RELY Q2 Deep Dive: Product Expansion, New Memberships, and Stablecoin Initiatives Drive Growth

Online money transfer platform Remitly (NASDAQ:RELY) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 34.4% year on year to $411.9 million. Guidance for next quarter’s revenue was better than expected at $412 million at the midpoint, 1.4% above analysts’ estimates. Its non-GAAP profit of $0.19 per share was in line with analysts’ consensus estimates.

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StockStory’s Take

Remitly’s second quarter results were marked by robust customer growth and expanding product offerings, fueling the company’s ability to outperform market expectations. Management pointed to the successful launch of Remitly Business, early traction in new customer categories like high-value senders, and increased transaction sizes as central drivers of this performance. CEO Matt Oppenheimer highlighted that expanding use cases—especially among small businesses and freelancers—helped diversify revenue streams, while Chief Financial Officer Vikas Mehta noted that improved marketing efficiency and increased digital transactions supported margin gains. Management also acknowledged that a one-time loss from a sophisticated fraud incident temporarily impacted transaction losses, but emphasized that enhanced fraud detection systems are now in place.

Looking ahead, management’s updated guidance is underpinned by continued investment in new products and an expanding membership ecosystem. The upcoming launch of Remitly One—a membership platform integrating products like Remitly Wallet and Flex—is expected to increase daily engagement and customer retention. Oppenheimer stated, “Remitly One is the foundation of a new ecosystem,” while Mehta explained that additional marketing for these offerings is already accounted for in future expense forecasts. Management is also focused on broadening stablecoin functionality and expanding Remitly Business internationally, both viewed as key levers for future volume and margin expansion. The company anticipates durable customer behavior and strong returns from marketing investments to support ongoing revenue growth.

Key Insights from Management’s Remarks

Management attributed strong Q2 results to the scaling of new business products, early momentum in high-value sender categories, and operational improvements in marketing and technology.

• Remitly Business scaling up: Management credited the formal launch of Remitly Business in the U.S. for broadening the company’s addressable market, particularly by serving small businesses and freelancers who require cross-border payments. Early results showed average transaction sizes nearly double that of the core consumer segment, and retention signals are tracking ahead of expectations, with business customer lifetime value roughly six times higher than standard senders.
• Membership platform development: The upcoming Remitly One membership program, launching in September, is designed to unify cross-border payments and financial products like Remitly Wallet (multi-currency, including stablecoins) and Remitly Flex (send now, pay later). Management believes this initiative will encourage more frequent platform use, deeper customer relationships, and higher lifetime value.
• Stablecoin adoption initiatives: Remitly is beta-testing stablecoin storage and payout options, aiming to serve customers in inflationary economies needing a stable currency. The company is leveraging its compliance and money movement infrastructure to integrate stablecoins into wallets, cross-border payouts, and internal treasury operations for faster settlements and lower costs.
• AI-driven customer experience: The company’s Agentic AI platform, now integrated with WhatsApp, automates customer support and onboarding, particularly effective in converting customers from offline to online remittance channels. Management highlighted that these AI tools have improved satisfaction and reduced operating costs, with conversion rates highest among previously offline users.
• Geographic and customer mix diversification: Remitly reported stronger-than-average growth in both U.S. and international corridors outside its major receive markets (India, Philippines, and Mexico). The company’s focused marketing and expanded product set allowed it to outpace industry growth in key regions like Mexico, and drive increased transaction volume from high-amount senders.

Drivers of Future Performance

Remitly’s outlook is driven by ongoing investment in product innovation, expanded marketing for new offerings, and strategic international expansion.

• Product and membership launches: The launch of Remitly One, including Wallet and Flex, is expected to deepen customer engagement and increase retention. Management anticipates that membership benefits will drive ongoing usage and open new monetization channels, while supporting broader adoption of multicurrency and stablecoin solutions.
• International and business growth: Expansion of Remitly Business into markets such as the U.K., Canada, Australia, and the EU is targeted to capture share from underserved small and micro-businesses. Management expects higher transaction sizes and improved retention in these segments to support volume and margin growth, even as competitive pricing is used to acquire new high-value customers.
• AI and stablecoin initiatives: Continued rollout of Agentic AI and stablecoin products is intended to modernize the remittance experience and streamline operations. While stablecoin adoption is still ramping, management believes it will address customer needs in volatile markets and generate incremental revenue opportunities. The company is also proactively managing risks associated with fraud and regulatory changes impacting cross-border payments.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) the initial uptake and engagement metrics for Remitly One and its impact on customer retention, (2) the pace of international expansion for Remitly Business and subsequent growth in transaction size and customer mix, and (3) progress in stablecoin adoption and AI-driven customer onboarding. The company’s ability to manage fraud risks and sustain marketing efficiency will also be critical milestones.

Remitly currently trades at $18.80, up from $16.50 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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