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DATE

Wednesday, Aug. 5, 2026 at 5 p.m. ET

CALL PARTICIPANTS

• Head of Investor Relations - David Beckel
• Chief Executive Officer - Sebastian J. Gunningham
• Chief Financial Officer - Vikas Mehta

TAKEAWAYS

• Revenue -- $495.2 million, increasing 20% year over year driven by regulatory shifts toward digital remittances and record customer acquisition.
• Adjusted EBITDA -- $114.7 million, representing a 79% increase year over year and a 23% margin.
• Quarterly Active Users -- 10.2 million, growing 20% year over year and surpassing the 10 million milestone for the first time.
• Send Volume -- $23.5 billion, representing 27% year-over-year growth due to momentum in core services and growth accelerators.
• Send Volume Per Active Customer -- $2,300, increasing 6% year over year driven by high-value senders and larger average transaction sizes.
• Net Income -- $205.9 million, which included a $140.6 million release of a tax valuation allowance.
• Transaction Margin -- 67%, improving 35 basis points year over year reflecting improved partner economics and routing optimization.
• Free Cash Flow -- $130.1 million, nearly tripling year over year aided by operating leverage and favorable working capital.
• High-Value Sender Volume -- growing 37% year over year and accounting for a 70-basis-point increase in total mix.
• US-Mexico Corridor Volume -- more than doubling for high-value senders following the removal of unnecessary customer actions and raising of send limits.
• Remitly for Business Users -- 25,000, with sequential growth acceleration in both volume and revenue during the quarter.
• Non-GAAP Marketing Expense -- $96.5 million, or 19.5% of revenue, including investments in brand campaigns and World Cup promotions.
• Non-GAAP Technology and Development Expense -- $55.5 million, improving 175 basis points as a percentage of revenue due to AI-driven labor productivity.
• Non-GAAP General and Administrative Expense -- $41.0 million, representing the first year-over-year decline for this category since the company's initial public offering.
• Non-GAAP Customer Support and Operations Expense -- $26.2 million, representing 5.3% of revenue and improving 68 basis points year over year.
• Share Repurchases -- $21 million in the second quarter, bringing the year-to-date total to almost 4 million shares.
• Network Speed -- 70% of global funded transfers delivered in under 20 seconds, representing an all-time high.
• Full Year 2026 Revenue Guidance -- $1.978 billion to $1.988 billion, representing expected growth of 21% to 22%.
• Full Year 2026 Adjusted EBITDA Guidance -- $410 million to $415 million, reflecting an expansion of over 400 basis points year over year.
• Third Quarter 2026 Revenue Guidance -- $505 million to $507 million, representing a growth rate of 20% to 21%.
• Third Quarter 2026 Adjusted EBITDA Guidance -- $92 million to $94 million, representing a margin of 18% to 19%.
• Provision for Transaction Losses -- $24.5 million, or 10.4 basis points of send volume, benefiting from AI-driven fraud detection models.
• Network Reach -- 179 receive geographies, with 32 of these countries now enabled for both sending and receiving funds.
• LTV to CAC Ratio -- approximately 6x, with a payback period remaining under 12 months.
• Digital Receive Mix -- contributing to improved network economics and a 51-basis-point improvement in transaction expenses excluding provisions.

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RISKS

• Mehta stated, "This quarter, high-value sender volume growth was softer in June due to fluctuations in the Indian rupee relative to primary send currencies, as well as short term foreign currency mobilization measures announced by the Reserve Bank of India," noting that trends are expected to normalize over the year.

SUMMARY

Management reported that **Remitly Global, Inc.** (RELY +2.63%) achieved record financial results while surpassing 10 million quarterly active users. The company highlighted three strategic pillars focusing on network breadth, operating scale, and structural cost discipline. Strategic initiatives included the launch of the Remitly Global Card and expansion of the receiver-focused products to 130 countries. The company emphasized its use of artificial intelligence to drive productivity and maintain headcount discipline while reinvesting in growth accelerators such as high-value senders and business services.

• CEO Gunningham stated, "Fewer layers mean clearer ownership and faster decisions," while describing a transition to a flatter organizational structure.
• Management confirmed that nearly 70% of funded transfers are delivered in under 20 seconds, which Gunningham indicated was an all-time high for platform reliability.
• The company joined the OpenUSD stablecoin consortium as a founding member, which management indicated could reduce pay-in settlement times by up to one day.
• The Remitly Global Card was launched to integrate borrowing, spending, and saving features, providing customers with direct deposit and global ATM access.
• CFO Mehta projected that growth accelerators are on track to comprise around 5% of total revenue in 2026 and exceed 10% by 2028.
• Gunningham noted that AI-driven productivity has allowed the company to hold headcount below original plans while testing new growth initiatives.
• The company expanded its regulatory foundation by receiving a stored value facilities license in the UAE and an electronic money institution license in the UK.

