Remitly (RELY 5.25%), a digitally native provider of cross-border remittance services, went public in Sept. 2021. At the time, it lacked a clear path to profitability. But in 2023, its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) turned positive.
In 2025, it turned profitable by generally accepted accounting principles (GAAP). Its rising profits led to its inclusion in the S&P SmallCap 600 index this May.
From 2025 to 2028, analysts expect Remitly's revenue to grow at a 19% CAGR, as its adjusted EBITDA and GAAP EPS increase at CAGRs of 30% and 54%, respectively. Let's see why Remitly's profits are soaring -- and if it can maintain that momentum for the foreseeable future.
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Why are Remitly's profits rising?
Remitly generates most of its revenue by buying currencies at cheaper "interbank" rates and selling them back to its users at a markup. It also charges transaction fees for each transfer.
Even with those markups, which kept its take rate above 2%, Remitly couldn't initially turn a profit because its operating costs were too high. But as it gained more users, economies of scale kicked in, diluting those expenses. From 2021 to 2025, its year-end active customer base expanded from 2.8 million to 9.3 million, its send volume jumped from $20.4 billion to $74.9 billion, and its annual revenue more than tripled from $459 million to $1.64 billion.
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Yet that was only half the story. As Remitly expanded, it prioritized growth among higher-value senders, integrated its remittance services into Meta's WhatsApp, and expanded its ecosystem through its Flex (send now, pay later) and Business platforms. It also used AI-powered fraud-detection tools to minimize fraud across its platform and replaced most of its customer service teams with automated systems.
But can Remitly maintain that momentum?
Remitly's business is firing on all cylinders, but it faces plenty of competition from traditional money transfer leaders like Western Union and MoneyGram. Stablecoins like Tether and USD Coin, which enable cross-border transfers at much faster, cheaper rates, could also pose a long-term threat.
However, Remity's existing partnerships with banks, stores, and popular apps could still give it a last-mile advantage against those competitors in cross-border payments. Its low enterprise value of $3.6 billion could also make it a tempting takeover target for a bigger fintech company.
If Remitly maintains its current momentum, expands into more countries, and gains millions of new users as it rolls out new services, its revenue and profits will continue to rise. If you expect that to happen, then it's still a screaming bargain at nine times this year's adjusted EBITDA.
