Global-e Online Ltd. (GLBE) Earnings

Management highlights

• Overall Q2 2026 Results - GMV increased 44% year-over-year to $2.089 billion, marking the first non-peak quarter with GMV over $2 billion, exceeding prior guidance ranges - Total revenue grew 39% year-over-year to $299 million, the second consecutive quarter with trailing 12-month revenue exceeding $1 billion - Adjusted EBITDA grew 62% year-over-year to $62.4 million, with an adjusted EBITDA margin of 20.9% (up 300 basis points year-over-year), marking accelerating margin expansion alongside top-line growth - Free cash flow was $73.2 million, up from $63.5 million in Q2 2025, with annual free cash flow margin expected to remain at or above adjusted EBITDA margin • Strategic Milestones - Closed the strategic acquisition of Passport, an asset-light global logistics solution, expanding service offerings beyond the traditional merchant of record (MOR) model to increase total addressable market (TAM). Post-merger integration is well underway, with phase one (enabling Passport on Global-e's carrier stack) on track for completion in coming quarters - Completed full migration of all Managed Markets V1 merchants to Managed Markets V2, and expanded general availability of V2 to Canadian and UK merchants (previously only available to US merchants). Adoption and trading volumes are increasing, with positive merchant feedback on improved functionality - Expanded adoption of the duty drawback value-added service, with the first US merchants launching utilization of US import drawback capabilities. Growth is expected as more merchants prepare required documentation, and the Passport acquisition will further expand duty drawback capabilities - Grew traffic to the Borderfree.com brand discovery portal, crossing 10 million unique visits in the last 12 months. The platform now contributes 6.5% of total sales for participating merchants, with continued adoption expected - Scaled internal use of generative AI across R&D, onboarding, merchant operations, customer service, and back-office functions to improve service quality and reduce cost-to-serve • New Merchant Activity - Onboarded dozens of prominent new brands across Europe, North America, and APAC, including iconic names like Ferrari, Officine Universelle Buly (LVMH), McLaren Golf, and Ader error (Korea). Expanded geographic reach for existing key merchants including FIGS, Fresh (LVMH), and Pokemon • Capital Return - Completed the full $200 million 2025 share repurchase program, repurchasing a total of 5.7 million shares since program launch. The board approved a new $500 million share repurchase program, which management will begin executing, with repurchases continuing while management believes the market undervalues the business

Guidance

- Management raised full-year 2026 guidance for all core metrics, incorporating the expected contribution from the recently acquired Passport business - Full-year 2026 GMV guidance is now $8.81 billion to $9.11 billion, representing 36.4% year-over-year growth at the midpoint, with Passport expected to contribute $60 million in back-half 2026 GMV - Full-year 2026 total revenue guidance is now $1.305 billion to $1.355 billion, representing 38% year-over-year growth at the midpoint (32% year-over-year growth excluding Passport, an acceleration from 2025's 28% annual growth). Passport is expected to contribute $55-$59 million in back-half 2026 revenue - Full-year 2026 adjusted EBITDA guidance is now $278 million to $300 billion, representing 46% year-over-year growth at the midpoint with a 21.7% margin, with Passport expected to contribute $3-$4 million in back-half 2026 adjusted EBITDA - Q3 2026 guidance: GMV of $1.995 billion to $2.045 billion (34% year-over-year growth at midpoint, with Passport contributing ~$20 million); revenue of $308.5 million to $315.5 million (over 41% year-over-year growth, with Passport contributing $24-$26 million); adjusted EBITDA of $58.5 million to $62.5 million (19.4% margin at midpoint, with Passport contributing less than $1 million) - Excluding Passport, management expects take rates to remain fairly stable in the back half of 2026

Segment performance

Global-e reports two core revenue segments for Q2 2026: 1) Service fee revenue: $139.4 million, up 36% year-over-year, contributing 46.6% of total Q2 revenue. 2) Fulfillment services revenue: $159.6 million, up 42% year-over-year, contributing 53.4% of total Q2 revenue. The newly acquired Passport logistics segment is expected to contribute $24-$26 million in Q3 2026 revenue and $55-$59 million in full-year 2026 revenue (back-half contribution only, following the Q2 2026 closing). Passport is currently on track to generate over $100 million in total full-year 2026 revenue, growing slightly faster than Global-e's overall growth rate.

Risks & headwinds

- Fuel price volatility created temporary margin pressure in Q2 2026: carrier fuel surcharges update more frequently than Global-e passes price changes to merchants, as management chooses to avoid frequent pricing volatility for merchants, leading to temporary absorption of extra fuel costs - Duty drawback revenue contribution is expected to be lumpy in the near term, as merchants require time to gather historical documentation for first-time claims, with no immediate large-scale revenue recognition - Managed Markets V2 growth is a long-term play, with meaningful scale contribution not expected in the near term despite positive early adoption trends - Increased business mix of lower-take-rate non-MOR business models (including Managed Markets V2 and Passport) has led to modest overall take rate compression over time, though management notes this trend is less indicative of underlying business health as it reflects intentional product portfolio expansion to serve more merchant segments

Analyst Q&A

• Q: With the full conversion of Managed Markets from V1 to V2 complete, what early adoption and performance trends are you seeing, and what milestones should investors track? /

  A: The full migration of all V1 merchants to V2 is complete, with no remaining transitions expected. Management is seeing increasing adoption of V2 following the expansion to Canada and the UK, with positive merchant feedback on improved conversion and user experience. The joint development of managed pricing with Shopify has also yielded positive conversion results for participating merchants. The key milestones to track are continued growth in adoption and GMV for the offering, which is still a long-term growth play that will accelerate its contribution over time. Instant same-session onboarding is now live for most merchants, a key improvement from the previous multi-day review process that should support faster adoption going forward.

• Q: Strong same-store sales growth and faster ramping of new merchants has outperformed expectations. What is driving this trend, and what do you expect for same-store trends in the back half of 2026? /

  A: Strong consumer demand is resilient across nearly all global markets, supporting same-store sales above historical trends. New merchants launched in H2 2025 are seeing higher conversion and sales growth than expected, contributing meaningfully to H1 2026 results and expected to continue contributing in the back half. Some temporary tailwinds, including FX gains and easier year-over-year comparisons following 2025 duty volatility, will not repeat in the back half, but overall growth remains strong enough to support the upwardly revised back half guidance.

• Q: How should investors think about the long-term margin potential for the newly acquired Passport business, and can it reach Global-e's overall corporate margin levels? /

  A: Passport is already growing faster than Global-e's core business, has passed the tipping point to adjusted EBITDA and cash flow positivity, and currently generates mid-30s gross margins. Management expects that as Passport grows and integration synergies with Global-e's existing scale and infrastructure are realized over time, it will reach profitability levels similar to Global-e's corporate average. Beyond direct profitability, Passport also enables Global-e to offer a more complete end-to-end shipping solution to all merchants, which is expected to drive additional core revenue growth through cross-selling opportunities.

• Q: How does the recent removal of the European Union's Minimus duty exemption impact new merchant demand? /

  A: The change in EU duty rules, along with the normalization of duty regimes after 2025 volatility, has increased merchant interest in robust global cross-border trade solutions. The 2026 new merchant pipeline is stronger than 2025, with higher volume at the top of the funnel and higher conversion through the funnel. Part of this increase in pipeline activity is attributed to the AI-powered discovery tools Global-e deployed in late 2025 and early 2026, which has improved lead generation.