Remitly Global, Inc. (RELY): A Bull Case Theory

We came across a bullish thesis on Remitly Global, Inc. on RS Capital’s Substack. In this article, we will summarize the bulls’ thesis on RELY. Remitly Global, Inc.'s share was trading at $16.33 as of August 5^th.

Remitly Global (RELY) is a digital financial services company specializing in cross-border remittances, enabling users to transfer money across 170+ countries through its mobile app and web platform. The company primarily serves immigrants and expatriates sending funds to their families, a large and growing market estimated at $2.0T and expected to reach $3.1T by 2032. RELY trades at an attractive EV/Revenue multiple of 2.2x, near historical lows, offering a wide margin of safety. Analysts remain bullish, with an average price target of $28, implying 65% upside, and institutional ownership is rising.

Growth has been strong, with a three-year revenue CAGR of 39% and Q1 revenue up 34% YoY to $362M, supported by 41% growth in send volume and 29% growth in active customers. The company demonstrates clear operating leverage, with gross margin improving to 60% from 51% in three years and adjusted EBITDA margin rising to 16% from negative levels. Free cash flow has surged, with LTM FCF of $365M (27% margin), a sharp turnaround from previous losses. RELY also maintains a strong balance sheet with $473M net cash, further reducing financial risk.

The business is founder-led, with meaningful insider ownership, and management has consistently raised guidance while beating revenue estimates in 13 of 15 quarters. While RELY enjoys a strong brand moat, competitive threats from PayPal, Wise, and others, as well as reliance on a single product, remain key risks. Overall, RELY’s attractive valuation and improving fundamentals make it a compelling watchlist candidate, pending deeper analysis of competitive durability.

Previously we covered a bullish thesis on Remitly Global, Inc. (RELY) by LongTermValue Research in April 2025, which highlighted strong growth, margin expansion, and potential for a major re-rating. The stock has depreciated approximately 24% since our coverage due to near-term headwinds. The thesis still stands as fundamentals remain robust. RS Capital shares a similar view but emphasizes valuation, cash flow strength, and net cash position.

Remitly Global, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 46 hedge fund portfolios held RELY at the end of the first quarter which was 35 in the previous quarter. While we acknowledge the potential of RELY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.