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Introduction & Market Context
Remitly Global Inc (NASDAQ:RELY) released its second quarter 2025 earnings presentation on August 6, showcasing continued strong financial performance and the achievement of GAAP profitability. The cross-border payments company saw its stock rise 1.9% in aftermarket trading to $16.64, building on a 0.86% gain during regular trading hours.
The company’s presentation, led by CEO Matt Oppenheimer and CFO Vikas Mehta, highlighted Remitly’s achievement of the "Rule of 50" - a benchmark where a company’s revenue growth rate plus profit margin exceeds 50%. This milestone comes as the company continues to expand its remittance business while launching several new strategic initiatives.
Quarterly Performance Highlights
Remitly reported revenue of $412 million for Q2 2025, representing a 34% year-over-year increase, consistent with its growth rate from the previous quarter. The company achieved GAAP net income of $6.5 million, marking continued profitability following the $11.4 million reported in Q1 2025.
Send volume reached $18.5 billion, up 40% compared to Q2 2024, while quarterly active customers grew to 8.5 million, representing 24% year-over-year growth. The company’s Adjusted EBITDA rose to $64 million with a margin of 16%, maintaining the same margin percentage as the previous quarter while growing in absolute terms.
As shown in the following quarterly performance metrics:
The presentation also revealed a multi-quarter trend of consistent growth across key metrics, though the rate of customer acquisition has moderated from 36% year-over-year growth in Q2 2024 to 24% in the most recent quarter:
Strategic Initiatives
Remitly outlined several breakthrough innovations aimed at expanding its addressable market and enhancing customer value. These initiatives represent significant expansions beyond the company’s core remittance business.
The company is launching Remitly Business, targeting small and medium-sized businesses with cross-border payment needs. This initiative expands Remitly’s total addressable market from $2 trillion to $22 trillion, according to the presentation. Early business customer cohorts are showing nearly twice the average transaction size and six times higher lifetime value compared to consumer customers.
As illustrated in the company’s innovation roadmap:
Another key initiative is Remitly One, scheduled to launch in September 2025. This service will include Remitly Flex (NASDAQ:FLEX), a "send now, pay later" option providing liquidity for cross-border needs, and Remitly Wallet, a multi-currency wallet for secure storage of fiat and stablecoins.
The company is also integrating stablecoins into its platform, partnering with Circle to launch USDC support and with Bridge to enable receiving payments in stablecoin wallets. This move aims to provide near-instant settlement and greater agility in volatile markets.
Additionally, Remitly is implementing Agentic AI to handle millions of customer interactions, reducing cost-to-serve while increasing satisfaction. The AI integration includes a WhatsApp channel that enables customers to send money through simple chat interactions.
Operating Efficiencies
The presentation highlighted significant improvements in operating efficiency across multiple expense categories. Marketing expenses decreased by 422 basis points year-over-year, driven by efficiencies in digital and brand marketing, along with increased word-of-mouth referrals and AI-powered optimization.
Customer support costs declined by 46 basis points due to product improvements driving lower contact rates and increased automation, including AI-driven virtual assistants. Technology and development expenses fell by 225 basis points through more efficient spending while still delivering innovation goals.
These efficiency improvements were detailed in the following slide:
General and administrative expenses were the only category to increase, rising by 29 basis points. This increase was attributed to higher provisions related to collectability issues with certain processing partners, though the company maintained "rigorous discipline on hiring and non-headcount spend."
Forward Guidance
Remitly provided updated guidance for both Q3 2025 and the full year. For the third quarter, the company expects revenue between $411 million and $413 million, representing 22-23% year-over-year growth. This indicates a deceleration from the 34% growth rate achieved in Q2. Adjusted EBITDA for Q3 is projected to be between $53 million and $55 million.
For the full year 2025, Remitly forecasts revenue of $1.610 billion to $1.620 billion, reflecting 27-28% growth compared to 2024. The company expects Adjusted EBITDA of $225 million to $230 million for the year.
The guidance suggests Remitly anticipates maintaining strong but moderating growth while continuing to improve profitability:
This outlook represents a slight adjustment from the previous quarter’s full-year revenue guidance of $1.574 billion to $1.587 billion, reflecting the strong Q2 performance and continued business momentum despite the expected growth rate moderation in the second half of the year.
As Remitly continues to expand beyond its core remittance business into new financial services, the company appears focused on balancing growth investments with improved operational efficiency and sustained profitability.
Full presentation:
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