INDUSTRY GLOSSARY

• CoreSend: Remitly's primary consumer-to-consumer international money transfer service.
• QAU: Quarterly Active Users; customers who have successfully sent at least one transfer using the platform in a given quarter.
• RLTE: Revenue Less Transaction Expense; a non-GAAP metric formerly used by the company, now replaced by the term transaction margin.
• OpenUSD: A stablecoin consortium focused on utilizing blockchain for faster settlement, of which Remitly is a founding member.
• USDC: A digital stablecoin pegged to the value of the U.S. dollar.
• EMI License: Electronic Money Institution license; a regulatory authorization allowing a company to issue electronic money and provide payment services.
• FedNow: A real-time payment service provided by the Federal Reserve in the United States.
• LTV to CAC Ratio: Lifetime Value to Customer Acquisition Cost; a metric evaluating long-term customer profitability relative to the cost of acquisition.
• Skip the Line: A specific marketing campaign by Remitly targeting customers seeking alternatives to cash-based remittance methods.

Full Conference Call Transcript

Operator: Good day, and thank you for standing by. Welcome to the Remitly Second Quarter 26 Earnings Conference Call. At this time, all participants are in a listen-only mode. There will be a Q&A session. To ask a question during the session, will need to press *11 on your telephone. You will then hear an automated message advising that your hand is raised. To withdraw your question, please press *11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, David Beckel. Head of Investor Relations. Please go ahead.

David Beckel: Good afternoon, and thank you for joining us for Remitly's second quarter 2026 earnings call. Joining me on the call today are Sebastian J. Gunningham, 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.remitly.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-forward-looking statements within the meaning of the 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 statement. Please refer to the earnings release and SEC filings for more information regarding the risk factors that may affect results. Any forward-forward-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.

For a 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 Sebastian to begin.

Sebastian J. Gunningham: Thank you for joining our second quarter earnings call. My first 6 months as CEO have been intense. And they have confirmed something I already knew. Remitly matters deeply to its customers. This quarter's results prove it. Record revenue, record adjusted EBITDA, both above the high end of guidance again. We also achieved an important milestone for the company. Over 10 million quarterly active users aided by record new customer additions. that is a direct reflection of the trust and confidence customers place in Remitly and our team's ability to execute. This quarter's strong results were reflect 3 enduring attributes of our business. First, a strategy that works.

Providing affordable, fast, and trusted money movement for a wide range of global customers. Second, a competitive position that is strong and defensible. We continue to gain share and the advantages of lower cost network breadth and operating scales are compounding. And third, a cost discipline that is structural. The operating leverage in this business is real. And AI is driving genuine productivity gains that can be redeployed to invest in growth, strengthening our confidence in the top line while we continue to expand adjusted EBITDA margins.

Today, I will provide an update on my operating philosophy, discuss our progress across our core business and growth accelerators, and explain how AI is reshaping the economics of our business model, and share our latest view on capital allocation. When I joined, I was clear about how I wanted this organization to work. Smaller teams, clearer ownership, customer first design, AI embedded everywhere, speed as the default. This quarter, we kept building towards that. The result is a flatter, faster moving company. Product teams are being consolidated into fewer locations to take advantage of fast speeds to design, build and launch features. Fewer layers mean clearer ownership and faster decisions.

Faster decisions mean more products, and more products mean more revenue. And through this rapid evolution, our culture has held. Our team continues to obsess over building the most affordable, fastest, and most trusted way to move money. They understand every transaction matters to a real family, and I am proud to confirm what I see every day. Everybody at Remitly cares deeply about our customer focused mission. Moving on to an update on our business. Last quarter, I introduced a framework for how we think about our opportunities. Call centers high value senders, business senders, and receivers against 4 offerings, which are send, borrow, spend, and save. Everything outside our core send, we call growth accelerators.

This quarter, we shipped against all these boxes. As we broaden our offerings beyond remittances, we build a powerful flywheel. Driving better loyalty, higher volumes, and more diversified revenue. This quarter's results are evidence that the flywheel is turning. I will now cover key customer and product updates across CoreSend and our growth accelerators. Our global pay in and payout network is our strongest competitive advantage. This quarter, we expanded our network on the dimensions customers care about most, reach, speed and reliability. We added 5 countries, New Zealand, Niger, Mali, Angola, and Botswana, bringing the total received geographies to 179. 32 of these countries are now send and receive enabled.

Speed and reliability matter to our customers and are important drivers of retention. This quarter, new real time pay in rails, FedNow, and time payments in The US, improved our pay in funding speeds. And in the second quarter, nearly 70% of Remitly's global funded transfers were delivered in under 20 seconds, an all time high. Further, payments and customer onboarding improvements drove record pay in acceptance and record low defect rates. Reinforcing the basics that drive customer trust in the Remitly platform. Last month, we announced our participation in OpenUSD, a stablecoin consortium, as a founding member.

