Key Stats for RELY Stock
- Price Change for RELY stock: +25.94%
- RELY Share Price as of Feb. 19: $17.14
- 52-Week High: $25.71
- RELY Stock Price Target: $21.13
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What Happened?
Remitly Global (RELY) stock jumped after the company reported fourth-quarter results that exceeded Wall Street expectations. The company posted Q4 revenue of $442.2 million, beating the consensus estimate of $427.3 million, according to Reuters.
Adjusted EBITDA rose 98% year over year to $88.6 million, highlighting accelerating operating leverage. The earnings report confirmed that Remitly’s scale benefits are beginning to translate into sustainable profitability.
Alongside earnings, Remitly announced a leadership transition. Sebastian J. Gunningham was appointed Chief Executive Officer, while founder Matt Oppenheimer moved into the role of Chairman.
Management emphasized continuity in strategy, but leadership changes often act as short-term catalysts for reassessing valuation. Investors appeared encouraged by both improving fundamentals and clarity around executive succession.
The earnings beat followed a series of quarters where Remitly consistently exceeded revenue expectations. Q1 through Q4 revenues all came in above IBES estimates, reinforcing confidence in demand trends.
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Analysts currently assign Remitly stock a mean price target of $21.13. That represents meaningful upside relative to the recent share price of $17.14.
Street estimates range from $17 on the low end to $28 on the high end, reflecting differing views on long-term margin potential. The median target sits at $18.50, suggesting cautious optimism after recent volatility.
While price targets have trended lower over the past year, they remain above current levels.
This suggests analysts see the recent selloff as largely valuation-driven rather than structural.
What the Market Is Telling Us About RELY Stock
The sharp rebound signals renewed confidence in Remitly’s path toward sustained profitability.
LTM revenue reached $1.64 billion, representing 29% year-over-year growth.
Gross margins expanded to 60.2%, reflecting improved unit economics and scale efficiencies. Operating margins turned positive at 4.7%, compared with losses in prior years.
EBITDA climbed to $112.8 million, marking a significant inflection from the historically negative EBITDA. This margin expansion has become a central part of the Remitly investment narrative.
The balance sheet remains a key strength. Remitly ended the year with $542 million in cash and negative net debt of $350 million, providing financial flexibility.
At the same time, valuation remains a focus for investors. The stock trades at 1.7x forward revenue and 9.4x forward EBITDA, levels that imply moderated growth expectations.
Insider share sales reported earlier in February added short-term pressure before earnings.
However, the post-earnings rally suggests that fundamentals currently outweigh those concerns.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
