Remitly Global Q2 2026 Earnings Report

Remitly Global EPS Results

• Actual EPS: $0.93
• Consensus EPS: $0.12
• Beat/Miss: Beat by +$0.81
• One Year Ago EPS: $0.03

Remitly Global Revenue Results

• Actual Revenue: $495.16 million
• Expected Revenue: $486.25 million
• Beat/Miss: Beat by +$8.90 million
• YoY Revenue Growth: +20.20%

Remitly Global Announcement Details

• Quarter: Q2 2026
• Date: 8/5/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, August 5, 2026
• Conference Call Time: 5:00PM ET

Remitly Global (NASDAQ:RELY) operates as a digital financial services company specializing in cross-border money transfers. Through its proprietary online platform and mobile applications, the company enables immigrants, expatriates and international workers to send remittances swiftly and securely to their families abroad. By focusing on fast deliverability and transparent pricing, Remitly seeks to streamline a process traditionally dominated by cash-based methods and legacy money transfer operators.

Founded in 2011 by Matt Oppenheimer and headquartered in Seattle, Washington, Remitly has grown from a startup into a publicly traded corporation listed on NASDAQ under the ticker RELY. The company completed its initial public offering in 2021, marking a milestone in its efforts to expand digital remittance services and financial inclusion globally. Since its inception, Remitly has continually invested in technology, compliance infrastructure and customer support to bolster its reputation in the digital payments industry.

Remitly’s core offerings include bank account deposits, mobile wallet transfers, cash pickup arrangements and airtime top-up options, all accessible through its web portal and iOS and Android applications. Senders in key markets – including the United States, Canada, the United Kingdom and parts of Europe – can transfer funds directly to recipients in regions such as Latin America, South Asia, Southeast Asia and parts of Africa. The company leverages partnerships with local banks, payment networks and mobile wallet providers to optimize delivery speed and reliability.

Under the leadership of founder and Chief Executive Officer Matt Oppenheimer, Remitly continues to prioritize customer experience, security and regulatory compliance. Its team comprises experts in financial technology, risk management and international payments, supporting a user base that spans millions of customers worldwide. Through ongoing innovation and strategic market expansion, Remitly aims to lower the cost of remittances and broaden access to digital financial services for underserved populations.

Remitly Global Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Record Q2 results exceeded guidance: Revenue rose 20% year over year to $495 million, adjusted EBITDA reached a record $115 million with a 23% margin, and quarterly active users surpassed 10 million.
• Positive Sentiment: Core momentum remained strong, with send volume up 27% to $23.5 billion, U.S. revenue up 24%, and transaction margin improving 235 basis points to 67%. Management raised its full-year revenue outlook to $1.978-$1.988 billion and expects more than 20% growth in the second half.
• Positive Sentiment: Growth accelerators are gaining traction, including High-Value Senders, Remitly Business, receivers, and the newly launched Remitly Global Card. These initiatives are expected to contribute about 5% of 2026 revenue and exceed 10% by 2028, although management emphasized that the longer-term opportunity could be substantially larger.
• Positive Sentiment: AI-driven productivity and operating discipline supported substantial leverage across technology, customer support, fraud prevention, and G&A. Free cash flow nearly tripled year over year to more than $130 million, while the company repurchased $21 million of stock in Q2 and expects full-year adjusted EBITDA of $410-$415 million.
• Negative Sentiment: Management expects transaction-loss rates to normalize in the second half after better-than-expected Q2 performance, contributing to a sequential decline in Q3 adjusted EBITDA margin to approximately 18%-19%. High-Value Sender growth also softened in June because of foreign-exchange volatility and temporary measures affecting Indian corridors.

Presentation

[Operator]

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Beckel, Head of Investor Relations. Please go ahead.

[David Beckel, Head of Investor Relations at Remitly Global]

Good afternoon. Thank you for joining us for Remitly's Second Quarter 2026 Earnings Call. Joining me on the call today are Sebastian Gunningham, Chief Executive Officer of Remitly, and Vikas Mehta, Chief Financial Officer. Results and additional management commentary are available in the earnings release and presentation slides, which 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'd 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'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.

[David Beckel, Head of Investor Relations at Remitly Global]

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. Remitly 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. For a reconciliation of non-GAAP financial measures to the most directly comparable GAAP metric, please see the earnings press release in the appendix to the earnings presentation, which are available on the IR section of our website. Now, I will turn the call over to Sebastian to begin.

[Sebastian Gunningham, CEO at Remitly Global]

Thank you for joining our second quarter earnings call. My first six months as CEO have been intense, and they've confirmed something I already knew. Remitly matters deeply to its customers. This quarter's results prove it. Record revenue, record adjusted EBITDA, both above the high end of guidance again. We also achieved an important milestone for the company, over 10 million quarterly active users aided by record new customer additions. That's a direct reflection of the trust and confidence customers place in Remitly and our team's ability to execute. This quarter's strong results reflect three enduring attributes of our business. First, a strategy that works, providing affordable, fast, and trusted money movement for a wide range of global customers. Second, a competitive position that is strong and defensible. We continue to gain share and the advantages of lower cost, network breadth, and operating scales are compounding.

