B. Business Overview Overview Our platforms were purpose-built for international shoppers to buy seamlessly online and for merchants to sell from, and to, anywhere in the world - in short, to “go global”. At the same time, to “be local” reflects the localization of the shopper’s experience and our effort to make international transactions as seamless as domestic transactions. We increase the conversion of international traffic into sales by removing much of the complexity associated with international e-commerce. We provide a mission-critical, integrated solution that creates a localized and frictionless shopper experience and our platforms are simple to manage, flexible to adjust and smart in the local market insights and best practices. The vast capabilities of our end-to-end platforms include interaction with shoppers in their native languages, market-adjusted pricing, payment options tailored to local market preferences, compliance with local consumer regulations and requirements such as customs duties and taxes, shipping services, after-sales support and returns management. These elements are unified under our platforms and services to enhance the shopper experience and enable merchants to capture the global e-commerce opportunity. We operate at the forefront of global e-commerce, which is being transformed by technology, internet adoption and the rise of social networks connecting the world. Shopper buying habits are rapidly shifting online, as shoppers expect to be able to purchase any product online - from anywhere in the world. Trends and consumer tastes are becoming increasingly global, driving the expansion of global e-commerce, but the preference remains for an intuitive online shopping experience that feels local. In parallel, the rapid growth in e-commerce has created an opportunity for merchants to build and strengthen a direct relationship with the shopper. Solutions that enable D2C sales have become a strategic priority for brands and retailers as they seek to take advantage of these e-commerce trends, gaining ownership and knowledge of their international shoppers. Our comprehensive platforms create differentiated benefits for both shoppers and merchants. Shoppers seek competitive, localized and transparent pricing, a seamless and secure order and delivery process, and a painless returns and refunding process. We address these needs through a fully localized experience that removes many of the barriers shoppers face when purchasing from merchants internationally. We integrate with and enhance the online stores of merchants and localize the shoppers’ experience based on the country from which they shop. We support local messaging in over 30 languages, purchases in more than 100 currencies by over 150 payment methods, and a multitude of shipping options. Shoppers can enjoy a fully guaranteed landed price quote, which includes shipping costs, import duties and tax charges, as well as post-sale services, such as multi-lingual customer service and a managed returns service. The enhanced shopper experience we enable, typically results in improved sales conversion of our merchants’ international traffic, thereby increasing their revenues from global shoppers. We have seen merchants experience significant uplift in international traffic conversion after beginning to use our platform. For merchants, our platforms also remove much of the complexity that is associated with global e-commerce. Sales are reconciled and paid for locally and in the currency of the merchant’s domicile. We handle import duties calculation and collection, foreign sales tax remittance as well as tax recovery for returned goods in line with market regulations. We also displace certain fraud and foreign exchange risks that would otherwise be borne by merchants. We allow merchants to expand and scale their global reach rapidly and efficiently, enabling a quick go-to-market with limited investment. 42 The scale and sophistication of our platforms relies on the data and insights we’ve accumulated since our founding. We refer to the application of our data as “Smart Insights” - country-, price-point- and vertical-specific lessons learned about shopper behavior. These insights are expanded every time a potential shopper enters a merchant’s online store - which occurs hundreds of millions of times each year - allowing us to gather additional data points along the purchasing journey. We believe that by leveraging our Smart Insights, merchants can provide highly optimized experiences for shoppers on a per-market, per-vertical and per-price point basis, driving increased sales conversion and revenues. By providing a seamless shopper experience and empowering merchants to capture the global e-commerce opportunity, we believe that we drive more transactions and thereby accumulate more data, which in turn increases the quality and depth of our Smart Insights. This creates strong flywheel effect that further powers our business and that of our merchants. The merchants’ success is our success, and we aspire to become their trusted partner for international sales. The better the outcomes for the merchants and the more revenue and growth they achieve, the greater our own revenue and growth. We believe this alignment of interests with the merchants is core to our long-term success. In September 2023, Shopify launched “Shopify Managed Markets”, which was previously known as “Shopify Markets Pro” and was rebranded in 2024, a white-label international MoR offering, powered by Global-e, currently available to US-based Shopify merchants. Shopify Managed Markets is leveraging the Flow platform robust API-based technology and enables merchants of diverse scales, encompassing small and emerging businesses, to seamlessly extend their brand offerings globally with streamlined integration efforts. Moreover, Shopify Managed Markets boasts advanced self-service capabilities, further enhancing its appeal and functionality to merchants seeking international market expansion. Since the launch, thousands of Shopify merchants have onboarded and are utilizing Shopify Managed Markets. In 2025, the Shopify Managed Markets offering was revamped, in conjunction with the 2025 Shopify Agreement, aiming to enhance merchant experience, reduce merchant operational friction and harmonize their international and domestic processes, by utilizing Shopify payments, among other enhancements. At the end of 2024, we launched a demand generation offering, as part of our long-term strategy to enhance international e-commerce by driving high intent traffic to the websites of participating merchants and consequently contribute to increased sales. Our demand generation offering is designed to leverage targeted marketing initiatives, strategic partnerships, and data-driven insights to attract high-intent shoppers from global markets. We believe that through optimized global traffic acquisition, we can help merchants connect with global shoppers who are actively seeking their products and increase their engagement with our merchants’ products and websites. The revamped Borderfree.com brand discovery portal stands at the core of our demand generation offering. The portal, to which hundreds of merchants are already signed up, is designed to promote their products to a growing base of international shoppers. Since the launch, we have seen an increase in international traffic and shopper engagement, driven by this offering, reinforcing our belief that over time, this initiative can become a powerful tool for merchants looking to expand their global presence. By integrating traffic generation capabilities with our existing offering, we believe we will be able to provide an