Global-e Online Ltd. Q3 FY2025 earnings call

• Strong Q3 results: GMV of $1.51 billion, revenue of $221 million, and adjusted EBITDA of $41.3 million were achieved. - Duty drawback offering: Increased interest in the U.S. due to de minimis exemption suspension; U.S.-based merchants now have permit to reclaim import duties on exports. - Managed market solution: In close collaboration with Shopify, development completed for 2026 rollout, in beta testing with new merchants. - Borderfree.com: Added buy-now capability and advanced search, with shopper sign-ups growing and merchant sales share at over 4.5%. - New merchant launches: Multiple brands in various regions like Everlane, Aritzia, Coach, Chloe, etc., launched with Global-E. - AI initiatives: Leveraging AI for demand generation, post-purchase support, and preparing for agentic commerce by engaging with key players.

No specific product segment breakdown provided. Global-E reported Q3 2025 GMV of $1.51 billion, up 33% year-over-year. Revenue was $221 million, up 25.5% year-over-year. Adjusted gross profit for Q3 was $102 million, up 24% from the prior year. Quarterly adjusted EBITDA was $41.3 million, up 33% compared to Q3 2024, resulting in an 18.7% margin. GAAP net profit for the quarter was $13.2 million, and free cash flow was $73.6 million, an increase of almost 250% compared to the prior year.

• For 2025, midpoint outlook revised: GMV expected to be ~$6.46 billion (33% annual growth), revenue $952.1 million (26.5% growth), adjusted EBITDA $192.8 million (37% growth). - Q4 2025 guidance: GMV in range of $2.195 billion to $2.315 billion, revenue in range of $318.5 million to $334.5 million, adjusted EBITDA in range of $74.3 million to $88.7 million.

No specific risks discussed in detail during the Q&A section. However, forward-looking statements are subject to risks outlined in the company's annual report on Form 20-F filed with the SEC.

Q: What was the FX impact on 3Q GMV and total revenue?

A: Ofer Koren stated FX was much more stable in Q3 compared to Q2 and doesn't expect significant or material impact in Q4.

Q: How does duty drawback work?

A: Nir Debbi explained an example where a U.S. merchant selling to a Canadian shopper can reclaim import duties on returned goods, potentially saving 2% on each transaction.

Q: Thoughts on service fee take rates?

A: Ofer Koren said the sequential decel in service fee take rate is due to mix and larger enterprise merchants, with no significant wide change expected going forward.

Q: Progress on managed markets?

A: Amir Schlachet mentioned beta testing with new merchants for managed markets, with development completed and ready for 2026 rollout.

Q: What's the impact of the ReturnGo acquisition?

A: Nir Debbi said ReturnGo will contribute ~$1 million in Q4 revenue with a slight negative impact on adjusted EBITDA, but optimistic about future upside.

Q: How will Global-E help with agentic commerce and data flow?

A: Amir Schlachet discussed leveraging AI for demand generation and post-purchase support, and being positioned to enable seamless cross-border experiences in agentic commerce