GLBE

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 8:00 a.m. ET Head of Investor Relations - Alan Katz Co-Founder and Chief Executive Officer - Amir Schlachet Chief Financial Officer - Ofer Koren Co-Founder and President - Nir Debbi Operator: Welcome to the Global-e Second Quarter 2026 Earnings Announcement Conference Call. This call is being simultaneously webcast on the company's website in the Investors section under News and Events. For opening remarks and introductions, I will now turn the call over to Alan Katz, Global-e's Head of Investor Relations. Please go ahead. Alan Katz: Thank you, and good morning, everyone. With me on the call today are Amir Schlachet, Co-Founder and Chief Executive Officer; Ofer Koren, Chief Financial Officer; and Nir Debbi, Co-Founder and President. Amir will begin with a review of the operations and the business results for the second quarter of 2026. Ofer will then review the financial results of the second quarter in more detail, followed by the company's updated outlook for the full year as well as the Q3 outlook. We will then open the call for questions. Before I read the forward-looking statements disclaimer, I'll note that as in previous quarters, we have posted an Excel-based metrics file on our IR website. This provides historical data for both financial information and KPIs that may be helpful as investors are researching the company. We have also published slides that highlight our results as well as some of the key themes that we will discuss in today's call. Please feel free to let us know if you have any feedback on either of these documents. Moving on. Certain statements we make today constitute forward-looking statements. All statements other than statements of historical facts are forward-looking statements, including statements regarding our guidance, growth strategy, long-term targets, competitive positioning, product and platform initiatives, partnerships and share repurchases. These forward-looking statements reflect our current views with respect to future events and are not a guarantee of future performance. Actual outcomes may differ materially from the information contained in the forward-looking statements as a result of a number of factors, including those set forth in our 2025 annual report filed with the SEC. Please refer to our press release issued today, August 12, 2026, for additional information. In addition, certain metrics we will discuss today are non-GAAP metrics. We believe that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects and allow for greater transparency with respect to key metrics used by management in its financial and operational decision-making. For more information on these non-GAAP financial measures, including reconciliations to the most directly comparable GAAP measures, please see our press release issued today. Throughout this call, we will also discuss a number of key performance indicators used by our management team. These and other KPIs are discussed in more detail in our press release issued today. I will now turn the call over to Amir, our Co-Founder and CEO. Amir, please go ahead. Amir Schlachet: Thanks, Alan, and welcome, everyone, to our second quarter earnings call. The momentum that we saw during the start of the year continued through Q2, resulting in another very strong quarter all around and reinforcing our confidence in our ability to continue to strongly perform against our long-term growth targets. We beat the high end of the range across all of our guidance metrics and are now raising our outlook for GMV, revenue and adjusted EBITDA for the remainder of the year. Operationally, during the quarter, we had some great achievements against our multiyear strategic plan, including continued growth with our existing merchants, launching with exciting new brands and the expansion of our work with our strategic partners. We also announced and closed on the acquisition of Passport, a global asset-light logistics solution. Passport brings with its strategic logistics capabilities to further create value for our merchants, while also broadening our offering to serve verticals beyond our traditional merchant of record model, thereby expanding our TAM. We continue to make progress on Managed Markets V2 and on driving adoption of our value-added services. Lastly, we expanded our internal use of AI, leveraging this groundbreaking technology to improve our service to merchants and our ability to leverage our unique data assets as well as to lower our cost to serve. The utilization of generative AI allows us to move faster, provide better service and consultancy to our merchants and further leverage our economies of scale. From a financial perspective, we continue to perform ahead of the long-term plan and targets we presented last year at our Investor Day, both in our high-growth momentum and in the continued adjusted EBITDA margin expansion. Once again, our strong quarterly results and solid outlook for the year helped to illustrate our market leadership position, our growing competitive moats and our ongoing commitment to continue to drive the business towards our long-term targets. Before we go in more depth to some of the items that I just mentioned, let's first go over the key elements of our quarterly results. Compared with Q2 2025, GMV increased by 44% to almost $2.1 billion, making Q2 the first time we reached more than $2 billion in GMV in a non-peak quarter. Revenues grew by 39% to $299 million, with Q2 being the second quarter in a row in which our last 12 months revenues totaled more than $1 billion. Both GMV and revenues came in considerably higher than our respective guidance. This continued strong execution drives our upwards revised full year 2026 revenue guidance to a 32% year-on-year growth before accounting for Passport, which represents further acceleration from 2025's fast revenue growth, which stood at 28%. In other words, we have managed to meaningfully accelerate our growth rates compared to last year's trajectory. We believe this is a strong testament to the value our services generate for our merchants, to our market leadership position and to the immense untapped potential we see in this exciting and growing market. But growth alone is only one part of the story. In parallel to this growth in revenues, we continued our steady trajectory of adjusted EBITDA margin expansion over time. We finished Q2 of 2026 with $62.4 million of adjusted EBITDA, up 62% year-on-year to a margin of almost 21%. This is more than a 300 basis point increase compared to the same quarter last year. Simply put, we are not just generating durable high top line growth, we're also generating strong and profitable bottom line growth. In terms of trading activity, same-store sales growth came in above historical trends once again. Volume growth with both larger and midsized merchants continue to be a significant factor, driven by continued global consumer resilience as well as stronger consumer response to recurring annual promotional activities. For perspective, during Q2, some of our larger brands saw the increase in volumes from the seasonal sales days peak at more than 25% higher than the increase they saw in last year's Q2 promotions. Besides planned sales promotions, I would be remiss if I didn't congratulate a few of our soccer clubs that we proudly count as Global-e merchants on their fantastic achievements this past season. To name just a few, Arsenal won the Premier League Championship and were also runner ups for the Champions League. Barcelona retained their title as La Liga champions. Bayern Munich won the League title again. And Manchester United came in third in the Premier League and secured their return to the Champions League. This, along with more fans buying jerseys around the FIFA World Cup, led to an increase in volumes within our sports club's score. Moving on, as I mentioned earlier, our growth is both durable and profitable. Just like in past years, on an annual basis, we expect our free cash flow margin to remain at or higher than our adjusted EBITDA margin. In other words, we continue to generate growing amounts of cash every year. We plan to continue to use this cash to create long-term value for merchants and for our shareholders. I'll discuss our acquisition of Passport in a moment, but we are also focused on returning excess cash to shareholders via our share repurchase program. As of the end of the quarter, we have completed our 2025 plan of $200 million. In June 2026, the Board approved a new $500 million plan, which we intend to start executing upon as well. We will continue to repurchase shares as long as we believe the market is undervaluing the financial and operational strength of our business as well as the market opportunity that we have ahead of us. Let's now spend some time on our strategic and operational progress. First, as I already mentioned, we announced and closed on the acquisition of Passport. The team did an incredible job on this deal, which is especially exciting as this is a company that we've been watching for some time. We were happy to welcome Alex and the entire Passport team on board last month and believe this acquisition to be an especially strategic addition to our suite of logistics solutions, while the introduction of a non-MoR option to our suite of service offerings enables us to serve merchant categories we haven't been able to or wanted to address in the past with our MoR solution. Owning deep best-in-class standard shipping capabilities and know-how broadens our suite of logistics solutions, both outbound and inbound, thereby allowing us to further optimize costs and service levels of standard logistics around the world. This will also allow us to leverage our scale to build dedicated services, including consolidated returns, direct injections and further proprietary duty drawback capabilities. The post-merger integration effort is already well underway, and we are quickly advancing towards completing Phase 1, which is to enable Passport as a shipping service on the Global-e carrier stack. In parallel, we have kicked off multiple work