This new stablecoin has the potential to cut pay and settlement times by up to 1 day, and lets us share in stablecoin wallet economics. Since our last earnings call, we strengthened our regulatory foundation across 3 important geographies: We received a stored value facilities license from the Central Bank in the UAE, an electronic money institution license in The UK, and an extension of our EU payments institution license. These licenses open the door to new products designed specifically for customers in these regions. Each of our growth accelerated gained important traction this quarter. Our approach to investing in growth is deliberate. We start small and scale only when we see product market fit and a clear return.

Vikas will cover the financials, I will cover the operating highlights. High value senders are those who send $5 thousand or more in a single transaction. Often for property investments or larger transfers to family. For them, reliability matters most. And the economics of earning their loyalty are strong. In Q2, we lowered friction across a number of dimensions for these customers, and added bank wires as a funding option. And in Latin America, a key growth region for this customer category, we raised send limits and eliminated unnecessary customer actions. As a result, high value send volume more than doubled in the US-Mexico corridor.

Remitly business grew strongly again this quarter with sequential revenue and volume growth both accelerating quarter over quarter. New features like Bulk Send and the addition of 23 new countries in the European Union are helping broaden our customer base. More than 80% of customers added to the business platform this quarter are new to Remitly. And usage is sticky with the average business customer sending money 10x a quarter. This quarter, we grew the receiver product from 6 to 130 countries. it is still early, but we are optimistic about its potential to drive send revenue and eventually spend and save. The bet with receivers is simple. Build direct relationships with receivers, and senders will follow.

In countries where stable currencies and dependable financial services are scarce, we think we can serve receivers better than anyone. We recently launched a global stablecoin wallet with a debit card, starting our rollout in Latin America. A first of its kind offering lets receivers get paid, hold, and spend in USDC. Longer term, we want to be a big part of our receivers' financial lives, not just where a transaction lands. This is a first step. Last week, we launched the Remitly Global Card. An all in 1 product for our customers to borrow, spend, and to save as easily as they can send money home.

Remitly Global Card is the next step in our journey from a remittance company to a broader suite of products our customers need and want. The Remitly Global Card combines 1 of a kind features including our best remittance prices, faster and lower fee sends, no fee everyday spending, a bank account for everyone, the ability to hold and move money in fiat currency or USDC, instant transfers between Remitly Global Cardholders, no foreign transaction fees, direct deposit, global ATM access, and a line of credit through the Remitly Global Card membership plan. Among other valuable new features for our global customers. The launch of this card marks an important milestone for our company.

For millions of people, banking was not built for them. This card is. With the Remitly Global card, we are giving communities who live across borders frictionless access to borrowing spending, saving, and sending. No paperwork. No bank branch. No waiting. All card members get default access to the lowest cost fastest remittance options on Remitly. Our customers should not have to shop for the best rate every time they send money home.

The Remitly Global Card allows us to more fully address the financial needs of tens of millions of customers who have sent or received money via Remitly, and our intent is to put the Remitly Global Card in the hands of each and every Remitly customer over time. In the coming quarters, we plan to expand the Remitly Global Card to additional countries, enabling seamless direct payouts for global workers and broader multicurrency holding capabilities for consumers and businesses worldwide. Finally, an update on AI. There are 3 ways AI benefits Remitly, speed, trust, cost. Speed, we build and ship faster, Trust, we deliver a better, more personal experience. And cost, We are 1 leader.

This quarter, all 3 move forward. Speed and trust gains are starting to show up in the top line faster launches and a better customer experience. Cost remains the clearest AI win so far. AI driven productivity has allowed us to hold headcount below plan, as I reoriented the company towards speed and tested our growth bets. I asked every team the same question. Show me the number that proves your function is more self driving than it was 1 quarter ago. The answers are getting better. Before I hand the call to Vikas, I wanna say a word on capital allocation. This quarter, we generated $130 million in free cash flow. Today, this management team is balancing 2 things.

Reinvesting in profitable growth and executing share buybacks within the limits set by our board. We believe this is the right plan, and we will continue to update our shareholders as our thinking evolves. Let me close with this. We delivered an excellent quarter. We are gaining ground with customers in geographies that matter. We are doing it more efficiently than ever. Our products are working for customer. I am optimistic. Not because of a forecast, but because of what I see in the business every day. Thank you.

Vikas Mehta: Thank you, Sebastian, and good afternoon, everyone. We delivered another excellent quarter of profitable growth and strong free cash flow. Reflecting solid execution and a rigorous attention to cost discipline. Second quarter revenue was $495 million, $11 million above the midpoint of our guidance. And up 20% year-over-year. Adjusted EBITDA was $115 million, $28 million above the midpoint of our guidance at a 23% margin. Let me share an overview of our second quarter results. And then provide our outlook for the third quarter of 2026 and our updated guidance for the full year. Strong top line results this quarter reflected momentum in CoreSend and the continued scaling of our growth accelerators.

