Remitly Global 2025 Q1 Earnings Exceeds Expectations with Net Income Swing of 153.9%

Remitly Global (RELY) reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company significantly exceeded market expectations with a remarkable turnaround, as net income reached $11.35 million, reversing from a net loss of $21.08 million the previous year. This performance was driven by a 34% growth in revenue, setting a new record for fiscal Q1 net income in five years. Based on the strong results, Remitly has raised its full-year 2025 outlook for both revenue and Adjusted EBITDA, anticipating continued growth fueled by strategic expansions and customer trust.

Revenue
Remitly Global's revenue surged by 34.4% in Q1 2025, reaching $361.62 million, a significant increase from $269.12 million in the same quarter of 2024.

Earnings/Net Income
In Q1 2025, Remitly Global achieved earnings per share (EPS) of $0.06, a considerable improvement from a loss of $0.11 per share in Q1 2024, marking a 154.5% positive change. The company posted a net income of $11.35 million for the quarter, a 153.9% positive swing from a net loss of $21.08 million in the previous year. This EPS turnaround indicates a robust recovery and positive financial performance.

Price Action
The stock price of Remitly Global showed varied performance, declining by 0.52% during the latest trading day. However, it recorded a 4.30% increase over the past week and a 13.02% rise month-to-date.

Post Earnings Price Action Review
An analysis of the post-earnings price action indicates that investing in Remitly Global's shares following a quarter with revenue growth and holding for 30 days has resulted in suboptimal performance over the past five years. This strategy produced a return of -17.70%, significantly underperforming the benchmark return of 22.13%. The excess return stood at -39.84%, with a compound annual growth rate (CAGR) of -5.26%, reflecting considerable losses. Additionally, this approach exhibited a high maximum drawdown of -27.31% and a Sharpe ratio of -0.36, underscoring the substantial risk and negative returns associated with this investment strategy.

CEO Commentary
Matt Oppenheimer, Co-Founder and CEO, expressed optimism regarding Remitly's performance, noting a 34% revenue growth and surpassing 16% adjusted EBITDA margins, reflecting strong execution and a resilient business model. He emphasized the importance of customer trust and ongoing commitment, stating, “Our customers inspire us... their trust in Remitly are what drive our success.” Oppenheimer highlighted the strategic focus on diversifying the business, mentioning expansions into new corridors and product offerings. He conveyed confidence in navigating macroeconomic uncertainties, affirming, “We remain confident in the resilience of remittances” and underscoring the company's mission to transform lives through trusted financial services.

Guidance
For Q2 2025, Remitly expects revenue between $383 million and $385 million, reflecting a growth rate of 25% to 26%. The full-year revenue guidance is set between $1.574 billion and $1.587 billion, indicating similar growth expectations. Adjusted EBITDA for Q2 is projected to be between $45 million and $47 million, with a margin of 12%. The company anticipates continued growth from high-amount vendors and expects marketing investments to yield strong returns, while being prudent amid macro uncertainties.

Additional News
In recent developments, Remitly Global has been focusing on strategic expansions, including opening new payment corridors to enhance its global reach. The company is also strengthening its leadership team with the appointment of key executives to drive its growth strategy. Additionally, Remitly is exploring opportunities for potential partnerships to broaden its service offerings and improve customer experience, aligning with its mission to deliver trusted financial services across borders.