streams aimed at building additional services and offerings across multiple geographic regions, which we expect to materialize over the coming quarters, thereby greatly enriching our suite of logistics and global trade solutions. Passport is currently on track to generate over $100 million in revenues this year, growing slightly ahead of our overall growth rate. Passport has recently turned adjusted EBITDA and cash flow positive, and we expect its margins and cash flow to further improve as they grow and as we realize integration synergies with our existing scale and framework over the next several quarters. Moving on, the launch of Shopify Managed Markets version 2 remains on track. In Q2, we officially expanded the geographical footprint of the Managed Markets offering, making it available for the first time to merchants outside of the U.S., namely in Canada and in the U.K. We expect to bring this offering to additional countries down the line. We're starting to see both trading volumes and the onboarding of new merchants on Managed Markets pick up steam and continue to see the significant long-term potential of this innovative new offering beginning to materialize. We migrated many of the merchants that were on version 1 to version 2 already towards the beginning of the second quarter, with the remaining merchants migrating during the quarter. The process went smoothly and initial feedback from the group of merchants has been very positive, further strengthening our belief that version 2 indeed solves many of the issues that impeded version 1 from being more widely adopted. We continue to work side-by-side with Shopify's team to deliver additional features and capabilities, all aimed at driving both conversion and adoption higher and higher. During Q2, we also made further progress on driving adoption of another one of our key value-added services, that of duty drawback. As a reminder, this service is designed to enable merchants to potentially reclaim import duties on goods that are exported outside of their home base as well as reclaim certain tariffs paid on return goods depending on the sale parameters. During the second quarter, we had several merchants that started utilizing the U.S. import drawback capabilities, and we expect to see this service growing as more merchants will provide the necessary documentation to support the process. Furthermore, as I already mentioned, we believe that our acquisition of Passport will further expand our capabilities in this field of duty drawback in the future. Next, Borderfree.com expanded again this quarter. Global traffic into the Borderfree.com brand discovery portal continues to rise, crossing 10 million unique visits in the last 12 months. The share of merchant sales attributable to the Borderfree.com channel is now 6.5% for merchants that are utilizing the platform. This offering is still in its early innings, but we remain pleased with the progress to date and are excited to see its continued adoption. Lastly, we are continuing on our path to implement AI across the organization as we lean heavily on our AI-first approach to drive service level enhancements and boost efficiency levels all around. By now, we have built AI into many of the processes across R&D, implementation, merchant operations and customer service as well as our corporate and back-office functions. We're empowering our teams to improve the onboarding and development processes for merchants, launch new AI-led processes for research and support and roll out tools to further enhance our level of consultancy and optimization for the benefit of our merchants around the world. Let's now move on to some of the exciting new brands that have joined the platform and went live across our various geographies during Q2. First off is Europe, where we were thrilled to launch with Ferrari, the legendary Italian supercar maker and one of the most iconic consumer brands in the world, a terrific new logo win for Global-e. Italy also saw the launches of Manebi, the espadrille specialist that turned its Mediterranean summer staple into a year-round luxury item and Liviana Conti, the first brand to launch with us out of the Italian fashion group, Abraham Industries. In Germany, we launched 6PM, the Berlin-based contemporary streetwear label as well as the influencer-founded fashion brand, Mikuta. Sweden saw several brand launches across a diverse set of verticals, including Malina, the fashion house in Stockholm; C'est Normal, a fashion and lifestyle brand for men founded by professional skier and entrepreneur, Jon Olsson; Synsam, one of the Nordic's largest optical retail chains and even Rimgard, an innovative Swedish engineering brand behind a patented high-end wheel security lock. In France, we launched with another maison out of the LVMH Group. This time, with Officine Universelle Buly, the Parisian luxury brand fame for its artisanal fragrances since 1803. We also launched with another French brand that has a rich history, J.M. Weston, the French master shoemaker, which was founded in Limoges back in 1891. In the U.K., we launched with Naked Wolfe, a London-born sneaker brand known for its chunky statement footwear and heavy social media presence, with N.Peal, the historic Burlington Arcade cashmere house, famously worn on screen by James Bond and with Montirex, a Liverpool-born technical activewear label. In North America, we launched with many prominent brands, such as The ROOT Brands, the fast-growing wellness and supplements company; Buffbunny, the popular fitness and activewear brand by fitness influencer and entrepreneur, Heidi Somers, who bootstrapped this brand in 2016 from a living room in San Antonio, Texas; Dolce Vita, the L.A.-based contemporary footwear brand from the Steve Madden family; Six Zero Pickleball, the fast-growing paddle brand riding on the global pickleball boom; and McLaren Golf, the recently launched and highly anticipated brand of golf gear from the well-known McLaren racing team. Last but not least, in APAC, we launched with a second brand out of the Universal Music Japan Group, continuing our relationship with the label following their Q1 launch; with All Things Golden, a successful Australian boutique label; and with ADERERROR and The Loeil, 2 of Korea's most talked about fashion labels. These are just a few of the exciting brands that have gone live with us over the second quarter. I want to take this opportunity to give credit to our professional services and onboarding teams who have done a tremendous job this year, launching more and more brands onto our platform. In addition to new merchant launches, Q2 also saw the expansion of our business with a number of prominent brands. FIGS continued to expand with us, opening up new countries across APAC. They remain one of the fastest-growing and most engaged brands on our platform. Other notable brands with which we expanded to additional lanes in Q2 are Fresh, the LVMH-owned skin care brand that launched with us back in Q1; Pokemon, where we expanded this quarter to take on significantly more volume related to their highly anticipated and viral drops; as well as Peter Millar and G/FORE, the Richemont golf-wear brands that launched last quarter; Camper, the Spanish footwear brand; and Isabel Marant, the French luxury fashion house, just to name a few. To summarize, we have had a great first half of 2026, and we expect continued strong growth and profit expansion in the back half of the year as is reflected in our updated full year guidance. Based on what we see today, we believe we are well positioned to exit 2026, which is the second year in our long-term strategic plan ahead of targets, further solidifying our commitment to durable growth and value creation. I will now hand it over to Ofer to take us through the quarterly numbers in more depth and lay out our Q3 and updated 2026 full year guidance. Ofer Koren: Thank you, Amir, and thanks, everyone, for joining us today for our earnings call. As Amir just highlighted, Q2 was another quarter of very strong growth for Global-e with results again significantly above the Rule of 50 as we continue to execute and deliver against our strategic plan to drive long-term and profitable growth across the business. Before I go into details of the quarter, I'd like to remind everyone again that in addition to our GAAP results, I'll also be discussing certain non-GAAP financial measures. Definitions of these measures and reconciliation to the most directly comparable GAAP measures can be found in our earnings release. GMV in Q2 was $2.089 billion, up 44% year-over-year. Trading volumes were strong, driven by very strong same-store sales as we continue to see robust consumption patterns across most destination regions. Performance was further accelerated by highly impactful Q2 merchant promotions, which despite being annual events, generated stronger consumer response this year. In addition, we continue to benefit from the positive impact of the merchant cohort that launched in the second half of 2025, see positive contribution from merchants launched in 2026 and benefit from some FX tailwinds as expected. In Q2, we generated total revenue of $299 million, up 39% year-over-year. Service fee revenue for the quarter was $139.4 million, up 36% year-over-year and fulfillment services revenue for the quarter was $159.6 million, up 42% year-over-year. The service fee take rate of the core business remains fairly stable. And as expected, we saw a onetime decrease in the service fees baseline, driven by the shift of Managed Markets V1 merchants to V2 in the quarter, which due to the V2 accounting treatment reduced revenue, and at the same time, also reduced sales and marketing expenses. I believe it is important to note that as we continue to expand our suite of solutions with business models such as multi-local, Managed Markets and following the Passport acquisition, which is also mostly non-MoR, we believe take rate trends are becoming a less indicative metric of the state of the business. Since 2024, while take rates have modestly declined, our adjusted EBITDA margins have meaningfully expanded by