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

We came across a bullish thesis on Remitly Global, Inc. on 2x2 Capital’s Substack by Maaiz Khan. In this article, we will summarize the bulls’ thesis on RELY. Remitly Global, Inc.'s share was trading at $13.61 as of January 28th. RELY’s trailing P/E was 151.22 according to Yahoo Finance.

Remitly, a digital remittance platform, recently hosted an investor day that clarified key aspects of its business, addressing shareholder concerns around take rate compression and marketing spend. Despite perceptions of weakening metrics, Remitly’s cohort analysis and secondary KPIs demonstrate accelerating growth in its core business.

The company’s new product offerings, including Remitly Flex and Remitly Wallet, have seen rapid adoption, driving higher engagement, double the profitability compared to core remittances, and opening additional revenue streams that could contribute 5–10% of total revenue by 2028. Marginal EBITDA margins are expected to reach 30%, well above current 15% and competitive peers like Wise and Western Union.

Remitly differentiates itself by focusing on RLTE (Revenue Less Transaction Expense) rather than take rate, allowing it to grow gross profit even as pricing elasticity drives take rate compression. Active customers and RLTE per customer have consistently grown, supported by high marketing efficiency and disciplined customer acquisition strategies, resulting in durable and sticky revenue streams.

The company has captured only ~3% of the cross-border payments market and is live in less than half of the top 50 send countries, leaving substantial growth runway, including expansion into high-amount senders and the $20 trillion SMB remittance market. Customer retention and lifetime value continue to improve, highlighting the stickiness of the platform.

With management demonstrating accurate forecasting, strong operational discipline, and $470 million projected FCF by 2028 (17% yield), Remitly combines business quality, strong unit economics, and significant upside potential. Its conservative guidance, disciplined capital allocation, and ongoing share buybacks further underscore the investment case, making Remitly a compelling opportunity with durable growth and high free cash flow generation.

Previously, we covered a bullish thesis on Remitly Global, Inc. (RELY) by LongTermValue Research in April 2025, which highlighted the company’s rapid user growth, strong unit economics, and expanding margins in the cross-border remittance market. RELY’s stock price has depreciated by approximately 36.34% since our coverage due to broader market weakness. Maaiz Khan shares a similar thesis but emphasizes new product adoption and long-term free cash flow potential.

Remitly Global, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held RELY at the end of the third quarter which was 39 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.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.