Financial Data and Key Metrics Changes - In 2025, the company achieved a record GMV of approximately $6.57 billion, up 35% year-on-year, with revenues totaling $962 million, reflecting a 28% increase [13][32] - Q4 2025 saw GMV reach $2.36 billion, with a year-on-year growth of over 37%, and revenue growth accelerated to 28% year-on-year, totaling $337 million [12][33] - Adjusted EBITDA for Q4 was $87.2 million, up 53% year-on-year, resulting in a margin of 25.9%, an increase of almost 420 basis points compared to the same quarter last year [13][38] - The company reported a GAAP EPS of $0.39 for the full year 2025, marking its first full year of GAAP profitability [14] Business Line Data and Key Metrics Changes - Service fee revenue in Q4 was $160.9 million, up 37%, while fulfillment services revenue increased by 21% to $175.7 million [34] - The service fee take rate remained stable at 6.82%, while the fulfillment take rate was slightly lower at 7.44% due to higher average order values [34][60] Market Data and Key Metrics Changes - The company experienced strong holiday sales, achieving its first-ever billion-dollar GMV month in November 2025 [12] - The net dollar retention rate for 2025 was 122%, indicating strong growth and retention among existing merchants [39] Company Strategy and Development Direction - The company is executing a multi-year strategic plan aimed at solidifying its leadership in the global e-commerce enablement space, with a revenue growth forecast of close to 30% for 2026 [10][11] - The company is focusing on enhancing its AI capabilities to drive efficiencies and optimize operations, which is expected to contribute to adjusted EBITDA margin expansion through 2028 [19][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to maintain growth momentum despite challenges in the global consumer markets, citing a strong pipeline and demand for services due to the evolving tariff landscape [30][29] - The company anticipates continued strong performance in 2026, with guidance indicating GMV growth of over 31% and revenue growth of 29% [42][44] Other Important Information - The company has completed $72 million in share repurchases in Q4 2025, with $128 million remaining on its repurchase plan [41] - The company is investing in trade compliance infrastructure to help merchants navigate increasing tariffs and changing regulations [81] Q&A Session Summary Question: Can you elaborate on the outperformance in Q4 and the impact of FX versus same-store sales? - Management noted that strong GMV results were driven by new merchant launches and robust same-store sales, with some contribution from favorable FX tailwinds [46][47] Question: What are the growth drivers and dependencies for the outlook in 2026? - The booking pipeline is strong, with increased demand driven by global tariff changes and the impact of AI-led sales tools [51][52] Question: How does AI impact the value proposition for merchants? - Management highlighted that AI enhances the company's infrastructure and trading models, benefiting merchants by optimizing their trading capabilities [57][58] Question: What are the expectations for service fee take rates and revenue growth? - Service fee take rates are expected to remain stable, while fulfillment take rates may decline slightly due to the growth of the Multi-Local model [60][61] Question: Can you provide insights on the Managed Markets initiative? - The new iteration of Managed Markets integrates services through Shopify Payments, enhancing operational efficiency for merchants [69][70]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported GMV of $1.51 billion, a 33% increase year-over-year, and revenue of $221 million, up 25.5% year-over-year [9][25] - Adjusted gross profit for Q3 was $102 million, reflecting a 24% increase from the previous year, while adjusted EBITDA was $41.3 million, up 33% year-over-year, resulting in an 18.7% margin, a 100 basis point improvement compared to Q3 2024 [9][30] - GAAP net profit for the quarter was $13.2 million, with free cash flow of $73.6 million, an increase of almost 250% compared to last year [9][31] Business Line Data and Key Metrics Changes - Service fee revenue for Q3 was $103.5 million, while fulfillment services revenue was $117.3 million, with a slight decrease in service fee take rate due to a mix shift towards larger merchants [26][30] - The company continues to invest in R&D and sales and marketing, with R&D expenses at $26.1 million, or 11.8% of revenue, down from 13% in the same period last year [27][29] Market Data and Key Metrics Changes - The company has seen strong market traction with its largest merchants across different destination markets, indicating resilience in trading volumes despite tariff uncertainties [17][25] - New merchant launches included brands like Everlane and Ashford in the U.S., and multiple brands across Canada, the U.K., France, and Asia-Pacific, showcasing geographic expansion [18][19] Company Strategy and Development Direction - The company is raising its full-year 2025 guidance for GMV to approximately $6.46 billion, representing over a 33% annual growth rate, and expects to surpass initial guidance ranges [8][33] - A $200 million share repurchase program was authorized, reflecting the company's strong cash generation and commitment to returning capital to shareholders [12][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current trading patterns and the robustness of consumer discretionary spending, which supports a strong outlook for Q4 and beyond [17][23] - The company is strategically focusing on AI and agentic e-commerce, aiming to leverage these technologies to enhance sales channels and improve operational efficiencies [14][81] Other Important Information - The company has received authorization to offer import duty drawback services to U.S.