Key Points
Remitly’s business is booming as more people initiate cross-border money transfers.
Its stock still looks reasonably valued, but it could face existential challenges soon.
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Remitly (NASDAQ: RELY), a provider of cross-border remittance services, has been one of the hottest fintech stocks of 2026. It's rallied more than 50% year to date, driven by a big first-quarter earnings beat in May and its subsequent inclusion in the S&P SmallCap 600.
Could Remitly be one of the best long-term compounding plays in the booming cross-border payments market? Or is its high-flying stock getting too hot to handle?
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How fast is Remitly growing?
Remitly makes money by buying currencies at cheaper "interbank" rates on the wholesale market, then selling them to its customers at higher prices on their outgoing remittances.
From 2021 to 2025, Remitly's year-end active customer base expanded from 2.8 million to 9.3 million, its send volume (the total value of all payments remitted) increased from $20.4 billion to $74.9 billion, and its annual revenue surged from $459 million to $1.64 billion.
Its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also turned positive in 2023, and grew 34% to $135 million in 2024 and 29% to $272 million in 2025. It even turned profitable on a generally accepted accounting principles (GAAP) basis in 2025.
From 2025 to 2028, analysts expect Remitly's revenue to grow at a 19% CAGR to $2.76 billion, its adjusted EBITDA to rise at 30% CAGR to $603 million, and its net profit to increase at a 54% CAGR to $250 million. That growth should be driven by its overseas expansion, its Flex (send now, pay later) platform, its Remity Business platform for smaller businesses, and its integration into Meta's (NASDAQ: META) WhatsApp for direct remittances.
To boost margins, it's capturing higher-value customers and automating customer care with AI tools. Last December, it declared it would stick with its "Rule of 40" goal -- which aims to have the sum of its 3-year revenue CAGR and adjusted EBITDA margins exceed 40% -- through 2028. That percentage came in at 46% (29% growth plus a 17% margin) in 2025.
Is Remitly a great cross-border payment play?
With an enterprise value of $3.34 billion, Remitly's stock still looks undervalued at less than nine times this year's adjusted EBITDA. According to Fortune Business Insights, the global remittance market could continue growing at a 9.4% CAGR from 2026 to 2034.
However, stablecoins -- which are directly pegged to fiat currencies and can be transferred faster and more cheaply than conventional interbank transfers -- pose a long-term threat to Remitly.
Remitly is still dominating the "last mile" in remittances through its familiar app, but that could change as other fintech platforms integrate stablecoins in their apps. So while Remitly is still a promising growth stock, investors shouldn't overlook its existential challenges.
Should you buy stock in Remitly Global right now?
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Leo Sun has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