e-commerce solution that not only facilitates international transactions but also has the potential to drive demand and growth for our merchants worldwide. In recent years we started to offer a duty drawback solution as a value-added service, enabling the reclaim of import duties and/or taxes on goods returned by shoppers. In international e-commerce, a meaningful share of sold goods is returned, and the import duties and taxes embedded in those transactions represent a recurring cost that merchants would otherwise absorb. Leveraging our position as merchant of record and our role in customs and trade processes and systems across multiple jurisdictions, we identify eligible transactions and manage the end-to-end claims process, remitting recovered amounts to merchants. We are gradually expanding the scope of this offering and as global duty burdens rise and de minimis exemptions are curtailed across key markets, we expect merchant demand for this offering to grow, further extending the value of our platform. Our business has experienced rapid growth over the last years and generally since our inception. Our GMV amounted to $3,557 million, $4,858 million and $6,569 million in 2023, 2024, and 2025, respectively, representing an increase of 36.6% and 35.2% in the years ended December 31, 2024 and 2025, respectively. Our revenues were, $569.9 million, $752.8 million and $962.2 million in the years ended December 31, 2023, 2024, and 2025 respectively, representing an increase of 32.1% and 27.8% in the years ended December 31, 2024, and 2025 respectively. Our gross profit increased by 45.3% and 28.5% in the years ended December 31, 2024 and 2025. Our gross margin has steadily improved from 41.0% in 2023 to 45.1% in 2024, and to 45.3% in 2025. Our Non-GAAP gross profit has increased by 42.7% and 27.6% in the years ended December 31, 2024 and 2025 and our Non-GAAP gross margin has reached 46.4% and 46.3% in the years ended December 31, 2024 and 2025. Our net loss has decreased from $133.8 million in 2023 to $75.5 million in the year ended December 31, 2024, and we turned GAAP profitable with a net profit of $68.3 million in the year ended December 31, 2025. Our non-GAAP net profit has grown from $94.2 million in 2023 to $131.0 million in the year ended December 31, 2024 and increased to $192.8 million in the year ended December 31, 2025. Our Adjusted EBITDA has grown from $92.7 million in 2023 to $140.8 million in the year ended December 31, 2024, and increased to $198.5 million in the year ended December 31, 2025. For a reconciliation of our non-GAAP measures to the most directly comparable GAAP measures, see Item 5. "Operating and Financial Review and Prospects-Operating Results." 43 Our Opportunity We strive to make international sales as simple as domestic sales for our merchants, while also ensuring that shoppers enjoy an intuitive and frictionless shopper journey, making both shoppers and merchants “abroad-agnostic”. We believe that our scalable platforms enable our merchants to capture the large and growing global e-commerce market. As of December 31, 2025, we served 1,547 merchants on our enterprise platforms across over 30 countries, including the United States, the United Kingdom, multiple European markets and APAC countries. In addition, we serve thousands of US-based merchants through Shopify Managed Markets; overall, we sell to shoppers in over 200 destination markets worldwide. We estimate the cross-border e-commerce market at more than US$1 trillion. Our total addressable market has been growing in past periods and continues to grow, driven by overall e-commerce growth and the expansion of our offering beyond cross-border through our multi-local product offerings. We believe that we have become, and that we possess the ability to remain, an industry-defining player that enables merchants to capture the global e-commerce opportunity. Our Solutions Global-e is a leader in global e-commerce enablement. We offer full end-to-end platforms built on a highly scalable technology stack. Our comprehensive solutions provide merchants with mission-critical tools that enable them to sell and scale globally. We believe our offering is a result of a potent combination of key components that will help further fuel the growth of global e-commerce by: Offering an intuitive and frictionless shopper journey and solving the merchants’ needs through our purpose-built end-to-end platforms Through a combination of proprietary capabilities and useful third-party integrations, Global-e is able to create a localized and efficient experience for shoppers regardless of the country they are shopping from. Our platforms include mission-critical tools, from local pricing and payments capabilities to after-sales support. We also simplify the international order flow – regardless of shopper and merchant origin, currency and payment method used, whether duties and taxes were pre-paid and which shipping option was chosen - making it as simple to complete as if it was a domestic order. Across our platforms, we are able to support: • Languages - localized marketing messaging and checkout in over 30 languages. • Pricing - more than 100 currencies as well as a sophisticated pricing engine customizable according to the shopper’s location, local market retail pricing conventions and the merchant’s pricing strategy. • Payments - over 150 payment methods, with new payment methods being continuously added. • Duties and taxes - the ability to accurately pre-calculate import duties and taxes and remit them in over 170 destination markets, simplifying the customs clearance process and allowing for a guaranteed landed price quote for both the shopper and the merchant. We also ensure we are addressing local market import restrictions. • Delivery - an extensive network of more than 20 shipping carriers, offering multiple shipping modes at attractive rates, including specialized shipping options such as Pick-Up & Drop-Off where applicable. We have found that shopper preferences for shipping modes and pricing vary significantly among markets and are an important driver of conversion rates. 44 • After-sale support and returns - multi-lingual shopper services and multiple returns options, including pre-paid and local returns in relevant markets. • Value-added services - in recent periods we introduced complementary value-added services such as duty drawback programs (enabling merchants to collect back certain duties and/or taxes that were charged in case of shopper-returned products), and demand generation services aimed to enhance international e-commerce by driving high intent traffic to the websites of participating merchants mainly through Borderfree.com. The combination of these extensive international capabilities embeds a highly-localized shopper journey into the framework of a merchant’s e-commerce store. This creates benefits for shoppers, who enjoy an efficient and familiar experience, while gaining direct access to the merchant’s full and original e-commerce website. Their positive experience allows us to significantly increase the conversion of our merchants’ international traffic and, consequently, their revenue. • Increased sales conversion: we enable merchants to scale globally in a rapid, efficient manner. We ensure that the merchants are able to capitalize on their valuable international shopper traffic and growth potential by eliminating friction to decrease the gap between international markets’ share of traffic and monetization. This enables the merchants to generate an uplift in sales from the conversion of their international shopper conversion. We have seen merchants experience significant uplift in international