Remitly Global, Inc.

Good day, and thank you for standing by. Welcome to the Remitly fourth quarter and full year 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, David Beckel, Vice President of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us for Remitly's fourth quarter and full year 2025 earnings call. Joining me on the call today are Matt Oppenheimer, Co-Founder and Chief Executive Officer of Remitly, Sebastian Gunningham, incoming CEO of Remitly, 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.ramitli.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 the federal securities laws, including but not limited to statements regarding Ramitli'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 We remitly assume 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, adjusted EBITDA, and free cash flow in this call. These metrics exclude items such as stock-based compensation, payroll taxes related to stock-based compensation, 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, Dave, and thank you, everyone, for joining us today for our fourth quarter earnings call. Today's call is an important and especially exciting one for me, as we announce the appointment of and welcome Sebastian Gunningham as Remitly's new CEO. He could have not timed joining Remitly any better. We ended this strategically important year with incredible results, growing revenue by 29% and reaching adjusted EBITDA of $272 million in 2025, exceeding our guidance for both. This very strong finish to the year and our outlook for next year reflect the strength of our product, platform, team, and strategy and is the result of 15 years of hard work guided by a simple vision, that sending money and receiving money across borders should be reliable, fast, and fair. Prior to founding Remedy, I lived and worked on three continents and saw how painful and uncertain basic financial flows could be for people who move money across borders. That experience was the seed for our now broader vision, transform lives with trusted financial services that transcend borders. I'm reminded of the importance of that vision every time I connect with customers, like Sanjana, a customer since 2019 who joined Remitly through word of mouth during graduate school. She used Remitly initially to support her parents. Since then, she has lived in multiple countries, sending larger and larger amounts over time. and recently used Remitly to transfer $60,000 in one transaction to meet tax obligations. She is what we call a high amount sender, a customer category that grew send volumes more than 40% year over year in 2025. She says she prefers Remitly relative to banks and other competitors because of our competitive exchange rates and the speed of transfers. That vision Our unrelenting commitment to delivering positive and trusted customer outcomes and the power of our scaled platform have resulted in substantial growth over the years. Since just 2020, quarterly active users have grown by nearly five times and revenue has expanded more than six-fold. I'd like you to think about that for a moment. Just five years ago, Remitly was around $250 million in revenue. serving close to 2 million customers. We are now over 1.6 billion in revenue, serving more than 9 million customers. That momentum in our core money movement business continues, and with less than 4% share of the consumer TAM alone, there is significant headroom to expand further. Beyond money movement, our portfolio of new products provides an opportunity to grow and diversify revenue by creating stronger relationships with customers we serve. In my comments, I will share three key updates. First, I'll reflect on our achievements in 2025. Second, I'll share how this past year's accomplishments inform our strategic priorities for 2026. And finally, I will provide additional color on my decision to transition to the chairman role, how I will stay engaged in that capacity, and explain why Sebastian is the right leader for the company going forward. I will then turn the call over to Sebastian to more formally introduce himself. Starting with a reflection on the past year, 2025, put simply, was a phenomenal year for Remitly. Strategically and financially, it was one of the most pivotal years in Remitly's history, culminating in an investor day and the issuance of our medium-term outlook in which we expect to generate up to $3 billion of revenue $600 million of adjusted EBITDA by 2028. Equally importantly, it created the right moment to accelerate execution with a new leader. Our exceptional performance in 2025 was underpinned by three things. First, strength in our core money movement product. Second, early contributions from new products, which enable our long-term vision of becoming a leading and trusted provider of financial services that transcend borders. And third, efficiency gains and operating leverage, which drove record levels of adjusted EBITDA, GAAP profits, and free cash flow. Starting with core money movement, 2025 marked another year of rapid customer growth. We ended the year with more than 9 million quarterly active users, close to $75 billion of annual send volume, and more than $1.6 billion of revenue, growth of 29% year over year, continuing our track record of significant share gains amid what's one of the more challenging political and macroeconomic environments in recent memories. This growth was driven by an expansion of our reach with new customer categories, like high amount of senders, the strength of our platform, which allowed us to test, iterate, gather market intelligence, and leverage learnings faster than ever, and our continued focus on improving the customer experience. Our relentless attention to trust, reliability, speed, and simplicity in delay throw further increases in retention rates and customer lifetime value. Our platform also enabled meaningful progress in the launch and adoption of new products. This past year, we launched our Send Now, A Later product, Flex. Flex is our first product outside of global money movement to surpass 100,000 users, reflecting its strong appeal with a large portion of our customers as it bridges timing mismatches between earnings and the transfer needs among our customer population. We ended the year with around 120,000 total Flex users and saw solid double-digit quarter-on-quarter growth in users each quarter throughout the year. We also launched a product focused on businesses, Remitly Business, a global money movement product that allows small and medium-sized businesses to pay international contractors vendors, and employees. The focus for Remitly Business this past year was on developing and testing features that appeal first to micro businesses, while at the same time managing a product roadmap that enables us to scale quickly to address the roughly $20 trillion global money movement opportunity for small and medium-sized business customers. Early traction for Remitly Business is strong, as we ended the year with more than 15,000 business customers on the platform. The third major new product launch last year was our membership program, Remitly One, which ties all our new product offerings, liquidity, wallet, and card into a unified experience that rewards engagement and builds daily habits. Early adopters have shown strong demand for the send now, pay later feature as we continue to extend the availability and features of our wallet and card and refine other rewards and benefits. In 2025, we also delivered record levels of efficiency, profitability, and cash generation, significantly outperforming our expectations. Just one year ago, the business had a negative net income of $37 million, and today has an income of $68 million, with $41 million of that coming in the fourth quarter alone. Momentum and profitability is being driven by several reinforcing forces. First, AI-enabled operating enhancements are fundamentally improving both efficiency and velocity. For example, a recently upgraded fraud model leveraging AI and integrated data across our platform helped drive record low transaction losses as a percentage of send volume and lower sideline rates in Q4, contributing roughly $10 million of incremental RLTE dollars versus our forecast. And in product development, we have reduced developer time for product enhancements by combining processes that involve many data sources and human judgments into agent automated workflows, bringing up developer and engineering time for more strategic, higher impact projects. Second, scale continues to strengthen our flywheel, driving improved unit economics across transaction expenses and other major expense categories. Third, optimization in treasury operations, aided by AI models and Stablecoin, have driven continuous improvements to our FX costs. These factors, together with a disciplined approach to hiring, contributed to an expansion of adjusted EBITDA margin of more than 500 basis points year over year, enabled full year gap profitability for the first time in our history, and drove a tripling of free cash flow. We will carry this momentum. from 2025 into 2026, as we progress towards the three-year financial goals we laid out at Investor Day of up to $3 billion in revenue and $600 million in adjusted EBITDA. Slide six, presented at our Investor Day, is the strategic blueprint we will use to drive improvements in our platform and products, while ensuring we remain laser-focused on meeting the most critical cross-border financial needs of a growing group of customer categories.