What Happened?

Shares of online money transfer platform Remitly (NASDAQ: RELY) jumped 6% in the afternoon session after the company unveiled a positive medium-term outlook and set financial targets for 2026 and 2028 during its Investor Day event. 

During the event, management presented its preliminary outlook for 2026, which included expected revenue growth in the high teens range and Adjusted EBITDA between $300 million and $320 million. Looking further ahead, Remitly set its medium-term 2028 financial targets with revenue expected to be in a range of $2.6 billion to $3.0 billion. Adjusted EBITDA for 2028 was projected to be between $575 million and $600 million. The company also announced its plans to introduce new products to help drive this growth. Management stated an aim to balance revenue growth and profitability to achieve a 'Rule of 40' framework by 2028.

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What Is The Market Telling Us

Remitly’s shares are somewhat volatile and have had 12 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 1 day ago when the stock gained 4.1% on the news that the company unveiled a positive medium-term outlook and set financial targets for 2026 and 2028 during its Investor Day event. 

During the event, Remitly shared its vision for building a global financial services company. Management provided financial targets for 2028, with revenue expected to be in a range of $2.6 billion to $3.0 billion and Adjusted EBITDA projected between $575 million and $600 million. The company also stated it would balance revenue growth and profitability to achieve a "Rule of 40" framework by 2028, meaning the sum of its revenue growth rate and profit margin would aim to be at least 40%. To reach these goals, Remitly planned to introduce new value-added financial services and enter high-growth areas to deepen engagement with customers. The company's CFO noted that its financial model was built on a foundation of durable growth.

Remitly is down 31.9% since the beginning of the year, and at $15.27 per share, it is trading 43.8% below its 52-week high of $27.14 from February 2025. Investors who bought $1,000 worth of Remitly’s shares at the IPO in September 2021 would now be looking at an investment worth $315.07.

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