traffic conversion after beginning to use our platform. • Enabling expansion flexibility: Global-e presents merchants with flexibility to expand as they seek to capture the global e-commerce opportunity. We transform what otherwise would have required significant time and financial investments in proprietary development and go-to-market efforts into an efficient expansion solution managed by adjusting mere configurations on the Global-e platforms per market. • Reducing merchant complexity: Global-e assumes the role of merchant of record (MoR) vis-à-vis the shopper. We believe that taking on such responsibility significantly reduces legal complexity for the merchants, as we report and forward relevant import taxes and handle import compliance in the local market to where a sale is made, in line with specific market regulations. Our MoR status allows us to handle tax recovery for returned goods, with no hassle to the merchant. We bear certain fraud and foreign exchange risks that would otherwise be borne by the merchants and offer simple access to dozens of local payment methods, which further reduces potential frictions that could deter both merchants and shoppers from engaging in global transactions. We also adapt our systems and operations on an ongoing basis to address the evolving regulatory landscape and technical backdrop. Vis-à-vis the merchant, we streamline order processing by periodically reconciling all international orders in bulk and in the merchant’s native currency. In short, we aim to provide an experience that is akin to a domestic transaction. • Emphasizing merchant branding: maintaining direct shopper relationships is of strategic importance to the merchants, and we are deeply committed to preserving that connection. All throughout the process, the merchants preserve the integrity of the brand experience and enhance their brand equity. We use minimal own branding - and only where required to do so - so shoppers primarily face the merchant’s existing storefront and brand experience. • Multi-local approach: Global-e supports multi-local fulfillment and supply chain, catering for the merchants’ needs to utilize inventory in multiple locales, serving select local markets, improving stock utilization and delivery speed while enhancing the shopper experience. This approach also exhibits omnichannel capabilities, for example, by allowing merchants to leverage stock in their physical stores as local fulfillment hubs, or offering ‘Buy Online, Pickup In-Store (BOPIS)’ service in certain markets, increasing convenience for shoppers while optimizing logistics efficiency. The multi-local offering is aimed at serving merchants, which hold inventories in multiple locations, typically large enterprise merchants. Combining our access to data and know-how to generate Smart Insights We believe we are well-positioned to provide insights to our merchants thanks to both the breadth and depth of the data we generate, on the basis of the significant international traffic on our merchants’ websites and the millions of transactions we facilitate on a yearly basis. For the year ended December 31, 2025, there were approximately 2.1 billion visits across our merchants’ e-commerce sites, and we enabled close to 30 million transactions across over 30 origin countries and over 200 destination markets. We gather extensive data along the entire value chain and lifecycle of an order - from the initial visit to the e-commerce store through the actual purchase, delivery and returns. 45 Our proprietary models use this wealth of information to generate curated and actionable Smart Insights for our merchants, advising them on how certain changes to their online value proposition would potentially affect shopper conversion rates. We also provide detailed business analytics on a market-per-market basis, leveraging our know-how, tools and data. Such Smart Insights enable the merchants to optimize their offering to the shoppers by location, alleviating the need for trial and error in order to assess customer preferences on a standalone basis. Our holistic approach - coupling our localization capabilities and market know-how with our data driven Smart Insights - enables the merchants to unlock their potential for global D2C sales by means of a localized and optimized offering for each individual market, vertical and price segment. Our Merchants We serve a fast-growing and diverse portfolio of merchants around the globe As of December 31, 2025, we had 1,547 merchants using our enterprise platforms, up 10.2% from 1,404 merchants as of December 31, 2024 and 23.2% from 1,256 merchants as of December 31, 2023. In addition, as of December 31, 2025, we had thousands of merchants using Shopify Managed Markets. During the year ended December 31, 2025, merchants using our platforms made transactions at a total GMV of $6,569 million, up 35.2% from $4,858 million in the year ended December 31, 2024. The merchants we serve are highly diverse across: • Multiple origin countries - we serve merchants from multiple locations including the United States, Canada, the United Kingdom, various European markets, various APAC markets and other markets globally. • Multiple product verticals - fashion and apparel, luxury, footwear, cosmetics, accessories, children’s fashion, watches and jewelry, sporting equipment, consumer electronics, toys and hobbies, automotive spare parts, digital products and others. • Multiple product price points - ranging from everyday fashion retailers to ultra-high-end brands. • Multiple merchant sizes - from multi-billion-dollar global high-street brands to emerging small and medium businesses. • Multiple merchant types - from traditional bricks-and-mortar retailers who have been transitioning to the digital D2C realm to emerging digital-native brands. We believe that our large and highly diverse portfolio of merchants presents several key advantages: • A rich, diverse and fast-growing data asset of international transactions, enabling us to produce Smart Insights. • Vertical-level as well as geographical expertise, yielding a competitive advantage when approaching prospective merchants as part of our sales process. • Strong network and word-of-mouth effects within specific verticals and/or geographies. • High business resilience due to steadily decreasing merchant concentration. • A certain level of built-in “natural currency hedge” as a result of our business activity being conducted in a large number of different base currencies. We have a highly efficient sales and go-to-market strategy We establish partnerships with new merchants through several sales channels: • Direct sales - we have a dedicated team of sales executives that use various data sources and AI-powered tools to screen, qualify, identify and directly approach prospective merchants. • Inbound and word-of-mouth - as our scale and the number of merchants we have in each individual market grows, so does our own brand equity. This leads to more inbound prospects as well as stronger word-of-mouth-based sales, whereby existing Global-e merchants or e-commerce executives recommend our solution to other players in the market. • Channel partnerships - we have established mutually beneficial strategic partnerships with a range of third parties, including leading e-commerce and technology platforms, shipping providers, third-party logistics providers, payment providers, system integrators and others. In the context of such relationships, our partners pass on leads to our sales teams and provide us with access to merchants. • Shopify Managed Markets - in partnership with Shopify, we power Shopify Managed Markets, a cross-border solution that enables Shopify merchants (currently generally available to US-based merchants) to seamlessly expand their international reach. By leveraging Global-e’s infrastructure, Shopify Managed Markets simplifies cross-border commerce by handling localized pricing, duties and tax calculations, international shipping, compliance, and multi-currency transactions. This collaboration strengthens our ability to support a broader range of merchants seeking efficient and scalable global expansion directly from their Shopify platform. 