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

We came across a bullish thesis on Remitly Global, Inc. on Paris Analyst’s Substack. In this article, we will summarize the bulls’ thesis on RELY. Remitly Global, Inc. 's share was trading at $19.68 as of September 4^th. RELY’s trailing P/E was 324.33 according to Yahoo Finance.

Remitly has established itself as the leading digital remittance platform, transforming what was once a cash-heavy business into a high-retention, annuity-like model. By earning customer trust, Remitly ensures repeat usage, with an average customer sending 16 transfers annually and retention stabilizing at 85%-90%. The company is growing revenue at 34% YTD as of Q2 2025 and is on track for 25%+ free cash flow margins, yet trades at less than 8x estimated 2027 unlevered free cash flow, reflecting market concerns around stablecoins and immigration regulation—risks that appear largely overblown.

Remitly’s competitive advantage lies in its scaled marketing engine, efficient customer acquisition, and product-led retention. Its digital-first approach, including debit card pay-ins and one-click repeat sends, provides a superior user experience compared with legacy cash-based networks like Western Union and MoneyGram, which face structural inefficiencies and flat-to-declining app engagement. Digital remittance specialists are taking share from physical agents, and Remitly leads with both reach and retention, demonstrating increasing returns to marketing scale while maintaining a <12-month gross profit payback on customer acquisition.

Stablecoins, while a potential settlement infrastructure upgrade, remain a minor consumer threat, as adoption is nascent and regulatory and banking resistance will slow mainstream wallet usage. Likewise, immigration policy shifts favor digital flows, with the recent legislative framework penalizing cash transfers while encouraging app-based remittances.

With continued product innovation, strong economics of trust, convenience, and retention, and a clear path to high-margin free cash flow, Remitly presents a compelling risk/reward setup. The stock is attractively priced given its category leadership, durable growth, and long-term potential to generate substantial cumulative free cash flow, positioning it as a dominant winner in the digital remittance market.

Previously we covered a bullish thesis on Remitly Global, Inc. by LongTermValue Research in April 2025, which highlighted the company’s strong revenue growth, high retention, and expanding EBITDA margins. The company's stock price has depreciated approximately 7.9% since our coverage due to near-term market concerns. The thesis still stands as Remitly scales efficiently. Paris Analyst shares a similar view but emphasizes stable customer trust and limited stablecoin risk.

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.