business product. But our structural advantage is on the lower end where we start in terms of micro business in particular because they have not been served by traditional financial institutions. And if you look in Q3, we continue to strengthen our KYB, our know your business engine. Resulting in higher approval rates. We also refined our risk and business verification checks to lower friction. And we have seen great customer momentum so far. The number of total businesses has grown sequentially to nearly 10,000 now active on the platform.

And in terms of your question and how it compares to our other high dollar senders and other individual P2P remittance transactions, the average transaction sizes are roughly twice those of our core consumer category. So business send volume has nearly doubled on the platform sequentially. We also rolled out new markets to the UK and Canada specifically. And we are really excited about what is to come in the Remitly Global, Inc. business space. And as we say at Remitly Global, Inc., we are getting started and certainly are in the business space.

Operator: Thank you. And our next question comes from the line of Zachary Gunn from Feet Partners. Your question, please.

Zachary Gunn: Hey there. Thanks for taking the question. So I just want to go back to the guide a little bit for Q4 and the 2026 commentary. You are talking about traction with new products and business. But on a net dollar basis, you are implying in Q4, you are going to have the lowest dollar amount since, I think, Q1 2024. Similarly, 2026, I am implying a large step down in the amount of incremental dollars. So what is decelerating or not performing that is causing the drag then similarly, I just want to ask about the take rate quickly because I understand it is being impacted by business, and larger volume customers coming on.

Maybe could you just comment on how much of the take rate compression this quarter was customer mix? First, any impact from pricing investments or anything else? Thanks.

Vikas Mehta: I will take that, and I will start in the reverse order. Let me start with the second part of your question, and then move to the first. You know, look, if you think about the take rate part of your question, I would go back to what we have shared over the last, call it, four quarters, which is our North Star metric is the long-term RLTE or revenue less transaction expense dollars. And that is a much better indicator of our business. And the reason is, you know, to some extent, all the things you mentioned, like take rate is impacted by a lot of different factors.

From transaction size to corridors to pay-in, payout types, to customer segment mix. And especially, as you may have seen, we have made a few important bets over here with Remitly Global, Inc. business. With the high amount senders, and even as Matthew was saying, Innovator's dilemma point, we have been able to be aggressive as we think about high amount senders. That is an area where, as we mentioned, we have been more experimental, where we have made price investments, and there is nothing we want to lose over there because it is a new market for us.

Overall, we feel that long-term RLTE dollar is a much better metric, and that is where, you know, as you pointed, even though our gross take rate went down, our year-over-year RLTE dollars grew over 23%. Moving to your other question with regards to Q4 and FY2026, I see a couple of additional comments into what we had shared earlier. The first one I would say is that, you know, H2, and we have talked about it before also, in general, it is a much tougher comp. And if you look at Q3, Q4 last year, we had very strong revenue growth. And that is a tough comp to go against. So that is one reason.

The second is if you look at EBITDA and the expense side of the guide for Q4, Q4 is an important quarter. This is where we will be making important marketing investments. And setting up for a strong FY2026. Again, we will be measured. We will be disciplined. But hopefully that gives you some additional context.

Operator: Thank you. This does conclude the question and answer session of today's program. I would like to hand the program back to Matthew B. Oppenheimer for any further remarks.

Matthew B. Oppenheimer: Great. Thanks, everybody. And I will just close with a couple of comments. One, really looking forward to outlining our broader vision and telling you more about the progress in the business at our Investor Day in December. And then the second, as always, is that we always circle back to a customer story at the end. That is why we do what we do. And today, I will talk about a quote from Derek, who is fittingly a Remitly Global, Inc. business customer. Derek shared with us that Remitly Global, Inc. became his go-to app. He said, quote, it's click, and the money is arriving, end quote.

We thank him for his loyalty and for trusting Remitly Global, Inc. to get money to his business reliably and seamlessly. And thank you, everybody, for joining us. We appreciate your support. We are excited about the opportunities ahead and look forward to sharing our progress at Investor Day and beyond as we continue to execute on our vision to transform lives with trusted financial services that transcend borders.

Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

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