Global-e Online Ltd. delivered another quarter of accelerating cross-border e-commerce growth as gross merchandise value surged 44% year over year to $2.09 billion and revenue increased 39% to $299 million. Adjusted EBITDA jumped 62% to $62.4 million, pushing adjusted EBITDA margin above 20%, while GAAP net profit climbed to $47.7 million from $10.5 million a year earlier. Free cash flow reached $73.2 million, and management raised its full-year 2026 forecasts for gross merchandise value, revenue and adjusted EBITDA after stronger-than-expected merchant volumes during the first half. The combination suggests Global-e Online is scaling faster while becoming more profitable, although a sharp reversal in its August 12 share price indicates investors are applying an increasingly demanding valuation test to that growth.
The raised outlook also incorporates Global-e Online’s recently completed acquisition of Passport Global Inc., a U.S.-based cross-border e-commerce logistics company acquired for $350 million upfront, with another potential $75 million tied to 2026 financial performance. Passport is expected to contribute $55 million to $59 million of revenue during the second half, giving Global-e Online another growth source while expanding its logistics capabilities beyond the company’s traditional merchant-of-record model.
Investor reaction was unusually volatile given the strength of the report. Global-e Online shares traded as high as $47.03 on August 12 before falling back to approximately $40.55, leaving the stock around 0.9% below the previous close despite the earnings beat and upgraded outlook. That reversal suggests the market initially rewarded the acceleration before reassessing valuation, the cost of integrating Passport and whether growth rates approaching 40% can remain sustainable as the revenue base becomes much larger.
Global-e Online’s $2.09 billion GMV quarter shows existing merchants are scaling rapidly
Gross merchandise value processed through Global-e Online’s platform reached approximately $2.09 billion during the second quarter, up 44% from $1.45 billion a year earlier. Management attributed the expansion to strong volumes from existing merchants, merchants launched during 2025 and encouraging initial performance from recently onboarded brands, suggesting the growth is being generated by both customer acquisition and deeper penetration of existing relationships.
Revenue increased somewhat slower than gross merchandise value but remained exceptionally strong at 39%. Global-e Online generated $139.4 million from service fees and $159.6 million from fulfillment services, resulting in total revenue of $299 million compared with approximately $214.9 million in the prior-year period.
The geographic distribution also shows that Global-e Online is becoming increasingly diversified outside its largest market. Revenue associated with merchants originating in the United States reached $151.4 million, representing about 51% of total quarterly revenue, while the United Kingdom and European Union each accounted for approximately 19%.
That diversification matters because cross-border e-commerce can be affected by tariffs, customs policies, currency movements and shifts in consumer demand across individual countries. A broader merchant base across North America, Europe and Asia-Pacific can reduce dependence on any single retail market, although international complexity simultaneously increases regulatory, logistics and compliance requirements.
Global-e Online continued adding recognizable brands during the quarter, including Ferrari, Universal Music Japan, Dolce Vita and several European fashion labels. Existing relationships also expanded, with Pokémon supporting significantly greater volumes around product launches and FIGS adding countries across Asia-Pacific.
The expansion of existing accounts is particularly important because it can produce growth without requiring Global-e Online to acquire a completely new merchant for every incremental dollar of gross merchandise value. Merchants that launch in additional countries or place more transaction volume through the platform can improve the economics of Global-e Online’s technology and operational infrastructure as fixed costs are spread across a larger transaction base.
Adjusted EBITDA growth of 62% shows Global-e Online is gaining operating leverage
The profitability improvement was even stronger than revenue growth. Adjusted EBITDA increased to $62.4 million from $38.5 million, while adjusted EBITDA margin expanded approximately 300 basis points to 20.9%, demonstrating that Global-e Online retained more incremental earnings as transaction volumes increased.
Management attributed part of the improvement to operational efficiency and greater use of artificial intelligence across the business. Global-e Online has been working to automate processes and improve productivity as transaction volumes rise, creating the potential for operating expenses to increase more slowly than revenue if those efficiency initiatives continue working as intended.
GAAP profitability also improved substantially. Net profit reached $47.7 million compared with $10.5 million in the second quarter of 2025, while non-GAAP net profit increased to $64.9 million from $37.9 million.
Free cash flow increased to $73.2 million from $63.5 million, while operating cash flow reached $73.6 million. The quarterly cash generation is particularly relevant because Global-e Online is simultaneously funding acquisitions and repurchasing shares, requiring the underlying business to support multiple capital-allocation priorities.
Gross margin provided one area where the expansion was less straightforward. Non-GAAP gross profit increased 36% to $135.4 million, but non-GAAP gross margin declined to 45.3% from 46.5%, while GAAP gross margin stood at 44.1%.
The margin decline does not undermine the broader profitability improvement because adjusted EBITDA margin expanded substantially despite slightly lower gross margin. It does, however, show that Global-e Online’s evolving revenue mix, particularly the increasing contribution from fulfillment and logistics services, can affect gross-margin percentages even while total earnings grow faster.
Passport acquisition expands Global-e Online beyond its traditional cross-border commerce model
Global-e Online completed its acquisition of Passport Global Inc. on July 1 after agreeing to pay $350 million through approximately equal portions of cash and Global-e Online shares. The agreement also includes contingent consideration of up to $75 million if Passport achieves specified 2026 financial targets.
Passport operates an asset-light logistics and multi-carrier network supporting cross-border, domestic and last-mile deliveries. Global-e Online expects the business to improve standard shipping capabilities, consolidated returns and direct-injection services while also giving the company a non-merchant-of-record solution for merchants that do not require Global-e Online’s complete traditional offering.
