Remitly Global, Inc.

Good day and thank you for standing by. Welcome to Remitly's second quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Love Sota, Investor Relations. Please go ahead.

Thank you. Good afternoon, and thank you for joining us for Remitly's second quarter 2025 earnings call. Joining me on the call today are Matt Oppenheimer, co-founder and chief executive officer of Remitly, and Vikas Mehta, chief financial officer. Results and additional management commentary are available in the earnings release and presentation slides, which can be found at ir.femetly.com. Please note that this call will be simultaneously webcast on the Investor Relations website. Before we start, I would like to remind you that we will be making forward-looking statements within the meaning of federal securities laws. including but not limited to statements regarding Remitly's future financial results and management's expectations and plans. These statements are neither promises nor guarantees and involve risks and uncertainties that may cause actual results to vary materially from those presented here. You should not place undue reliance on any forward-looking statements. Please refer to the earnings release, and SEC filings for more information regarding the risk factors that may affect results. Any forward-looking statements made in this conference call, including responses to your questions, are based on current expectations as of today and Remitly assumes no obligation to update or revise them, whether as a result of new developments or otherwise except as required by law. The following presentation contains non-GAAP financial measures. We will reference non-GAAP operating expenses and adjust the EBITDA in this call. These metrics exclude items such as stock-based compensation, payroll taxes related to stock-based compensation, our pledge 1% contribution, integration, restructuring, and other costs, and other income and expense. For reconciliation of non-GAAP financial measures to the most directly comparable GAAP metric, please see the earnings press release and the appendix to the earnings presentation, which are available on the IR section of our website. Now, I will turn the call over to Matt to begin.

Thank you, Lev, and thank you to everyone for joining us for our second quarter earnings call. Q2 was a defining quarter for Remitly. Not only did we deliver exceptional financial performance, but we also achieved breakthrough product innovation. Picasso will cover Remitly's exceptional financial performance in detail, so I will use my time today to focus on the new products, services, and experiences that we have introduced into the market in the first half of the year. These innovations are changing customers' lives, expanding our TAM, and further fortifying our business model, positioning us to shape the future of global financial services. Our vision continues to be clear, to transform lives with trusted financial services that transcend borders. With over 8.5 million customers, we are no longer simply enabling cross-border peer-to-peer payments. We are becoming the modern financial platform for globally connected people and businesses. Today, I am excited to share the momentum behind our product innovation engine and why Q2 represents an inflection point for Remitly across multiple dimensions. I will highlight four core focus areas of product innovation in 2025 shown on slide five. First, I'll start with our product momentum on Remitly business. Second, I am excited to introduce Remitly One, a first of its kind membership for customers with cross-border needs. Third, I will share our innovative stablecoin initiatives. And fourth, I'll showcase our approach to agentic AI to create a more personalized, frictionless experience. In all these areas, we are building on our existing strengths, as well as leveraging new technology innovations to further strengthen our lead. Let's dive deeper into each one, starting with Remitly Business. With Remitly Business, we expanded our TAM more than tenfold, from approximately $2 trillion to over $22 trillion, as we aim to serve the 1.5 billion freelancers and millions of small businesses increasingly paying international contractors, vendors, and employees. We are starting with small businesses and freelancers in this category who primarily need reliable, fast, and affordable service. something that Remitly does uniquely well. Formerly launched in the U.S. in Q2, Remitly business is already emerging as an engine of growth. Built on our proven, differentiated money movement infrastructure, it delivers the same intuitive click-and-send experience our consumer customers love, now tailored for the trust, control, and compliance standards small business requires. We are excited about upcoming launches in the UK, Canada, Australia, and the EU alongside vertical-specific onboarding flows, which will further accelerate our growth and broaden our global reach. With fast onboarding, automated eKYB, and instant reach to over 100 countries, businesses can go live in minutes. Our transparent, competitive pricing is differentiated, while built-in fraud detection and real-time