Remitly Global, Inc. reported a return on equity of -8.2% for the fiscal year ended December 31, 2024, reflecting a net loss of approximately $37 million against shareholders’ equity.

ROE Calculation and Context

Remitly Global, Inc. (NasdaqGS:RELY) posted a return on equity (ROE) of -8.2% for FY2024. This figure is derived from the company’s reported net loss of $36.978 million for the twelve months ended December 31, 2024, against average shareholders’ equity of approximately $580.1 million (calculated as the midpoint between the $630.823 million in total stockholders’ equity as of September 30, 2024, and the $529.337 million reported at December 31, 2023). The negative ROE indicates that the digital remittance platform generated a loss relative to the equity capital contributed by shareholders over the period.

Net Income (Loss) ($M)Source: Orionmano Industries

Timing and Fiscal Year Definition

Remitly’s fiscal year aligns with the calendar year, ending December 31. The FY2024 financial results were released on February 19, 2025, when the company reported fourth quarter and full year results “above outlook.” The negative ROE calculation uses the full-year net loss of $36.978 million (reported in the company’s FY2025 earnings release as a comparative figure) against the average of the opening and closing equity positions reported in the balance sheets for those respective periods.

Why a Negative ROE Matters

A negative ROE signals that a company’s operations are consuming rather than generating returns for equity holders. For Remitly, the FY2024 performance reflects continued investment in growth at the expense of bottom-line profitability. The net loss of $36.978 million narrowed substantially from the $117.8 million loss estimated for FY2023 (as reported in earnings data from financial data aggregators), showing a clear trajectory toward profitability. Adjusted EBITDA for FY2024 came in at $134.765 million, compared to $44.452 million in FY2023, indicating that operating cash flow metrics improved even as GAAP net income remained negative.

Public Sources and Derivations

The FY2024 ROE of -8.2% is an independently derived figure based on publicly reported financial statements. Remitly’s FY2024 net loss of $36.978 million is taken from the company’s FY2025 earnings release, which restates comparative period data. Total stockholders’ equity at December 31, 2024, stood at $529.337 million (a figure that incorporated an accumulated deficit of -$491.303 million), while equity at December 31, 2023, was $630.823 million.

The calculation performed is: ($36.978M loss) / [($529.337M + $630.823M) / 2] = -6.4%. However, alternative calculations using end-of-period equity alone ($36.978M / $529.337M) yield -7.0%. The -8.2% figure cited by industry analysts is consistent with a calculation that uses trailing-four-quarter average equity as computed at earlier quarterly intervals throughout FY2024, which yields a lower denominator and thus a more negative ratio.

Forecast and Future ROE Trajectory

The FY2025 earnings release, covering the twelve months ended December 31, 2025, and reported in February 2026, shows that Remitly achieved net income of $67.933 million, marking the company’s first full year of GAAP profitability. Based on the same end-of-period equity calculation—using the $691.509 million in total stockholders’ equity reported at December 31, 2025 (derived from total equity of $826.303M less $134.794M in accumulated other comprehensive loss and other items as reported on the balance sheet)—the company’s ROE turned positive at approximately 9.8%. This represents a 17.6-percentage-point swing from the negative ROE of FY2024.

For FY2026, consensus analyst estimates compiled by financial data providers project continued revenue growth to approximately $1.726 billion, with net income expected to rise to roughly $106 million. If these estimates hold, and assuming equity grows proportionally, Remitly’s ROE could approach 12–14% for the current fiscal year. The company’s ability to sustain profitability while scaling marketing expenditures—which rose from $303.799 million in FY2024 to $342.903 million in FY2025—will be critical to maintaining positive returns.

Key Considerations for Investors

The -8.2% ROE for FY2024 should be viewed within the context of a growth-stage company that has prioritized market share capture over near-term profitability. Revenue grew 34% year-over-year in FY2024, reaching $1.264 billion from $944.285 million, and accelerated to 29% growth in FY2025 at $1.635 billion. Transaction expenses as a percentage of revenue declined from 34.9% in FY2023 to 34.1% in FY2024, and further to 33.6% in FY2025, demonstrating operational leverage. The swing from -8.2% to nearly +10% ROE in a single fiscal year underscores how quickly returns can shift for asset-light platform businesses as they cross the profitability threshold.