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    GLBE
    Earnings call· Jun 2026(Q2 FY26)

    Global-E Online Q2 FY26 earnings call GLBE

    Aug 12, 2026 Source

    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

    5

    • 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

    1

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

    Guidance & targets

    7
    CategoryTargetConfidence
    Q3 2026 GMV
    $1.995 billion to $2.045 billion
    high materiality
    High
    Q3 2026 Revenue
    $308.5 million to $315.5 million
    high materiality
    High
    Q3 2026 Adjusted EBITDA
    $58.5 million to $62.5 million
    high materiality
    High
    Full-Year 2026 GMV
    $8.81 billion to $9.11 billion
    high materiality
    High
    Full-Year 2026 Revenue
    $1.305 billion to $1.355 billion
    high materiality
    High
    Full-Year 2026 Adjusted EBITDA
    $278 million to $300 million
    high materiality
    High
    Passport Margins and Cash Flow
    further improve
    medium materiality
    High

    Operational metrics

    26
    Gross Merchandise Value
    $2.089 billionup 44% year-over-year
    Q2 FY26

    Exceeded guidance.

    Total Revenue
    $299 millionup 39% year-over-year
    Q2 FY26

    Exceeded guidance.

    Service Fee Revenue
    $139.4 millionup 36% year-over-year
    Q2 FY26

    Core business service fee take rate remains fairly stable, with a one-time decrease in baseline due to Managed Markets V1 to V2 shift accounting treatment.

    Fulfillment Services Revenue
    $159.6 millionup 42% year-over-year
    Q2 FY26
    Non-GAAP Gross Profit
    $135.4 millionup 36% year-over-year
    Q2 FY26

    Primarily affected by increased fuel costs, which were temporarily absorbed.

    R&D Expense (excl. SBC) as % of Revenue
    10.2%down from 12.2% in Q2 FY25
    Q2 FY26

    Benefited from operating leverage and AI utilization despite continued platform investment.

    Sales and Marketing Expense (excl. SBC & Amort.) as % of Revenue
    10.6%down from 12.7% in Q2 FY25
    Q2 FY26

    Decrease partially driven by migration of Managed Markets merchants from V1 to V2.

    G&A Expense (excl. SBC & Contingent Cons.) as % of Revenue
    3.9%down from 4.1% in Q2 FY25
    Q2 FY26
    Operating Expenses (excl. SBC & Amort.) as % of Revenue
    under 25%
    Q2 FY26

    Achieved a pre-IPO milestone driven by scale leverage and operational efficiencies.

    Adjusted EBITDA
    $62.4 millionup 62% year-over-year
    Q2 FY26

    Margin increased by over 300 basis points YoY.

    Non-GAAP Net Profit
    $64.9 millioncompared to $37.9 million in Q2 FY25
    Q2 FY26
    Non-GAAP Net Profit per Share (fully diluted)
    $0.37compared to $0.22 in Q2 FY25
    Q2 FY26
    Cash and Cash Equivalents
    $530 million
    Q2 FY26

    Balance at end of Q2 FY26.

    Share Repurchase (executed)
    $68 million
    Q2 FY26

    Completed the remaining capacity under the $200 million 2025 plan.

    Total Shares Repurchased
    5.7 million
    since program start

    Total repurchased since the start of the 2025 program.

    Share Repurchase Plan (new authorization)
    $500 million
    approved June 2026

    Board approved new plan, execution expected to begin moving forward.

    Passport Revenue
    over $100 milliongrowing slightly ahead of overall growth rate
    FY26

    Expected to generate this amount for the full year.

    Passport Profitability
    adjusted EBITDA and cash flow positive
    recent

    Recently turned positive, with expectations for further improvement.

    Passport Gross Margin
    mid-30s
    current

    As discussed at the time of acquisition.

    Managed Markets V2 Geographical Expansion
    —
    Q2 FY26

    Expanded geographical footprint, making it available outside the U.S. for the first time.

    Borderfree.com Unique Visits
    10 millioncontinues to rise
    last 12 months

    Crossed this threshold for the first time.

    Borderfree.com Share of Merchant Sales
    6.5%
    Q2 FY26

    For merchants utilizing the platform.

    Duty Drawback Service Utilization
    —
    Q2 FY26

    Several merchants started utilizing the service, expected to grow as more documentation is provided.

    AI Integration
    —
    Q2 FY26

    Leveraged to improve service, data utilization, and lower cost to serve, driving efficiency.

    Full-Year 2026 Revenue Growth (excluding Passport)
    32%acceleration from 28% in 2025
    FY26

    Upwards revised guidance, representing further acceleration from prior year.

    Free Cash Flow Margin
    at or higher than adjusted EBITDA margin
    annual basis

    Expected to remain consistent with adjusted EBITDA margin annually.

    Industry KPIs

    4
    MetricValueDetails
    Comparable salesabove historical trends
    Segment revenue mix—
    Regional market performancestrong and resilient
    Operating income EBIT and adjusted EBITDA$62.4 millionUSD

    Product announcements

    2
    ProductTypeDetails
    Managed Markets V2expansion
    Managed Markets V1 to V2 Migrationupdate

    Deals & partnerships

    1
    PassportAcquisition 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

    3
    Increased fuel costsQ2 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 impactQ2 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 tailwindsH2 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

    5

    Managed Markets V2 Adoption and GMV

    next quarter and long-term
    CurrentIncreased adoption, trading volumes picking up, positive feedback from V1 to V2 migration.
    TargetContinued 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.

    Q&A highlights

    5

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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%.

    AI-generated summary of the company’s earnings call. Not investment advice.