That broader product set could expand the addressable merchant market. Global-e Online’s core model manages complex aspects of international online commerce including localization, payments, taxes, duties and logistics, while Passport gives it the ability to work with merchants seeking logistics support without transferring the entire merchant-of-record function.
Passport is expected to contribute $24 million to $26 million of revenue in the third quarter and $55 million to $59 million during the full second half of 2026. Its expected adjusted EBITDA contribution is comparatively modest at $3 million to $4 million for the second half, reflecting the fact that integration and scale benefits are still developing.
Global-e Online expects approximately $60 million of second-half merchant-of-record gross merchandise value from Passport. That figure is relatively small compared with Global-e Online’s existing quarterly volumes, reinforcing that the immediate financial attraction of Passport is primarily its revenue contribution and logistics capabilities rather than a dramatic near-term increase in merchant-of-record transactions.
Integration execution will therefore matter considerably over the next several quarters. The acquisition can strengthen Global-e Online’s logistics offering and give merchants more flexibility, but realizing the full strategic value will require successfully combining Passport’s network with Global-e Online’s technology without disrupting service levels or eroding margins.
Higher 2026 guidance raises expectations as Global-e Online targets up to $1.36 billion in revenue
Global-e Online increased its full-year gross merchandise value forecast to between $8.81 billion and $9.11 billion from the previous $8.53 billion to $8.88 billion range. The company now expects annual revenue of $1.305 billion to $1.355 billion, compared with its previous forecast of $1.22 billion to $1.28 billion.
Adjusted EBITDA guidance increased to $278 million to $300 million from $264.5 million to $289.5 million. Raising all three major outlook metrics after already increasing guidance following the first quarter suggests management is seeing stronger underlying demand than it expected at the start of 2026.
The third-quarter forecast calls for gross merchandise value between $1.995 billion and $2.045 billion and revenue of $308.5 million to $315.5 million. Adjusted EBITDA is expected between $58.5 million and $62.5 million, implying continued strong profitability even as Passport begins contributing to consolidated results.
Global-e Online is also returning substantial capital to shareholders. The company repurchased $68 million of shares during the second quarter, completing its previous $200 million program, while its board authorized an additional repurchase program of up to $500 million in June.
The size of that authorization is significant relative to Global-e Online’s roughly $6.8 billion market capitalization on August 12. A fully executed $500 million program would represent more than 7% of the company’s current market value, although the authorization does not obligate Global-e Online to repurchase the entire amount and actual purchases will depend on market conditions and other considerations.
The combination of acquisitions and buybacks creates an interesting capital-allocation balance. Global-e Online is using cash and shares to broaden its platform through Passport while simultaneously signaling that management believes repurchasing its own stock can represent an attractive use of capital.
Global-e Online stock reversal suggests investors expect exceptional growth to continue
Global-e Online shares reached an intraday high of $47.03 on August 12 before retreating to approximately $40.55, down around 0.9% from the previous close. The stock therefore surrendered a gain of roughly 15% from the prior close during the course of the session despite revenue, earnings and guidance all moving strongly higher.
That reversal does not necessarily indicate investors viewed the results negatively. Instead, it suggests enthusiasm surrounding the initial earnings release encountered a valuation ceiling as traders reassessed how much future growth was already reflected in the share price and how the Passport acquisition alters near-term margins.
The underlying operating momentum remains difficult to dismiss. Gross merchandise value grew 44%, revenue increased 39%, adjusted EBITDA climbed 62% and GAAP net profit more than quadrupled, while management raised its annual forecasts for a second consecutive quarter.
The challenge is that unusually high growth creates unusually high expectations. Global-e Online must continue adding merchants, expanding existing relationships, successfully integrating Passport and preserving operating leverage while navigating tariffs, international trade regulations, currency fluctuations and changes in global consumer spending.
Shopify Managed Markets Version 2.0 provides another potential source of growth. Global-e Online completed migration of remaining merchants from the earlier version and expanded availability beyond the United States into Canada and the United Kingdom, widening the geographic opportunity attached to its Shopify relationship.
The second-quarter report therefore strengthens the fundamental growth case while simultaneously raising the execution bar. If Global-e Online can sustain gross merchandise value expansion, integrate Passport without sacrificing margins and continue converting revenue growth into free cash flow, the company’s cross-border commerce platform could justify increasingly ambitious expectations, but the August 12 stock reversal shows investors are no longer rewarding growth figures automatically.
Key takeaways from Global-e Online’s Q2 growth and raised 2026 outlook
- Global-e Online Q2 gross merchandise value surged 44% to $2.09 billion, while revenue increased 39% to $299 million.
- Adjusted EBITDA jumped 62% to $62.4 million, lifting adjusted EBITDA margin by 300 basis points to 20.9%.
- GAAP net profit rose to $47.7 million from $10.5 million, while non-GAAP net profit reached $64.9 million.
- Free cash flow increased to $73.2 million, supporting continued investment, acquisitions and shareholder capital returns.
- Full-year revenue guidance increased to $1.305 billion to $1.355 billion from $1.22 billion to $1.28 billion.
- Adjusted EBITDA guidance rose to $278 million to $300 million as management increased all major 2026 outlook metrics.
- Global-e Online completed its $350 million Passport acquisition in July, with up to another $75 million of contingent consideration possible.
- Passport is expected to contribute $55 million to $59 million of second-half revenue and $3 million to $4 million of adjusted EBITDA.
- Global-e Online completed its $200 million buyback program and authorized a new share repurchase plan of up to $500 million.
- Global-e Online shares fell back to roughly $40.55 after reaching $47.03 intraday, signaling high investor expectations despite the strong quarter.
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