-based merchants, which is expected to optimize their cost of trade [10][12] - The BorderFree.com offering has seen growth in shopper signups and sales conversion rates, indicating its increasing value as a demand generation channel [11][66] Q&A Session Summary Question: Commentary on the duty drawback product and value-added services - Management highlighted the increasing importance of duty drawback services due to rising global duty burdens and regulatory changes, which can reclaim duties on returned goods, optimizing cost structures for merchants [39][40] Question: Pipeline growth heading into next year - Management noted high demand for new services and optimism about the pipeline, driven by complexities in global e-commerce and the need for advanced solutions [41][42] Question: Service fee take rates and competitive dynamics - Management acknowledged slight volatility in service fee take rates due to a mix of larger enterprise merchants but does not expect significant changes moving forward [43][46] Question: Impact of tariffs on new merchant pipeline - Management reported some effects on same-store sales due to tariff changes but remains optimistic about global trading resilience and pipeline growth [53][54] Question: Contribution of ReturnGo acquisition - The ReturnGo acquisition is expected to contribute up to $1 million in revenue for Q4, with optimistic long-term potential as the solution is integrated into Global-e [56][57] Question: Same-store sales trends and new deal pipeline growth - Same-store sales growth has remained stable despite tariff changes, with optimism for new merchant launches compensating for the lack of mega clients in the second half of the year [60][62] Question: Progress on BorderFree.com monetization - Management expects continued adoption and conversion improvements from BorderFree.com, with a focus on optimizing traffic journeys and enhancing brand awareness [65][66] Question: EPEX impact on GMV and revenue - EPEX was stable in Q3, with no significant impact on revenue expected in Q4 [68] Question: Changes in competitive dynamics with Shopify integration - Management reported no material changes in competitive dynamics since the new agreement with Shopify, maintaining a strong market position [69][70]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported GMV of $1.51 billion, up 33% year-over-year, and revenue of $221 million, up 25.5% year-over-year [9][25] - Adjusted gross profit for Q3 was $102 million, up 24% from last year, with quarterly adjusted EBITDA at $41.3 million, up 33% compared to the same quarter of last year, resulting in an 18.7% margin [9][30] - GAAP net profit for the quarter was $13.2 million, with free cash flow of $73.6 million, an increase of almost 250% compared to last year [9][31] Business Line Data and Key Metrics Changes - Service fee revenue for Q3 was $103.5 million, while fulfillment services revenue was $117.3 million [26] - Non-GAAP gross profit was $102.1 million, representing a gross margin of 46.3% compared to 46.7% in the same period last year [26][30] - The company continues to invest in R&D and sales and marketing, with R&D expenses at $26.1 million or 11.8% of revenue, and sales and marketing expenses at $26.4 million or 12% of revenue [27][29] Market Data and Key Metrics Changes - The company has seen strong market traction with its largest merchants across different destination markets, indicating resilience in trading volumes despite tariff changes [17][25] - New merchant launches included brands like Everlane and Ashford in the U.S., and Chloé in France, showcasing expansion across various geographies [18][19] Company Strategy and Development Direction - The company is raising its full-year 2025 guidance for GMV to approximately $6.46 billion, representing over a 33% annual growth rate, and revenue to $952.1 million, representing 26.5% growth [8][32] - A $200 million share repurchase program was authorized by the board, reflecting the company's strong cash generation and balance sheet [12][31] - The company is strategically focusing on AI and agentic e-commerce, aiming to capitalize on emerging market opportunities [14][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current trading patterns and the strong performance expected to continue into Q4 and beyond, with a robust pipeline of new merchant launches [17][23] - The company anticipates 2025 to be its first GAAP profitable year as a public company, reinforcing its path to meet medium-term targets [33][34] Other Important Information - The company is experiencing increased interest in its duty drawback offering due to rising global duty burdens, which is expected to be a critical component for merchants [10][39] - The BorderFree.com offering is seeing growth in shopper signups and sales conversion rates, indicating its value as a demand generation channel [11][66] Q&A Session Summary Question: Commentary on the duty drawback product and value-added services - Management highlighted the increasing importance of duty drawback services as global duty burdens rise, with potential for reclaiming duties on returned goods [39] Question: Pipeline and merchant growth heading into next year - Management remains optimistic about high demand for new services and the growth of the pipeline, driven by complexities in global e-commerce [41][42] Question: Service fee take rates and competitive dynamics - Management noted that service fee take rates have been slightly volatile due to a mix shift towards larger enterprise merchants, but no significant changes are expected [45][46] Question: Impact of tariffs on same-store sales and new merchant pipeline - Management acknowledged some weakness in specific corridors but remains optimistic about overall trading resilience and pipeline growth [53][62] Question: Contribution of ReturnGo acquisition to revenue - The ReturnGo acquisition is expected to contribute up to $1 million in revenue for Q4, with optimistic long-term potential [56][57] Question: Duty drawback explanation and rollout in new countries - Management provided a simplified explanation of how duty drawback works and the necessary steps for rollout in new jurisdictions [72][74] Question: Agentic Commerce and data flow integration - Management discussed the potential of Agentic Commerce to affect the entire e-commerce value chain and the company's positioning to enable AI-powered transactions [78][81]