Shares of Remitly Global (RELY 0.32%) popped 26.3% in February, according to data from S&P Global Market Intelligence. The remittance provider released earnings on February 18th, showing strong growth, healthy margin expansion, and providing robust guidance for 2026. However, shares of Remitly are still down 64% from highs set at the time of its initial public offering (IPO) five years ago.
Here's why Remitly shares are soaring in February, and whether it is a buy for your portfolio today.
NASDAQ: RELY
Key Data Points
Fast growth and strong guidance
In the fourth quarter of 2025, Remitly's revenue grew 26% year over year to $442 million. This was driven by an increase of 19% in active customers and 35% in send volume. As a mobile remittance disruptor, Remitly is now targeting large-volume senders -- both individuals and businesses -- which is lowering its take rate but still driving robust revenue growth.
Profitability also looked strong in the quarter, with operating margin hitting a record 9%. This figure has made steady progress as the business has scaled, which is great news for shareholders.
Remitly management sees even more growth ahead in 2026, calling for 19%-20% revenue growth to close to $2 billion in total sales. If operating margin climbs to 10%, that is $200 million in GAAP earnings in 2026, vs. a current market cap of $3.67 billion.
Image source: Getty Images.
Time to buy Remitly Global stock?
Even after this stock run, Remitly Global now trades at a price that could be low for investors with an eye on the long haul. Remitly is still a small player in the global remittance field -- albeit growing quickly -- offering a significant opportunity ahead as it targets more markets outside the United States and small businesses sending money across borders.
It is also adding new features to its service, including a "send now, pay later" feature and a mobile wallet to help customers store funds.
Altogether, this opportunity should allow Remitly to continue growing revenue at a double-digit rate and expand margins. If operating margin can expand to 20% and revenue doubles over the next five years to roughly $4 billion (six years, if you count 2026), the business will generate $800 million in annual earnings.
Today, Remitly has a market cap of $3.67 billion, or less than 5x these forward earnings estimates. It may take years to get there, but smart investors know the best move is to sit tight and let compound interest do its thing. Remitly Global is still a hold for existing investors and likely a great buy for the next five years, even after this latest earnings boost.