46 Sale cycle length depends on several parameters, such as merchant size, vertical, and type of technical integration but takes between three weeks and six months. Once the sales cycle is completed, implementation periods vary, depending on technical complexity, level of granularity of the merchant’s intended international marketing proposition and operational complexity. Implementation projects for large merchants take approximately 12-16 weeks on average while implementation for small businesses take approximately three to six weeks depending on the client internal team engagement. Our Competitive Advantages We believe that we have built a leading combination of platforms, services and data-driven insights and know-how all working in harmony to address merchants’ global e-commerce needs, creating a competitive advantage for our business. We believe our combination of capabilities and expertise uniquely positions us to cater to shoppers globally, driving significant uplifts in international sales conversion rates and revenue growth for our merchants, while also removing much of the complexity and many of the costs inherent to global e-commerce. Key elements of our competitive advantage include the following: Purpose-built, end-to-end platform We understand the challenges and the strategic objectives of our merchants engaging in global e-commerce. We provide merchants with the capabilities required for effective global D2C trade, using a potent combination of our proprietary technology and third-party providers. Our solutions are easy to integrate, platform-agnostic, scalable and able to support merchants of all sizes from small, emerging brands to the world’s largest retailers. We aspire to be inclusive and far-reaching in scope. We thus enable our merchants to expand internationally effectively, and to do so much more efficiently than previously possible. True global e-commerce enabler at scale We believe we are uniquely positioned to capture the global e-commerce opportunity as we are the only direct-to-consumer e-commerce enabler with truly global scale. We have an extensive footprint in North America, the United Kingdom, across the EU, Japan, Australia, South Korea, and other APAC countries. We are diversified by vertical and end-market. Our wide-reaching scale enables us to provide a solution to merchants across the globe. This scale, coupled with strong brand recognition gained since inception, has allowed us to acquire some of the largest merchants in the world as customers. Differentiated and growing data asset driving flywheel effect The Global-e platforms are based on more than technical solutions and associated capabilities. They are based on data-driven know-how. Data permeates every layer of our platforms. Data drives how we make decisions, how we develop and improve our offering, and how we make the shopper experience efficient and intuitive. We refer to this as “Smart Insights”, which enjoy a strong flywheel effect as we continue to grow at pace driven by: • “Economies of scale” - Our platforms facilitate millions of international transactions each year across thousands of merchants, spread across multiple geographies, product verticals, price levels, and shopper demographics. We thus accumulate a vast and rich data set and are able to benefit from economies of scale. • “Economies of skill” - Our massive and fast-growing data is a key asset due to the “richness” of its content. Based on this data, and coupled with our operational experience accumulated over years, we are able to generate what we call economies of skill, which enable us to ensure that global sales are optimized for the merchants on a market-by-market basis. • Flywheel Effect - Our rich data serves as the basis for a powerful flywheel effect: the uplift we generate for our merchants drives more sales and the ability for them to expand into new geographies, which in turn creates more data, which is then fed back into our systems in order to generate even better conversion rates and more uplift. This in turn drives increased sales for our merchants and attracts new merchants to our platforms. Our data engine gets “smarter” with each new site visit, each merchant and each new shopper. 47 Partner network fueling our differentiated go-to-market strategy Our go-to-market strategy targets merchants that want to establish or expand their global e-commerce business. The effectiveness, prominence and stickiness of our platforms have enabled us to acquire many of our merchants organically, supplementing the efforts of our professional salesforce. We also acquire new merchants through referrals from existing merchants or e-commerce executives, which serve as brand ambassadors for Global-e. In addition, our commerce enabler, marketing, payments, shipping and logistics, system integration and social media partners, which include global and regional players, act as a meaningful source of referrals and lead generation. Our ability to leverage these relationships is an important source of inbound interest. This is further complemented by our highly efficient sales and marketing efforts. Our salespeople and customer success managers build intimate relationships with our merchant partners and are crucial in further expanding our merchant network. Robust business model with sticky customers Global-e is a global e-commerce enabler covering the entire shopper journey. Our platforms are deeply integrated within merchants’ existing technology stack providing the core tools to power their day-to- day global operations. As a result, we retain significant “stickiness” within our customer base. Not only do we retain our merchants - our merchants also grow with our platform, and we grow with them. Merchants process large and growing order volumes through our platforms as we become increasingly integral to their daily business operations and as they realize the benefits of using our platforms. An important component of our growth is our existing merchant base, which grows organically each year. Due to our consistently high retention rates, we have visibility into the subsequent year’s revenue by looking to our current merchants, in a given period. Attracting new merchants is also critical to the scale of our platforms. We have developed a highly efficient sales model based on a direct sales force, channel partners and strong word of mouth, and we continue to build our capabilities to further strengthen our model. Founder-led management team We are a founder-led management team with a strong corporate culture. We are proud to be led by our founders, Amir Schlachet, Nir Debbi, and Shahar Tamari, who set the tone for our people: • Customer-Obsessed: We are firm believers in putting our customers first in everything we do. This is a principal tenet of our business. We view the merchants as long-term partners and hold their satisfaction as our guiding principle. Our customer success teams have invaluable tools and data to support the merchants’ ongoing needs, as well as direct access to the senior leadership team, including our founders, to leverage on behalf of our merchant partners. • Initiative and innovation driven: Our goal is to enable merchants