Inquiring about drivers for strong same-store sales and faster new merchant ramp (onboarding, marketing, macro), and expectations for H2 same-store sales trends.

Management attributed strong performance to exceptional results from H2 2025 launched merchants, resilient consumer demand globally, and stronger consumer response to Q2 promotions. They noted some normalization for H2 same-store sales due to FX tailwinds and easier comps from prior year duties, but overall strong growth continues. “The performance of merchants that launched with us in the back half of 2025 is exceptionally good. We have seen the conversion rates going up, those sales going up even further than our expectation, and this continues to contribute highly in the first half, but also we see the contribution it will yield also to the back half.”

Seeking quantification of the impact of larger Q2 promotions on GMV growth and a reminder of the promotional activity cadence for the rest of the year.

Management clarified that Q2 promotions are annual events, but consumer reaction in Q2 2026 was "very strong," contributing to results. They noted a trend of better consumer reaction to promotions over the last 2-3 years. No unordinary promotional cadence is expected for the rest of the year, with Q3 typically lighter and Q4 similar to previous years. “The interesting thing is that the consumer reaction in 2026, in Q2 2026 was very strong to those -- to the same promotions that they run every year. We've seen very strong results for those promotions, and that has contributed to Q2 results.”

Asking about the ultimate margin potential, if Passport can reach corporate average margins, and how Passport cross-sell opportunities can drive revenue and margin expansion.

Management is confident in continued adjusted EBITDA margin expansion over time, driven by growth and operational leverage. They believe Passport can reach similar profitability levels as Global-e due to growth and integration synergies, and can also contribute to revenue through a more complete shipping proposition. “We believe that based on Passport growth and the integration to Global-e and the synergies that we are able to achieve, we can get to similar levels of profitability with Passport.”

GLBE

Global-e (GLBE) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 12, 2026

Source: earnings call transcript

Executive summary

Global-e Q2 FY26 — Strong Growth and Profitability with Strategic Acquisitions

Global-e delivered another robust quarter, surpassing guidance across key metrics, driven by strong GMV and revenue growth alongside significant adjusted EBITDA margin expansion. The company completed the strategic acquisition of Passport, enhancing logistics and expanding its addressable market, while also progressing on Managed Markets V2 and AI integration. Management remains confident in achieving long-term growth and profitability targets, supported by a new $500 million share repurchase program.

Highlights

GMV increased by 44% YoY to almost $2.1 billion, exceeding guidance.
Revenues grew by 39% YoY to $299 million, also considerably higher than guidance.
Adjusted EBITDA reached $62.4 million, up 62% YoY, with margin expanding to 20.9% (a 300 bps increase).
Free cash flow was $73.2 million, compared to $63.5 million in Q2 2025, demonstrating strong cash generation.
Successful acquisition and integration of Passport, expanding logistics capabilities and Total Addressable Market (TAM).

Concerns

Non-GAAP gross margin decreased to 45.3% from 46.5% YoY, primarily due to increased fuel costs temporarily absorbed.

Guidance & targets

Category	Target	Timeline	Confidence
Q3 2026 GMV	$1.995 billion to $2.045 billion high materiality	Q3 · FY26	High
Q3 2026 Revenue	$308.5 million to $315.5 million high materiality	Q3 · FY26	High
Q3 2026 Adjusted EBITDA	$58.5 million to $62.5 million high materiality	Q3 · FY26	High
Full-Year 2026 GMV	$8.81 billion to $9.11 billion high materiality	FY26	High
Full-Year 2026 Revenue	$1.305 billion to $1.355 billion high materiality	FY26	High
Full-Year 2026 Adjusted EBITDA	$278 million to $300 million high materiality	FY26	High
Passport Margins and Cash Flow	further improve medium materiality	FY27	High

Product announcements

Product	Type	Timeline	Details
Managed Markets V2	expansion	Q2 FY26
Managed Markets V1 to V2 Migration	update	Q2 FY26

Deals & partnerships

Passport Acquisition of a global asset-light logistics solution provider.

Acquisition of Passport, a company Global-e had been watching for some time, brings strategic logistics capabilities, broadens offerings to serve non-MoR verticals, and expands TAM. Post-merger integration is underway, with Phase 1 focused on enabling Passport as a shipping service on Global-e's carrier stack. Multiple work streams initiated to build additional services and offerings across geographies.

