Remitly Q3 Revenue Rises 22% as Adjusted EBITDA Nearly Doubles

Remitly (RELY) reported record third-quarter revenue and adjusted EBITDA as transaction volume and active customers continued to grow, while improved network economics and operating discipline supported a sharp expansion in profitability. The cross-border payments company also forecast full-year 2026 revenue of approximately $1.99 billion and an adjusted EBITDA margin of 22%.

Revenue for the quarter ended September 30 rose 22% year over year to $509.8 million. Send volume increased 25% to $24.4 billion, while quarterly active customers grew 17% to 10.3 million.

Net income climbed to $67.6 million from $8.8 million a year earlier, an increase of 665%. Income from operations rose to $69.4 million from $11.8 million. Adjusted EBITDA, a non-GAAP measure, increased 97% to $120.8 million, with the corresponding margin expanding to 23.7% from 14.6%.

The company generated $93.0 million in operating cash flow and $87.8 million in free cash flow during the quarter. Free cash flow increased from $81.8 million a year earlier, although the margin declined to 17.2% from 19.5%.

Transaction economics support margin expansion

Transaction margin dollars rose 27% year over year to $347.4 million. Transaction margin increased by 312 basis points to 68.1%, reflecting lower transaction expenses from improved network economics and lower transaction losses as a percentage of send volume, according to the presentation.

Remitly also reported lower non-GAAP operating expenses as a percentage of revenue across marketing, customer support, technology and development, and general and administrative functions. The company attributed the efficiencies to disciplined marketing spending, more unpaid customer acquisition, lower customer contact rates, increased automation and AI-assisted productivity, and continued rationalization of its geographic footprint.

Management said newer customer cohorts are remaining active longer, sending larger amounts and costing less to serve, supporting higher send volume and transaction margin dollars per active customer over their lifetimes.

Consumer remittances remain the core growth engine

Remitly said approximately 84% of transfers were delivered in less than one minute during the quarter. The company launched its first combined send-and-receive app experience in Brazil and extended its network to another 11 million global accounts.

Large-transfer volume, defined as transactions of at least $5,000, grew 25% year over year. Volume outside transfers received in India increased 80%, which the company described as an acceleration from the second quarter.

Remitly also introduced Send and Request with Text, designed to make sending and requesting money available through a text-based experience and bring more recipients into its ecosystem. The company estimates that it supported more than 50 million relationships across senders and recipients over the past 12 months.

Business payments and card products expand

Remitly’s business payments operation surpassed 30,000 active business customers in the third quarter and recorded a second consecutive quarter of accelerating volume growth. The company added Send with Text and Bulk Send capabilities and opened its network to platform partners, signing Etsy as its first such partner.

The Remitly Global Card became generally available in the United States during the quarter. Remitly added SmartRate, eSIM and domestic send-and-receive features, enabling U.S. cardholders to transfer funds within the country. The company said paid cards were outperforming its prior offerings on adoption and retention, without providing specific figures.

Management positioned business payments and the card product as extensions of Remitly’s cross-border network that can diversify revenue beyond consumer remittances. It also said blockchain and stablecoins could serve as additional rails for transferring value, while Remitly would retain responsibility for the customer experience and final delivery.

2026 outlook

Remitly expects full-year 2026 revenue of $1.989 billion to $1.991 billion, representing 22% year-over-year growth. Adjusted EBITDA is projected at $441 million to $443 million, implying a 22% margin.

For the fourth quarter, management forecasts revenue of $531 million to $533 million, up 20% to 21% year over year. Adjusted EBITDA is expected to range from $104 million to $106 million, with a margin of about 20%. The company also anticipates year-over-year net income growth for both the fourth quarter and full year.

Remitly did not provide a reconciliation of forecast adjusted EBITDA to forecast GAAP net income, citing limited visibility and potential variability in items including income taxes, stock-based compensation and related payroll taxes.

The outlook remains subject to risks involving customer acquisition and retention, pricing, product development, profitability, third-party relationships, international expansion and regulatory licensing. The company also identified currency movements, inflation, geopolitical conditions, regulatory changes, cybersecurity, service availability, AI integration and its ability to attract and retain employees as potential sources of uncertainty.