RELY — Remitly Global, Inc.

Summary of Remitly Q1 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: $453 million, up 25% year-over-year, exceeding guidance by $16 million.
• Adjusted EBITDA: $102 million, surpassing guidance by $19 million, marking the first quarter adjusted EBITDA exceeded $100 million.
• Net Income: $49 million, a significant increase from $11 million in Q1 2025.
• Free Cash Flow: Over $70 million.
• Send Volume: Grew 37% to $22.1 billion, with a record send volume per active customer of nearly $2,300.
• Quarterly Active Users (QAU): Increased 20% year-over-year to over 9.6 million.
• Take Rate: 2.05%, consistent with expectations.

2. Strategic Updates and Business Highlights

• CEO Transition: Sebastian Gunningham emphasized a focus on understanding the business and enhancing customer value through new products and AI integration.
• Growth Accelerators: Introduction of high-value senders (transactions over $5,000) and business customers, with high-value sender volume growing 73% year-over-year.
• New Product Offerings: Launch of the Receiver product and enhancements to the Send Now, Pay Later service, including a global debit card and wallet.
• AI Integration: Plans to embed AI across operations to improve efficiency, speed, and customer trust.
• Geographic Expansion: Enhanced integrations in various regions, including new partnerships in Latin America and Asia.

3. Forward Guidance and Outlook

• Q2 2026 Revenue Guidance: Expected between $483 million and $485 million, reflecting 17% to 18% growth.
• Full Year 2026 Revenue Guidance: Projected between $1.96 billion and $1.975 billion, indicating a growth rate of 20% to 21%.
• Adjusted EBITDA for Q2: Expected between $86 million and $88 million, with a margin expansion of around 250 basis points year-over-year.
• Long-Term Growth: Anticipated that revenue from growth accelerators will exceed 10% of total revenue by 2028.

4. Bad News, Challenges, or Points of Concern

• Transaction Losses: Although improved, transaction losses remain a concern, especially in light of previous fraud incidents.
• Market Conditions: Reliance on favorable market conditions, such as tax refunds and geopolitical factors, raises questions about sustainability.
• Regulatory Risks: Changes in regulations could impact customer behavior and market dynamics.
• Headcount Reductions: A reduction of over 10% in corporate workforce may impact morale and operational capacity.

5. Notable Q&A Insights

• M&A Strategy: The company is beginning to explore M&A opportunities to accelerate growth in new customer categories, though no immediate plans are in place.
• Cash Remittance Tax: The positive impact of the 1% cash remittance tax is uncertain moving forward, but management believes it will continue to benefit the business.
• High-Value Senders vs. Business Senders: Both segments are performing well, with dedicated teams established to enhance product offerings and customer experiences.
• AI Utilization: AI is expected to drive significant operational efficiencies and enhance customer trust, with ongoing efforts to integrate AI into various functions.

Overall, Remitly's Q1 2026 results reflect strong growth and operational efficiency, with a clear focus on expanding its product offerings and leveraging AI for future growth. However, potential risks related to market conditions and transaction losses remain areas to monitor closely.