RELY — Remitly Global, Inc.

Summary of Remitly Q2 2026 Earnings Call

1. Key Financial Results and Metrics

• Revenue: $495 million, exceeding guidance by $11 million and up 20% year-over-year.
• Adjusted EBITDA: $115 million, $28 million above guidance, with a margin of 23%.
• Free Cash Flow: $130 million, nearly tripling year-over-year.
• Quarterly Active Users (QAU): Grew to 10.2 million, a 20% increase year-over-year.
• Send Volume: Increased 27% to $23.5 billion, with average transaction size rising to $2.3 thousand.
• Take Rate: 2.11%, reflecting strong customer activity and improved partner economics.

2. Strategic Updates and Business Highlights

• Customer Growth: Achieved over 10 million quarterly active users, driven by effective marketing campaigns like "Skip the Line."
• Product Expansion: Launched the Remitly Global Card, enabling users to borrow, spend, and save, marking a shift from a remittance-focused company to a broader financial services provider.
• AI Integration: AI is enhancing productivity and operational efficiency, contributing to lower headcount and improved service delivery.
• Regulatory Advances: Secured licenses in the UAE, UK, and EU, allowing for new product offerings tailored to these markets.
• High-Value Senders: Volume from high-value senders grew 37% year-over-year, with new funding options added to enhance customer experience.

3. Forward Guidance and Outlook

• Q3 2026 Revenue Guidance: Expected between $505 million and $507 million, representing 20% to 21% growth.
• Full Year 2026 Revenue Guidance: Forecasted between $1.978 billion and $1.988 billion, indicating a growth rate of 21% to 22%.
• Adjusted EBITDA for Q3: Expected between $92 million and $94 million, with a margin of 18% to 19%.
• Long-Term Growth: Growth accelerators projected to exceed 10% of total revenue by 2028.

4. Bad News, Challenges, or Points of Concern

• Market Competition: Increased pricing pressures from larger legacy peers may impact margins and competitive positioning.
• Transaction Losses: Although improved, transaction loss rates may fluctuate, posing risks to profitability.
• High-Value Sender Volume: Growth in this segment softened in June due to currency fluctuations and regulatory measures in India, which could affect future performance.
• Investment Caution: While there is optimism about growth accelerators, the company remains cautious about scaling investments until product-market fit is confirmed.

5. Notable Q&A Insights

• CEO Excitement: CEO Sebastian Gunningham expressed enthusiasm about the overall momentum across various business segments, emphasizing a diversified growth strategy.
• Marketing Investments: CFO Vikas Mehta indicated a gradual and thoughtful increase in marketing spend for high-value senders, focusing on targeted campaigns to maximize returns.
• AI Benefits: Both executives highlighted the ongoing positive impact of AI on productivity and cost management, with expectations for continued improvements.
• Receiver Monetization: Discussion on the potential for monetizing the receiver side of the business, with a focus on building direct relationships and offering tailored financial products.
• Long-Term Vision: Executives reiterated their commitment to long-term growth, emphasizing that the 10% revenue contribution from growth accelerators is a conservative estimate, with potential for greater expansion.

This summary encapsulates the key takeaways from Remitly's Q2 2026 earnings call, highlighting both the successes and challenges faced by the company as it navigates a competitive landscape.