Online money transfer platform Remitly (NASDAQ: RELY) reported Q2 CY2025 results exceeding 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 GAAP profit of $0.03 per share was significantly above analysts’ consensus estimates.

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“Q2 was a defining quarter for Remitly—we delivered exceptional financial performance, and achieved breakthrough innovation that positions us to shape the future of global financial services,” said Matt Oppenheimer, co-founder and Chief Executive Officer, Remitly.

Company Overview

With Amazon founder Jeff Bezos as an early investor, Remitly (NASDAQ: RELY) is an online platform that enables consumers to safely and quickly send money globally.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Luckily, Remitly’s sales grew at an incredible 38.5% compounded annual growth rate over the last three years. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers, a great starting point for our analysis.

This quarter, Remitly reported wonderful year-on-year revenue growth of 34.4%, and its $411.9 million of revenue exceeded Wall Street’s estimates by 7.2%. Company management is currently guiding for a 22.4% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 18.7% over the next 12 months, a deceleration versus the last three years. Despite the slowdown, this projection is healthy and indicates the market is baking in success for its products and services.

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Active Customers

Customer Growth

As a fintech company, Remitly generates revenue growth by increasing both the number of users on its platform and the number of transactions they execute.

Over the last two years, Remitly’s active customers, a key performance metric for the company, increased by 34.4% annually to 8.5 million in the latest quarter. This growth rate is among the fastest of any consumer internet business and indicates its offerings have significant traction.

In Q2, Remitly added 1.65 million active customers, leading to 24.1% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t accelerating customer growth just yet.

Revenue Per Customer

Average revenue per customer (ARPC) is a critical metric to track because it measures how much the company earns in fees from each user. ARPC also gives us unique insights into the average transaction size on Remitly’s platform and the company’s take rate, or "cut", on each transaction.

Remitly’s ARPC growth has been subpar over the last two years, averaging 1%. This isn’t great, but the increase in active customers is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Remitly tries boosting ARPC by taking a more aggressive approach to monetization, it’s unclear whether customers can continue growing at the current pace.

This quarter, Remitly’s ARPC clocked in at $48.45. It grew by 8.3% year on year, slower than its customer growth.

Key Takeaways from Remitly’s Q2 Results

We were impressed by how significantly Remitly blew past analysts’ revenue and EBITDA expectations this quarter. We were also glad its full-year revenue guidance was raised and its full-year EBITDA guidance trumped Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $16.47 immediately after reporting.

So do we think Remitly is an attractive buy at the current price? We think that the latest quarter is only one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.