Remitly Q3 revenue slightly beats estimates on send volume, active customer growth
Overview
Cross-border payments firm's Q3 revenue rose 22%, slightly beating analyst expectations
Adjusted EBITDA for Q3 beat analyst estimates, up 97% year over year
Company raised share repurchase authorization to $500 mln from $200 mln
Outlook
Remitly expects Q4 revenue between $531 mln and $533 mln
Company sees Q4 adjusted EBITDA between $104 mln and $106 mln
Remitly forecasts FY 2026 revenue of $1.989 bln to $1.991 bln
Result Drivers
SEND VOLUME GROWTH - Q3 send volume rose 25% year over year to $24.4 bln, supporting higher revenue
ACTIVE CUSTOMER INCREASE - Active customers grew 17% to 10.3 mln, contributing to revenue growth
PRODUCTIVITY FROM AI - CEO said productivity gains from AI enabled faster product launches and investment capacity
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Slight Beat* | $509.84 mln | $507.33 mln (10 Analysts) |
Q3 Net Income | $67.55 mln | ||
Q3 Adjusted EBITDA | Beat | $120.8 mln | $94.09 mln (10 Analysts) |
Q3 Operating Income | $69.4 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the business support services peer group is "buy"
Wall Street's median 12-month price target for Remitly Global, Inc. is $32.00, about 26.1% above its November 3 closing price of $25.38
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 29 three months ago
Reuters Recommended Reads
Nov 3 - Payments platform Block's Q3 profit beats estimates
Nov 3 - Fiserv Q3 adjusted EPS beats, revenue slightly tops estimates
Nov 2 - Paymentus Q3 revenue beats on higher billers and transaction volumes
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)