more than 320 basis points. Progressing through the income statement. Non-GAAP gross profit was $135.4 million, up 36% year-over-year, representing a non-GAAP gross margin of 45.3% compared to 46.5% in the same period last year. Gross margin was primarily affected by increased fuel costs, resulting from a gap between the time in which carriers update their fuel surcharges and the time we pass those updates on to merchants. While we have a mechanism to adjust for fuel price changes, which we have utilized in recent months, in view of the high fuel prices volatility, at present time, we chose to reduce the level of uncertainty and volatility for the merchants and not to update pricing very frequently. GAAP gross profit was $131.9 million, representing a margin of 44.1%. Moving on to operational expenses. R&D expense in Q2, excluding stock-based compensation, was $30.4 million or 10.2% of revenue compared to $26.2 million or 12.2% in the same period last year. We continued to benefit from both operating leverage and the utilization of AI tools and agents to drive efficiency into the business during the quarter. Despite the continued investment in the enhancement of our platform to further expand our offering and add value to our merchants, R&D, excluding stock-based compensation, increased only 16% this quarter despite the continued growth in GMV of over 40%. Total R&D spend in Q2 was $35 million. We also continued to invest in sales and marketing to drive our future growth, including in our go-to-market and quota-carrying team, the marketing of Borderfree.com and investment in building our brand reputation in both new and existing markets. Sales and marketing expense, excluding stock-based compensation and acquisition-related intangible amortization was $31.8 million or 10.6% of revenue compared to $27.2 million or 12.7% of revenue in the same period last year. The decrease in sales and marketing expense as a percentage of revenue is partially driven by the migration of Managed Markets merchants from V1 to V2. Total sales and marketing expenses for the quarter were $35.8 million. General and administrative expenses, excluding stock-based compensation and acquisition-related contingent consideration, were $11.7 million or 3.9% of revenue compared to $8.8 million or 4.1% of revenue in the same period last year. Total G&A spend in Q2 was $16.4 million. We are happy to see our OpEx, excluding stock-based compensation and acquisition-related intangible amortization at under 25% of revenue, driven by scale leverage and operational efficiencies. This was one of the financial targets we set pre-IPO, and we are very proud to achieve this milestone. Total OpEx as a percentage of revenue was 29%. Our bottom line continued to grow even faster than our top line. Adjusted EBITDA for the quarter was $62.4 million, representing a 20.9% adjusted EBITDA margin, an increase of 62% from the $38.5 million or 17.9% margin in the same period last year. Non-GAAP net profit for the quarter was $64.9 million compared to $37.9 million in the same period last year. Non-GAAP net profit per share was $0.37 on a fully diluted basis compared to $0.22 in the same period last year. GAAP net profit for the quarter was $47.7 million compared to a net profit of $10.5 million last year and fully diluted GAAP EPS was $0.27. Turning to the balance sheet and cash flow statement. We ended Q2 with $530 million in cash and cash equivalents, including short-term deposits and marketable securities. Free cash flow in the quarter was $73.2 million. This compares with $63.5 million of free cash flow in Q2 of 2025. Net cash from operating activities was $73.6 million compared to $65 million a year ago. As Amir mentioned, in Q2, we continued to execute on our share repurchase program and completed the remaining capacity under the $200 million 2025 plan. We repurchased approximately $68 million in stock in the quarter and have now repurchased 5.7 million shares in total since the start of the program. As said, during the quarter, the Board approved a new $500 million share repurchase plan, which we expect to begin executing on moving forward. Turning to our financial outlook and guidance for Q3 and our updated outlook for the full year 2026. We continue to see 2026 as another year of very strong top and bottom line growth for Global-e. We have raised again both the top and bottom line outlook for the year. In addition, we have included in the guidance the expected contribution of Passport. For Q3 2026, we are expecting GMV to be in the range of $1.995 billion to $2.045 billion. At the midpoint of the range, this represents a growth rate of 34% versus Q3 of 2025. Out of that, we expect Passport to contribute approximately $20 million from its Merchant of Record service. We expect Q3 revenue to be in the range of $308.5 million to $315.5 million, representing a growth rate of over 41% versus Q3 of 2025. Of that, we expect Passport to contribute $24 million to $26 million. Lastly, for adjusted EBITDA, we are expecting a range of $58.5 million to $62.5 million or 19.4% margin at the midpoint of the range. Of that, Passport is expected to have a contribution of less than $1 million. For the full year of 2026, we now anticipate GMV to be in the range of $8.81 billion to $9.11 billion, representing an annual growth rate of 36.4% at the midpoint of the range. Of that, Passport is expected to contribute approximately $60 million in the back half of 2026 from its Merchant of Record service. Revenue for the full year is now expected to be in the range of $1.305 billion to $1.355 billion, representing a year-over-year growth of 38% at the midpoint of the range. Of that, Passport is expected to contribute $55 million to $59 million in the back half of 2026. Lastly, we expect adjusted EBITDA and adjusted EBITDA margins to continue to expand supported by operating leverage and utilization of AI. We now expect to achieve 2026 adjusted EBITDA in the range of $278 million to $300 million, representing a 46% growth at the midpoint and a 21.7% margin. Of that, Passport is expected to contribute $3 million to $4 million in the back half of 2026. As discussed at the time of the acquisition, Passport is growing slightly ahead of our overall growth rate and is generating a mid-30s gross margin. We expect the Passport margins and cash flow to improve further in 2027 as the business continues to grow and as we realize integration synergies with our existing scale. In conclusion, we had a very strong first half, and we look forward to continuing to support our merchants on their international journey. We are the clear leader in a fast-growing and exciting market and are continuing to execute well upon our multiyear plan. With our strong momentum, we believe we are well positioned to deliver another year of results well above the Rule of 50. And with that, Amir, Nir, Alan and I are happy to answer any questions you may have. Operator? Operator: [Operator Instructions] Your first question comes from the line of Andrew Bauch from BMO. Andrew Bauch: Great quarter, guys. Good to see the acceleration, especially against a tougher comp. I want to ask you about Managed Markets. You made the conversion from 1.0 to 2.0 this quarter. I was wondering if you could share any additional data points on what you're seeing around things like conversion or attach? And what kind of growth are you contemplating for Managed Markets this year because we understand growth in that business was largely on pause last year. Nir Debbi: We are seeing an increase in adoption following the rollout of V2. We are also excited with the opening of the general availability on Managed Markets in Canada and U.K., which is positively impacting the interest level outside the U.S. and overall. And lastly, we have seen positive feedback from merchants that migrated from V1 to V2 on the merchant experience and on the overall conversion. Also the continued development we made around managed pricing together with Shopify have yielded good results in terms of its contribution to participating merchants in the conversion. So all in all, 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. Operator: Your next question comes from the line of Billy Fitzsimmons from Piper Sandler. William Fitzsimmons: Good to see the results and guidance. It seems like, first, same-store sales growth continues to outpace expectations. And then second, newly launched merchants, including those that joined Global-e maybe in the back half of 2025, are ramping faster on the platform. Can you guys please contextualize those trends for us a little further? Are newer customers ramping faster because of better onboarding processes within Global-e? Are international trends better because marketing tools in the industry are getting more precise and allowing them to grow faster? Is it macro? And then given the strong backdrop, what are you expecting around same-store sales trends in the back half? Nir Debbi: So first of all, we are excited with what we've seen in the first half of 2026 and even further acceleration we have witnessed in Q2. 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. In terms of same-store sales, we are trading above the historical level. So consumer demand looks good and resilient across virtually almost all markets around the world. In terms of the backdrop, we do have some normalization baked in as we guided also in previous quarters into the same-store sales. Some of it relates to tailwinds of FX that we had mainly in Q1 and some of it also in Q2 that will no longer expected to be in the back half of the year. And some of that is related to easier comps on the first half of the year due to the duties that were -- duties noise that started in the first part of 2025 and normalized over the year. But in general, we do see strong growth continues, and it's reflected in our guidance that now sees a stronger back half of the year than what we anticipated a quarter ago. Operator: Your next question comes from the line of Rob Wildhack from Autonomous Research. Robert Wildhack: Okay, good. So you called out some larger promotions by your top merchants in the second quarter. And I was curious if you could add some more context to the effect that those might have had on GMV growth. Are they worth like a couple of percentage points or something like that? And then looking forward, can you remind us on the cadence of that promotional activity through the rest of the year and how that might affect the volume growth that you're guiding to? Nir Debbi: Sure. So this -- most of these promotions are annual promotions, a lot of the merchants and some of our larger merchants have sort of a biannual approach to promotions. So they have large promotions in Q4. And then they also have some large promotions in Q2. It's the same promotions every year. So we've seen that in '25, in '24 and even earlier. So nothing out of the ordinary here. 