Global-E Online Ltd. Ordinary Shares 2026 Q2 Earnings Call

Please go ahead. 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 will 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 on 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 fact 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. 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 multi-year 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 it 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 help 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 are 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 mid-size merchants continued 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. FC 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 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 will 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 had 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 logistic 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 logistic 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 injection, and further proprietary duty drawback capabilities.