Update shared on 25 Nov 2025
Analysts have slightly lowered their average price target for Remitly Global to $23 from $32. They cite near-term uncertainties around revenue forecasts, new lending products, and broader market factors, despite the company's ongoing profitability and growth initiatives.
Analyst Commentary
Recent analyst notes highlight a blend of optimism and caution regarding Remitly Global's outlook. While the company's profitability and rapid scaling are recognized, certain challenges and risks are drawing attention. Below are key takeaways from both bullish and bearish perspectives.
Bullish Takeaways- Bullish analysts view Remitly as one of the strongest growth vehicles in the FinTech sector, citing its ability to scale faster and more profitably than many competitors.
- Efforts to diversify revenue streams and improve profitability could close the valuation gap with peers and potentially raise Remitly's market multiple.
- Several potential catalysts such as upcoming product launches, earnings announcements, and investor-focused events may drive positive re-rating in the second half of 2025.
- There are concerns about the accuracy of current revenue forecasts, with some analysts cautioning that projections for 2026 may be too high.
- The introduction of new lending products presents questions around long-term funding, unit economics, and potential credit risk that remain unresolved.
- Persistent news flow regarding immigration enforcement adds an external risk factor that could impact business operations and overall sentiment in the near term.
- Management’s recent communication suggests that upcoming results are in line with expectations rather than likely to surprise to the upside, which tempers near-term enthusiasm.
What's in the News
- Raised fiscal year 2025 guidance: Remitly now anticipates total revenue between $1.619 billion and $1.621 billion. This reflects a 28% year-over-year growth rate and an increased outlook for positive GAAP net income. (Key Developments)
- Confirmed fourth quarter 2025 guidance: The company expects total revenue in the range of $426 million to $428 million, with 21% to 22% growth and positive GAAP net income. (Key Developments)
- Launched Remitly One, a new all-in-one financial membership. The membership features Remitly Flex, Remitly Wallet, Remitly Card, cash back rewards, multi-currency accounts, a future credit-building option, and additional benefits. It is initially available to select U.S. customers. (Key Developments)
- Held Analyst/Investor Day to highlight recent guidance updates and ongoing product innovation. (Key Developments)
Valuation Changes
- The Fair Value estimate remains steady at $21.50 per share, indicating no change from previous assessments.
- The Discount Rate has decreased slightly, moving from 7.37% to 7.33%.
- The Revenue Growth projection is unchanged, holding at 17.56%.
- The Net Profit Margin also remains effectively flat, at roughly 6.46%.
- The Future P/E ratio has fallen modestly, from 40.18x to 38.67x.
Disclaimer
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