Remitly Swings to Profit, Revenue Jumps 25% in Q3

TL;DR

**Remitly's Q3 profit surge and revenue growth make it a strong buy in the digital remittance space.**

AI Summary

Remitly Global, Inc. (RELY) reported a significant turnaround in its financial performance for the three and nine months ended September 30, 2025. Revenue for the three months ended September 30, 2025, increased to $419.49 million from $336.53 million in the prior-year period, marking a 24.6% growth. Net income for the quarter surged to $8.83 million, a substantial increase from $1.92 million in the same period of 2024. For the nine months ended September 30, 2025, the company achieved a net income of $26.72 million, a dramatic improvement from a net loss of $31.25 million in the corresponding 2024 period. Operating income also saw a strong rise, reaching $11.78 million for the quarter compared to $0.37 million in Q3 2024. Key business changes include increased investment in technology and development, which rose to $80.42 million for the quarter, and marketing expenses, which grew to $91.78 million. The company's cash and cash equivalents increased to $476.90 million as of September 30, 2025, from $368.10 million at December 31, 2024, indicating strong liquidity. Risks include geopolitical and macroeconomic conditions, currency fluctuations, and regulatory changes, as highlighted in the forward-looking statements. The strategic outlook emphasizes continued customer acquisition and retention, product development, and international expansion.

Why It Matters

This 10-Q filing signals a strong operational and financial improvement for Remitly, moving from a net loss to profitability, which is crucial for investor confidence and long-term valuation. The significant revenue growth of 24.6% demonstrates continued market penetration and customer adoption in the competitive digital remittance space, putting pressure on traditional money transfer services. For employees, sustained profitability could lead to increased stability and potential for growth opportunities. Customers benefit from Remitly's expanding global footprint across 170+ countries and its focus on a fast, reliable, and transparent money movement experience, which could drive further innovation in the broader cross-border payments market.

Risk Assessment

Risk Level: medium — The risk level is medium due to the company's exposure to geopolitical and macroeconomic conditions, including currency fluctuations and regulatory changes, as explicitly stated in the 'Special Note Regarding Forward-Looking Statements.' While the company achieved profitability, its 'Accumulated deficit' remains substantial at $(501.56) million as of September 30, 2025, indicating historical losses that could recur if market conditions deteriorate or competition intensifies.

Analyst Insight

Investors should consider increasing their position in RELY, given the strong shift to profitability and robust revenue growth. Monitor the company's ability to manage rising operating expenses, particularly marketing and technology, to ensure sustained profitability amidst competitive pressures and potential macroeconomic headwinds.

Financial Highlights

debt To Equity

0.52

revenue

$419.49M

operating Margin

2.8%

total Assets

$1,213.68M

total Debt

$416.52M

net Income

$8.83M

eps

N/A

gross Margin

N/A

cash Position

$476.90M

revenue Growth

+24.6%

Revenue Breakdown

Key Numbers

• $419.49M — Revenue for Q3 2025 (Increased 24.6% from $336.53M in Q3 2024)
• $8.83M — Net income for Q3 2025 (Increased from $1.92M in Q3 2024)
• $26.72M — Net income for nine months ended Sep 30, 2025 (Improved from a net loss of $(31.25)M in the same 2024 period)
• $11.78M — Income from operations for Q3 2025 (Increased from $0.37M in Q3 2024)
• $476.90M — Cash and cash equivalents as of Sep 30, 2025 (Increased from $368.10M at Dec 31, 2024)
• $501.56M — Accumulated deficit as of Sep 30, 2025 (Reduced from $(528.28)M at Dec 31, 2024)
• 209,045,931 — Shares of common stock outstanding as of Nov 3, 2025 (Indicates current share count)

Key Players & Entities

• Remitly Global, Inc. (company) — registrant
• RELY (company) — ticker symbol
• U.S. Securities and Exchange Commission (regulator) — filing oversight
• Federal Deposit Insurance Corporation (regulator) — deposit insurance
• India (country) — disbursement partner location
• Mexico (country) — disbursement partner location
• Philippines (country) — disbursement partner location
• Delaware (state) — state of incorporation
• Seattle, Washington (city) — headquarters location

