Remitly Global, Inc. Common Stock 2026 Q2 Earnings Call

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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. 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.