[Sebastian Gunningham, CEO at Remitly Global]

Third, a cost discipline that is structural. The operating leverage in this business is real, AI is driving genuine productivity gains, which can be redeployed to invest in growth, strengthening our confidence in the top line while we continue to expand adjusted EBITDA margins. Today, I will provide an update on my operating philosophy, discuss our progress across our core business and growth accelerators, explain how AI is reshaping the economics of our business model, and share our latest view on capital allocation. When I joined, I was clear about how I wanted this organization to work. Smaller teams, clearer ownership, customer-first design, AI embedded everywhere, speed as a default. This quarter, we kept building towards that. The result is a flatter, faster-moving company. Product teams are being consolidated into fewer locations to take advantage of faster speeds to design, build, and launch features.

[Sebastian Gunningham, CEO at Remitly Global]

Fewer layers mean clearer ownership and faster decisions. Faster decisions mean more products, and more products mean more revenue. Through this rapid evolution, our culture has held. Our team continues to obsess over building the most affordable, fastest, and most trusted way to move money. They understand every transaction matters to a real family, and I'm proud to confirm what I see every day. Everybody at Remitly cares deeply about our customer-focused mission. Moving on to an update on our business. Last quarter, I introduced a framework for how we think about our opportunities. Core Senders, High-Value Senders, business senders, and receivers against four offerings, which are send, borrow, spend, and save. Everything outside our Core Send, we call growth accelerators. This quarter, we shipped against all these boxes.

[Sebastian Gunningham, CEO at Remitly Global]

As we broaden our offerings beyond remittances, we build a powerful flywheel, driving better loyalty, higher volumes, and more diversified revenue. This quarter's results are evidence that the flywheel is turning. I'll now cover key customer and product updates across Core Send and our growth accelerators. Our global pay-in and payout network is our strongest competitive advantage. This quarter, we expanded our network on the dimensions customers care about most, reach, speed, and reliability. We added five countries, New Zealand, Niger, Mali, Angola, and Botswana, bringing the total received geographies to 179. 32 of these countries are now send and receive enabled. Speed and reliability matter to our customers and are important drivers of retention. This quarter, new real-time pay-in rails, FedNow and real-time payments in the U.S., improved our pay-in funding speeds.

[Sebastian Gunningham, CEO at Remitly Global]

In the second quarter, nearly 70% of Remitly's global funded transfers were delivered in under 20 seconds, an all-time high. Further, payments and customer onboarding improvements drove record pay-in acceptance and record low defect rates, reinforcing the basics that drive customer trust in the Remitly platform. Last month, we announced our participation in OpenUSD, a stablecoin consortium, as a founding member. This new stablecoin has the potential to cut pay and settlement times by up to one day and lets us share in stablecoin wallet economics. Since our last earnings call, we strengthened our regulatory foundation across three important geographies. We received a stored value facilities license from the central bank in the UAE, an electronic money institution license in the U.K., and an extension of our EU payments institution license. These licenses open the door to new products designed specifically for customers in these regions.

[Sebastian Gunningham, CEO at Remitly Global]

Each of our growth accelerators gained important traction this quarter. Our approach to investing in growth is deliberate. We start small and scale only when we see product market fit and a clear return. Vikas will cover the financials. I will cover the operating highlights. High-value senders are those who send $5,000 or more in a single transaction, often for property investments or larger transfers to family. For them, reliability matters most, and the economics of earning their loyalties are strong. In Q2, we lowered friction across a number of dimensions for these customers and added Wise as a funding option. In Latin America, a key growth region for this customer category, we raised send limits and eliminated unnecessary customer actions. As a result, high-value send volume more than doubled in the U.S.-Mexico corridor.

[Sebastian Gunningham, CEO at Remitly Global]

Remitly business grew strongly again this quarter with sequential revenue and volume growth both accelerating quarter-over-quarter. New features like bulk send and the addition of 23 new countries in the European Union are helping broaden our customer base. More than 80% of customers added to the business platform this quarter are new to Remitly, and usage is sticky with the average business customer sending money 10 times a quarter. This quarter, we grew the receiver product from six to 130 countries. It's still early, but we're optimistic about its potential to drive send revenue and eventually spend and save. The bet with receivers is simple. Build direct relationships with receivers and senders will follow. In countries where stable currencies and dependable financial services are scarce, we think we can serve receivers better than anyone.