FAQ

Risk Factors

• Changes in Laws and Regulations [high — regulatory]: Remitly operates in a highly regulated industry, subject to numerous laws and regulations related to money transmission, anti-money laundering (AML), and Know Your Customer (KYC) requirements in various jurisdictions. Changes to these regulations, or the interpretation and enforcement thereof, could increase compliance costs, restrict business operations, or require significant changes to its business model. For example, evolving AML regulations could necessitate more stringent customer verification processes, potentially impacting transaction speed and customer experience.
• Competition and Market Saturation [high — market]: The remittance market is competitive, with numerous players offering similar services. Increased competition could lead to pricing pressures, reduced market share, and higher customer acquisition costs. The company faces competition from traditional banks, other digital remittance providers, and new entrants. For instance, aggressive pricing by competitors could force Remitly to lower fees, impacting its revenue per transaction.
• Currency Fluctuations [medium — financial]: Remitly operates globally and facilitates transactions in multiple currencies. Fluctuations in foreign currency exchange rates can adversely affect its reported financial results and the value of customer transactions. The company's revenue and profitability can be impacted by adverse movements in exchange rates, especially in key corridors. For example, a significant strengthening of the US dollar against emerging market currencies could reduce the value of remittances sent from the US.
• Technology and Cybersecurity Risks [high — operational]: Remitly relies heavily on its technology platform to process transactions and manage customer data. Any disruption to its systems, including cyberattacks, data breaches, or system failures, could lead to financial losses, reputational damage, and regulatory penalties. The company's investment in technology and development, which rose to $80.42 million in Q3 2025, highlights its reliance on these systems.
• Macroeconomic Conditions [medium — market]: Global and regional economic conditions, including inflation, interest rates, and economic growth, can impact the volume and value of remittances. A slowdown in the economies of countries where Remitly's customers reside or send money could reduce demand for its services. For example, high inflation in recipient countries could decrease the disposable income available for remittances.
• Reliance on Third-Party Service Providers [medium — operational]: Remitly utilizes third-party service providers for various aspects of its operations, including payment processing and fraud detection. Disruptions or failures by these providers could impact Remitly's ability to offer its services, leading to customer dissatisfaction and financial losses. The company's ability to manage these relationships effectively is crucial for its operational continuity.
• Litigation and Legal Proceedings [low — legal]: The company may be subject to various legal proceedings and claims arising from its business operations. Adverse outcomes in such litigation could result in significant financial liabilities and reputational damage. While specific current litigation details are not provided, this remains a general risk for companies in the financial services sector.
• Interest Rate and Credit Risk [low — financial]: Changes in interest rates can affect the company's interest income and expense. Additionally, credit risk associated with customer funds receivable and disbursement prefunding needs to be managed. While the company has a strong cash position of $476.90 million, managing these financial risks is essential for maintaining profitability.

Industry Context

Remitly operates in the global remittance market, a sector characterized by significant growth driven by increasing migration and the demand for convenient, low-cost money transfer services. The industry is highly competitive, with a mix of traditional players, digital disruptors like Remitly, and emerging fintech solutions. Key trends include a shift towards digital channels, demand for faster transaction speeds, and increased regulatory scrutiny around anti-money laundering and consumer protection.

Regulatory Implications

As a money transmitter, Remitly faces stringent regulatory oversight in all jurisdictions it operates. Compliance with anti-money laundering (AML), Know Your Customer (KYC), and consumer protection laws is paramount. Evolving regulations, particularly concerning data privacy and cross-border financial crime, could necessitate ongoing investment in compliance infrastructure and potentially impact operational flexibility or introduce new costs.

What Investors Should Do

1. Monitor customer acquisition cost (CAC) and customer lifetime value (CLTV) trends.
2. Evaluate the impact of increased technology and development spending on user experience and new product adoption.
3. Assess the company's ability to maintain profitability as it scales.
4. Track the reduction in accumulated deficit as a sign of improving financial health.
5. Analyze the competitive landscape and Remitly's market positioning.