Revenue outperformance this quarter was driven by a number of factors. Regulatory changes in The United States continued to support a shift towards digital remittances. Driving another quarter of record new customers acquired. And Mother's Day weekend volumes strongly exceeded expectations. As noted last quarter, the pacing of Q2 growth relative to Q1 was due to a shift in the timing of Ramadan and Easter to earlier in the year. Unpacking revenue growth drivers for Q2, Send volume grew 27% to $23.5 billion Send volume per active customer reached a record $2.3 thousand up 6% year over year. Driven by growth in high-value senders and business customers. As well as higher average transaction sizes among core senders.

Quarterly active customers grew 20% year-over-year to 10.2 million. This was our first quarter above 10 million QAU, an important milestone which validates the strength and durability of our business model. Quarterly active customer growth remains strong due to effectiveness of our Skip the Line campaign which targets customers seeking alternative to cash based remittance methods. Our take rate this quarter was 2.11%. Now let me dive deeper into our revenue performance from a geographic and new product perspective. From a spend perspective, U.S. revenue grew 24% reflecting continued share gains in key geographies. Rest of the world revenue grew 18% year-over-year.

On the receive side, revenue from transactions to regions outside of India, the Philippines, and Mexico once again grew faster than overall revenue growth. And comprised over half of our revenue mix. I will now discuss the performance of our growth accelerators. As a reminder, growth accelerators include all customer categories and offerings outside of Core Send. Our growth accelerators continue to gain traction and scale and are well on track to comprise around 5% of total revenue. in 2026, And exceed 10% of total revenue by 2028. Let me take a few minutes to provide more detail on the performance of each of our primary growth accelerators. Let me start with high-value senders.

High value sender volume grew 37% year-over-year a 70-basis-point increase in mix. Year over year. We achieved a number of milestones with high value senders this quarter, including our first transaction of $300 thousand and our first customer to send more than $1 million in a single quarter. This quarter, we also expanded how customers can fund transfers by adding bank wires. Customers can now wire funds directly to Remitly. Which we then deliver instantly through our global network. Avoiding the cost and delays of traditional international wire. This gives more customers particularly high-value senders, a flexible way to fund transactions and is already resonating. Customers using wires send nearly 3x more per transaction.

This quarter, high-value sender volume growth was softer in June due to fluctuations in the Indian rupee relative to primary send currencies, as well as short term foreign currency mobilization measures announced by the Reserve Bank of India. We expect trends affecting Indian corridors to normalize over the course of the year. Further, we have a robust pipeline of high-value sender product enhancements And in the second half of the year, we are expanding our marketing and targeting efforts for this important customer category. Now moving on to Remitly business. Remitly business performance continues to exceed our expectations.

We ended Q2 with over 25 thousand Remitly for Business users and saw sequential acceleration quarter over quarter growth for both volume and revenue. Growth was supported by the continued reduction in friction associated with onboarding and transaction flows. Shifting to receivers. Our receiver offering generated revenue for the first time this quarter an important inflection point for this business. The receiver product allows us to unlock a direct relationship with more than 30 million receivers on our platform. Creating a new flywheel at little to no marketing cost. Finally, our fourth growth accelerator Spend, Save and Borrow. We are excited to share an important milestone, the launch of the Remitly Global Card.

With this offering, card members can send, spend, and save money from the same account. The Remitly Global Card is an important strategic offering and enabler of revenue diversification. As we extend the value of the Remitly platform, further into our customers' financial lives. The Remitly Global Card comes with no monthly fees or minimums. Customer can further upgrade to our membership plan which for $9.99 per month contains valuable benefits. Including access to an open-end line of credit that customers can use to remit money home, before payday and payback over time. We plan to evolve our liquidity offerings, which more than doubled year-over-year. To a card focused format over time.

The new card plan format is showing strong early customer uptake. With response and conversion rates exceeding prior benchmarks. Lines of credit associated with the Remitly Global Card are funded by a third party bank partner. As a result, we expect receivables associated with our liquidity products to reduce over time. Turning to our focus on driving profitable growth. On Slide 13. This quarter, we are replacing the term revenue less transaction expense, an abbreviation RLTE, with transaction margin. Which we believe is a more intuitive description of this metric. Transaction margin is calculated in the same manner as the measure we previously referred to as revenue less transaction expense in prior periods.

