What Happened?
Shares of online money transfer platform Remitly (NASDAQ: RELY) fell 23.2% in the morning session after the company reported mixed third-quarter results, with its forecast for the upcoming quarter falling short of expectations.
Although the online money transfer platform announced better-than-expected revenue for the third quarter, which grew 24.7% from the previous year, its outlook weighed on the stock. The company's revenue guidance for the next quarter was approximately $427 million, which came in below analysts' estimates. Furthermore, its guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also fell short of Wall Street's projections. The market's negative reaction suggested that concerns about future performance overshadowed the solid results of the recent quarter.
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What Is The Market Telling Us
Remitly’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. But moves this big are rare even for Remitly and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 3 days ago when the stock gained 3.1% as investors looked ahead to its third-quarter 2025 earnings report, scheduled for release on November 5. Expectations pointed to a significant rise in revenues of 22.6% year-over-year to $412.4 million, with earnings projected to reach 2 cents per share. This anticipated growth was fueled by a robust increase in active customers and a broad shift from traditional money transfer services to digital platforms. The company's new U.S. business, which was launched in the second quarter of 2025, was also expected to have been a key growth engine, boosting average transaction sizes and customer value.
Remitly is down 44.6% since the beginning of the year, and at $12.41 per share, it is trading 54.3% 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 $256.04.
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