Global-e Online Q2 Earnings Call Highlights

Key Points

• Global-e delivered a strong second quarter: GMV rose 44% year over year to $2.089 billion, revenue increased 39% to $299 million, and adjusted EBITDA climbed 62% to $62.4 million.
• The Passport acquisition expands Global-e’s logistics offering beyond its traditional merchant-of-record model and is expected to contribute more than $100 million in 2026 revenue while becoming increasingly profitable.
• Management raised its full-year outlook for GMV to $8.81 billion–$9.11 billion, revenue to $1.305 billion–$1.355 billion, and adjusted EBITDA to $278 million–$300 million; the board also authorized a new $500 million share-repurchase program.

Global-e Online NASDAQ: GLBE reported second-quarter 2026 results that exceeded its prior guidance ranges, citing strong same-store sales, merchant launches and promotional activity. The company raised its full-year outlook for gross merchandise value, revenue and adjusted EBITDA and included expected contributions from its recently completed acquisition of logistics provider Passport.

“The momentum that we saw during the start of the year continued through Q2, resulting in another very strong quarter all around,” Co-founder and Chief Executive Officer Amir Schlachet said on the company’s earnings call. He said the company’s results reinforced its confidence in achieving its long-term growth targets.

Second-Quarter Growth and Profitability

Global-e reported second-quarter GMV of $2.089 billion, up 44% from a year earlier. Schlachet said the quarter marked the first time the company generated more than $2 billion in GMV during a non-peak quarter.

Revenue rose 39% year over year to $299 million. Service-fee revenue increased 36% to $139.4 million, while fulfillment-services revenue climbed 42% to $159.6 million.

Chief Financial Officer Ofer Koren said trading volumes benefited from strong same-store sales, consumer demand across most destination regions, contributions from merchants launched in the second half of 2025 and 2026, and foreign-exchange tailwinds. He also pointed to stronger-than-usual consumer responses to recurring merchant promotions.

Adjusted EBITDA rose 62% to $62.4 million, producing an adjusted EBITDA margin of 20.9%, compared with 17.9% in the prior-year period. Non-GAAP net profit was $64.9 million, or $0.37 per fully diluted share, versus $37.9 million, or $0.22 per share, a year earlier. GAAP net profit totaled $47.7 million, compared with $10.5 million in the prior-year quarter, while GAAP diluted EPS was $0.27.

Non-GAAP gross profit increased 36% to $135.4 million, though non-GAAP gross margin declined to 45.3% from 46.5%. Koren attributed the margin pressure primarily to higher and more volatile fuel costs. He said the company chose not to pass carrier fuel-surcharge changes through to merchants as frequently as carriers updated them, temporarily absorbing some costs to reduce pricing volatility for merchants.

The company generated $73.2 million in free cash flow during the quarter, compared with $63.5 million a year earlier, and ended the period with $530 million in cash, cash equivalents, short-term deposits and marketable securities.

Passport Acquisition Broadens Logistics Offering

Global-e announced and closed its acquisition of Passport during the quarter. Schlachet said Passport adds an asset-light logistics solution and expands Global-e’s ability to offer non-merchant-of-record services, allowing it to address merchant categories and verticals that may not fit its traditional merchant-of-record model.

The company has begun integrating Passport into its carrier stack, with the first phase intended to make Passport available as a shipping service. Global-e is also developing additional logistics offerings, including consolidated returns, direct injection and duty-drawback capabilities.

Passport is expected to generate more than $100 million in revenue in 2026 and to grow slightly faster than Global-e’s overall growth rate, according to Schlachet. Koren said Passport recently became adjusted EBITDA and cash-flow positive, and Global-e expects profitability and cash flow to improve as the business grows and integration synergies are realized.

Management also said the acquisition could support cross-selling and a more complete shipping proposition for merchants, while expanding Global-e’s total addressable market through non-merchant-of-record services.

Managed Markets, Value-Added Services and Merchant Activity

Global-e said Shopify Managed Markets V2 remained on track during the quarter. The offering became available to merchants in Canada and the United Kingdom, expanding beyond the U.S. The company completed the migration of Managed Markets V1 merchants to V2, with management describing merchant feedback and early conversion trends as positive.

Co-founder and President Nir Debbi said the main indicators being tracked are adoption and GMV. He said Shopify and Global-e continue to work on product features designed to make onboarding easier and improve international conversion, including managed pricing and shipping-related capabilities.

Management noted that the V1-to-V2 migration affected reported service-fee revenue and sales and marketing expenses because of V2’s accounting treatment, but said the migration is complete. Koren said the company expects its core-business service-fee take rate to remain fairly stable in the second half of 2026, excluding the effect of Passport.

Global-e also cited progress in duty drawback, which can enable merchants to reclaim certain import duties and tariffs in applicable circumstances. Several merchants began using U.S. import-duty-drawback capabilities in the quarter, although management said onboarding can take time because merchants need to assemble documentation for their initial claims.

Meanwhile, Borderfree.com, the company’s brand-discovery portal, surpassed 10 million unique visits over the last 12 months. Sales attributable to Borderfree.com represented 6.5% of GMV for merchants using the platform, according to management.

The company also said it expanded the use of artificial intelligence across research and development, merchant implementation, operations, customer service and corporate functions. Koren said AI tools and agents contributed to operating efficiencies, with R&D expense excluding stock-based compensation rising 16% despite GMV growth of more than 40%.

Raised Outlook and Capital Returns

For the third quarter, Global-e forecast GMV of $1.995 billion to $2.045 billion and revenue of $308.5 million to $315.5 million. At the midpoint, the guidance implies GMV growth of 34% and revenue growth of more than 41% from the prior-year quarter. Passport is expected to contribute approximately $20 million in merchant-of-record GMV and $24 million to $26 million in revenue during the quarter.

The company expects third-quarter adjusted EBITDA of $58.5 million to $62.5 million, including less than $1 million from Passport.

• Full-year GMV guidance was raised to $8.81 billion to $9.11 billion.
• Full-year revenue guidance was raised to $1.305 billion to $1.355 billion.
• Full-year adjusted EBITDA guidance was raised to $278 million to $300 million, representing a 21.7% margin at the midpoint.

Passport is expected to contribute approximately $60 million of merchant-of-record GMV, $55 million to $59 million in revenue, and $3 million to $4 million in adjusted EBITDA during the second half of 2026.

Global-e also completed its prior $200 million share repurchase plan during the quarter, buying approximately $68 million of stock in the period. The company has repurchased 5.7 million shares since the program began. Its board approved a new $500 million repurchase authorization in June, which management said it expects to begin using going forward.

About Global-e Online (NASDAQ:GLBE)

Global-e Online Ltd. NASDAQ: GLBE is a leading cross-border e-commerce platform that enables online merchants to expand sales internationally. The company's cloud-based solution integrates with major e-commerce systems to offer localized checkout experiences, dynamic currency conversion, import duties and taxes calculation, fraud prevention, and compliance with local trade regulations. By managing the end-to-end complexities of global transactions, Global-e helps retailers streamline their international operations and deliver a seamless shopping experience to customers worldwide.

Central to Global-e's offering is a comprehensive suite of services that includes customizable checkout in the buyer's local language, real-time display of prices in over 140 currencies, support for region-specific payment methods, and transparent calculation of duties and taxes at point of sale.

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