Transaction margin dollars grew 25% to $334 million outpacing revenue growth. Transaction margin dollar growth reflects strong customer activity as well as improved partner economics. Routing optimization, and economies of scale. Transaction margins were 67% improving 35 basis points year over year. Transaction expenses this quarter were $161 million and as a percentage of revenue, were 33%. Excluding provisions for transaction losses, other transaction expenses, were $137 million, improving 51 basis points year over year. As a percentage of revenue. This reflects improved network economics as well as continued shift in mix toward digital receive volume. We continue to see early benefits from the use of stablecoins in our treasury settlement operations. But the impact remains modest in absolute terms.

Provision for transaction losses was $24.5 million, or 10.4 basis points as a percentage of send volume. This was better than expected as we continue to benefit from efficiencies afforded by the AI driven fraud prevention and detection model deployed late last year. With that, let me walk you through the specific non GAAP expense category. Marketing investments remain disciplined and growth focused. We spent $96.5 million on marketing in Q2, up 20.9% year-over-year. As a percentage of revenue, marketing expense was 19.5%, roughly in line with prior year levels. Marketing spend per active customer was $9.46, up 0.9% year over year. And in line with our expectations. Marketing consists primarily of advertising and promotions.

This quarter's notable brand campaigns included the expansion of our Skip The Line campaign, to new US cities. A World Cup promotion featuring Cristo Fernández, of Ted Lasso fame. And additional marketing investment in The UAE. Promotions, including those in contra revenues, grew 35% year over year reflecting a deliberate focus on driving higher retention and win back among our back book of customers. Our LTV to CAC ratio was about 6x while our payback period remained under 12 months. Continued efficiencies reflect growth in customer acquisition through unpaid channels and word-of-mouth. As a reminder, our marketing investments drive returns for many years beyond initial investment. Due to our growing base of repeat users.

Customer support and operations expense was $26.2 million as a percentage of revenue was 5.3%, improving 68 basis points year over year and continuing a multiyear trend of steady operating leverage. Technology and development expense were $55.5 million and as a percentage of revenue was 11.2%, improving 175 basis points year over year and reflecting the benefits of embedding Agentic AI into our engineering and product team. Despite a modest increase in AI related spend, the benefits of AI related labor productivity have outweighed the direct AI spend. A trend we expect will continue. G&A expense was $41 million, declining 11% year over year our first year over year decline in G&A ever as a public company.

We delivered significant leverage this quarter, 295 basis points as a percentage of revenue year over year. Reflecting lower than expected hiring as we evaluate business priorities along with the continued rigorous focus on operating discipline. Strong revenue growth combined with operating leverage and cost discipline led to a record level of adjusted EBITDA of $115 million Adjusted EBITDA outperformance was driven by higher than expected revenue lower than expected transaction losses and lower than expected expenses due to the ongoing assessment of business initiatives. Following Sebastian's arrival. Net income was $206 million, which included $140.6 million release of tax valuation allowance. Our North Star is growth in free cash flow. While managing dilution.

And Q2 demonstrated continued progress on both counts. Free cash flow nearly tripled year over year to over $130 million This was aided by strong operating leverage, favorable working capital, as well as lower property and equipment spending as we lap the build out of our new headquarters from last year. Outstanding shares were 212 million, up 3% year over year reflecting our disciplined approach to dilution management and share repurchase activity. Stock based compensation was lower year over year for a second consecutive quarter, and it declined 9% year-over-year coming in at 7% of revenue. Which is 28 basis points lower than the second quarter of 2025. Due in part to lower than planned hiring.

For all of 2026, we continue to expect stock based compensation to increase modestly in absolute terms year over year. But decrease as a percentage of revenue. We continued repurchasing shares in Q2 buying back $21 million worth of stock. Or over 1.1 million shares. Year to date, we have repurchased almost 4 million shares. This reflects conviction in our long term growth opportunities and a view that share repurchases are an attractive use of capital. We will continue to be disciplined and opportunistic in how we deploy capital toward buybacks. With that, I will move to our outlook. For the third quarter of 2026, we expect revenue of $505 million to $507 million or 20% to 21% growth.

We continue to see strong momentum in our core, and we expect the continued shift toward digital remittances growth in new geographies and the scaling of our growth accelerators to contribute to total company revenue growth of over 20% in the second half of the year. An increase relative to prior expectations. Breaking down our revenue growth, in Q3 we anticipate send volume growth to exceed revenue growth, and revenue growth to modestly exceed quarterly active customer growth. Send volume per active customer is expected to grow in the mid to high single digits range supported by the continued shift in mix towards high-value senders and businesses.

For the full year, we expect revenue between $1.978 billion and $1.988 billion a growth rate of 21% to 22% reflecting strong demand in our core and growing levels of contributions from our growth accelerators. As a reminder, we are lapping a particularly strong holiday season in Q4 which drove outsized volume growth in the prior year. Now let us pivot to profitability and expense guidance. Starting with transaction margins, we expect Q3 transaction margins to be slightly higher than the prior year. Note transaction loss rate may fluctuate quarter to quarter We remain disciplined about optimizing customer value while rigorously managing risk across our platform.

