What Happened?
Shares of online money transfer platform Remitly (NASDAQ: RELY) jumped 29.2% in the morning session after the company reported strong fourth-quarter 2025 financial results that beat expectations, leading to its first full year of profitability.
For the fourth quarter, revenue climbed 25.7% year-on-year to $442.2 million, and its GAAP earnings per share of $0.19 significantly surpassed analyst estimates of $0.01. Looking ahead, Remitly provided an upbeat forecast, projecting first-quarter revenue of $437 million at the midpoint, which was above consensus. Furthermore, its adjusted EBITDA guidance for the full year 2026 of $350 million also came in well ahead of Wall Street's expectations, signaling confidence in its future profitability.
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What Is The Market Telling Us
Remitly’s shares are somewhat volatile and have had 14 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 29 days ago when the stock gained 2.9% on the news that President Trump cooled fears of a transatlantic trade war by calling off scheduled tariffs on European allies.
The rally followed a productive meeting in Davos with NATO Secretary General Mark Rutte, where a "framework of a future deal" regarding Greenland and the Arctic region was established. By explicitly ruling out the use of military force and suspending the 10% tariffs previously set for February 1st, the administration provided the "sigh of relief" the market desperately needed after Tuesday's sharp sell-off. Technology and semiconductor leaders like Nvidia and AMD spearheaded the recovery as investors quickly pivoted back into growth stocks. The "Sell America" trade from the prior session reversed sharply, with the Nasdaq Composite jumping 1.5% and the S&P 500 erasing its 2026 losses. This rebound was further supported by a stabilization in the bond market; as tariff-related inflation fears subsided, the 10-year Treasury yield retreated from its recent highs, creating a more favorable backdrop for equity valuations across the board.
Remitly is up 32.3% since the beginning of the year, but at $17.50 per share, it is still trading 32.5% below its 52-week high of $25.91 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 $361.09.
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