to break geographic boundaries and become globally successful businesses. As such, we invest millions in research and development each year, track trends in the e-commerce world across geographies and constantly improve our product offering. Similarly, we encourage our employees to expand the scope of their defined roles, to take initiative, and to elevate Global-e to the next level - every employee can, and does, make a difference. • Team-Focused: We are a team. We believe in collaboration and inclusion, from our founding team that has been working together since our inception to our employees across all our offices worldwide. Our hiring decisions are based on attracting people whose values align with ours: creating real, meaningful and sustainable value for our merchants. Our Growth Strategy Grow within our existing portfolio of merchants The merchants’ success is our success. We help merchants grow revenues in their existing markets as well as expand into additional ones. As our merchants’ global sales generated through our platforms grow, attributed either to improved conversion or by expanding their offering into additional geographies, our revenues grow in tandem. Thus, we increase the “stickiness” of our solutions and become increasingly integral to our merchants’ daily businesses as they realize the benefits of using the Global-e platforms. We also have a strong track record of merchants acting as ambassadors for Global-e, referring us to other portfolio brands, as applicable, and more generally, to other potential merchants. We intend to continue deepening our relationships with existing merchants through service and performance of the highest quality, allowing them to continue to serve as our brand ambassadors within and outside their organizations. 48 Acquire new merchants within existing geographies and verticals We have a significant opportunity to continue acquiring new merchants over time. Furthermore, we have proven the ability to rapidly integrate potential merchants with implementation cycles of 12 to 16 weeks on average, and as short as three weeks. We will continue to invest in our marketing and sales teams to enhance awareness of our solutions and to drive lead generation with our strategic partners. We see significant opportunities across multiple existing geographies and brand segments that we believe we are well-positioned to capture. Expand into additional geographies, verticals and brand segments We have expanded and will seek to further expand our geographic footprint and boost our presence across merchant verticals, as well as brand segments. We believe that markets in the vicinity of regions where we already have a strong presence, in particular Europe and North America, and newer markets, such as APAC, are highly relevant for our business. While historically we have held a strong position in the mass market beauty and fashion segments, we have also achieved significant success with merchants in other segments, in particular, within the luxury segment, that we believe we can continue to capitalize on. Additionally, we have extended our reach by engaging with global consumer electronics and digital products brands. In order to provide the necessary level of support for these global brands, we have built and continued to build new multi-local capabilities, allowing us to enable localized D2C sales for such brands while also enabling them to utilize their existing local infrastructure, inventory and fulfilment capabilities in multiple destination markets. We are also making use of such multi-local capabilities to better serve the needs of our large global merchants, enabling them to utilize their domestic presence and inventory in chosen markets in order to serve their shoppers in such markets in local fashion, while at the same time serving adjacent markets through our cross-border capabilities. We continue to add functionality to this offering, and by integrating multi-local fulfillment with omnichannel capabilities, we enable participating merchants to offer a seamless and efficient shopping experience across key markets. As we continue to grow and expand into new geographies, through both new merchant acquisition and our existing portfolio of merchants expanding their offerings into additional geographies, we have the ability to reach new audiences in terms of sizes and verticals. Our growing brand recognition and know-how across our trading markets, enables us to acquire additional merchants more efficiently within current markets as well as new geographies. Disaggregation of Revenue The following table summarizes revenue by category: Year Ended December 31, 2023 2024 2025 Amount Percentage of Revenue Amount Percentage of Revenue Amount Percentage of Revenue ($ in thousands, except percentages) Service fees 262,255 46 % 350,311 47 % 451,205 47 % Fulfillment services 307,691 54 % 402,453 53 % 510,990 53 % Total revenue 569,946 100 % 752,764 100 % 962,195 100 % The Company’s revenues from service fees provided on a standalone basis were $44,461, $68,168 and $86,388 for the years ended December 31, 2023, 2024 and 2025 respectively. 49 The following table summarizes revenue by merchant outbound region: Year Ended December 31, 2023 2024 2025 Amount Percentage of Revenue Amount Percentage of Revenue Amount Percentage of Revenue ($ in thousands, except percentages) United States 285,619 50 % 399,596 53 % 507,094 53 % United Kingdom 173,584 30 % 182,904 24 % 193,959 20 % European Union 92,566 16 % 125,547 17 % 175,568 18 % Israel 1,806 * 2,746 * 3,748 * Other 16,371 3 % 41,971 6 % 81,826 9 % Total revenue 569,946 100 % 752,764 100 % 962,195 100 % * Less than 1% Offering value-added services As part of our commitment to enhancing merchants’ international success, we offer additional value-added services that go beyond our core e-commerce solutions. These services include managed services, demand generation, and duty drawback, all designed to add value to merchants, support their international growth initiatives and enable efficiencies. Our managed services offering includes digital marketing solution. We manage and fund digital marketing campaigns, including acquisition and retention marketing, implementing brand and performance marketing models aimed at increasing customer engagement and sales. Additionally, our demand generation service is designed to drive quality international traffic into participating merchants’ websites to support their international growth initiatives. By leveraging targeted marketing strategies and data-driven insights, we offer solutions designed to help merchants attract global shoppers. A key component of this initiative is the revamped Borderfree.com brand discovery portal, which connects merchants with a growing base of international consumers. Furthermore, for eligible merchants using Global-e’s shipping services, we offer duty drawback, which enables the recovery of certain import duties and/or taxes in certain destination markets on goods that are returned to their origin country. This service can provide a direct financial benefit by refunding merchants for customs duties and taxes previously paid, enabling them to improve the efficiency of their international trade. Through these services, we continuously strive to strengthen our role as an e-commerce enabler, not only working towards facilitating seamless cross-border transactions but also actively driving demand, reducing costs, and maximizing revenue opportunities for our merchants worldwide. Shopify Managed Markets Since becoming generally available to US-based Shopify merchants in 2023, Shopify Managed Markets enables merchants of all sizes, including small and emerging merchants, to offer their products internationally via a streamlined integration effort and advanced self-service capabilities. In 2025, the Shopify Managed Markets offering was revamped, in conjunction with the 2025 Shopify Agreement, in aim to enhance merchant experience, reduce merchant operational friction and harmonize their international and domestic processes, by utilizing Shopify payments, among other enhancements. We believe that this offering will appeal to many merchants, due to its streamlined integration process, advanced self-service capabilities and the enhanced merchant experience. This combination not only enhances operational efficiency but also provides merchants with the flexibility and control needed to navigate the complexities of international markets, making Shopify Managed Markets a relevant solution for a diverse range of merchants. 