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. In general, I can say that over the last 2 or 3 years, we are seeing over time a better reaction to promotions. We see consumers planning their shopping, at least some of the consumers. I think it's evident in our last 2 years' Q4 results. So it is a trend. And we believe that we will continue to see this in the future. Operator: Your next question comes from the line of Scott Berg from Needham. Scott Berg: Really nice quarter here. I guess I got a couple. I'm not sure if this is for Amir or Nir. But as you think about the Managed Markets 2.0 traction, what type of KPIs or milestones should we all be looking for? Obviously, GMV commentary is key, but whether it's customers moving from version 1 or what you're seeing from initial adoption of 2.0? It'd just be great to hear if there's any other items you think are worth us paying attention to. Nir Debbi: Scott, it's Nir. So basically, we are tracking adoption and tracking GMV on Managed Markets, and this would be our main factors. In terms of the migration itself, it was completely done. It wasn't a long-term phased approach. It was done in a few batches, but it was completed. So we shouldn't expect any more changes in terms of contribution between revenue and cost or expense recorded going forward. It was completed. So now it's just to focus on the business and the growth of it. We, together with Shopify, are fully engaged and behind the product, we continue to develop elements that we believe would get more merchants to trade on it, easier to trade on it with better results. And we do see early indications of increased adoption and better trading. So we are optimistic on the longer-term trend and the continued growth of Managed Markets. Scott Berg: Very helpful, Nir. And then Ofer, you talked about gross margins in the quarter being down in Q1, partially because of the Managed Markets conversions because of the new commercial agreements or the difference in commercial agreements on the Managed Markets 2.0. Is the second quarter gross margin we saw, is this kind of the right baseline start working our models around going forward? Or with the last remaining conversions, would there be another slight step down? Of course, understanding just the EBITDA margin impact is pretty negligible overall. Ofer Koren: Yes. So gross margins have been pretty stable in the last few quarters. And in Q2, we've seen a certain decrease. As I mentioned on the prepared remarks, it was mainly driven by fuel prices. Basically, fuel prices were on the increase and also very volatile. And carriers were updating these prices much more frequently than in the past. And our business decision was not to sort of create that volatility on the merchant side. And while we have updated the pricing, we are not doing it as frequently as the carriers, and we decided to absorb some of the cost temporarily. So that was the main impact in Q2. In terms of Managed Markets, as Nir mentioned, the migration from V1 to V2 is completed. It happened -- some of it happened late Q1, towards the end of Q1, last days of Q1 and the remaining merchants moved within the quarter. So it's behind us. And I think that in that sense, Q2 results reflect most of the impact from the V1 to V2 migration. Operator: Your next question comes from the line of James Faucette from Morgan Stanley. James Faucette: I want to follow-up with a margin question. And just wondering if you can outline for us how you're thinking about where margins can get. Passport, obviously, is a little below corporate average, but it sounds like those are improving. Can that be ultimately in line with the overall corporate level? And just looking at cross-sell opportunities for Passport into the broader Global-e solution, how should we think about that and that potential to drive both revenue and margin expansion? Ofer Koren: Yes. So in terms of our bottom line, we are very happy with the results. We have been able to gradually expand adjusted EBITDA margins as we planned. This was part of our -- of the long-term plan that we've presented in our Investor Day, and we are able to gradually improve, and this is driven by the growth and the operational leverage that we are able to achieve. And we believe that going forward, we will continue to improve over time. In terms of Passport, we are very excited about this acquisition. Looking at the financials, as we've mentioned, they are growing fast. And they are over the sort of the tipping point as they are adjusted EBITDA positive and also positive in cash flow. 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. In addition to that, we believe that over time, Passport could also contribute, again, from a sort of a synergy side to Global-e as we believe that we will be able to offer a much more complete shipping proposition to the merchants. We believe that we can increase also revenue through that. Operator: Your next question comes from the line of Craig Maurer from FT Partners. Craig Maurer: I wanted to ask a couple of questions on Managed Markets. First, did you see the expected acceleration or uplift from the mention in summer additions? And Shopify has built out some extensive AI offerings for its merchants, including Sidekick. And do you know to what degree Managed Markets is being promoted through those channels or being pushed on merchants through those channels? And secondly, in terms of Passport, is there any seasonality that we should know that might be different from your own over the next 4 quarters, so we understand how to model for the back half of the year and into next year? Nir Debbi: It's Nir. I'll take the Managed Markets part. So in general, following additions, we see more interest coming into Managed Markets. We have seen more adoptions and this, together with the switch from V1 to V2 that makes it easier to adopt Managed Markets is creating more interest. We have seen adoptions and trading going up. It's continuously going up, but it is a long-term play. So we are excited with what we see. Shopify is backing the plan. They are pushing it in different channels, including their console. So it is going well, and we continue to work through additional parts of the offering that we think would get the adoption to be quicker and also the trading to be even further efficient and better conversion than what we were able to achieve so far. So we are excited about the long-term possibility, and we already see indications of the growth in adoption. So quite a positive development on the Managed Markets front. Ofer Koren: And then to answer your question on Passport seasonality, it's a pretty similar pattern to Global-e. So you can pretty much assume sort of a similar seasonality between the quarters. Operator: Your next question comes from the line of Will Nance from Goldman Sachs. William Nance: I wanted to maybe push you guys a little bit on the take rate commentary. I know it's a big focus for investors. When I look at the long-term targets, I think there is a 3- to 5-point gap between revenue and GMV. And so I think the baseline expectation is for modest take rate compression over time. But you're talking a lot about some of these value-added services, Borderfree, duty drawbacks, the marketing services. So maybe you could talk in the context of some of these value-added services, how you think about how this could impact the top line trend relative to GMV and whether you see an opportunity to mitigate some of that take rate compression, just acknowledging the fact that you guys are growing well ahead of the medium-term outlook that you provided at the Investor Day. Ofer Koren: Thanks, Will. I think that when we are discussing take rates, it's very important to mention that our focus is on providing the best combination of platform and service for our merchants and in turn to grow our top and bottom line. So over time, we have expanded, as you know, the scope of solutions that we provide to merchants. And these solutions by nature, they carry different take rates. All are accretive to our top line growth and bottom line. So we believe that all of these solutions are great solutions for the merchants and also create value for Global-e. And by offering these different models that are catering different merchant needs, this enables us to drive consistently fast and profitable growth. So as we evolve our suite of solutions, we believe that take rate has become and will continue to be less indicative of how our business is trending. And for example, if you take the Passport addition into the portfolio, it actually increases our take rate, but we don't see that as a positive nor as a negative, just a different sort of financial profile of the company. So we believe that you need to look at revenue. We need to look at GMV, but we believe that the take rates are less important. And in terms of value-added services, we are very excited about those, and I'll leave it to Nir to elaborate on that. Nir Debbi: Sure. And we are very happy with the development we've seen on the adoption of our value-added services. Duty drawback in general, is growing significantly in its utilization across our merchants worldwide. And in particular, if we speak about import duty drawback in the U.S., we have seen the first few merchants claim being approved. We have seen the process