[Sebastian Gunningham, CEO at Remitly Global]

We recently launched a global stablecoin wallet with debit card, starting our rollout in Latin America, a first-of-its-kind offering, letting receivers get paid, hold, and spend in USDC. Longer term, we want to be a big part of our receivers' financial lives, not just where one transaction lands. This is a first step. Last week, we launched the Remitly Global Card, an all-in-one product for our customers to borrow, to spend, and to save as easily as they can send money home. The Remitly Global Card is the next step in our journey from a remittance company to a broader suite of products our customers need and want.

[Sebastian Gunningham, CEO at Remitly Global]

The Remitly Global Card combines one-of-a-kind features, including our best remittances prices, faster and lower fee sends, no fee everyday spending, a bank account for everyone, the ability to hold and move money in fiat currency or USDC, instant transfers between Remitly Global cardholders, no foreign transaction fees, direct deposit, global ATM access, and a line of credit through the Remitly Global Card membership plan, among other valuable new features for our global customers. The launch of this card marks an important milestone for our company. For millions of people, banking wasn't built for them. This card is. With the Remitly Global Card, we are giving communities who live across borders frictionless access to borrowing, spending, saving, and sending. No paperwork, no bank branch, no waiting. All card members get default access to the lowest cost, fastest remittance options on Remitly.

[Sebastian Gunningham, CEO at Remitly Global]

Our customers shouldn't have to shop for the best rate every time they send money home. The Remitly Global Card allows us to more fully address the financial needs of tens of millions of customers who have sent or received money via Remitly. Our intent is to put the Remitly Global Card in the hands of each and every Remitly customer over time. In the coming quarters, we plan to expand the Remitly Global Card to additional countries, enabling seamless direct payouts for global workers and broader multicurrency holding capabilities for consumers and businesses worldwide. Finally, an update on AI. There are three ways AI benefits Remitly: speed, trust, cost. Speed, we build and ship faster; trust, we deliver a better, more personal experience; and cost, we run leaner. This quarter, all three move forward.

[Sebastian Gunningham, CEO at Remitly Global]

Speed and trust gains are starting to show up in the top line through faster launches and a better customer experience. Cost remains the clearest AI win so far. AI-driven productivity has allowed us to hold headcount below plan as I reoriented the company towards speed and tested our growth bets. I ask every team the same question: Show me the number that proves your function is more self-driving than it was one quarter ago. The answers are getting better. Before I hand the call to Vikas, I want to say a word on capital allocation. This quarter, we generated $130 million in free cash flow.

[Sebastian Gunningham, CEO at Remitly Global]

Today, this management team is balancing two things, reinvesting in profitable growth and executing share buybacks within the limits set by our board. We believe this is the right plan, and we'll continue to update our shareholders as our thinking evolves. Let me close with this. We delivered an excellent quarter. We're gaining ground with customers in geographies that matter. We're doing it more efficiently than ever. Our products are working for customers. I'm optimistic, not because of a forecast, but because of what I see in the business every day. Thank you.

[Vikas Mehta, CFO at Remitly Global]

Thank you, Sebastian, and good afternoon, everyone. We delivered another excellent quarter of profitable growth and strong free cash flow, reflecting solid execution and a rigorous attention to cost discipline. Second quarter revenue was $495 million, $11 million above the midpoint of our guidance and up 20% year-over-year. Adjusted EBITDA was $115 million, $28 million above the midpoint of our guidance at 23% margin. Let me share an overview of our second quarter results and then provide our outlook for the third quarter of 2026 and our updated guidance for the full year. Strong top-line results this quarter reflected momentum in Core Send and the continued scaling of our growth accelerators. Revenue outperformance this quarter was driven by a number of factors. Regulatory changes in the United States continued to support a shift towards digital remittances, driving another quarter of record new customers acquired.

[Vikas Mehta, CFO at Remitly Global]

Mother's Day weekend volume strongly exceeded expectations. As noted last quarter, the pacing of Q2 growth relative to Q1 was due to a shift in the timing of Ramadan and Easter to earlier in the year. Unpacking revenue growth drivers for Q2, send volume grew 27% to $23.5 billion. Send volume per active customer reached a record $2,300, up 6% year-over-year, driven by growth in High-Value Senders and business customers, as well as higher average transaction sizes among core senders. Quarterly active customers grew 20% year-over-year to 10.2 million. This was our first quarter above 10 million QAUs, an important milestone which validates the strength and durability of our business model. Quarterly active customer growth remains strong due to effectiveness of our Skip the Line campaign, which targets customers seeking alternatives to cash-based remittance methods. Our take rate this quarter was 2.11%.

[Vikas Mehta, CFO at Remitly Global]

Let me dive deeper into our revenue performance from a geographic and new product perspective. From a send perspective, U.S. revenue grew 24%, reflecting continued share gains in key geographies. Rest of the world revenue grew 18% year-over-year. On the receive side, revenue from transactions to regions outside of India, the Philippines, and Mexico once again grew faster than overall revenue growth and comprised over half of our revenue mix. I will now discuss the performance of our growth accelerators. As a reminder, growth accelerators include all customer categories and offerings outside of Core Send. Our growth accelerators continue to gain traction and scale and are well on track to comprise around 5% of total revenue in 2026 and exceed 10% of total revenue by 2028. Let me take a few minutes to provide more detail on the performance of each of our primary growth accelerators.