50 Drive continuous innovation on our platforms We plan to continue to invest in research and development and operate with an agile approach to address our merchants’ and shoppers’ constantly evolving needs. We strive to continue developing new capabilities and add-on offerings, as well as look to complement existing platforms and offering through merger and acquisition opportunities, to maintain Global-e’s position as a leading holistic platform for global e-commerce. We have enriched, and we plan to continue enriching, a suite of value-added services we can provide our merchants. For example, through the acquisition of Borderfree in 2022, we have developed and expanded traffic demand generation services, enabling merchants to attract international shoppers to their web store and enhancing the value that our business brings to such global brands. A key pillar of this initiative is the revamped Borderfree.com brand discovery portal, where hundreds of merchants are signed up to showcase their products to a growing base of international shoppers. Results from the demand generation offering so far indicate an increase in international traffic and shopper engagement, reinforcing our belief that over time, this initiative can become a powerful tool for merchants seeking to expand their global presence. We also believe that our differentiated data capabilities and constantly-improving data models will allow us to stay at the forefront of e-commerce solutions. We believe our unique, big data-driven Smart Insights enable us to help our merchants deliver more precise, targeted, localized shopper experiences driving conversion and revenues and also manage their operations more efficiently through our superior ability to forecast and predict trends. We believe that data will be a key driver of future optimization and shopper monetization. Continue to develop and expand our strategic partnerships We have established mutually beneficial strategic partnerships with a range of key players in the broader e-commerce ecosystem, including global technology groups, e-commerce platforms, shipping providers, third-party logistics providers, payment providers and system integrators. Our channel partners have been an important lead generation engine providing our sales team with a pipeline of prospective merchants. We intend to further strengthen our existing relationships, such as our partnership with DHL or our partnership with Shopify, and build new strategic partnerships with other key players across the value chain and in the different markets in which we operate. Products and Technology Our end-to-end platforms help merchants remove global e-commerce complexities by empowering merchants with powerful and extensive localization capabilities embedded directly within their websites. Our technology creates a highly-localized shopper experience, which in turn drives increased sales conversion and revenue growth. Our platforms are built on a scalable tech stack which is powered by a robust layer of application programming interfaces (“APIs”) and data models, powering the shopper journey and allowing us to support a fast-growing and rapidly expanding merchant base. Through a range of integration options, the merchants’ websites can leverage the power of our platforms. The integration technology, either through pre-fabricated e-commerce platform plug- ins, through the implementation of our API’s or through our generic script-based client-side integration, which we refer to as Global-e Module, is based on a simple lightweight integration effort. Such integration effort ranges from a code snippet that is placed into a merchant’s existing online platform enabling us to deploy and integrate with minimal friction, to installation of our plug-ins and/or the implementation of a few of our API’s. After integration, shoppers continue to face the merchant’s existing storefront, and Global-e remains as a “white label” in the background. In the case of Shopify Managed Markets, a simple “one-click” activation process is all that is needed from the merchant’s side to enjoy the benefits of that platform. Shopping experience features • Localized browsing - We offer localized browsing features, such as a configurable welcome message or a top-line marketing banner that can be customized by market and presented in the local language. Customization breeds familiarity, reducing bounce rates, increasing conversion and improving shopper confidence through a local shopping experience. • Localized checkout - Embedded within the brand’s e-commerce store, the checkout experience supports over 30 different languages across our platforms, enabling shoppers to switch the checkout language to their own native tongue for a more customized and local experience. Further, shoppers checkout within the merchant website without being redirected to a third-party site. • Guaranteed landed cost - We provide shoppers with a “no-surprises” and guaranteed fully-landed cost. We offer multiple options, configurable by market, for handling import duties and taxes. For example, shoppers may select the option to prepay duties and/or taxes at checkout. Alternatively, our platforms have the capability to already embed this cost into the product price within the browsing journey (in full or partially), in order to facilitate an intuitive and frictionless smooth and user-friendly shopper journey. We believe this feature and options functionalities are critical in achieving high conversion rates across markets and promoting repeat shoppers. 51 In addition to achieving shopper confidence, pre-collection of import duties and taxes enables orders to be dispatched to shoppers under a “Delivery Duties Paid” scheme through relevant shipping carriers. This serves to greatly simplify and streamline the process of releasing the goods from customs at the destination market, in turn contributing to a quicker and simpler delivery experience for the shopper. • Multiple shipping options - Our platforms allow merchants to choose from a menu of shipping options, offering shoppers multiple delivery alternatives, depending on the destination market: mail, express courier, Cash-on-Delivery, store delivery, drop point delivery, BOPIS and more. As part of each market-specific value proposition, merchants can decide which shipping methods to offer and how to price them, based on Global-e’s competitive shipping rates or through their own contracted shipping carriers. • Localized alternative payment methods - Preferred payment methods of shoppers differ from market to market. In some markets, such as the United States and United Kingdom, the use of global cards (Visa, MasterCard, etc.) is the most common payment method used. In others, local cards, or universal alternative payment methods, such as PayPal, prevail. There are markets, both in