Key Dates

• 2025-09-30: End of Q3 2025 — Reported significant revenue growth of 24.6% and a turnaround to net income of $8.83M, compared to a loss in the prior year period.
• 2025-09-30: Balance Sheet Date — Company reported strong liquidity with $476.90M in cash and cash equivalents, an increase from $368.10M at year-end 2024.
• 2025-09-30: Nine Months Ended — Achieved net income of $26.72M, a substantial improvement from a net loss of $31.25M in the same period of 2024.
• 2024-12-31: End of Fiscal Year 2024 — Company had $368.10M in cash and cash equivalents and an accumulated deficit of $(528.28)M.
• 2024-09-30: End of Q3 2024 — Reported revenue of $336.53M and a net income of $1.92M, with a net loss of $(31.25)M for the nine-month period.
• 2025-11-03: Shares Outstanding Date — Reported 209,045,931 shares of common stock outstanding, indicating an increase in share count from the previous period.

Glossary

Disbursement prefunding

Funds set aside by Remitly to ensure timely payouts to recipients of remittances. (Represents a significant use of cash and a key operational component for ensuring service reliability.)

Customer funds receivable, net

Amounts owed to Remitly by customers for funds that have been sent but not yet settled. (Indicates the volume of transactions in process and potential short-term working capital needs.)

Accumulated deficit

The cumulative net losses of a company since its inception, less any cumulative net income. (Shows the company's historical profitability; a reduction in accumulated deficit indicates a move towards overall profitability.)

Transaction expenses

Costs directly associated with processing customer transactions, such as fees paid to payment networks and partners. (A primary cost driver that scales with revenue and transaction volume.)

Operating lease right-of-use assets

The value of assets that Remitly has the right to use for a specified period under lease agreements. (Represents long-term commitments for office space or other operational facilities.)

Goodwill

An intangible asset that arises when a company acquires another company for a price greater than the fair value of its net identifiable assets. (Represents past acquisitions and is subject to impairment testing.)

Intangible assets, net

Non-physical assets such as patents, trademarks, and software, net of accumulated amortization. (Represents value derived from intellectual property and technology.)

Stockholders' equity

The residual interest in the assets of an entity after deducting all its liabilities. (Represents the net worth of the company belonging to its shareholders.)

Year-Over-Year Comparison

Remitly Global, Inc. has demonstrated a significant financial improvement compared to the prior year. Revenue for Q3 2025 grew by 24.6% to $419.49 million, and the company achieved net income of $8.83 million, a substantial increase from $1.92 million in Q3 2024. For the nine-month period, the company swung from a net loss of $31.25 million in 2024 to a net income of $26.72 million in 2025. Operating income also saw a dramatic rise to $11.78 million from $0.37 million. The balance sheet reflects improved liquidity with cash and cash equivalents increasing to $476.90 million from $368.10 million, and the accumulated deficit has narrowed. New risks are not explicitly detailed as changed, but the existing risks related to regulatory, market, and operational factors remain pertinent.

Key Financial Figures

• $0.0001 — ange on which registered Common Stock, $0.0001 par value RELY The Nasdaq Global Select

Filing Documents

• rely-20250930.htm (10-Q) — 1256KB
• rely3q25-exhibit311.htm (EX-31.1) — 9KB
• rely3q25-exhibit312.htm (EX-31.2) — 9KB
• rely3q25-exhibit321.htm (EX-32.1) — 5KB
• rely3q25-exhibit322.htm (EX-32.2) — 5KB
• 0001782170-25-000237.txt ( ) — 6969KB
• rely-20250930.xsd (EX-101.SCH) — 48KB
• rely-20250930_cal.xml (EX-101.CAL) — 69KB
• rely-20250930_def.xml (EX-101.DEF) — 195KB
• rely-20250930_lab.xml (EX-101.LAB) — 620KB
• rely-20250930_pre.xml (EX-101.PRE) — 430KB
• rely-20250930_htm.xml (XML) — 982KB