Risks & headwinds

Increased fuel costs Q2 FY26

Primarily affected non-GAAP gross margin, which was 45.3% compared to 46.5% in Q2 FY25.

Mitigation:Company made a business decision to temporarily absorb some of the cost by not updating pricing to merchants as frequently as carriers updated their fuel surcharges, to reduce volatility for merchants.

Managed Markets V1 to V2 accounting impact Q2 FY26

Reduced revenue, and at the same time, also reduced sales and marketing expenses.

Mitigation:Migration is completed, so no further changes in contribution between revenue and cost/expense recorded going forward.

Normalization of FX tailwinds H2 FY26

FX tailwinds mainly in Q1 and some in Q2 will no longer be expected in the back half of the year.

Mitigation:Factored into guidance, which still reflects a stronger back half than previously anticipated.

What to watch in Q3 FY26

Managed Markets V2 Adoption and GMV

next quarter and long-term

Current Increased adoption, trading volumes picking up, positive feedback from V1 to V2 migration.

Target Continued acceleration in adoption and contribution to Global-e and Shopify.

Why it matters

Managed Markets is a key strategic initiative with significant long-term potential for growth and TAM expansion, especially with its expansion to Canada and the U.K.

We are tracking in the right direction and we see continuous increase in adoption. Managed Markets is a longer-term play. We do believe it will continue to grow over time and continue to accelerate in its contribution to Global-e and to Shopify.

Find out whether GLBE delivers this. Inve re-checks your case every morning.

Q&A highlights

Seeking additional data points on conversion/attach rates for Managed Markets V2 after the V1 to V2 conversion, and growth contemplation for the year.

Management noted increased adoption, positive feedback from migrated merchants, and successful expansion to Canada and the U.K. They highlighted continuous development with Shopify, including managed pricing, yielding good results for conversion. Managed Markets is viewed as a long-term play with significant potential.

“We are tracking in the right direction and we see continuous increase in adoption. Managed Markets is a longer-term play. We do believe it will continue to grow over time and continue to accelerate in its contribution to Global-e and to Shopify.”

asked by Andrew Bauch · answered by Nir Debbi

2 min read 5 chapters

Detailed narrative

Strategic Acquisition of Passport

Global-e successfully acquired Passport, a global asset-light logistics solution, which is expected to generate over $100 million in revenues this year and is already adjusted EBITDA and cash flow positive. This acquisition strategically broadens Global-e's logistics capabilities, expands its offering to non-Merchant of Record (MoR) verticals, and significantly increases its Total Addressable Market (TAM).

Integration efforts are underway, with Phase 1 focused on enabling Passport as a shipping service on Global-e's carrier stack.

Managed Markets V2 Expansion and Adoption

The launch of Shopify Managed Markets V2 is on track, with geographical expansion to Canada and the U.K. in Q2. The migration of V1 merchants to V2 was completed smoothly, receiving positive feedback and strengthening belief in V2's ability to address prior adoption issues.

Trading volumes and new merchant onboarding are picking up, with continued collaboration with Shopify to deliver additional features for conversion and adoption.

Value-Added Services and AI Integration

Global-e is making progress in driving adoption of its value-added services, particularly duty drawback, with several U.S. merchants utilizing import drawback capabilities. The Borderfree.com brand discovery portal continues to grow, crossing 10 million unique visits in the last 12 months, with 6.5% of merchant sales attributable to the platform for participating brands.

The company is also heavily leveraging AI across R&D, implementation, merchant operations, and customer service to enhance service levels, boost efficiency, and lower costs.

Strong Merchant Growth and Expansion

Q2 saw the launch of numerous exciting new brands across Europe, North America, and APAC, including Ferrari, Officine Universelle Buly, J.M. Weston, The ROOT Brands, Buffbunny, and McLaren Golf. Additionally, existing prominent brands like FIGS, Fresh, and Pokemon expanded their operations with Global-e into new countries or took on significantly more volume, demonstrating continued platform value and merchant success.

Financial Performance and Outlook

The company reported strong financial results, with GMV up 44% and revenue up 39% YoY, both exceeding guidance. Adjusted EBITDA grew 62% YoY to $62.4 million, with margin expanding by over 300 basis points to 20.9%. Global-e raised its full-year 2026 guidance for GMV, revenue, and adjusted EBITDA, reflecting confidence in continued strong growth and profitability, with an expected full-year adjusted EBITDA margin of 21.7%.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.