developed and developing countries, where alternative payment methods are used more frequently than cards. In order to remove payment friction and ensure higher conversion rates, Global-e supports over 150 payment methods globally, granting shoppers in each market the ability to pay with their preferred local option. • Real-time fraud detection and prevention - Each order is scanned in real-time for potential payment fraud. Global-e utilizes advanced third-party screening services, coupled with proprietary algorithms and processes - all managed by a team of fraud detection and prevention specialists. These capabilities enable Global-e to achieve high payment acceptance rates and low chargeback rates across international markets. The authorization/rejection decision is made in real time without the delays and costs associated with manual or semi-automatic transaction screening. This further contributes to a streamlined and satisfying shopper experience. • International customer services - Global-e operates a multi-layered approach to customer services comprised of self-service portal, AI-based chatbot and a manned contact-center. Our branded self-service and multi-lingual online customer service portal contains answers to many frequently-asked questions that are typically raised post-sale by international shoppers regarding their orders. To boost our ability to provide highly accurate answers to shoppers’ support queries in real-time, without a need for human intervention, we introduced automated Customer Service Chatbot, based on Open-AI’s ChatGPT technology which has been securely connected to our systems and databases. Since its launch prior to the peak period in 2023, the Chatbot exhibited desired results, handling a large percentage of customer inquiries, with nearly half of cases resolved autonomously to customers' full satisfaction. In addition, Global-e operates a manned contact center that serves to augment the brand’s own customer services team. Global-e’s contact center can provide either “behind the scenes” support for the merchant’s customer services team, or it can be in touch directly with the brand’s shoppers to handle their queries. Global-e continuously expand the chatbot’s capabilities, allowing it to manage an increasing range of customer service requests. For example, shoppers can now complete the entire return process - from initiating a return to receiving a return label, relevant documentation, and instructions - without leaving the chatbot interface. We believe that the use of tools such as the AI-based Chatbot is a manifestation of the tremendous business value such technologies can unlock over the next few years and contribute to a more efficient customer support and improved customer satisfaction. • Returns and post-purchase process and experience - Global-e offers a comprehensive and efficient solution for product return management, as well as enhanced post-purchase solutions. Through Global-e’s proprietary branded and multi-lingual returns portal, shoppers are presented with multiple return options, according to the various returns services that the merchant enables for a given market. Returns options include self-postage, local return addresses, pre-paid postal labels and courier pick-ups. In addition, merchants set for each option an associated cost. Global-e deducts the return cost from the amount refunded to the shopper once merchants confirm successful receipt of the returned product. We are also expanding our post-purchase capabilities by leveraging the AI-powered returns and exchanges solution built by our recent acquisition, ReturnGo. The integration of ReturnGo’s technology aims to enhance our returns offering by enabling greater automation, data-driven decision-making, and flexible return and exchange workflows, with the objective of improving shopper experience, increasing merchant efficiency, and strengthening customer satisfaction and loyalty in global commerce. 52 Packaging and pricing We support merchants of all sizes, and at various lifecycles, from small, emerging brands to the world’s top globally-recognized retailers and high-end brands. Our platforms offer a range of differentiated service levels, enabling us to cater to the different - and constantly evolving - needs of the merchants we serve. Technology, infrastructure and operations Our platforms were designed with enterprise-grade security, reliability, and scalability as top priorities. Core contributors to our strengths in these areas include: • Application architecture - We operate proprietary and modern technology platforms, organically developed by our in-house R&D teams, leveraging leading third-party software where applicable. • Infrastructure - Our platforms are deployed via market standard cloud computing infrastructure, allowing us to easily scale our platforms globally while maintaining optimal performance. • Disaster Recovery - For our enterprise platform we maintain a secondary cloud-based data center, holding a full stack of updated applications, which is fully tested at least once a year, with the aim of ensuring the highest reliability for our shoppers. • Security - We employ a multi-layer security approach utilizing both cloud infrastructure security and endpoint protection to enforce the highest degree of security. We operate and design our systems in accordance with major security standards, including: PCI/DSS, SOC 2 and ISO 27001. We perform penetration tests continuously throughout the year by external vendors to identify any vulnerabilities. Our hybrid office/remote work environment could also negatively impact the security of our platforms and systems as well as our ability to prevent attacks or respond to them quickly, and as such we have taken steps designed to ensure remote work can be performed both effectively and securely. • Uptime - Our platforms maintain excellent service levels. Across all sites, our platforms achieved over 99.9% average uptime for the year ended December 31, 2025. Competition The market for cross-border e-commerce enablement solutions is competitive, rapidly evolving, fragmented, and subject to changing regulation, technology, merchant preferences and shopper demands. Our solution and platforms compete with other online and offline services, and other solutions. While among them exist several direct competing solutions, many of these solutions and services only handle a specific section of the cross-border e-commerce value chain. As such, we believe that our existing direct competition fails to offer the same holistic solution based on our combination of global reach, end-to-end advanced feature set, number of merchant partners, accumulated data and insights, quality-of-service and local expertise as embedded in our platforms. We are the chosen partner of some globally recognized retailers and brands as well as some rapidly-growing emerging brands. We consider the following categories of services and solutions to be our primary and direct competition: • In-House D2C - Merchants have built and managed international stores and prefer to maintain these operations in-house supported by proprietary capabilities developed by them, features and capabilities provided by the e-commerce platform they utilize, and/or third-party cross-border components. This DIY approach is expensive and complex to maintain, while also lacking the flexibility and know-how of local preferences that a specialized global provider, such as Global-e, can provide. We believe that with the growing importance to merchants of global D2C, coupled with market awareness of the advantages of using reputable and experienced global third parties, such as Global-e, the trend of shifting towards a third-party global enabler will continue - with Global-e as the distinguished front runner. 