Global-e Online Maintains Buy Rating on Strong Q2 Results and Resilience Amid Competition

Global-e Online reported strong Q2 results, with revenue exceeding expectations and a notable increase in gross merchandise volume (GMV) growth, driven by new customer acquisitions. Despite concerns about competitive pressures from Shopify's Managed Markets changes, the company's management has not lost any deals with existing Shopify merchants. This resilience and positive financial metrics support a Buy rating, according to Needham analyst Scott Berg.

Global-e Online Ltd. (Nasdaq: GLBE), the platform powering global direct-to-consumer e-commerce, reported robust financial results for the second quarter of 2025. The company's revenue and gross merchandise volume (GMV) grew significantly, driven by new customer acquisitions and strategic partnerships. Despite competitive pressures from Shopify's Managed Markets changes, Global-e's management remains optimistic about its financial trajectory.

In Q2 2025, Global-e's GMV reached $1,454 million, marking a 34% year-over-year increase. Revenue for the quarter was $214.9 million, a 28% year-over-year rise. Service fees revenue and fulfillment services revenue contributed $102.9 million and $112 million, respectively. The company's non-GAAP gross profit was $99.9 million, up 24% year over year, while GAAP gross profit was $97.7 million. Non-GAAP gross margin stood at 46.5%, compared to 47.8% in the same quarter last year, while GAAP gross margin was 45.5%. Adjusted EBITDA was $38.5 million, compared to $31.3 million in Q2 2024, and net profit reached $10.5 million, up from a net loss of $22.4 million in the previous quarter.

Key highlights of the quarter include the onboarding of new merchants such as SteelSeries, GANNI, JAKI, Escentual, StadiumGoods, Bandi Namco, Nanushka, SKYLRK, and Bally. The company also expanded its services to include Vuori, Bang & Olfson, Onitsuka Tiger, Diesel, Bennett Winch, Jones Road Beauty, and Life360. Additionally, Global-e extended its long-term strategic partnership with DHL and acquired ReturnGo, a provider of AI-enabled return and exchange solutions.

Needham analyst Scott Berg has issued a Buy rating on Global-e, attributing the resilience of the company's financial performance to its ability to attract new merchants and maintain existing relationships despite competitive pressures. Berg noted that the company's strong financial metrics and strategic partnerships position it well for continued growth.

Looking ahead, Global-e is introducing third-quarter guidance and raising full-year guidance. The company expects Q3 2025 GMV to be between $1,455 million and $1,495 million, with revenue projected to be between $214 million and $221 million. Adjusted EBITDA is expected to range between $37.5 million and $41.5 million for the quarter.

Global-e's management remains focused on achieving solid top and bottom-line growth, in line with its long-term targets. The company's ability to navigate a complex and dynamic environment and maintain its competitive edge will be key to its continued success.

References:
[1] https://investors.global-e.com/news-releases/news-release-details/global-e-reports-second-quarter-2025-results