Is RELY a good stock to buy? We came across a bullish thesis on Remitly Global, Inc. on 2×2 Capital’s Substack by Maaiz Khan. In this article, we will summarize the bulls’ thesis on RELY. Remitly Global, Inc.’s share was trading at $18.04 as of June 10th. RELY’s trailing P/E was 37.58 according to Yahoo Finance.
Remitly Global, Inc., a cross-border payment company engages in the provision of digital financial services in the United States and internationally. RELY is positioned as an undervalued compounder in digital remittances despite nearly doubled since initial recommendation, with the investment case centered on sustained operating momentum, expanding free cash flow, and a management team explicitly incentivized to unlock long-term value. The company continues to outperform expectations on both revenue and adjusted EBITDA, reinforcing confidence that earnings power is tracking ahead of prior models.
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On current guidance, Remitly trades at a 6.3% free cash flow yield in 2026 and a 10.5% yield on management’s 2028 framework, implying a steep earnings ramp as EBITDA is expected to double over the period. Converting adjusted EBITDA into cash flow at roughly 80% suggests $280 million of free cash flow in 2026, scaling toward $470 million by 2028, which the market appears to discount despite visible execution progress.
Incremental upside is further supported by high-return growth investments, with over $350 million in growth spend generating estimated 6:1 returns, implying earnings power is understated if reinvestment is partially added back. Stock-based compensation remains the largest adjustment in EBITDA reconciliation, but dilution trends are improving as management actively addresses equity issuance.
Capital returns are emerging through a $200 million buyback, while the new CEO’s compensation structure, with performance vesting above $40 per share, signals alignment with substantial upside realization. With the stock nearly doubled from prior levels and original thesis pointing to over 300% upside, current valuation reflects limited compression of execution risk, a potential rerating opportunity if the 2028 trajectory continues to materialize.
Previously, we covered a bullish thesis on Remitly Global, Inc. (RELY) by LongTermValue Research in April 2025, which highlighted strong user growth, expanding margins, and a large global remittance opportunity driven by digital adoption and network advantages. RELY’s stock price has depreciated by approximately 15.62% since our coverage. 2×2 Capital’s Substack by Maaiz Khan shares a similar view but emphasizes a free cash flow yield-based valuation framework, capital return program, and 2028 EBITDA-driven rerating potential.
Remitly Global, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 38 hedge fund portfolios held RELY at the end of the first quarter which was 42 in the previous quarter. While we acknowledge the risk and potential of RELY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RELY and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
