Stock Analysis
- United States
- /
- Diversified Financial
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- NasdaqGS:RELY
Loss-Making Remitly Global, Inc. (NASDAQ:RELY) Expected To Breakeven In The Medium-Term
Remitly Global, Inc. (NASDAQ:RELY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Remitly Global, Inc. provides digital financial services for immigrants, their families, and other citizens in the United States, Canada, and internationally. With the latest financial year loss of US$118m and a trailing-twelve-month loss of US$66m, the US$4.1b market-cap company alleviated its loss by moving closer towards its target of breakeven. The most pressing concern for investors is Remitly Global's path to profitability – when will it breakeven? In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.
See our latest analysis for Remitly Global
Remitly Global is bordering on breakeven, according to the 9 American Diversified Financial analysts. They expect the company to post a final loss in 2025, before turning a profit of US$61m in 2026. So, the company is predicted to breakeven approximately 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 67% is expected, which is rather optimistic! Should the business grow at a slower rate, it will become profitable at a later date than expected.
Given this is a high-level overview, we won’t go into details of Remitly Global's upcoming projects, though, bear in mind that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.
One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 0.4% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.
Next Steps:
There are key fundamentals of Remitly Global which are not covered in this article, but we must stress again that this is merely a basic overview. For a more comprehensive look at Remitly Global, take a look at Remitly Global's company page on Simply Wall St. We've also compiled a list of relevant factors you should look at:
- Historical Track Record: What has Remitly Global's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
- Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Remitly Global's board and the CEO’s background.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
About NasdaqGS:RELY
Remitly Global
Provides digital financial services for immigrants, their families, and other citizens in the United States, Canada, and internationally.