Cantor Fitzgerald Overweight on Remitly (RELY) Due to Good Q4 and Better-Than-Expected 2026 Guidance

Remitly Global Inc. (NASDAQ:RELY) is one of the 15 Most Undervalued NASDAQ Stocks to Buy According to Wall Street Analyst.

Cantor Fitzgerald, on February 23, increased its target price on Remitly Global by 17.6% to $20 (from $17) and retained the firm’s Overweight call on the stock. The firm cited strong Q4 results and better-than-anticipated management guidance for FY 2026 as catalysts for this target price increase.

Remitly Global released its Q4 2025 earnings report on February 18, which showed the company just about doubling its adjusted EBITDA to $89 million (from $45 million). The strong earnings growth was driven by high-teens growth in quarterly active customers and mid-teens growth in average transaction volume per user, leading to 30+% growth in total send volumes.  The “very high amount senders” customer category led the way here, with volumes from this segment more than doubling.

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Profit margin expansion also contributed to the doubling of earnings. The margin expansion was largely attributable to lower transaction-related expenses, as higher volumes led to improved network economics. Marketing spend was also a key driver, with the company utilizing a more focused customer acquisition approach and relying more on word-of-mouth, unpaid acquisition. Finally, general and admin expenses (as a % of revenue) declined, due to economies of scale and more disciplined hiring.

Management expects this growth to continue in the short and medium terms. For 2026, they expect revenue to grow 19% to 20% and adjusted EBITDA to grow 25% to 32%. Over the next three years, they expect revenue to grow 17% to 22% annually and adjusted EBITDA to grow 28% to 30% annually.

Remitly Global Inc. (NASDAQ:RELY) provides financial services, including cross-border remittance services, globally. The company is based in Seattle, Washington, and was founded in October 2018 by Matthew B. Oppenheimer and Joshua Hug.

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