starting to grow. We see more and more clients being able to construct and extract the data they need in order to provide us with the ability to claim on their behalf. And we believe this will become a significant business over time. In terms of Borderfree.com as well, we continue to see increase in adoption. It grew to become 6.5% of GMV for participating brands. We continue to see an increase in the direct to checkout from Borderfree.com, yielding our affiliation being our affiliation fee. So all in all, quite positive development across our value-added service that over time, we believe will be reflected into the different elements of our take rates. As Ofer indicated, take rates have become much more a result and not something we managed for due to the mix of different business models that we have from multi-local to our regular model to the Passport non-MoR model to digital goods versus physical goods, et cetera. However, we do plan and we do expect it to stabilize due to the value-added services kicking in at a larger scale. Ofer Koren: To add specifically for 2026, as reflected in the guidance, excluding Passport, we expect take rates to remain fairly stable throughout the back half of the year. Operator: Your next question comes from Mark Zgutowicz from Benchmark. Mark Zgutowicz: Just a couple of quick ones on GMV and specifically 3Q and 4Q implied GMV. Just curious if there's any plus or minus variables to consider that impacts growth in these periods that's different than the normal seasonality you typically witness. And then separately, given a number of newly announced luxury wins, just curious how you compare your GMV exposure to this segment today versus, say, a year ago? Ofer Koren: Thank you for that, Mark. In terms of luxury, we did have some nice wins, and we are really excited about being able to have some land and expand motion within the large luxury group. However, as a percent -- in terms of percentage overall, I don't think luxury has increased in the last few quarters, and we don't expect the luxury's share to increase going forward. In terms of seasonality, we do not expect any unordinary trends. We see sort of the normal cadence. So Q3 is typically a bit less promotions and a lighter quarter and Q4, of course, we expect to see sort of similar dynamics to previous years. Operator: Your next question comes from the line of Brian Peterson from Raymond James. Brian Peterson: Congrats on a strong quarter. So just one for me. As you're thinking about the top of the funnel, I know we're maybe a year removed from some really volatile times as it relates to tariffs. I'd love to understand the velocity of customers potentially coming to you. And I know you mentioned newer customers kind of ramping a bit bigger. Is that just from a GMV size as they're coming on or are they potentially buying more products? Nir Debbi: Brian, in general, about our pipeline, our new merchant launches for 2026 continue to progress very well and as we planned. As Amir mentioned in his talk, we had a very busy first half of 2026 with some amazing brands that have launched with us and are currently -- and we're currently onboarding a significant amount of brands into our second half of the year. In terms of the sales funnel, we are very happy with what we see across the funnel and the leads that are coming in. So far, 2026 is shaping to be stronger than what we have seen in 2025. Some of it is supported by the AI discovery tools that we deployed late '25, early 2026. So we have seen an increase at the top of the funnel. And some of it is increase in conversion throughout the funnel, as you mentioned, also contributed by the changes of duties, not only in the U.S. or now in Europe in July, the minimums were removed also in the European Union. So a lot of merchants are looking for stronger solutions to streamline their global trade, and this is doing good for us. Operator: Your next question comes from the line of Chris Zhang from UBS Financial. Chao Zhang: Again, congrats on the quarter and also I appreciate the new slide deck. My question is also on Managed Markets and just a quick one. Just wanted to think about the opportunity, the size of the opportunities in Canada and U.K. I presume those are important markets for Shopify. And if I look at specifically from your revenue mix in terms of merchant outbound region, U.K. is particularly sizable. Just want to see if that's a good way to think about the potential size of the Managed Markets as well in U.K. and Canada or any other way to think about that kind of commensurate with the overall merchant outbound mix? Amir Schlachet: Yes. Thanks, Chris. In terms of the potential, we -- as we already mentioned, we continue to see an immense potential in this offering, and Shopify has a very large roster and growing roster of merchants that are relevant for Managed Markets across these geographies. And as Nir mentioned, we are continuing to develop together with them features and capabilities that will make it even easier for these merchants to onboard and therefore, over time, accelerate the pace in which they are joining the platform. In terms of the outbound regions, it's probably better to look at the outbound market or the merchant distribution on Shopify side. Our distribution is probably not very indicative for that because it's driven by our enterprise business that has other dynamics. But for Shopify, obviously, the U.S. is the largest market. That's why we started together with supporting U.S. merchants and then markets such as Canada and the U.K. and others in descending order. Operator: Your next question comes from the line of Patrick Walravens from Citizens. Patrick Walravens: Congratulations on the acceleration you guys. It's really impressive. If maybe Nir or Amir, can you talk a little bit about what actually are some of those features and capabilities that will make it even easier to onboard? What are some of those things that you're working on for Managed Markets? Nir Debbi: So there are some key developments that we work together with Shopify to deploy. Some of them are related to the ability to basically offer it almost out of the box for any new merchant on Shopify to enjoy the benefits of being global by default. So a lot of work is being done around that, and we are very excited about what's to come there. In terms of the trading on the site itself, we are building with Shopify more capabilities to get the leverage understanding and best practices we have on the enterprise side into getting them to work by default for Managed Markets as well. Some of it was already rolled out with the managed pricing capability on Shopify side that allowed merchants to enjoy better conversion because it's giving much more local feeling to their international shoppers. It's going to continue into managed pricing also on the shipping side, so a much more complete offering, and multiple other projects we are working behind with Shopify. So very exciting things in the oven, and we are very excited about the potential growth. Amir Schlachet: And maybe I'll just add, Pat, it's Amir, another example that will maybe give you a sense is that in initial versions or initial iterations of Managed Markets, there was kind of an onboarding process or a qualification process where the merchant needed to first submit an application, then it would be reviewed. Later on, we managed to accelerate that review to be within 24 hours. Now it's same session onboarding. So essentially, for the vast majority of merchants, as soon as they click that they're interested in Managed Markets, the process is done almost instantaneously, and they can go live within a very, very short time span. So that's another type of effort that we put in, in order to make it seamless. Patrick Walravens: That's great. And just to be clear, so what you're just talking about, Amir, that's done, right, that's live now? As soon as they click, it's done almost instantly? Amir Schlachet: Yes. This is how it works now. Operator: Your next question comes from the line of Matt Coad from Truist. Matthew Coad: A quick one for me. It sounded like you're more optimistic about the Passport integration and synergy opportunity here compared to last time that we talked to you guys. Could you provide a little bit more color on that now that the acquisition is closed? Nir Debbi: Basically, we are very excited with the add-on of Passport. We have an excellent management team and seasoned professionals around building strategic standard solutions. And we believe that with our scale and expertise, we will be able to give great offering to all our clients and Passport clients and win more business in the market with smart returns, with more direct injection capabilities, et cetera. Add to it non-MoR and the ability of Global-e now to actually go to additional segments and verticals that are not best fit for MoR. We are excited about the potential in TAM expansion as well. In terms of the synergies itself, now that we are much more into the weeds, we are much more optimistic on what can be reached within the coming quarters in getting Passport to become much closer to Global-e in terms of its bottom line contribution. Operator: Your last question comes from the line of Matt Bullock from Bank of America. Matthew Bullock: I had a quick one on duty drawback. It sounds like you made a lot of nice progress during the quarter. I understand it takes some merchants time to prepare the documentation to be onboarded and that the revenue contribution can be pretty lumpy as those merchants try to reclaim import duties for multiple years back. So the question is, how does the pipeline look for customers who are actively preparing that documentation for the back half of this year? Amir Schlachet: Thanks for the question. So indeed, there is a pipeline of merchants. This is a very valuable offering for U.S. merchants. There's a lot of money that they could potentially reclaim that otherwise would be impossible for them. We have a strong pipeline of those. There's a very good adoption rate of this offering. However, it is taking time, as you indicated, and we are not pushing the merchants because the only chance to reclaim back for a few years is on the first submission. Afterwards, in a subsequent submission, you can only reclaim on the ongoing sales. So we have an interest just like the merchants have to give them the time to prepare all the documents that they can and gather all the information that they can backwards. Also, of course, it trains them in what needs to be gathered and retained going forward. So it will make the submission process going forward much easier and smoother. But due to that shared interest, we are working with them and we're giving them all the time they need in order to make that first submission as comprehensive as possible. Alan Katz: All right, everyone. I think that's the end of our Q&A session. Thank you, everyone, for joining the call today. We look forward to speaking with many of you during the quarter and providing our next update on our Q3 call in November. Have a great day, everyone. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you very much for your participation. You may now disconnect. 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This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Global-E Online. The Motley Fool has a disclosure policy. Global-E Online (GLBE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

