Release Date: August 12, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Global E Online Ltd 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.
Negative Points
- 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 & A Highlights
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.
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