For the full year, we continue to expect transaction margins to be broadly in line with 2025 levels on a normalized basis. Shifting to marketing. We expect continued marketing efficiencies in the back half of 2026 as we prioritize high ROI marketing opportunity. For Q3, we expect marketing spend for QAU to be slightly higher year over year as we extend our Skip the Line campaign and increase brand marketing in the UAE. Please note marketing expense per QAU faces a tough comparison in Q4, as last year benefited from a focused and intentional approach to holiday period spend.

Putting this all together, we expect Q3 adjusted EBITDA to be between $92 million and $94 million translating to an adjusted EBITDA margin of around 18% to 19%. An expansion of over 350 basis points year over year. For the full year, we expect adjusted EBITDA to be between $410 million and $415 million representing an adjusted EBITDA margin of around 21%, an expansion of over 400 basis points year over year. This improved adjusted EBITDA outlook reflects a more favorable outlook for revenue Sebastian's deliberate assessment of the business in the first half of the year, and our commitment to continued cost discipline leveraging AI as we invest in growth.

As always, we remain rigorously focused on balancing growth and profitability and will continue to look to further leverage the benefits of AI as we invest in top line growth. Our outlook also assumes normal levels of transaction losses for the remainder of the year. To summarize, in Q2, we delivered another excellent quarter with results that were strong across our key financial metrics. We achieved over 20% revenue growth and over 23% adjusted EBITDA margins. We delivered record GAAP profitability and record free cash flow underscoring the power and scalability of our business model. With that, Sebastian and I will open up the call for your questions. Operator?

Operator: Thank you. At this time, we will conduct a Q&A session. As a reminder, to ask a question, you will need to press *11 on your telephone and wait for your name to be announced. We kindly ask that you limit yourself to 1 question. Our first question comes from Tien-Tsin Huang with JPMorgan. Please go ahead.

Tien-Tsin Huang: Thanks so much. Nice results here. Sebastian, I thought given your prepared remarks kind of triggered me to think of asking you about what you are excited about the most amongst some of the things you talked about where you are leaning in more. We heard about Global Card, USDC, AI. It sounds like business also outperformed. what is changed in the last 90 days in terms of your excitement and where you are leading in more? Thanks.

Sebastian J. Gunningham: Good question. Thank you. I think I would say that, you know, the sum of the parts I think, you know, we are hitting on many cylinders right now. I think the sum of the parts look really good. to us. We are a very diversified business globally. As I have said before, you get these puts and takes on different corridors I really like the rhythm that we are gaining on upgrading the products, the new launches. So it is hard for me to pick 1 specific piece, but I would say that today, standing here today, I am very pleased with the momentum on many pieces of the business.

Of course, you know, you look under the cover, you know, as you look you know, under the hood of the business, there are many pieces that make up the delivery of this money movement and whether it be on the network side, on the risk side, on the compliance side, there is just a lot of good momentum across the company. So you forced me to pick 1 piece. I am avoiding your question and saying, I think it is the sum of everything right now. Thank you.

Operator: Our next question comes from Ramsey El-Assal with Cantor Fitzgerald. Please go ahead.

Ramsey El-Assal: Hi, thank you so much for taking my question this evening. Vikas, you mentioned that you will be expanding your marketing efforts for the high-value senders in the second half. Can you help us think through kind of the cadence and the magnitude of that investment? Is it kind of a gradual ramp through the balance of the year, a more meaningful step up in marketing spend later in the year? How should we think about that from a modeling perspective?

Vikas Mehta: So overall, I would say that we remain very confident in our high value sender business. And the long term growth potential of that business. As we have shared in the prior few quarters, we are just getting started there. You know, raising the sand limits, making product enhancements. In fact, this quarter, you saw some very interesting highlights. We had our first set of 300 thousand plus transfers. that is a pretty big milestone compared to where we were 12 months back. And within the same construct, you know, 1 of our customers sent more than a million dollars in the recent quarter. And that just shows that you know, the demand is there.

Our network is set up for that. And it is just a matter of focus and marketing for us. And once we can be more targeted, we can see a lot of benefits here. We have not invested a lot in the marketing in the specific high value sender market. And, again, we will be very deliberate. We will be gradual. And we will be thoughtful how we increase the marketing We will learn from our early marketing campaigns before we expand more in FY 2027. But overall, I would say disciplined, but at the same time, focused and thoughtful marketing in the HVS segment. Thank you.

Operator: Our next question comes from Chris Kennedy with William Blair. Please go ahead.