PetMed Express, Inc. PETS reported first-quarter fiscal 2027 results, with both the top and bottom lines missing the Zacks Consensus Estimate. Sales also declined year over year, while loss per share narrowed. PetMed Express reported a loss of 28 cents per share compared with $1.65 per share in the prior-year quarter. The improvement in net loss was primarily driven by the absence of the prior-year goodwill and trade name impairment charges, along with lower general and administrative and advertising expenses. These benefits were partly offset by lower gross profit. PetMed Express, Inc. price-consensus-eps-surprise-chart | PetMed Express, Inc. Quote Net sales declined 19.9% year over year to $41 million from $51.2 million, primarily due to continued softness in prescription medication sales, partly offset by lower consumer promotional usage. Recurring net sales, which include AutoShip and membership-related revenue, accounted for 61.5% of total gross sales, up from 57.6% in the prior-year quarter. The company acquired approximately 70,000 new customers during the quarter while lowering its customer acquisition cost by 15% year over year to $60 from $71. The improvement reflected more efficient advertising and media spending, including the elimination of unproductive media programs. Gross profit declined 21.3% year over year to $11.3 million from $14.4 million, mainly due to lower manufacturer rebates as a percentage of sales, partly offset by lower net freight costs per order. General and administrative expenses decreased 13.5% year over year to $11.2 million from $12.9 million, reflecting lower professional fees, share-based compensation and severance costs. Advertising expenses fell 30.2% year over year to $4.2 million from $6 million, primarily due to lower gross media spending and the elimination of unproductive media. Total operating expenses declined 63.8% year over year to $17.6 million from $48.5 million, largely because the prior-year period included a $27.3 million goodwill and intangible-asset impairment charge. The company reported an operating loss of $6.2 million compared with $34.1 million in the year-ago quarter. Adjusted EBITDA loss widened to $3.4 million from $2.7 million in the prior-year period. PetMeds continues to focus on improving customer acquisition while lowering acquisition costs. In July, the company launched its co-branded online pharmacy offering with Rural King, giving customers across more than 150 stores in 17 states access to pet medications, prescription food, preventatives and AutoShip services through a platform powered by PetMeds. As its first large-scale white-label pharmacy program, the partnership is designed to broaden PetMeds’ customer reach, bring in-store shoppers online and create additional revenue streams by utilizing its pharmacy infrastructure, licensed pharmacists and e-commerce capabilities. Management also said it expects to extend the white-label offering to additional partners in the near future. PetMed Express ended the quarter with cash and cash equivalents of $13.1 million compared with $21.4 million at March 31, 2026. The company had no debt as of June 30, 2026. Net cash used in operating activities was $7.7 million compared with $12.3 million in the prior-year period. Capital expenditures totaled roughly $0.6 million, down from $1.3 million a year earlier. The company entered into a definitive agreement to sell its headquarters and distribution center buildings in Delray Beach, FL, through a sale-leaseback transaction valued at $37 million. It will lease back the portion of the property housing its offices and Florida distribution center under a 10-year lease with renewal options. The transaction is expected to close within approximately 120 days from the date of the definitive agreement, subject to due diligence, lease negotiations and other customary closing conditions. This Zacks Rank #3 (Hold) company has strengthened its operating foundation through financial, operational and commercial improvements implemented over the past 12 months, along with strategic partnerships and a more disciplined approach to expense management and capital allocation. Management plans to build on these improvements as the company works toward sustainable profitability and long-term shareholder value. By leveraging its modernized technology and operational initiatives, the company aims to build on its service capabilities while improving customer retention. It is also leveraging its pet pharmacy expertise and infrastructure to strengthen B2B relationships through membership programs and white-label fulfillment services, helping extend its reach to more customers. The company’s shares have lost 9.5% over the past three months against the industry’s growth of 2.8%. Image Source: Zacks Investment Research Some better-ranked stocks have been discussed below: Central Garden & Pet Company CENT produces and distributes various products for the lawn and garden and pet supplies markets in the United States. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for CENT’s current financial-year sales implies a decline of 4.8%, and the same for earnings implies growth of 7% from the year-ago reported numbers. CENT delivered a trailing four-quarter earnings surprise of 41.8%, on average. Globe E-Online Ltd. GLBE provides a direct-to-consumer cross-border e-commerce platform in Israel, the United Kingdom, the United States and internationally. At present, GLBE carries a Zacks Rank of 2. The Zacks Consensus Estimate for GLBE’s current fiscal-year sales and earnings indicates growth of 29.8% and 187.2%, respectively, from the year-ago figures. GLBE delivered a trailing four-quarter earnings surprise of 12.6%, on average. Amazon.com Inc. AMZN engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally.  At present, Amazon carries a Zacks Rank of 2. The consensus estimate for Amazon’s current fiscal-year sales and earnings implies growth of 15.7% and 82.2%, respectively, from the year-ago figures. AMZN delivered a trailing four-quarter earnings surprise of 5.5%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report PetMed Express, Inc. (PETS) : Free Stock Analysis Report Amazon.com, Inc. (AMZN) : Free Stock Analysis Report Central Garden & Pet Company (CENT) : Free Stock Analysis Report Global-e Online Ltd. (GLBE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Global-E Online stock presents a split picture for investors, with the Discounted Cash Flow (DCF) intrinsic value estimate pointing to upside while the market based multiples suggest the shares are expensive. That leaves Global-E trading between a DCF model that indicates value and a broader set of checks that score it poorly. Over the past 5 years Global-E Online has delivered a decline of 45.6%, which means long term holders have not yet been rewarded for staying invested. The long term opportunity for Global-E Online can hinge on whether it converts cross border e commerce volumes into durable cash flows. Any setback in execution or profit margins may quickly weigh on what investors are willing to pay. Global-E Online passes only 1 of 6 valuation checks, which suggests the stock does not screen as a clear bargain on the broader assessment. The issue now is whether the DCF based intrinsic value estimate or the richer market multiples are doing a better job of capturing what Global-E Online is really worth. Global-E Online delivered 30.6% returns over the last year. See how this stacks up to the rest of the Multiline Retail industry. The Discounted Cash Flow (DCF) approach estimates what Global-E Online is worth based on the cash it is expected to generate for shareholders. For Global-E Online, the model uses latest twelve month free cash flow of about $280 million and assumes that free cash flow keeps growing rather than shrinking over time. On these inputs, the 2 Stage Free Cash Flow to Equity model arrives at an intrinsic value of about $50 per share. Compared with the current share price, this implies the stock trades at roughly a 19.3% discount to the DCF estimate. On the cash flow math alone, Global-E Online stock screens as undervalued relative to its Discounted Cash Flow estimate. Our Discounted Cash Flow (DCF) analysis suggests Global-E Online is undervalued by 19.3%. Track this in your watchlist or portfolio, or discover 49 more high quality undervalued stocks. