Remitly Global, Inc.

Remitly Global, Inc. provides digital cross-border money transfers and related financial services for consumers and businesses. It earns revenue from transaction fees and currency-conversion spreads. The Seattle-based company trades as RELY on the Nasdaq Global Select Market.

Quarterly financial record

Adjusted EBITDA removes interest, tax, depreciation, amortization, stock-based pay and selected other costs. Transaction margin is revenue less transaction expenses, divided by revenue. Free cash flow is operating cash less physical capital spending and capitalized internal-use software costs.

Q3 send volume was $24.4 billion, up 25%, and active customers reached 10.3 million. Marketing grew more slowly than sales, while technology and development spending was roughly flat. The transaction-loss provision fell to $21.3 million from $25.0 million, helping transaction margin alongside the economics of the network.

Earlier promises and the remaining quarter

The August forecast called for Q3 revenue of $505 million to $507 million and adjusted EBITDA of $92 million to $94 million. Actual revenue was $509.8 million and adjusted EBITDA was $120.8 million.

The Q3 midpoint beat was $27.8 million, compared with a $29.5 million increase in the annual midpoint. For Q4, the company expects revenue of $531 million to $533 million and adjusted EBITDA of $104 million to $106 million. The latter would be below Q3 but above Q4 2025's $88.6 million.

The Q2 net-profit peak included a $140.6 million discrete tax benefit from releasing a U.S. deferred-tax valuation allowance. Q3 included a $4.1 million expense adjusting that release. These changes affect the comparison of net income across quarters.

Cash flow and customer funding

Nine-month operating cash flow was $309.5 million versus $225.2 million a year earlier. Free cash flow was $290.6 million versus $192.8 million. Quarterly growth was slower: operating cash increased about 4% and free cash flow about 7%.

Cash activity for customer-fund assets and liabilities is presented in financing cash flow. The prior-year comparison has been conformed to the same basis. This activity added $71.3 million of financing cash in the first nine months, versus a $49.7 million outflow a year earlier.

At September 30, cash and equivalents were $669.1 million, with $2.1 million of restricted cash reported separately. The balance sheet also contained $287.4 million of prefunding placed with payout partners. Some jurisdictions require eligible liquid assets to match customer balances that have not yet been disbursed.

Borrowing capacity and capital returns

The secured revolver was undrawn at September 30, but it is used frequently to bridge customer payments. Borrowings outstanding during the first nine months lasted about four days on average. September available capacity was $468.5 million after $81.5 million of standby letters of credit.

An October 26 amendment increased the facility commitment from $550 million to $1 billion, including a $400 million letter-of-credit sublimit. The facility matures in June 2030. Separate short-term foreign debt was $2.9 million at September 30, and operating-lease liabilities totaled $34.1 million.

On October 28, the board added $300 million to the share-repurchase program, taking its aggregate authorization to $500 million. The increase was announced with the November results. Cash spent buying shares in the first nine months was $80.0 million. Period-end shares still rose to 214.0 million from 210.6 million at December 31, reflecting issuance as well as repurchases.

Regulatory development

Australia's financial-intelligence regulator, AUSTRAC, is investigating the local subsidiary's compliance with anti-money-laundering and counter-terrorism-financing rules. The matter is ongoing, and Remitly cannot yet estimate a possible loss.