attestation help ensure transactions are secure. We're also rolling out additional features like bulk and recurring payouts, payment requests, and streamlined reconciliation to simplify operations and support growth at scale. We are seeing strong early momentum and have onboarded thousands of businesses in Q2. Average transaction sizes are nearly twice as large as those of our core consumers. Thus far, retention signals are also tracking ahead of our expectations. leading to business customer lifetime value roughly six times higher than consumer senders. We are confident that Remitly Business, anchored by an unrivaled customer experience and best-in-class pricing, will be a contributor to sustainable revenue growth, margin expansion, and long-term shareholder value. Looking ahead, Remitly is becoming the platform of choice not only for individuals, but for the millions of businesses powering the borderless economy. Moving to the second area, I am thrilled to give you a preview of Remitly One, a new membership program uniquely targeting cross-border needs. Remitly One will launch in September. With Remitly One, we are announcing not just another set of features, we are launching a bold new relationship. For the first time, customers can become members of a platform customized to address their cross-border financial needs. Remit We Want is our first ever membership program, designed not around transactions, but around customer relationships. It's a single, seamless membership that brings together cross-border payments with financial products to store, spend, grow your funds, get liquidity, and other value-added services, all through a consistent and optimized experience. Remitly One will be anchored at launch with two initial products, Remitly Wallet and Remitly Flex. Wallet and Flex are available standalone to customers today, but Remitly One members will get unique benefits with their membership. Let me double-click into Remitly Wallet and Remitly Flex. Remitly Wallet will serve as a secure multi-currency store of value for both fiat and stablecoins, designed to meet the needs of our customers. Fully integrated into our platform, the wallet will allow customers to manage balances, plan payments, and engage with their finances in a centralized, trusted environment. It will provide access to both fiat currencies and stablecoins, offering a safe, flexible way to hold and use funds across borders. Early customer feedback in the US shows strong promise with the Remitly Wallet's potential as a daily financial companion. Remitly One members will get access to special benefits that are like interest, such as cash rewards on balances, as well as other benefits like cash back on transactions and dollar credits for using their wallet. Remitly Flex is our flexible funding solution offering short-term liquidity, allowing eligible customers to send now, pay later. This structure provides an essential safety net for time-sensitive payments, like medical emergencies or tuition, without any interest or late fees associated with traditional lending. Importantly, Flex is powered by our proprietary transaction and other customer data, giving us a unique real-time view into customer behavior, cross-border payment history, and financial patterns. This allows us to consider risk responsibly and without friction in customer categories where others cannot. Remitly One members will get access to special benefits like flexible repayment schedules, free instant funding, and more. We have seen strong early demand and good repayment history for Flex, as well as powerful upsell to membership for the additional benefit. Remitly One Its benefits and the underlying offerings like Wallet and Flex will be integrated into the Remitly experience. Accessible from the same app are millions of customers already trust. It will be a unified experience that will scale with their needs. No learning curve, just more value every day. And this is just the beginning. Remitly One is the foundation of a new ecosystem, one where membership drives daily engagement, emotional loyalty, and long-term financial growth. we will continue to add an expanding set of benefits, all designed for their lives when they need them most. We look forward to showcasing Remitly One, including customer use cases and demos, as well as what comes next at our upcoming product launch event on September 9th, our first of a signature series we are starting called Remitly Reimagine. Now, moving on to the third area stable coins the toughest challenge for stablecoin users is ensuring secure on and off ramps to fiat currency our global money movement network regulatory licenses and deep compliance expertise uniquely position us to integrate stablecoin capabilities at scale our stablecoin initiatives position us to lead the next wave of modernization in cross-border financial infrastructure through three specific initiatives. First, customers will have the option to store and manage stable coin balances along with traditional fiat in their Remitly wallet. This will especially be beneficial for customers in inflationary economies with high currency fluctuations. We are in beta testing