Remitly Global, Inc. (RELY Quick QuoteRELY - Free Report) raised its 2026 outlook following record third-quarter results, supported by higher transaction volumes, improving operating efficiency and expanding adoption of its cross-border payment services.

During the third-quarter 2026 earnings call, management emphasized artificial intelligence-driven productivity, business payments and new financial products. Executives also addressed investor concerns about customer growth, competitive pricing and the sustainability of profitability heading into 2027.

Remitly reported earnings of 48 cents per share, exceeding the Zacks Consensus Estimate of 33 cents. Revenues reached $509.8 million, surpassing the Zacks Consensus Estimate of $506.4 million by 0.70%.

Remitly Global, Inc. Price, Consensus and EPS Surprise

Remitly Global, Inc. price-consensus-eps-surprise-chart | Remitly Global, Inc. Quote

Remitly Raises Outlook on Stronger Operating Trends

Chief financial officer Vikas Mehta raised the company's 2026 revenue outlook to $1.989 billion-$1.991 billion, representing 22% year-over-year growth.

Adjusted EBITDA is now expected between $441 million and $443 million, reflecting an approximately 22% margin. Management attributed the improvement to stronger revenues, expense discipline and AI-related efficiencies.

For the fourth quarter, Remitly expects revenues of $531 million-$533 million and adjusted EBITDA of $104 million-$106 million. Mehta cautioned that transaction margins could moderate against a challenging year-ago comparison.

RELY Sees AI Driving Efficiency and Margins

Mehta highlighted AI-driven improvements across fraud detection, engineering and customer support. These efficiencies contributed to operating leverage across every major expense category.

Transaction margin dollars increased 27% to $347 million, while transaction margin reached 68%. Adjusted EBITDA climbed 97% to $120.8 million, representing a record margin of approximately 24%.

CEO Sebastian Gunningham emphasized that AI enables smaller teams to accelerate product development. During the quarter, Remitly delivered more than twice as many product updates and features as a year earlier without proportionate increases in resources.

Remitly Expands Beyond Consumer Remittances

Gunningham outlined three growth priorities: consumer remittances, business payments and the Remitly Global Card.

Remitly Business expanded to more than 30,000 users across 26 countries. Management highlighted its platform partnership with Etsy and plans to introduce payroll capabilities in 2027.

The Global Card is expanding across the United States, adding domestic payments alongside international transfers. Management expects newer businesses to contribute approximately 5% of revenues in 2026 and more than 10% by 2028, supporting its diversification strategy.

RELY Addresses Customer Growth and Pricing Questions

During the analyst Q&A, KeyBanc Capital Markets questioned whether slower active-customer growth reflected changing customer composition or temporary factors.

Mehta emphasized transaction value rather than customer counts alone. Active customers increased 17% to 10.3 million, while send volume rose 25% to $24.4 billion. Larger transfers and business customers supported record transaction activity per customer.

BofA Securities also questioned pricing competition and future investment priorities. Gunningham emphasized network scale, lower servicing costs and dynamic pricing capabilities. He maintained that AI-driven productivity provides flexibility to invest while protecting operating economics.

Remitly Signals More Measured Growth in 2027

Mehta provided an early 2027 revenue growth outlook in the high-teens range, with expectations toward its lower end.

Management cited tougher comparisons following U.S. remittance tax-related changes, foreign exchange volatility and geopolitical uncertainty. Adjusted EBITDA margins are expected to remain broadly consistent with 2026 levels.

During Q&A, JPMorgan questioned whether this outlook signaled increased investment spending. Mehta confirmed plans for normalized investment levels following earlier spending reassessments. He emphasized maintaining disciplined investment while expanding newer businesses.

RELY Prioritizes Profitable Growth and Capital Returns

Management maintained its focus on balancing revenue expansion, profitability and cash generation.

Free cash flow reached approximately $88 million in the quarter. Remitly also increased its share repurchase authorization from $200 million to $500 million, providing greater flexibility for capital returns.

RELY's Zacks Rank and Style Scores Signal Mixed Prospects

Remitly currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision outlook. Its Growth Score of A reflects favorable growth characteristics, while its Value Score of C indicates less compelling valuation characteristics. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Momentum Score of D reflects unfavorable price momentum. However, its VGM Score of A indicates an attractive combined assessment of value, growth and momentum factors, despite weaker individual signals.

The Zacks Rank can change as analysts revise earnings estimates following the latest quarterly results and updated management outlook. These indicators provide complementary perspectives rather than definitive predictions of future stock performance.