Remitly Global, Inc. (NASDAQ:RELY) Is About To Turn The Corner

We feel now is a pretty good time to analyse Remitly Global, Inc.'s (NASDAQ:RELY) business as it appears the company may be on the cusp of a considerable accomplishment. Remitly Global, Inc. engages in the provision of digital financial services in the United States, Canada, and internationally. The US$4.3b market-cap company announced a latest loss of US$37m on 31 December 2024 for its most recent financial year result. As path to profitability is the topic on Remitly Global's investors mind, we've decided to gauge market sentiment. In this article, we will touch on the expectations for the company's growth and when analysts expect it to become profitable.

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According to the 9 industry analysts covering Remitly Global, the consensus is that breakeven is near. They expect the company to post a final loss in 2024, before turning a profit of US$5.2m in 2025. Therefore, the company is expected to breakeven roughly 12 months from now or less. We calculated the rate at which the company must grow to meet the consensus forecasts predicting breakeven within 12 months. It turns out an average annual growth rate of 62% is expected, which is extremely buoyant. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

We're not going to go through company-specific developments for Remitly Global given that this is a high-level summary, but, take into account that generally a high growth rate is not out of the ordinary, particularly when a company is in a period of investment.

View our latest analysis for Remitly Global

Before we wrap up, there’s one aspect worth mentioning. The company has managed its capital judiciously, 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:

This article is not intended to be a comprehensive analysis on Remitly Global, so if you are interested in understanding the company at a deeper level, take a look at Remitly Global's company page on Simply Wall St. We've also compiled a list of key aspects you should look at:

1. 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.
2. 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.
3. 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.