Remitly Global, Inc. (RELY) Income Statement

The deceleration from the mid-30% growth rates of early 2025 to the low-20% range in 2026Q2 suggests a natural normalization as the revenue base expands. Despite the slowdown, absolute revenue growth remains substantial, with 2026Q2 adding $42.4M sequentially, the largest increase in the series. This implies that while growth is decelerating, the company is still capturing meaningful market share in the cross-border payments space.

The 300 basis point expansion in gross margin over the period is notable, especially when compared to peers like Western Union (28.7%) and International Money Express (36.0%). This suggests Remitly's digital-first model is structurally more efficient, and the recent uptick may reflect improved take rates or lower transaction costs. Investors should monitor whether this margin can be sustained as the company expands into new corridors, which could introduce higher-cost payment rails.

The operating margin expanded from -7.4% to 13.5% over the same period, a dramatic improvement driven by revenue growth outpacing fixed cost increases. Notably, SG&A as a percentage of revenue declined from 41.7% in 2024Q1 to 32.4% in 2026Q2, indicating that the company is gaining efficiency in its sales and marketing spend. However, the recent quarter's operating margin of 13.5% is slightly below the prior quarter's 14.4%, suggesting that the pace of leverage may be stabilizing as the company invests for future growth.

The absence of R&D in the most recent two quarters is unusual given the company's technology focus, and it may indicate that R&D costs have been reclassified or capitalized. Meanwhile, SG&A has grown 42.8% from 2024Q1 to 2026Q2, but as a percentage of revenue it has declined, reflecting operating leverage. The lack of R&D disclosure warrants further investigation, as it could signal a change in how the company accounts for product development costs, which may affect future innovation capacity.

The transition from negative to positive operating income in 2025Q4 was driven by a 25.7% revenue increase and a 60 basis point gross margin expansion, while operating expenses grew at a slower pace. This inflection point appears durable, as subsequent quarters have maintained positive operating income, with 2026Q2 reaching $66.7M. The lasting impact is that Remitly has demonstrated its ability to scale profitably, which may support a higher valuation multiple if the trend continues.