Financial Information

Part I Financial Information

Financial Statements

Item 1. Financial Statements 1 Condensed Consolidated Balance Sheets as o f September 30, 2025 and December 31, 2024 1 Condensed Consolidated Statements of Operations for the three and nine months ended September 30, 2025 and 2024 2 Condensed Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2025 and 2024 3 Condensed Consolidated Statements of Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 4 Condensed Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 6 Notes to C ondensed C onsolidated F inancial S tatements 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 21

Quantitative and Qualitative Disclosure s About Market Risk

Item 3. Quantitative and Qualitative Disclosure s About Market Risk 32

Controls and Procedures

Item 4. Controls and Procedures 33

Other Information 34

Part II Other Information 34

Legal Proceedings

Item 1. Legal Proceedings 34

Risk Factors

Item 1A. Risk Factors 34

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 34

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 34

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 35

Other Information

Item 5. Other Information 35

Exhibit s

Item 6. Exhibit s 36

Signatures

Signatures 37 i Table of Con t ents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q contains forward-looking statements that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this Quarterly Report on Form 10-Q, including statements regarding future events or our future results of operations, financial condition, business, strategies, financial needs, and the plans and objectives of management, are forward-looking statements. In some cases you can identify forward-looking statements because they contain words such as "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "might," "likely," "plan," "potential," "predict," "project," "seek," "should," "target," "will," "would," or similar expressions and the negatives of those terms. These forward-looking statements include, but are not limited to, statements concerning the following: our expectations regarding our revenue, expenses, and other operating results; our ability to acquire new customers and successfully retain existing customers; our ability to continue to develop new products and services in a timely manner; our ability to achieve or sustain our profitability; our ability to maintain and expand our strategic relationships with third parties; our business plan and our ability to effectively manage our growth; anticipated trends, growth rates, and challenges in our business and in the market segments in which we operate; our ability to attract and retain qualified employees; uncertainties regarding the impact of geopolitical and macroeconomic conditions, including currency fluctuations, inflation, regulatory changes (including as may be related to immigration, fiscal and tax policy, foreign trade, or foreign investment), regional and global conflicts or related government sanctions, or legislative or regulatory developments; our ability to maintain the security

Financial Information

Part I. Financial Information

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited) REMITLY GLOBAL, INC. Condensed Consolidated Balance Sheets ( In thousands, except share and per share data ) (unaudited) September 30, December 31, 2025 2024 Assets Current assets Cash and cash equivalents $ 476,896 $ 368,097 Disbursement prefunding 245,840 288,934 Customer funds receivable, net 307,512 193,965 Prepaid expenses and other current assets 51,174 46,518 Total current assets 1,081,422 897,514 Property and equipment, net 52,272 31,566 Operating lease right-of-use assets 13,752 13,002 Goodwill 54,940 54,940 Intangible assets, net 4,210 10,463 Other noncurrent assets, net 7,088 5,386 Total assets $ 1,213,684 $ 1,012,871 Liabilities and stockholders' equity Current liabilities Accounts payable $ 32,185 $ 16,159 Customer liabilities 213,375 188,984 Short-term debt 2,722 2,468 Accrued expenses and other current liabilities 123,256 116,652 Operating lease liabilities 4,519 4,745 Total current liabilities 376,057 329,008 Operating lease liabilities, noncurrent 28,250 9,073 Other noncurrent liabilities 12,210 9,319 Total liabilities 416,517 347,400 Commitments and contingencies (Note 15) Stockholders' equity Common stock, $ 0.0001 par value; 725,000,000 shares authorized as of both September 30, 2025 and December 31, 2024; 209,331,306 and 200,534,626 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively 21 20 Additional paid-in capital 1,295,011 1,195,390 Accumulated other comprehensive income (loss) 3,699 ( 1,658 ) Accumulated deficit ( 501,564 ) ( 528,281 ) Total stockholders' equity 797,167 665,471 Total liabilities and stockholders' equity $ 1,213,684 $ 1,012,871 The accompanying notes are an integral part of these condensed consolidated financial statements. 1 Table of Contents REMITLY GLOBAL, INC. Condensed Consolidated Statements of Operations ( In thousands, except share and per share data ) (unaudited) Three Months Ended

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View this 10-Q filing on SEC EDGAR