[Vikas Mehta, CFO at Remitly Global]

Let me start with High-Value Senders. High-Value Sender volume grew 37% year-over-year, a 70 basis point increase in mix year-over-year. We achieved a number of milestones with High-Value Senders this quarter, including our first transaction of $300,000 and our first customer to send more than $1 million in a single quarter. This quarter, we also expanded how customers can fund transfers by adding bank wires. Customers can now wire funds directly to Remitly, which we then deliver instantly through our global network, avoiding the cost and delays of a traditional international wire. This gives more customers, particularly High-Value Senders, a flexible way to fund transactions and is already resonating. Customers using wires send nearly three times more per transaction.

[Vikas Mehta, CFO at Remitly Global]

This quarter, High-Value Sender volume growth was softer in June due to fluctuations in the Indian rupee relative to primary send currencies, as well as short-term foreign currency mobilization measures announced by the Reserve Bank of India. We expect trends affecting Indian corridors to normalize over the course of the year. Further, we have a robust pipeline of High-Value Sender product enhancements. In the second half of the year, we are expanding our marketing and targeting efforts for this important customer category. Moving on to Remitly Business. Remitly Business performance continues to exceed our expectations. We ended Q2 with over 25,000 Remitly Business users and saw sequential acceleration in quarter-over-quarter growth for both volume and revenue. Growth was supported by the continued reduction in friction associated with onboarding and transaction flows.

[Vikas Mehta, CFO at Remitly Global]

Shifting to receivers, our receiver offering generated revenue for the first time this quarter, an important inflection point for this business. The receiver product allows us to unlock a direct relationship with more than 30 million receivers on our platform, creating a new flywheel at little to no marketing cost. Finally, our fourth growth accelerator, spend, save, and borrow. We are excited to share an important milestone, the launch of the Remitly Global Card. With this offering, card members can send, spend, save, and get paid money from the same account. The Remitly Global Card is an important strategic offering and enabler of revenue diversification as we extend the value of the Remitly platform further into our customers' financial lives. The Remitly Global Card comes with no monthly fees or minimums.

[Vikas Mehta, CFO at Remitly Global]

Customer can further upgrade to our membership plan, which for $9.99 per month contains valuable benefits, including access to an open-end line of credit that customers can use to remit money home before payday and pay back over time. We plan to evolve our liquidity offerings, which more than doubled year-over-year to a card-focused format over time. The newer card plan format is showing strong early customer uptake with response and conversion rates exceeding prior benchmarks. Lines of credit associated with the Remitly Global Card are funded by a third-party bank partner. As a result, we expect receivables associated with our liquidity products to reduce over time. Turning to our focus on driving profitable growth on Slide 13. This quarter, we are replacing the term revenue less transaction expense, an abbreviation RLTE, with transaction margin, which we believe is a more intuitive description of this metric.

[Vikas Mehta, CFO at Remitly Global]

Transaction margin is calculated in the same manner as the measure we previously referred to as revenue less transaction expense in prior periods. Transaction margin dollars grew 25% to $334 million, outpacing revenue growth. Transaction margin dollar growth reflects strong customer activity as well as improved partner economics, routing optimization, and economies of scale. Transaction margins were 67%, improving 235 basis points year-over-year. Transaction expenses this quarter were $161 million, and as a percentage of revenue, were 33%. Excluding provisions for transaction losses, other transaction expenses were $137 million, improving 51 basis points year-over-year as a percentage of revenue. This reflects improved network economics as well as continued shift in mix towards digital receive volume. We continue to see early benefits from the use of stable coins in our treasury settlement operations, but the impact remains modest in absolute terms.

[Vikas Mehta, CFO at Remitly Global]

Provision for transaction losses was $24.5 million, or 10.4 basis points as a percentage of send volume. This was better than expected as we continue to benefit from efficiencies afforded by the AI-driven fraud prevention and detection model deployed late last year. With that, let me walk you through the specific non-GAAP expense categories. Marketing investments remain disciplined and growth-focused. We spent $96.5 million on marketing in Q2, up 20.9% year-over-year. As a percentage of revenue, marketing expense was 19.5%, roughly in line with prior year levels. Marketing spend per active customer was $9.46, up 0.9% year-over-year and in line with our expectations. Marketing consists primarily of advertising and promotions. This quarter's notable brand campaigns included the expansion of our Skip the Line campaign to new U.S. cities, a World Cup promotion featuring Cristo Fernández of Ted Lasso fame, and additional marketing investment in the UAE.

