Global-e Online is pairing rapid cross-border e-commerce volume growth with expanding profitability, and management is explicitly pointing to artificial intelligence as one contributor to the improvement. The company also raised its full-year outlook across all major guidance metrics after reporting strong volume from existing merchants, recently launched brands and its 2025 merchant cohort.
Gross Merchandise Value increased 44% year-over-year to approximately $2.09 billion in the second quarter of 2026, compared with $1.45 billion a year earlier. Revenue increased 39% to $299 million, including $139.4 million of service fees revenue and $159.6 million of fulfillment services revenue.
Profit growth substantially outpaced the top-line increase. Adjusted EBITDA surged 62% to $62.4 million from $38.5 million, while adjusted EBITDA margin expanded 300 basis points to 20.9%. Management attributed the improvement to operating leverage as well as efficiency gains being generated through the use of AI across the business.
Non-GAAP gross profit increased 36% to $135.4 million, although non-GAAP gross margin declined modestly to 45.3% from 46.5%. GAAP gross profit reached $131.9 million, representing a 44.1% gross margin.
The operating leverage was particularly visible under GAAP. Quarterly operating profit increased more than fourfold to $44.7 million from $10.5 million a year earlier, while net profit attributable to ordinary shareholders increased to $47.7 million from $10.5 million. Non-GAAP net profit increased to $64.9 million from $37.9 million.
Global-e generated that profit improvement while keeping overall operating expenses essentially flat. Total operating expenses were approximately $87.2 million compared with $87.2 million a year earlier, even though revenue increased 39%. Sales and marketing expense declined to $35.8 million from $44 million, more than offsetting increases in research and development and general and administrative spending.
Cash generation also remained strong. Global-e generated $73.6 million of operating cash flow and $73.2 million of free cash flow during the quarter, compared with $63.5 million of free cash flow a year earlier.
The company continues to broaden its merchant base across geographies and consumer categories. New launches during Q2 included Ferrari, Manebí, 6PM, Mikuta, Malina, C’est Normal, Officine Universelle Buly, J.M. Weston, Naked Wolfe, N.Peal, Buffbunny, Dolce Vita, Six Zero Pickleball, McLaren Golf, Universal Music Japan, ADERERROR and other brands.
Global-e is also increasing the amount of business it handles for existing merchants. FIGS expanded into additional countries across Asia-Pacific, Peter Millar and G/FORE expanded into additional U.K. markets, and Isabel Marant entered additional markets. Pokémon also expanded its relationship with Global-e to support substantially more volume tied to highly anticipated viral product drops.
Another growth avenue is Global-e’s partnership with Shopify. Shopify Managed Markets Version 2.0 expanded beyond the U.S. into Canada and the U.K. during the quarter, while Global-e completed the migration of remaining merchants from Version 1.0 to Version 2.0. The company said initial merchant feedback on the updated platform has been very positive.
Global-e is also incorporating Passport into its financial outlook. The acquired business is expected to contribute approximately $24 million to $26 million of Q3 revenue and less than $1 million of adjusted EBITDA. For the second half of 2026, Passport is expected to contribute $55 million to $59 million of revenue, approximately $60 million of Merchant of Record GMV and $3 million to $4 million of adjusted EBITDA.
Following the stronger first-half performance, Global-e increased its full-year 2026 GMV outlook to $8.81 billion to $9.11 billion from $8.53 billion to $8.88 billion. Revenue is now expected between $1.305 billion and $1.355 billion, up from the prior range 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.
For Q3, Global-e expects GMV of $1.995 billion to $2.045 billion, revenue of $308.5 million to $315.5 million and adjusted EBITDA of $58.5 million to $62.5 million.
The stronger operating performance is also supporting more aggressive capital returns. Global-e repurchased $68 million of shares during Q2, completing its previous $200 million repurchase authorization. The board subsequently authorized a new incremental $500 million share repurchase program.
Global-e ended June with approximately $285.4 million of cash and cash equivalents, along with $170.4 million of short-term deposits and $74.7 million of marketable securities.
Management believes the combination of strong merchant volumes, new enterprise launches, deeper relationships with existing merchants, Shopify Managed Markets expansion and AI-driven operating efficiencies can keep revenue growth above the company’s longer-term targets while allowing a greater portion of incremental revenue to flow through to profitability.
KEY QUOTES:
“The second quarter continued to show great top-line momentum, fueled by very strong volumes from existing merchants and the 2025 cohort of launched merchants, as well as strong initial performance from recently onboarded merchants. Given our operating leverage and the efficiency gains we are driving throughout the business using AI, our Adjusted EBITDA margin showed a significant step up of 300 basis points compared with last year, reaching over 20%.”
“Given the strong results through the first half of 2026 and the trends that we are seeing in the market today, we expect 2026 revenue growth to show meaningful year-on-year acceleration, and we remain ahead of our long-term growth targets.”
Amir Schlachet, Founder and CEO of Global-e
