Shares of Global-E Online Ltd. (NASDAQ: GLBE) plunged 5.11% in pre-market trading on Wednesday, despite the company reporting strong third-quarter results and raising its full-year guidance. The e-commerce solutions provider's performance exceeded expectations, but investors appear to be taking profits after the stock's recent rally.
Global-E reported impressive financial results for the third quarter of 2025. The company's Gross Merchandise Value (GMV) reached $1,512 million, marking a 33% year-over-year increase. Revenue grew 25% to $220.8 million, while adjusted EBITDA surged 33% to $41.3 million. The company also reported a net profit of $13.2 million, a significant improvement from the net loss of $22.6 million in the same quarter last year.
Despite the strong performance, Global-E's stock declined, possibly due to high investor expectations and profit-taking. The company raised its full-year 2025 guidance, now expecting revenue between $944.1 million and $960.1 million, and adjusted EBITDA between $185.6 million and $200 million. This optimistic outlook reflects the company's confidence in its growth trajectory and market position in the global e-commerce sector.
Global-E's CEO, Amir Schlachet, highlighted the company's expanding scale and sophistication, stating, "As we continue to grow in scale and sophistication, bringing innovative new value-added services to the market and leveraging our unique data-driven know-how to generate value for our merchants like never before, our leadership position and competitive moat continues to widen." The company also reported successful launches with several well-known brands across various geographies and verticals, further solidifying its market presence.
While the stock's decline may seem counterintuitive given the positive results, it's not uncommon for stocks to experience short-term volatility following earnings reports, especially if they have seen significant gains leading up to the announcement. Investors will be watching closely to see if Global-E can maintain its growth momentum and deliver on its raised guidance for the full year.