Global-E (GLBE) Q1 FY26 earnings call: guidance and Q&A

How is Managed Markets 2.0 progressing relative to expectations, and is a material ramp still expected in H2? Are there specific merchant segments adopting faster?

Managed Markets 2.0 is progressing according to plan, with a gradual uptick in adoptions and good conversion of leads. A material ramp is still expected in H2 and into next year, supported by additional marketing and expansion to new markets like Canada and the U.K. No specific merchant segment is adopting faster; it's compelling for a wide range of merchants.

“both Shopify and us are very happy with the progress that we're seeing in Managed Markets, and it's progressing according to our plans.”

asked by William Fitzsimmons · answered by Amir Schlachet

How is take rate expected to trend for the balance of the year, especially concerning multi-local impact, and will the Q1 range be maintained?

Take rates are expected to be much more stable this year. Fulfillment take rate may see a limited, non-material decline due to a more balanced mix. Service fee take rates for enterprise business are expected to remain stable around 6.8%-6.9%. Managed Markets V2 migration will impact its service fee take rate due to a different P&L structure (recognizing only Global-E's share of revenue), but with low bottom-line impact.

“As reflected from our guidance, we expect service fees -- sorry, take rates in general to be much more stable this year.”

asked by Scott Berg · answered by Ofer Koren

Can management quantify the impact of duty drawback in Q1 and assumptions for CY26, or is it too early?

Duty reclaim and management are increasingly important. New markets and carriers have been added. Strong interest from merchants for U.S. import duty drawback, but data gathering takes time. Initial processes have started for early adopters, with more in the pipeline. Visible contribution is expected later in the year and into 2027.

“It will start to be visible only later in the year.”

asked by Scott Berg · answered by Nir Debbi

How is borderfree.com trending, what's the upper bound for merchant leverage, and how is monetization impacting volumes?

Borderfree.com contribution to participating brands' sales increased from 4% to over 6%, with potential for further growth towards 10%. Merchants are increasingly adopting it as a cost-effective way to promote brands globally. Monetization started this year, and while still small, it's growing nicely with no negative churn observed.

“We believe we haven't hit the maximum yet, and we still have way to grow.”

asked by Andrew Bauch · answered by Nir Debbi

How much of the same-store sales strength is due to better macro conditions versus outperformance of H2 2025 merchant launches?

The single largest contributor to same-store sales is better macro trading across most of the 1,500 Enterprise Solution clients, with growth rates much better than historical averages. The second contributor is the successful H2 2025 launches, which are trading above expectations and contributing to overall growth and net dollar retention.

“I think by far, we see better macro trading for most of our merchants.”

asked by William Nance · answered by Nir Debbi

How should investors think about the impact of the EU de minimis exemption removal in July 2026, compared to the U.S. experience?

The impact is expected to be significantly lower than in the U.S. due to a lower threshold (EUR 150 vs USD 800) and a smaller average duty increase (estimated 5% vs 15-25% in the U.S.). Fewer orders will be affected, and merchants are expected to absorb or embed the cost into pricing, so no significant impact on trading is anticipated.

“What we expect to see is not the same effect that we had in the U.S. as we expect the average increase on our average merchant order value to be significantly lower than the removal of the de minimis in the U.S.”

asked by James Faucette · answered by Nir Debbi