Investors may regret not buying shares of Remitly Global, a small-cap fintech specializing in money transfers, writes the Motley Fool's Brett Schafer, a contributing stock market analyst. He thinks 2025 will be the most important year in the company’s history, opening what he calls “a long runway to grow,” even as the stock remains undervalued.

Details

Remitly projects revenue will grow more than 27% this year to between $1.61 billion and $1.62 billion. At the current pace, Schafer estimates the top line could climb to $3 billion within three to five years. With gross margins around 60%, net profit could reach $600 million over that period.

Despite this growth trajectory, Remitly shares trade at a P/E ratio of just 6.5, which is "ultra-cheap for a fast-growing company," Schafer says. He goes on: "buy Remitly stock and watch the gains roll in the coming years. You won't regret it."

Motley Fool's rationale

Remitly has "taken the remittance world by storm" with its easy-to-use mobile application and transfer fees that are much lower than legacy solutions, Schafer writes. It has targeted popular North America payment corridors such as India, the Philippines, and Mexico, with marketing tailored for those specific cultures, allowing the company to gain rapid market share gains. For receiving money, it has partnered with "hundreds of thousands" of different payout options. 

For the second quarter, Remitly reported revenue growth of 34% to $411.9 million, with net income of $6.5 million compared to a loss of $12.1 million a year earlier.

"[The company] keeps taking market share within digital payments, but is still a small player in the overall remittance market, giving it a long runway to grow," Schafer argues.

The Motley Fool piece notes: 2025 is the biggest year in Remitly's history when it comes to expanding beyond cross-border money transfer services. It has built new products specifically for small business money transfers, a huge market that has "over $10 trillion in annual payment volume."

For individuals, Remitly is expanding beyond sending money with the Remitly Wallet, where a customer can store funds in a variety of different currencies including stablecoins. There will be new services for Wallet members such as a product called "send now, pay later" to help bridge liquidity gaps as well as cash back deals, Schafer points out.

Stock performance

Since the beginning of 2025, Remitly shares are down nearly 20%, but over the last 12 months they are up more than 33%.

According to MarketWatch, seven Wall Street analysts rate the stock a "buy" versus one "hold" and one "sell." Their average target price of $28 per share implies upside of more than 54% from the August 26 closing price.

The AI translation of this story was reviewed by a human editor.

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