[Vikas Mehta, CFO at Remitly Global]

Promotions, including those in contra revenues, grew 35% year-over-year, reflecting a deliberate focus on driving higher retention and win-back among our back book of customers. Our LTV to CAC ratio was about 6x, while our payback period remained under 12 months. Continued efficiencies reflect growth in customer acquisition through unpaid channels and word of mouth. As a reminder, our marketing investments drive returns for many years beyond initial investment due to our growing base of repeat users. Customer support and operations expense was $26.2 million, and as a percentage of revenue was 5.3%, improving 68 basis points year-over-year and continuing a multi-year trend of steady operating leverage. Technology and development expense was $55.5 million and as a percentage of revenue was 11.2%, improving 175 basis points year-over-year in reflecting the benefits of embedding agentic AI into our engineering and product teams.

[Vikas Mehta, CFO at Remitly Global]

Despite a modest increase in AI-related spend, the benefits of AI-related labor productivity have outweighed the direct AI spend, a trend we expect will continue. G&A expense was $41 million, declining 11% year-over-year, our first year-over-year decline in G&A ever as a public company. We delivered significant leverage this quarter, 295 basis points as a percentage of revenue year-over-year, reflecting lower than expected hiring as we evaluate business priorities along with the continued rigorous focus on operating discipline. Strong revenue growth combined with operating leverage and cost discipline led to a record level of adjusted EBITDA of $115 million. Adjusted EBITDA outperformance was driven by higher than expected revenue, lower than expected transaction losses, and lower than expected expenses due to the ongoing assessment of business initiatives following Sebastian's arrival. Net income was $206 million, which included $140.6 million release of tax valuation allowance.

[Vikas Mehta, CFO at Remitly Global]

Our North Star is growth in free cash flow while managing dilution, and Q2 demonstrated continued progress on both counts. Free cash flow nearly tripled year-over-year to over $130 million. This was aided by strong operating leverage, favorable working capital, as well as lower property and equipment spending as we lapped the build-out of our new headquarters from last year. Outstanding shares were 212 million, up 3% year-over-year, reflecting our disciplined approach to dilution management and share repurchase activity. Stock-based compensation was lower year-over-year for a second consecutive quarter. It declined 9% year-over-year, coming in at 7% of revenue, which is 228 basis points lower than the second quarter of 2025, due in part to lower than planned hiring.

[Vikas Mehta, CFO at Remitly Global]

For all of 2026, we continue to expect stock-based compensation to increase modestly in absolute terms year-over-year, but decrease as a percentage of revenue. We continued repurchasing shares in Q2, opportunistically buying back $21 million worth of stock or over 1.1 million shares. Year-to-date, we have repurchased almost 4 million shares. This reflects conviction in our long-term growth opportunities and a view that share repurchases are an attractive use of capital. We'll continue to be disciplined and opportunistic in how we deploy capital towards buybacks. With that, I will move to our outlook. For the third quarter of 2026, we expect revenue of $505 million-$507 million, or 20%-21% growth.

[Vikas Mehta, CFO at Remitly Global]

We continue to see strong momentum in our core, and we expect a continued shift toward digital remittances, growth in new geographies, and the scaling of our growth accelerators to contribute to total company revenue growth of over 20% in the second half of the year, an increase relative to prior expectations. Breaking down our revenue growth, in Q3, we anticipate send volume growth to exceed revenue growth and revenue growth to modestly exceed quarterly active customer growth. Send volume per active customer is expected to grow in the mid-to-high single-digits range, supported by the continued shift in mix towards high-value senders and businesses. For the full year, we expect revenue between $1.978 billion and $1.988 billion, a growth rate of 21%-22%, reflecting strong demand in our core and growing levels of contributions from our growth accelerators.

[Vikas Mehta, CFO at Remitly Global]

As a reminder, we are lapping a particularly strong holiday season in Q4, which drove outsized volume growth in the prior year. Let us pivot to profitability and expense guidance. Starting with transaction margins, we expect Q3 transaction margins to be slightly higher than the prior year. Note, transaction loss rate may fluctuate quarter to quarter. We remain disciplined about optimizing customer lifetime value while rigorously managing risk across our platform. For the full year, we continue to expect transaction margins to be broadly in line with the 2025 numbers on a normalized basis. Shifting to marketing, we expect continued marketing efficiencies in the back half of 2026 as we prioritize high ROI marketing opportunities. For Q3, we expect marketing spend for QAU to be slightly higher year-over-year as we extend our Skip the Line campaign and increase brand marketing in the UAE.

