Online money transfer platform Remitly (NASDAQ: RELY) met Wall Street’s revenue expectations in Q3 2026, with revenue rising 21.5% year on year to $509.8 million. The company expects next quarter’s revenue to be around $532 million, close to analysts’ consensus estimates. Its GAAP profit of $0.30 per share was significantly above analysts’ consensus estimates.

For more on Remitly, read the full research report for free.

“We delivered another excellent quarter, with record revenue and a more than seven-fold year over year increase in net income,” said Sebastian Gunningham, Chief Executive Officer. “These results show the expanding value of our global network, which has connected the financial lives of more than 50 million senders and recipients over the past year. We’re evolving from a remittance company into a global financial services provider for people and businesses whose money crosses borders. We are shipping new features and products faster than ever, and the productivity tailwinds from AI give us the capacity to invest and capture share in the large and diverse global money movement market.”

Revenue growth

A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, Remitly grew its revenue at a rapid 29.7% compounded annual growth rate. Its growth surpassed the average consumer internet company and shows its offerings resonate with customers.

This quarter, Remitly’s year-on-year revenue growth of 21.5% was strong, and its $509.8 million of revenue was in line with Wall Street’s consensus estimates. Company management is guiding for a 20.3% year-on-year increase in revenue next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 19.7% over the next 12 months, according to S&P, a deceleration versus the last three years. Despite the slowdown, this outlook remains favorable and implies the market is pricing in success for its products and services.

Free cash flow

Free cash flow matters because companies cannot pay bills with accounting profits alone.

Remitly has shown strong cash profitability, driven by its cost-effective customer acquisition strategy that enables it to invest in new products and services rather than sales and marketing. The company’s free cash flow margin averaged 18.7% over the last two years, impressive for a consumer internet business.

Remitly’s margin expanded by 34.7 percentage points over the last few years. That is a positive sign, indicating it became a less capital-intensive business because its free cash flow profitability rose more than its operating profitability.

Remitly’s free cash flow was $87.78 million in Q3, equivalent to a 17.2% margin. This was a positive result, as its margin was 16.1 percentage points higher than in the same quarter last year, building on its favorable historical trend.

Key takeaways from Remitly’s Q3 results

A sizable EBITDA beat and full-year EBITDA guidance above Wall Street’s consensus gave Remitly’s quarter some clear positives. The results were decent overall, but investors were likely hoping for more. Shares tumbled 9.5% to $24.54 immediately after the release.

Is Remitly a buy at its current price? The latest quarter matters, but longer-term fundamentals and valuation matter more when making that decision. For more on Remitly, read our full research report here (it’s free).