and plan to launch this in September working with Circle, a financial technology company that is accelerating stablecoin adoption. Second, customers will be able to receive cross-border payments in stablecoin-compatible wallets, seamlessly rooted from our established fiat infrastructure. One of Remitly's core differentiators is our highly scaled fiat network, which enables instant cross-border transfers across 170 countries. We are excited to extend this network by integrating blockchain rails, starting with stablecoin disbursement. This innovation enhances both our payout flexibility and global reach. The rollout is also in beta and plan to launch in September in partnership with Bridge, a Stripe company. Third, for internal efficiencies, We've integrated tokenized U.S. dollar stablecoins like USDC into internal treasury operations to fund liquidity across global markets. This allows near instant settlement across time zones and weekends, which will enable quicker transaction processing, greater reliability, and lower costs when customers send money with us. Together, these stablecoin initiatives enable us to modernize cross-border money movements firmly positioning us at the forefront of stablecoin innovation in cross-border payments. Following the stablecoin update, the fourth area that I am excited to showcase is our approach to agentic AI. At Remitly, we believe the next frontier of digital financial services will be intelligent, conversational, and personalized. That's why we are building an agentic AI platform for this future. purpose-built for customers who use cross-border financial services. Today, our agentic AI-enabled support experience handles nearly 2 million real-time interactions with customers, resolving issues, predicting intent, and adapting contextually, all while reducing cost to serve and increasing satisfaction. We do not view AI merely as an efficiency unlock. We believe AI helps us generate revenue, and bring new customers into our platform. As an example, based on industry data, a significant portion of cross-border transactions in the US to Latin America markets are still conducted offline. Our agentic AI innovations, including remotely on WhatsApp, will enable us to drive this secular offline to online shift. This agentic AI platform is embedded directly into WhatsApp, the most popular messaging app in the world with nearly 3 billion customers, and enhances customer acquisition and onboarding. With Remitly on WhatsApp, we've reimagined the cross-border payment experience as a simple conversational flow, spend money, check exchange rates, get help, all via WhatsApp. Our vision is to make Remitly trusted, embedded, and intelligent wherever customers are. And it's working. Conversion rates for Remitly on WhatsApp are highest among customers who were previously transacting offline, proving that conversational AI can be a powerful on-ramp to digital inclusion. Remitly on WhatsApp is already available to our U.S. and Spanish customers, sending to 11 countries, including Mexico and India. Our platform innovation goes beyond WhatsApp. The same agentic AI-powered experience can be scaled across any conversational interface where our customers live and communicate, whether that's Meta's Messenger, which is launching soon, conversational platforms that are emerging, or platforms that haven't even emerged yet. In a world where financial institutions are still adapting to basic automation, we are not only constantly looking for ways to stay ahead of the curve, we are helping define it. With Ingentic AI, Remitly is building not just a better interface, but a smarter relationship, one that makes cross-border finance feel as seamless as chatting with a friend. And we are just getting started. In closing, our vision at Remitly remains bold and unwavering to transform lives with trusted financial services that transcend borders. With over 8.5 million customers, and a platform built for both individuals and businesses. We are a global fintech platform purpose-built for the digital age, meeting the full financial needs of global citizens and businesses who have long been underserved by legacy systems. We are doing this leveraging the latest technology, innovating with AI and stablecoins to deliver intuitive, agentic, and trusted financial experiences. From enabling agentic AI for cross-border payments to the launch of RemitlyOne, Wallet, Flex, and our business product, we are not just expanding our platform, we are creating entirely new categories of digital financial engagement. The thing that's most exciting is that we can uniquely do this given our scale. We've talked about our flywheel in the past, and our flywheel is working. We are delivering on our commitment to profitable growth, investing in high ROI opportunities that expand our TAM and extend our advantage. And we are doing so while accelerating innovation, expanding into new customer categories, and unlocking massive TAM. We are proud of what we have built. We are energized about what lies ahead, and we are just getting started. Now, I'll hand it over to Kaas to walk through our financial and operational highlights from the quarter.