[Vikas Mehta, CFO at Remitly Global]

Please note marketing expense for QAU faces a tough comparison in Q4, as last year benefited from a focused and intentional approach to holiday period spend. Putting this all together, we expect Q3 adjusted EBITDA to be between $92 million and $94 million, translating to an adjusted EBITDA margin around 18%-19%, an expansion of over 350 basis points year-over-year. For the full year, we expect adjusted EBITDA to be between $410 million and $415 million, representing an adjusted EBITDA margin of around 21%, an expansion of over 400 basis points year-over-year. This improved adjusted EBITDA outlook reflects a more favorable outlook for revenue, Sebastian's deliberate assessment of the business in the first half of the year, and our commitment to continued cost discipline, leveraging AI as we invest in growth.

[Vikas Mehta, CFO at Remitly Global]

As always, we remain rigorously focused on balancing growth and profitability and will continue to look to further leverage the benefits of AI as we invest in top-line growth. Our outlook also assumes normal levels of transaction losses for the remainder of the year. To summarize, in Q2, we delivered another excellent quarter with results that were strong across our key financial metrics. We achieved over 20% revenue growth and over 23% adjusted EBITDA margins. We delivered record GAAP profitability and record free cash flow, underscoring the power and scalability of our business model. With that, Sebastian and I will open up the call for your questions. Operator?

[Operator]

Thank you. At this time, we will conduct a question-and-answer session. As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. We kindly ask that you limit yourself to one question. Please stand by while we compile the Q&A roster. Our first question comes from Tien-Tsin Huang with JPMorgan. Please go ahead.

[Tien-Tsin Huang, Analyst at JPMorgan]

Thanks so much. Nice results here. Sebastian, I thought, given your prepared remarks, kind of triggered me to think of asking you about what you're excited about the most amongst some of the things you talked about and where you're leaning in more. We heard about Global Card, USDC, AI. Sounds like business also outperformed. What's changed in the last 90 days in terms of your excitement and where you're leaning in more? Thanks.

[Sebastian Gunningham, CEO at Remitly Global]

Good question. Thank you. I'd say the sum of the parts, I think we are hitting on many cylinders right now. I think the sum of the parts look really good to us. We're a very diversified business globally. As I've said before, you get these puts and takes on different corridors. I really like the rhythm that we're gaining on upgrading the products, the new launches. It's hard for me to pick one specific piece, Tien-Tsin, but I would say that today, standing here today, I'm very pleased with the momentum on many pieces of the business.

[Sebastian Gunningham, CEO at Remitly Global]

Of course, as you look under the hood of the business, there are many pieces that make up the delivery of this money movement, whether it be on the network side, on the risk side, on the compliance side, there's just a lot of good momentum across the company. You force me to pick one piece. I'm avoiding your question and saying, I think it's the sum of everything right now.

[Operator]

Thank you. Our next question comes from Ramsey El-Assal with Cantor Fitzgerald. Please go ahead.

[Ramsey El-Assal, Analyst at Cantor Fitzgerald]

Hi. Thank you so much for taking my question this evening. Vikas, you mentioned that you'll be expanding your marketing efforts for the high-value senders in the second half. Can you help us think through kind of the cadence and the magnitude of that investment? Is it kind of a gradual ramp through the balance of the year, a more meaningful step-up in marketing spend later in the year? How should we think about that from a modeling perspective?

[Vikas Mehta, CFO at Remitly Global]

Overall, I would say that we remain very confident in our high-value sender business and the long-term growth potential of that business. As we have shared in the prior few quarters, we are just getting started there, raising the send limits, making product enhancements. In fact, this quarter, you saw some very interesting highlights. We had our first set of 300,000+ transfers. That's a pretty big milestone compared to where we were 12 months back. Within the same construct, one of our customers sent more than $1 million in the recent quarter.

[Vikas Mehta, CFO at Remitly Global]

That just tells that the demand is there. Our network is set up for that, and it's just a matter of focus and marketing for us. Once we can be more targeted, we can see a lot of benefits here. We haven't invested a lot in the marketing in the specific high-value sender market. Again, we will be very deliberate. We will be gradual, and we'll be thoughtful how we increase the marketing. We'll learn from our early marketing campaigns before we expand more in FY 2027. Overall, I'd say disciplined, but at the same time, focused and thoughtful marketing in that HVS segment.

[Operator]

Thank you. Our next question comes from Cris Kennedy with William Blair. Please go ahead.

[Cris Kennedy, Analyst at William Blair]

Yeah. Good afternoon. Thanks for taking the question. I think productivity gains from AI is a key theme from the call, and incremental EBITDA margins were over 60% in the quarter. I think that's nearly double what you've historically talked about. Can you just talk about the levers there and what that means going forward, and the opportunities to reinvest back in the business?

[Sebastian Gunningham, CEO at Remitly Global]

Yeah. I think we're all on this AI journey. I just reflect that a week doesn't go by that you don't get some kind of wow moment on what you can do inside the company with AI. It varies across, obviously, the most obvious ones are some of the fact that you can constrain some of your people growth. Speed is money, productivity is money, simplifying the organization is money also. It slowly compounds. We track almost every piece of our AI usage, down to the individuals, down to the production of code and the use across the company, and we're launching all different agents that do different tasks within the company.

