Global-e Online Ltd. Q4 FY2025 earnings call

• 2025 was a record year, surpassing guidance in all parameters. GMV, revenue, and adjusted EBITDA all grew. 2025 was the first full year of GAAP profitability. - Launched Shopify Managed Markets version 2.0 with good traction, integrated into Shopify Payments. - Doubling down on duty drawback offering, got permit for U.S.-based merchants. - Borderfree.com saw growth in shopper sign-ups and merchant sales share. - Leveraging AI across the organization for efficiencies, like in R&D, customer service chatbot, full-site localization, product classification, and sales efforts. - Launched many new merchants across geographies and expanded with existing brands. - Addressed global tariff challenges, which had short-term impact but positive midterm effect on pipeline and growth.

In Q4 2025, GMV was $2.36 billion (up 37% YOY), revenue was $337 million (up 28% YOY), non-GAAP gross profit margin was 46.8% (up 80 bps YOY), adjusted EBITDA was $87.2 million (up 53% YOY with a 25.9% margin). For full year 2025, GMV was ~$6.57 billion (up 35% YOY), revenue was $962 million (up 28% YOY), adjusted EBITDA was $198.5 million (up 41% YOY with a 20.6% margin). 2025 was the first full year of GAAP profitability with GAAP EPS of $0.39. Q4 2025 service fee revenue was $160.9 million (up 37% YOY), fulfillment services revenue was $175.7 million (up 21% YOY). Service fee take rate was 6.82%, fulfillment take rate was 7.44%.

• Q1 2026: GMV expected $1.705 - $1.745 billion (38.8% YOY growth), revenue $247 - $254 million (32% YOY growth), adjusted EBITDA $46.5 - $49.5 million (19.2% margin at midpoint). - Full year 2026: GMV expected $8.45 - $8.80 billion (over 31% YOY growth at midpoint), revenue $1.21 - $1.27 billion (29% YOY growth at midpoint), adjusted EBITDA $259 - $284 million (almost 37% growth at midpoint, 21.9% margin). Guidance reflects acceleration in revenue and expansion of adjusted EBITDA margin.

Q: Will Nance asked about outperformance in Q4, delineating between FX - related impacts and same - store sales.

A: Ofer Koren said Q4 GMV growth was driven by new merchants launched in 2025, strong same - store sales (partially due to strong demand and large merchants doing well) and some FX tailwinds; assumed same - store sales will normalize for rest of 2026 but if they remain elevated, could see upside.

Q: Brian Peterson asked about AI changing the value proposition for merchants.

A: Nir Debbi said Global - E's value proposition is complex, combining robust infrastructure, trade compliance, and unique data asset; AI can accelerate but won't replace elements, and they already see positive tailwind.

Q: James Faucette asked about service fee take rate commentary, benefit from Marks & Spencer coming back online versus value - added services, and narrowing gap between GMV and revenue growth.

A: Nir Debbi said service fee take rates stabilized, Marks & Spencer didn't affect it, pipeline visibility good, and value - added services started yielding revenue.

Q: James Faucette asked about managed markets, mechanical changes vs prior implementation and its embedment in 2026 outlook.

A: Amir Schlachet said new iteration of managed markets integrates all services through Shopify Payments for harmonization; Ofer Koren said expected managed market to contribute above average rate in back half of 2026 but was cautious.

Q: Samad Samana asked about agentic commerce components, early observations.

A: Nir Debbi said agentic commerce seen as discovery channel with increased traffic from AI chats, and small number of transactions; Amir Schlachet said still early to draw conclusions.

Q: Samad Samana asked about net dollar retention, function of lapping Ted Baker comp or organic acceleration, and what's embedded in 2026 guidance.

A: Ofer Koren said net dollar retention was solid, lost Ted Baker in prior year, healthy trading with leading merchants, and 2026 expected to continue similar.

Q: Chao Zhang asked about investment priorities for 2026 and update on multi - local GMV.

A: Nir Debbi said priorities include trade compliance infrastructure, AI, and optimizing fulfillment networks; Ofer Koren said 2025 multi - local GMV traded close to initial expectations, ~15% of GMV, and expected to continue growing in 2026 but not outgrow the entire business much.

Q: Koji Ikeda asked about GAAP EPS earnings growth.

A: Ofer Koren said expected to continue GAAP profitability, non - GAAP net income expected to grow along lines of adjusted EBITDA.

Q: William Fitzsimmons asked about breaking down adjusted EBITDA guidance midpoint for 2026 from structural scale vs AI - driven efficiencies, and additional anecdotes on increasing R&D velocity with AI.

A: Nir Debbi said significant portion of EBITDA margin expansion in 2026 is AI - based, AI used in multiple areas like R&D, sales, etc.; Amir Schlachet said scale and AI go hand in hand as data fuels AI models.

Q: Patrick Walravens asked about moats protecting business from AI disruption.

A: Nir Debbi said scale, expertise and know - how, trade compliance, and infrastructure across legal entities, payments, etc. are moats.

Q: Scott Berg asked about initial feedback from U.S.-based customers on duty clawback solution and its impact on 2026 guidance.

A: Nir Debbi said initial feedback was great, high level of adoptions expected, and it's baked into 2026 guidance.