Cristopher Kennedy: Good afternoon. Thanks for taking the question. I think productivity gains from AI is a key theme from the call and incremental EBITDA margins were over 60% in the quarter. I think that is nearly double kind of what you have historically talked about. Can you just talk about the levers there in what that means going forward and the opportunities to reinvest back in the business?

Sebastian J. Gunningham: Yeah. I think, what we are on this I think we are all on this AI journey and I just reflect that I do not you know, a day does not go by that you do not get some kind of wow moment. On what you can do inside the company with AI. We and it varies across obviously, the most obvious ones are some of the fact that you can constrain some of your people growth But, you know, speed is money. Productivity is money. Simplifying the organization is money also. So it slowly compounds.

And as you get you know, we track almost every piece of our AI usage, of our AI usage you know, down to the individuals, to the production of code and the use across the company, and we are launching all different agents that do different tasks within the company. So I you know, what this is a snapshot in time. You are seeing the benefits. Your question is, is this going to accelerate over time? it is hard to say. I certainly do not see it decelerating. And I think that we can look over the next few years, and we are just going to keep learning how this is gonna change our company, how it changes the management.

So it is it is a theme. We live it every day, and I think I am optimistic about the future trajectory on the efficiencies that we can get with AI.

Vikas Mehta: And if I were to add, on the, you know, expense categories, if you look at Chris, if you look at all the expense categories, we got benefits across the board. Whether you think about transaction loss and the AIML capabilities that we are building that has definitely you know, we have seen that over the last couple of quarters. If you go further into customer support, that is a key area of benefit that we have been harvesting. This quarter, specifically, the 2 standouts were the technology and development spend. Which just grew in mid single digits, thanks to the net AI benefits that we were getting in spite of a modest increase in the AI spend.

And finally, G&A, that was the biggest 1. Of the first year over year decline as we are able to, you know, harness that benefit across all our support functions, whether it is legal, HR, finance, and the platform. So you know, AI net benefit for us has been a positive. You know, clearly early days. And we will be very mindful and thoughtful here. Thank you.

Operator: Our next question comes from Alexander Markgraff with KBCM. Please go ahead.

Alexander Markgraff: Hi, everyone. Thanks for taking my question. I wanted to ask about the receiver side. Monetization. it is obviously a compelling opportunity. I was hoping, maybe just to discuss the sort of right to earn wallet share with these folks, the receivers. I am curious what sort of wedge or value proposition that is distinct from local or other global peers would be that you would you would point to with Remitly card and other offerings? Thanks.

Sebastian J. Gunningham: it is very, thank you for the question. it is very early days. You know, your question is what earns us the right to offer services to this receiver. it is a very unique transaction when somebody in some part of the world receives money from a sender in Remitly. And so at that point, you know, whether in all the mechanisms, we know the money, we know the receiver, And so there are many things that we could do to encourage that receiver to either spend the money. We could put the money in USDC. We could put it in cards. We can keep it in accounts. We can offer we can offer savings products.

So the theory of it is very compelling. And, you know, we have, as we have said about somewhere in the order of 30 or 40 million receivers around the world The we have not proven that yet. We have a team rapidly iterating. We see some really good signals. We have launched a bunch of products. And then I would also remind you that I think, you know, there is some large portion of our transactions are peer-to-peer transactions, which is that they repeat often. So every month, sender a sends to receiver b, and those 2 that pair is connected many times during the year.

So you could imagine all kinds of products that we could offer to that pair. So, early days. I we feel it is 1 of the investments that we are making. We feel there is an opportunity here. We have not proven it. So we will keep you updated on how that advances. Thank you.

Operator: Our next question comes from David Scharf with Citizens Capital Markets. Please go ahead.

David Scharf: Hi, good afternoon. Thanks for know what, the results were so strong. I guess I will I will ask a devil's advocate question just to kind of mix things up a little. And you know, it relates to the growth accelerators. Did I hear correctly? And I think this dated from the Investor Day. Maybe it is unchanged. It Did I hear correctly, Vikas,, that the expectation is 10% of revenue by 2028? that is correct. More than 10%. Okay. More than 10%. I guess the devil's advocate question is, why is not that large?? I mean, it seems like these are tremendous opportunities particularly on the business side. Obviously, you spend a lot of focus in these presentations.

Highlighting these 4 distinct categories or silos. Can you-- I am just trying to get a sense if you know, 10% is a reflection of a conservatism. B, just the core C2C business so strong secularly. That you know, that by definition kind of weighs down that mix. Am I kind of incorrect in thinking that is a number that 2 years from now is actually gonna end up being higher?

Vikas Mehta: David, first of all, thank you for your optimism. We share that optimism. And what I would say is that you know, we want to be very thoughtful with the new products to get the product market fit right. We want to test them out in a way that they are really battle tested. And then once we have that validation, we are to pour marketing. And, you know, really drive the acceleration. And rather than putting a very tight time frame to it, We look at the bigger prize than the total addressable market. And if you look at all of our bets, they are huge and massive. it is the Remitly for Business.