[Sebastian Gunningham, CEO at Remitly Global]

This is a snapshot in time. You're seeing the benefits. Your question is this going to accelerate over time? It's hard to say. I certainly don't see it decelerating, and I think that we can look over the next few years and we're just going to keep learning how this is going to change our company, how it changes the management. It is a theme. We live it every day. I think I'm optimistic about the future trajectory on the efficiencies that we can get with AI within Remitly.

[Vikas Mehta, CFO at Remitly Global]

Yeah. If I were to add on the expense categories, Cris, if you look at all the expense categories, we've got benefits across the board. Whether you think about transaction loss and the AI/ML capabilities that we are building, we have seen that over the last couple of quarters. If you go further into customer support, that's a key area of benefit that we have been harvesting. This quarter specifically, the two standouts were the technology and development spend, which just grew in mid-single digits thanks to the net AI benefits that we were getting in spite of a modest increase in the AI spend.

[Vikas Mehta, CFO at Remitly Global]

Finally, G&A, that was the biggest one of the first year-over-year decline as we are able to harness that benefit across all our support functions, whether it's legal, HR, finance, and the platform. AI net benefit for us has been a positive. Clearly early days, and we will be very mindful and thoughtful here.

[Operator]

Thank you. Our next question comes from Alex Markgraff with KBCM. Please go ahead.

[Alex Markgraff, Analyst at KBCM]

Hi, everyone. Thanks for taking my question. I wanted to ask about the receiver side monetization. It's obviously a compelling opportunity. Was hoping maybe just to discuss the sort of right to earn wallet share with these folks, the receivers. I'm curious what the sort of wedge or value proposition that's distinct from local or other global peers would be that you'd point to with Remitly Card and other offerings. Thanks.

[Sebastian Gunningham, CEO at Remitly Global]

Thank you for the question. It's very early days. Your question is what earns us the right to offer services to this receiver? It's a very unique transaction when somebody in some part of the world receives money from a sender in Remitly. At that point, in all the mechanisms, we know the money, we know the receiver. There are many things that we could do to encourage that receiver to either spend the money, we could put the money in USDC, we can put it in cards, we can keep it in accounts, we can offer savings products. The theory of it is very compelling. We have, as we've said, about somewhere in the order of 30 or 40 million receivers around the world. We have not proven that yet. We have a team rapidly iterating. We see some really good signals.

[Sebastian Gunningham, CEO at Remitly Global]

We've launched a bunch of products. I'd also remind you that I think there's some large portion of our transactions are pair-to-pair transactions, which is they repeat often. Every month, sender A sends to receiver B, and those two, that pair, is connected many times during the year. You could imagine all kinds of products that we could offer to that pair. Early days. It's one of the investments that we're making. We feel there's an opportunity here. We have not proven it, so we'll keep you updated on how that advances.

[Operator]

Thank you. Our next question comes from David Scharf with Citizens Capital Markets. Please go ahead.

[David Scharf, Analyst at Citizens Capital Markets]

Hi. Good afternoon. Thanks for taking my questions. You know what? The results are so strong, I guess I'll ask a devil's advocate question just to kind of mix things up a little. It relates to the growth accelerators. Did I hear correctly, I think this is dated from the investor day, maybe it's unchanged. Did I hear Vikas that the expectation is 10% of revenue by 2028?

[Vikas Mehta, CFO at Remitly Global]

That's correct. More than 10%.

[David Scharf, Analyst at Citizens Capital Markets]

Okay. More than 10%. I guess the devil's advocate question is, why isn't that larger? It seems like these are tremendous opportunities, particularly on the business side. Obviously, you spend a lot of focus in these presentations highlighting these four distinct categories or silos. I'm just trying to get a sense if 10% is a reflection of, A, conservatism, B, just the core C2C business is so strong secularly that by definition kind of weighs down that mixes. Am I incorrect thinking that that's a number that two years from now is actually going to end up being higher?

[Vikas Mehta, CFO at Remitly Global]

David, first of all, thank you for your optimism. We share that optimism. What I'd say is that we want to be very thoughtful with the new products to get the product market fit right. We want to test them out in a way that they are really battle tested. Then, once we have that validation, we want to pull marketing and really drive the acceleration. Rather than putting a very tight timeframe to it, we look at the bigger prize than the total addressable market. If you look at all our bets, they are huge and massive. If you take Remitly business, that is bigger than our core consumer business. If you look at High-Value Senders, the network remains the same and the upside is massive.

