Global-e Online Q4 Earnings Call Highlights

Global-e Online (NASDAQ:GLBE) said it closed out 2025 with record quarterly and full-year results, citing strong holiday demand, continued momentum from new merchant launches, and improving profitability driven in part by operational leverage and increased use of AI across the business.

Record Q4 performance and a milestone GMV month

Co-founder and CEO Amir Schlachet said the fourth quarter was the company’s strongest on record, highlighted by the company’s “first-ever billion-dollar GMV month” in November 2025 during the Black Friday and Cyber Monday period. Global-e reported Q4 GMV of $2.36 billion, with GMV growth accelerating to more than 37% year-over-year.

Revenue in the quarter totaled $337 million, up 28% year-over-year. Non-GAAP gross profit margin was 46.8%, up 80 basis points from the prior-year quarter, and adjusted EBITDA was $87.2 million, up 53% year-over-year, representing a 25.9% margin.

Full-year 2025: growth, expanding margins, and GAAP profitability

For the full year, Global-e reported GMV of approximately $6.57 billion, up 35%, and revenue of $962 million, up 28%. Adjusted EBITDA increased 41% to $198.5 million, representing a 20.6% margin.

CFO Ofer Koren said non-GAAP gross profit grew 28% in 2025, reflecting a non-GAAP gross margin of 46.3%. He also reported free cash flow of $281 million for 2025, a 29% margin, and noted that operating and free cash flow results benefited from “one-time positive” working-capital dynamics tied to a few sizable merchants.

Management emphasized that 2025 was the company’s first full year of GAAP profitability, with Schlachet citing GAAP EPS of $0.39 for the year. In Q4 specifically, net profit was $62.5 million versus $1.5 million a year ago, and GAAP EPS was $0.35. Koren added that the company expects to remain GAAP profitable in future years and introduced a new non-GAAP net profit metric starting this quarter.

Business updates: Shopify Managed Markets 2.0, duty drawback, and borderfree.com

Schlachet said the company is seeing “good initial traction” from Shopify Managed Markets version 2.0, describing it as a new iteration of Global-e’s white-label self-service merchant-of-record offering on Shopify. He said the updated build is now integrated into Shopify Payments, which management said enables more harmonization between global and domestic flows, faster payouts, and improved control over product availability and compliance. The company said it is working with Shopify to expand the offering to additional countries in coming quarters and develop additional features.

In the Q&A, management said Managed Markets is expected to “still weigh a bit on growth in the first few months” of 2026 because it “hasn’t been pushed in recent months,” but they expect it to grow faster than the company’s average rate in the back half of the year, while remaining cautious in budgeting.

Global-e also discussed its duty drawback offering, which is designed to help merchants potentially reclaim certain import duties and tariffs under eligible circumstances. Schlachet said Global-e obtained a permit to offer import duty drawback for U.S.-based merchants exporting goods out of the U.S., and management said it is now available for eligible U.S. merchants. During Q&A, the company said early feedback has been strong and adoption was “very high” in the initial outreach batch, with some contribution baked into 2026 guidance, though management noted they were conservative given it is a new solution.

Schlachet also cited continued progress at borderfree.com, including further growth in shopper sign-ups. He said the share of merchant sales attributable to the borderfree.com channel is now “over 6%” for merchants using the channel.

AI as an efficiency and growth lever

Executives repeatedly pointed to AI as a driver of both efficiencies and growth. Schlachet said Global-e is using AI to accelerate R&D through “Vibe Coding,” and noted that 2025 saw roughly a 70-basis-point reduction in R&D spend as a percentage of revenue. He said the company intends to execute planned 2026 growth initiatives with the existing R&D team “without any meaningful increase in headcount.”

Management also described AI deployment in customer service (an internal chatbot handling a growing portion of inquiries), site localization (an LLM-based full-site translation service now launching with the first two merchants), and product classification and restrictions management (using an LLM-based tool to assign customs HS codes with iterative learning).

On the sales side, Schlachet said an in-house AI agent built by the internal innovations team helps identify and qualify prospect merchants using various data signals, contributing to a “meaningful increase” in demos per month. The company said a next iteration is expected to automate initial outreach with tailored messaging.

Management also said it is seeing increased traffic from AI chat-based tools as a discovery channel, and that it has begun to see a small number of “agentic commerce” transactions. Executives characterized volumes as early and low, but said Global-e’s platform integrations are designed to support these transactions for cross-border commerce.

Guidance: accelerating revenue growth and further margin expansion in 2026

For Q1 2026, Global-e guided to GMV of $1.705 billion to $1.745 billion, revenue of $247 million to $254 million, and adjusted EBITDA of $46.5 million to $49.5 million, implying a 19.2% margin at the midpoint.

For full-year 2026, the company expects GMV of $8.45 billion to $8.80 billion and revenue of $1.21 billion to $1.27 billion, which would be the company’s first year above $1 billion in revenue. Adjusted EBITDA is expected to be $259 million to $294 million, implying a 21.9% margin at the midpoint. Koren said the outlook assumes same-store sales moderate to more normalized levels later in the year, partly due to FX tailwinds subsiding, but added the company could be positioned to perform at or above the top end of the range if elevated trends continue.

In Q&A, management said Q4 and early Q1 strength reflected multiple drivers, including strong performance from merchants launched in 2025, same-store sales that were above multi-year averages, and FX tailwinds tied to a stronger U.S. dollar versus most currencies into early 2026.

The company also addressed take rates, saying service fee take rate has been stable for several quarters and is expected to remain stable in 2026, while fulfillment take rate may trend “slightly lower” due to mix and business-model dynamics. Management said Multi-Local represented about 15% of GMV in 2025, roughly in line with initial expectations, and is expected to continue growing in 2026 but not dramatically outpace the overall business.

On capital return, management said Global-e ended 2025 with $623 million in cash and equivalents, completed $72 million of share repurchases in Q4 (1.8 million shares), and had $128 million remaining under its repurchase authorization, with repurchases continuing into Q1 2026.

About Global-e Online (NASDAQ:GLBE)

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.