That is bigger than our, you know, core consumer business. If you look at high value senders, the network remains the same in the upside is massive. If you look at the Remitly Global Card and Receivers, everything Sebastian said that you know, there are so many use cases that could really unlock and create a massive potential And I would say these are you know, 5 year, 10 year bets that could really diversify our business make it a multi revenue stream business, and our objective right now is to invest in them in a way that we make them long term successful rather than trying to get some short- or medium-term wins.

But at the same time, we feel really confident to get to the 10%-plus threshold We keep updating you, but overall, we feel you know, that the focus is really on the long term.

Sebastian J. Gunningham: Yeah. I think well said. I would not-- I mean, if you take we have given this time frame of 2028, but let's take the time frame. I think we would probably be disappointed over a longer time frame if they were not much bigger businesses. All the bets we are making are in very large markets. And so the fact that we are still in the bet and growing and excited about it means that we are not going for 10%. You know, what is 10%, what are we, a $2 billion revenue company, 10%. We are we are going for much bigger opportunities here So, you know, I think it is a fair question.

We will obviously keep updating you. With all the signals we see, we will kill any business that does not, you know, be on a trajectory to get really large. We have plenty of opportunities and plenty of businesses. We have a lot on our plate right now. So we will just keep you posted on we are gonna stick to the to the response that the cast gave for now, but we are working hard to make it a lot bigger. Thank you.

Operator: Our next question comes from Gustavo Gala with Monness, Crespi, Hardt. Please go ahead.

Gustavo Gala: Hi. it is Matthew. Hi, Sebastian. Hi, Vikas. Thank you for taking my question. So I think an interesting topic to get into would be you are seeing some let's say, changes in pricing actions, maybe a little bit of distress. From larger legacy peers in North America. I mean, that is really the core business Is there-- can you talk about the opportunity there in terms of the lower cap rate because it sounds like pricing being taken back, maybe not a leap to think digital marketing competition is coming down a little bit.

And then if we think about the second half of 2026, just on the margin, just I will squeeze in my question a 19% margin versus 23%, versus 23% this quarter, plus 50% in the first half. You are guiding to 23% incremental in the back half. I get the incremental investment in HVS, but that our math is kind of low double digit of total volume. And you are assuming consistent transaction loss rate anywhere else in OpEx we should be thinking about, or investment? Thanks.

Vikas Mehta: Good. Thank you for your question. I would say that you know, if you I will I will answer your second part of the question first and then and move to the first, and Sebastian can add more to that first part as well. If you think about the you know, EBITDA margin guidance, it is it is something that we have put a lot of thought into it, and even as you see that and if you look at the year over year, increment, it is 350 bps just in Q3. And if you take that 2026 guide, it is a, you know, 4-percentage-point increase year over year.

So, clearly, we are making a lot of progress when it comes to expanding EBITDA margins. If you see the first half of the year, I would say there has been some, you know, call it, specifics over there. First of all, you know, Sebastian joined us. In that first quarter and has been, you know, evaluating the business in a rigorous way. And that created, you know, a little bit of a pause as we decided which ones we wanna go and invest deeper into. In addition to that, you know, revenue outperformance as well as the lower transaction loss that we have seen.

Which we you know, our assumptions going into the out quarters, we are normalizing that to 11 bps. But that creates some, you know, call it, added first half benefit for us, which especially in the transaction loss, we are normalizing for second half. Outside of that, you know, we feel there are opportunities in marketing investments that, again, we will be evaluating on a very specific basis, but, you know, that goes to your first part of the question. We see massive opportunity for market share gains. We saw that in the first half with the remittance tax, and we leveraged our Skip the Line campaign And we did that in the first quarter, but we saw remarkable benefits.

And we decided to extend that in the second quarter. And we shared that with you last quarter. And we are further taking it forward in the second half of the year. So we share the same thoughts where we feel the opportunity to grab share is there. And we are going to be front footed as we look at the second half in FY 2027.

Sebastian J. Gunningham: Yeah. And I will you know, we intend to be very aggressive in pursuing this market share, which is there. You know, there is no from a customer perspective, there is no magic here. The customer wants sharper pricing, wants to move money faster, and wants a better service, and we are very focused on all 3 We are on those 3. Our pricing is getting sharper. We are moving money faster. And our service is getting better every day. So the result of that is just gonna be continued market share gains. And this happens across the world. We have many corridors where we already have a very good market share, but we see opportunity in the larger corridors.

In the smaller corridors, and I think that this is a good moment for us to be quite aggressive in pursuing that market. Thank you.

Operator: I am showing no further questions at this time. Thank you for your participation in today's conference. This concludes the program. You may now disconnect.