[Vikas Mehta, CFO at Remitly Global]

If you look at Remitly Global Card and receivers, everything Sebastian said that there are so many use cases that they could really unlock and create a massive potential. I'd say these are five-year, 10-year bets that could really diversify our business, make it a multi-revenue stream business. Our objective right now is to invest in them in a way that we make them long-term successful, rather than trying to get some short or medium-term wins. At the same time, we feel really confident to get to the 10%+ threshold. We'll keep updating you, overall, we feel the focus is really on the long term.

[Sebastian Gunningham, CEO at Remitly Global]

Yeah, I think well said. We've given this timeframe of 2028, let's take the timeframe out. I think we'd probably be disappointed over a longer timeframe if they weren't much bigger businesses. All the bets we're making are in very large markets. The fact that we're still in the bets and growing and excited about it means that we're not going for a 10%. What's 10% of, what are we, $2 billion revenue, 10%?

[Sebastian Gunningham, CEO at Remitly Global]

We're going for much bigger opportunities here. I think it's a fair question. We will obviously keep updating you. All the signals we see, we will kill any business that doesn't be on a trajectory to get really large. We have plenty of opportunities and plenty of businesses. We have a lot on our plate right now, we'll just keep you posted on. We're going to stick to the response that Vikas gave for now, we're working hard to make it a lot bigger.

[Operator]

Thank you. Our next question comes from Gus Galá with MCH. Please go ahead.

[Gus Galá, Analyst at MCH]

Hi, Sebastian. Hi, Vikas. Thank you for taking my question. I think an interesting topic to get into would be you're seeing some, let's say, changes in pricing actions, maybe a little bit of distress from larger legacy peers in North America. That's really the core business. Can you talk about the opportunity there in terms of the lower cap, right? Because it sounds like pricing being taken back, maybe not a leap to think that digital marketing competition's coming down a little bit.

[Gus Galá, Analyst at MCH]

If we think about the second half of 2026, just on the margin, I'll squeeze in my question, 19% margin versus a 23% this quarter, +50% in the first half. You're guiding to a 23% incremental in the back half. I get the incremental investment in HVS, our math is kind of low double digit of total volume, and you're assuming consistent transaction loss rate. Anywhere else in OpEx we should be thinking about our investment? Thanks.

[Vikas Mehta, CFO at Remitly Global]

Gus, thank you for your question. I'll answer your second part of the question first and then move to the first, and Sebastian can add more to that first part as well. If you think about the EBITDA margin guidance, it's something that we have put a lot of thought into it. Even as you see that, if you look at the year-over-year increment, it is 350 basis points just in Q3. If you take the FY 2026 guide, it's a 4 percentage point increase year-over-year. Clearly, we are making a lot of progress when it comes to expanding EBITDA margins. If you see the first half of the year, I'd say there has been some, call it specifics over there. First of all, Sebastian joined us in that first quarter and has been evaluating the business initiatives in a rigorous way.

[Vikas Mehta, CFO at Remitly Global]

That created a little bit of a pause as we decided which ones we want to go and invest deeper into. In addition to that, revenue outperformance as well as the lower transaction loss that we have seen, which we, in our assumptions going in the out quarters, we are normalizing that to 11 basis points. That creates some, call it, added first half benefit for us, which especially in the transaction loss we are normalizing for second half. Outside of that, we feel there are opportunities in marketing investments that again, we will be evaluating on a very specific basis.

[Vikas Mehta, CFO at Remitly Global]

That goes to your first part of the question. We see massive opportunity for market share gains. We saw that in the first half with the remittance tax, and we leveraged our Skip the Line campaign. We did that in the first quarter, but we saw remarkable benefits. We decided to extend that in the second quarter, and we shared that with you last quarter. We're further taking it forward in the second half of the year. We share the same thoughts where we feel the opportunity to grab share is there, and we are going to be front-footed as we look at the second half in FY 2027.

[Sebastian Gunningham, CEO at Remitly Global]

We intend to be very aggressive in pursuing this market share. The opportunity is there. From a customer perspective, there's no magic here. The customer wants sharper pricing, wants to move money faster, and wants a better service, and we're very focused on all three. We're iterating on three. Our pricing is getting sharper. We are moving money faster, and our service is getting better every day. The result of that is just going to be continued market share gains. This happens across the world. We have many corridors where we already have a very good market share, but we see opportunity in the larger corridors, in the smaller corridors, and I think that this is a good moment for us to be quite aggressive in pursuing that market.

[Operator]

Thank you. I'm showing no further questions at this time. Thank you for your participation in today's conference. This concludes the program. You may now disconnect.

Participants

Executives

• David Beckel, Head of Investor Relations
• Sebastian Gunningham, CEO
• Vikas Mehta, CFO

Analysts

• Tien-Tsin Huang, Analyst at JPMorgan
• Ramsey El-Assal, Analyst at Cantor Fitzgerald
• Cris Kennedy, Analyst at William Blair
• Alex Markgraff, Analyst at KBCM
• David Scharf, Analyst at Citizens Capital Markets
• Gus Galá, Analyst at MCH