Remitly Global: Still Undervalued? (Ticker: RELY)

The multiyear setup looks lovely.

Next three weeks at Emerging Moats: Nintendo (quarterly update), The Real Brokerage (quarterly update), Wise (Introductory Research Report)

---

“We intend to be very aggressive in pursuing this market share. The opportunity is there. From a customer perspective, there’s no magic here. The customer wants sharper pricing, wants to move money faster, and wants a better service, and we’re very focused on all three. We’re iterating on three. Our pricing is getting sharper. We are moving money faster, and our service is getting better every day. The result of that is just going to be continued market share gains. This happens across the world. We have many corridors where we already have a very good market share, but we see opportunity in the larger corridors, in the smaller corridors, and I think that this is a good moment for us to be quite aggressive in pursuing that market.” - CEO Sebastian Cunningham, Q2 2026 Conference Call

Remitly Global is currently 12.9% of the Emerging Moats long portfolio. The stock is up 11% this week after posting another strong earnings report and raising full-year guidance. New CEO Sebastian Cunningham is settling nicely into his new role. No turbulence detected, feel free to move around the cabin if you wish.

Zooming out, the modern remittance platform is on pace to roughly 20x revenue from 2019 through 2027. My base case is for double-digit revenue growth to continue for another decade thereafter.

At the same time, legacy competitor Western Union is in the early stages of a death spiral that could accelerate a shift to digital players, killing the existing physical remittance ecosystem. Product releases such as the Remitly debit card point to growing per-user revenue and improved customer retention potential, as well as efforts to attract higher send and business customers to widen the top of the funnel.

All while GAAP operating margin quickly inflects higher. The biggest question I have to ask today isn’t whether Remitly is a high-quality business, or growing quickly, or trades at a reasonable price, but what to do with a large position that is up 96% so far in 2026.

In this update, paid subscribers for Emerging Moats will read:

• Q2 2026 earnings and Western Union trouble

• Taking stock of this new CEO

• Is there still an emerging moat?

• My investment decision

• Portfolio update

Q2 2026 Earnings and Western Union trouble

Remitly’s earnings looked fine for the KPIs we follow: