Q2 2026 Remitly Global Inc Earnings Call Transcript
Key Points
- Record revenue and adjusted EBITDA, both above the high end of guidance, with revenue up 20% year-over-year to $495 million and adjusted EBITDA margin at 23%.
- Achieved a significant milestone of over 10 million quarterly active users, driven by record new customer additions and strong market share gains.
- Growth accelerators are gaining traction, with high-value sender volume up 37% year-over-year, Remitly Business exceeding expectations, and the receiver product generating revenue for the first time.
- AI-driven productivity gains are leading to significant cost efficiencies, including a first-ever year-over-year decline in G&A expense and improved technology and development expense leverage.
- Strong free cash flow generation of over $130 million in Q2, nearly tripling year-over-year, while maintaining disciplined share repurchases and managing dilution.
- Expanded network reach to 179 receive geographies and improved speed, with nearly 70% of funded transfers delivered in under twenty seconds, an all-time high.
- Launched the Remitly Global Card, a strategic all-in-one product for sending, spending, saving, and borrowing, which is expected to drive revenue diversification and deepen customer relationships.
- High-value sender volume growth softened in June due to fluctuations in the Indian rupee and short-term foreign currency mobilization measures by the Reserve Bank of India, though expected to normalize.
- The company expects transaction margins for the full year to be broadly in line with 2025 on a normalized basis, indicating limited near-term margin expansion in this area.
- Q3 adjusted EBITDA margin guidance of 18%-19% is lower than the 23% achieved in Q2, reflecting planned investments and a normalization of transaction losses.
- Marketing spend per active customer is expected to be slightly higher year-over-year in Q3, and faces a tough comparison in Q4 due to last year's focused holiday period spend.
- The growth accelerators are still early-stage and are only expected to comprise around 5% of total revenue in 2026, with a target of exceeding 10% by 2028, indicating a slow contribution to overall financials.
- Stock-based compensation, while lower year-over-year, is still expected to increase modestly in absolute terms for the full year 2026.
Good day and thank you for standing by. Welcome to the Remitly Second Quarter 2026 Earnings Conference Call. At this time, all participants are in a listen-only mode.
After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone.
You will then hear an automated message advising your hand is raised.
To withdraw your question, please press *11 again.
Please be advised that today's conference is being recorded. I would now like to hand the constitutes over to your first speaker today, David Buckel, head of investor relations. Please go ahead.
Good afternoon, and 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
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