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Global-E Online. The P/E ratio is a useful lens for Global-E Online because it ties the current share price directly to the earnings that support it. Global-E Online currently trades on a P/E of about 58.5x. That sits well above the Multiline Retail industry average of roughly 20.0x and also stands higher than the peer group average of about 14.2x. The fair P/E ratio for Global-E Online based on its profile is estimated at around 24.6x. Compared with the current 58.5x, the stock trades on a much richer earnings multiple than this tailored benchmark suggests. For investors, that means the market is already attaching a high value to each dollar of Global-E Online earnings, especially when set against both industry levels and the modelled fair ratio. On the P/E multiple, Global-E Online stock currently appears expensive relative to both its industry and its own fair ratio benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this Global-E Online valuation puzzle leaves off and explain which assumptions about growth, margins and earnings would need to hold for the stock to be worth materially more or less than today’s price. Each Narrative links Global-E Online's potential catalysts and risks to a specific fair value estimate so you can track over time which storyline appears closest to how the business is actually developing on the Community page. Community views on Global-E Online sit on a wide spectrum, from meaningful upside to a much more cautious stance around future risks. Bull case: 12% undervalued Read the full Bull Case to see why Global-E Online could be undervalued Bear case: roughly fairly valued Read the full Bear Case to see why Global-E Online could be overvalued Do you think there's more to the story for Global-E Online? Head over to our Community to see what others are saying! For Global-E Online, the Discounted Cash Flow (DCF) intrinsic value estimate points to undervalued territory, while the rich P/E multiple implies the stock is overvalued relative to peers and a tailored fair ratio. That split suggests the DCF is giving more weight to the cash flow profile, while the market multiple is driven by what investors are currently willing to pay for expected growth. Broader valuation checks are weak despite the DCF signal, so the key question is whether Global-E can turn cross border volumes into durable, high quality cash flows that justify both its intrinsic value estimate and its premium earnings multiple. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GLBE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved significant growth acceleration with Q2 GMV surpassing $2 billion for the first time in a non-peak quarter, driven by resilient consumer demand and high response to merchant promotions. Closed the strategic acquisition of Passport, adding a non-Merchant of Record (non-MoR) option to the service suite to address new merchant categories and expand the total addressable market. Successfully migrated all Shopify Managed Markets merchants to Version 2, which improved the merchant experience and resolved adoption barriers present in the initial version. Leveraged generative AI across R&D and customer service to lower the cost to serve while enhancing consultancy capabilities for global merchants. Observed stronger-than-historical same-store sales growth, with some large brands seeing promotional volume peaks 25% higher than the previous year. Expanded the platform's reach through high-profile launches with iconic brands including Ferrari, Officine Universelle Buly, and existing merchant soccer clubs that saw volume growth from seasonal sales and the World Cup. Maintained a focus on profitable growth, achieving a 300 basis point expansion in adjusted EBITDA margins year-over-year through operational leverage and scale. Raised full-year 2026 guidance for GMV, revenue, and adjusted EBITDA, reflecting confidence in sustained momentum and the integration of Passport. Expects Passport to contribute approximately $55 million to $59 million in revenue and $3 million to $4 million in adjusted EBITDA during the second half of 2026. Anticipates continued adoption of Managed Markets V2 as the offering expands geographically to Canada, the U.K., and additional countries. Projects free cash flow margins to remain at or above adjusted EBITDA margins, supported by a new $500 million share repurchase program. Assumes a normalization of same-store sales in the back half of the year as foreign exchange tailwinds and easier year-over-year comparisons subside. Gross margins were temporarily impacted by increased fuel costs and high volatility in carrier surcharges, which the company chose to partially absorb to maintain merchant price stability. The shift to Managed Markets V2 resulted in a one-time baseline decrease in service fees due to accounting treatment changes, though this was offset by reduced sales and marketing expenses. Integration of Passport is expected to yield significant synergies in 2027, particularly through consolidated returns and proprietary duty drawback capabilities. Management noted that take rates are becoming less indicative of business health as the mix shifts toward diverse models like multi-local and non-MoR services. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed the migration from V1 to V2 is complete and has resulted in positive feedback regarding merchant experience and conversion rates. New 'same session' onboarding allows merchants to go live almost instantaneously, removing previous 24-hour qualification delays. Passport is currently adjusted EBITDA and cash flow positive with mid-30s gross margins. Management expressed increased optimism regarding integration, expecting Passport's bottom-line contribution to align with Global-e's corporate levels over the coming quarters. Take rates are expected to remain fairly stable for the remainder of 2026, excluding the impact of the Passport acquisition. Adoption of duty drawback services is growing, with the first U.S. import claims being approved, though revenue may be lumpy as merchants gather multi-year historical documentation. The Q2 beat was partially attributed to consumers planning purchases around annual sales events more aggressively than in prior years. Management clarified that while luxury wins are high-profile, the segment's share of total GMV is not expected to increase significantly as a percentage of the total mix.

This article first appeared on GuruFocus. GMV: $2.089 billion in Q2 2026, up 44% year over year. Revenue: $299 million in Q2 2026, up 39% year over year. Service Fee Revenue: $139.4 million, up 36% year over year. Fulfillment Services Revenue: $159.6 million, up 42% year over year. Non-GAAP Gross Profit: $135.4 million, up 36% year over year, with a gross margin of 45.3%. Adjusted EBITDA: $62.4 million, up 62% year over year, representing a 20.9% margin. Non-GAAP Net Profit: $64.9 million, compared to $37.9 million in the same period last year. Non-GAAP EPS: $0.37 on a fully diluted basis, compared to $0.22 in the prior year. GAAP Net Profit: $47.7 million, compared to $10.5 million last year. Free Cash Flow: $73.2 million in Q2, compared to $63.5 million in Q2 2025. Cash and Cash Equivalents: $530 million at the end of Q2, including short-term deposits and marketable securities. Same-Store Sales Growth: Above historical trends, with larger brands seeing peak volumes more than 25% higher than last year's Q2 promotions. Share Repurchases: Repurchased approximately $68 million in stock during Q2, completing the $200 million 2025 plan. Warning! GuruFocus has detected 5 Warning Sign with GLBE. Is GLBE fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Global E Online Ltd (NASDAQ:GLBE) delivered strong Q2 2026 results, with GMV up 44% year-over-year to $2.089 billion and revenue up 39% to $299 million, beating guidance across all metrics. The company raised its full-year 2026 outlook for GMV, revenue, and adjusted EBITDA, reflecting continued strong momentum and confidence in its growth trajectory. Adjusted EBITDA margin expanded significantly, reaching 20.9% in Q2, up 300 basis points year-over-year, driven by operational leverage and AI-driven efficiencies. The acquisition of Passport is progressing well, with the company optimistic about integration synergies and the expansion of its total addressable market through non-MoR logistics solutions. Managed Markets V2 is gaining traction, with successful migration of merchants, expansion to Canada and the UK, and positive feedback on conversion improvements, positioning the company for long-term growth. Gross margin declined to 45.3% in Q2 from 46.5% a year ago, primarily due to increased fuel costs and the company's decision to absorb some volatility rather than pass it on to merchants. The migration of Managed Markets V1 merchants to V2 caused a one-time decrease in service fee take rate and revenue, though it also reduced sales and marketing expenses. The company expects some normalization in same-store sales growth in the back half of the year, as FX tailwinds and easier comparisons from 2025 are not expected to repeat. Passport's contribution to adjusted EBITDA is currently minimal (less than $1 million in Q3), and its margins are below the corporate average, though expected to improve over time. The company's take rate is becoming less indicative of business performance due to a mix of business models, which may create uncertainty for investors tracking this metric. Q: Can you provide additional data points on what you're seeing around conversion or attach for Managed Markets 2.0, and what kind of growth are you contemplating for this business this year?A: Nir Debbi (President, Co-Founder, Director) stated that the company is seeing an increase in adoption following the rollout of V2, which was further boosted by the general availability launch in Canada and the UK. Feedback from merchants migrating from V1 to V2 has been positive regarding merchant experience and conversion. The continued development of managed pricing with Shopify has also yielded good results. While Managed Markets is a longer-term play, the company sees continuous increases in adoption and believes it will continue to accelerate its contribution to Global-e and Shopify. Q: Can you contextualize the trends behind stronger same-store sales growth and faster ramping of newly launched merchants? What are your expectations for same-store sales trends in the back half?A: Nir Debbi (President, Co-Founder, Director) noted that the performance of merchants launched in the back half of 2025 is exceptionally good, with conversion rates and sales exceeding expectations. Same-store sales are trading above historical levels, with resilient consumer demand across most markets. The guidance for the back half includes some normalization, accounting for the absence of FX tailwinds seen in Q1 and Q2 and easier comps from the duties noise in early 2025. Overall, the guidance reflects a stronger back half than previously anticipated. Q: You called out larger promotions by top merchants in Q2. How much did these impact GMV growth, and what is the cadence of promotional activity for the rest of the year?A: Nir Debbi (President, Co-Founder, Director) explained that these are annual or biannual promotions that merchants run every year, so there is nothing out of the ordinary in their occurrence. The notable difference was the very strong consumer reaction to these same promotions in Q2 2026. Over the last two to three years, the company has observed a trend of consumers planning their shopping around these events, leading to better reactions over time, which they expect to continue. Q: Is the Q2 gross margin a good baseline for models going forward, or will there be another step down from the Managed Markets V1 to V2 conversion?A: Ofer Koren (CFO) clarified that gross margins have been stable in recent quarters, and the decrease in Q2 was mainly driven by increased and volatile fuel prices. The company chose to absorb some of the cost temporarily rather than pass on frequent price updates to merchants. The migration from Managed Markets V1 to V2 is complete, with most of the impact reflected in Q2 results, so no further step-down is expected from this factor. Q: How are you thinking about where margins can get, and can Passport's margins ultimately be in line with the corporate level? What are the cross-sell opportunities?A: Ofer Koren (CFO) stated that the company is happy with its gradual adjusted EBITDA margin expansion, driven by growth and operational leverage, and expects this to continue. Regarding Passport, the company is excited about the acquisition, noting it is growing fast and has turned adjusted EBITDA and cash flow positive. Based on Passport's growth and integration synergies, the company believes it can reach similar levels of profitability. Passport also offers synergy opportunities to enhance the shipping proposition and increase revenue. Q: Did you see an expected acceleration in Managed Markets from summer additions, and is Shopify promoting it through its AI channels? Also, is there any seasonality for Passport that differs from your own?A: Nir Debbi (President, Co-Founder, Director) confirmed that following summer additions, interest and adoption in Managed Markets have increased, with Shopify actively pushing it through various channels, including its console. The company is optimistic about the long-term potential. Ofer Koren (CFO) added that Passport's seasonality pattern is very similar to Global-e's, so no different modeling is required. Q: Given the focus on value-added services like Borderfree and duty drawback, how do you see these impacting the top line relative to GMV and mitigating take rate compression?A: Ofer Koren (CFO) emphasized that the focus is on providing the best combination of platform and service, which has led to a suite of solutions with different take rates, all accretive to growth. As the suite evolves, take rate is becoming less indicative of business trends. Nir Debbi (President, Co-Founder, Director) added that value-added services are seeing strong adoption, with duty drawback growing significantly and Borderfree.com now representing 6.5% of GMV for participating brands. These services are expected to stabilize take rates over time. Ofer Koren (CFO) specified that excluding Passport, take rates are expected to remain fairly stable in the back half of 2026. Q: Are there any plus or minus variables impacting GMV growth in Q3 and Q4 that differ from normal seasonality? How does your GMV exposure to the luxury segment compare to a year ago?A: Ofer Koren (CFO) stated that there are no unordinary trends expected in seasonality, with Q3 typically being lighter and Q4 following similar dynamics to previous years. Regarding luxury, despite some nice wins, the percentage of overall GMV from luxury has not increased in recent quarters, and the company does not expect its share to increase going forward. Q: Can you discuss the velocity of customers coming to you, especially given the tariff environment? Are newer customers ramping bigger due to size or buying more products?A: Nir Debbi (President, Co-Founder, Director) reported that the pipeline and new merchant launches for 2026 are progressing very well, with a busy first half and a significant number of brands onboarding for the second half. The sales funnel is stronger than in 2025, supported by AI discovery tools deployed in late 2025 and increased conversion throughout the funnel. The removal of duty minimums in the EU is also driving merchants to seek stronger global trade solutions, which is beneficial for Global-e. Q: What are some of the specific features and capabilities you are working on with Shopify to make onboarding for Managed Markets even easier?A: Nir Debbi (President, Co-Founder, Director) mentioned key developments aimed at offering Managed Markets almost out of the box for new Shopify merchants, making them global by default. They are also building capabilities to apply enterprise-side best practices to Managed Markets, such as managed pricing for a more local shopping experience, and expanding into managed shipping. Amir For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Global-e Online Ltd.? Here are five stocks we like better. 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. 3 Retailers Poised to Outmaneuver Tariff and Recession Concerns 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. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat Global-e Online is a Must-Own eCommerce Stock 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. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be 2 Tech Stocks With Upgrades and Positive Outlook 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. → First Solar’s Profit Engine Faces a New Policy Test in Washington 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. 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. 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%. 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. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Global-e Online Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Never miss an important update on your stock portfolio and cut through the noise. Over 7 million investors trust Simply Wall St to stay informed where it matters for FREE. Global-E Online (GLBE) is back in focus after reporting Q2 2026 results, with sales of US$299 million and net income of US$47.72 million, compared with US$214.88 million and US$10.49 million a year earlier. See our latest analysis for Global-E Online. Global-E Online’s recent Q2 earnings have arrived after a strong 90-day share price return of 48.37%, while the 1-year total shareholder return of 20.28% contrasts with a 5-year total shareholder loss of 40.83%. This suggests that momentum has recently improved despite a weak longer-term record. If you are watching Global-E Online’s move in cross border commerce and want to broaden your search, this is a useful moment to check out 71 profitable AI stocks that aren't just burning cash After a 48% move in 90 days and a sharp shift in Global-E Online’s profitability, investors now face a choice: lean into this momentum or wait for a cooler entry point. The valuation numbers provide the next clue. Global-E Online’s most followed narrative puts fair value at $45.92 versus the last close of $40.86, which frames today’s move as a valuation gap rather than a pure momentum story. Read the complete narrative. Want to see how this Global-E Online partnership story turns into a valuation case? The narrative leans on faster revenue progress, richer margins and a future earnings profile that assumes the current model scales cleanly. The key question is how those projected cash flows stack up against today’s $6.9b market value. Result: Fair Value of $45.92 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Global-E Online’s story can change quickly if regulatory costs rise, or if dependence on partners like Shopify and DHL weakens revenue visibility and pricing power. Find out about the key risks to this Global-E Online narrative. The narrative and fair value estimate of $45.92 suggest Global-E Online is 11% undervalued. Yet the current P/E of 58.9x stands well above the fair ratio of 28.9x and the global Multiline Retail average of 20.1x. That points to a rich earnings multiple. Which signal matters more for you? To see how those earnings-based ratios stack up in detail, including how far the P/E could drift toward the fair ratio over time, See what the numbers say about this price — find out in our valuation breakdown. With Global-E Online showing both strong recent price momentum and a mixed longer term record, you may want to look beyond the headlines and weigh the full picture for yourself. If you want to move quickly and base your view on both caution and optimism, start by checking the 3 key rewards and 1 important warning sign. If Global-E Online has your attention, do not stop here. Broaden your watchlist now and give yourself more ways to react when the next move arrives. Spot potential value opportunities early by scanning 49 high quality undervalued stocks that combine quality fundamentals with attractive pricing signals. Strengthen the defensive side of your portfolio by reviewing 85 resilient stocks with low risk scores that carry resilient profiles across key risk checks. Get ahead of the crowd by checking the screener containing 20 high quality undiscovered gems before attention and liquidity potentially increase. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GLBE. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]