53 • Alternative, Cross-Border End-to-End Platforms - There is a limited number of platforms offering solutions similar in nature and breadth to those offered by Global-e. There are also some platforms that offer partial, non-end-to-end solutions, that may serve as an alternative for some merchants. However, we believe that none of these providers have the combination of global reach, track record, variety of merchants, scale, feature set and data, to match Global-e’s overall offering. The level of sophistication embedded in our platforms and solutions stemming from executing millions of transactions annually, across merchants in over 200 destination markets, is what makes us a leader in the world of global e-commerce. Though to a lesser extent, we believe our platforms also indirectly compete with two primary categories of services and providers: • Legacy Players and Local Distributors - Merchants expanding abroad may partner with local distributors, granting them licenses to operate in a given market. Licenses typically include an arrangement to sell goods through bricks-and-mortar locations as well as digital rights to the brand, effectively allowing the local licensee to manage the full client-facing relationship with international shoppers. This may cause frustration among shoppers, as local selection may be limited to best-selling products, and interactions with the merchant are routed through a middle-man. As merchants increasingly understand the value of their digital channels and leverage social media to interact directly with shoppers, we believe wide-ranging agreements with local distributors will continue to become less common, especially for digital D2C e-commerce. Nevertheless, some merchants are constrained by long-term, legacy agreements with distributors, preventing the merchant from directly selling to and interacting with shoppers in select (or all) foreign markets, at least for a certain period of time. • Non-D2C Online Channels - Non-D2C online channels, such as marketplaces, offer brands access to shoppers' traffic and facilitation of digital transactions. Such online channels are varied, ranging from local, multi-local, regional and global platforms. They generate online traffic from shoppers by marketing under the marketplace’s own brand and command a fee, or “take rate” that may represent a meaningful percentage of the merchant’s revenue. To facilitate the transaction between shopper and seller, online channels may provide complimentary services such as payment acquiring, fraud protection, order management, and access to shipping providers. Merchants do not have direct access to shoppers; rather, they must list their products through the intermediary - i.e., the marketplace - to gain exposure. As such, by selling through non-D2C online channels, merchants often expose their brand to direct competition from other brands sold in parallel through such online channels (e.g. a common feature of marketplaces is “people who bought this also bought this” lists which may include different brands). For geographical and segmental revenue, see Note 2, reporting segments and geographical information included within our consolidated financial statements elsewhere in this Annual Report. Seasonality See Item 5. “Operating and Financial Review and Prospects” for a discussion of the seasonality of the Company’s main business. Environmental, Social and Governance (ESG) Practices We view Environmental, Social, and Governance (ESG) considerations as part of our broader business strategy, both in complying with regulatory requirements as well as in value creation as we aim to address the expectations of our stakeholders, partners, employees and local communities. Our Board of Directors oversees the building of our ESG strategy, and the Board’s Nominating, Governance and Sustainability Committee (NGSC) was appointed to monitor and guide our management. Our ESG executive committee (that was established by the NGSC and comprising senior management) continued to operate under the oversight of the NGSC, to lead the development and execution of our ESG workplan in collaboration with key departments across the company. Our approach to ESG includes matters mainly related human capital and cybersecurity (with primary cybersecurity oversight handled by the Audit Committee). We continue to assess how to best incorporate such matters into our business, considering the evolving regulatory environment and other stakeholder expectations. However, in some circumstances the scope or success of such programs and initiatives remain outside of our direct influence. We anticipate that our efforts will continue to evolve as our understanding and program continues to mature. 54 Human Capital and Talent Our workforce has grown significantly in recent periods, and that has required, and continues to require, us to seek to build and maintain a working environment that fosters employees motivation, talent, wellbeing and safety, while promoting personal and professional development. We continued to recruit relevant talent to strengthen our team capabilities in our offices worldwide. None of our employees is represented by a labor organization or is a party to a collective bargaining arrangement or expansion orders of such arrangements, with the exception of a small number of employees in France, Spain, Australia, Romania, Korea and Israel who are covered by mandatory industry-wide collective bargaining agreements in accordance with local law. We seek to provide and constantly develop compensation and equity incentive plans that will remain attractive and rewarding. As such, we offer both stock-based and cash-based compensation awards (in each case subject to eligibility criteria) that are designed to commensurate individual performance and meeting objectives. We continue to utilize an internal learning management platform, which is available to all employees and provides access to company knowledge resources, structured onboarding journeys, and a broad range of external learning content to support continuous learning and professional development. In addition, we offer various training programs, including company-wide learning initiatives and education tailored to key departments (such as engineering and sales), as well as a managerial training program for managers to further develop their leadership and management effectiveness. We also support employee wellbeing through various initiatives, including access to fitness and wellness programs and periodic company-wide wellbeing days across our locations, which focus on promoting employee health, balance and overall wellbeing. Governance, Compliance and Business Ethics We have established a Code of Conduct and Ethics that guides our operations and relationships with stakeholders. Our Board of Directors periodically reviews our Code to assess any potential updates, including for regulatory requirements, industry standards, and other stakeholder expectations. Our employees are required to review and acknowledge the Code. We also provide annual training to employees on other critical topics, including insider trading compliance and anti-harassment. Our Board of Directors, directly and by empowering the Audit Committee and the management team, also actively oversee the Company's compliance framework, which includes policies and procedures covering critical areas such as anti-corruption, ethical business conduct, data protection and cybersecurity, as well as international trade laws and sanctions compliance. Board Composition We are privileged to have experienced industry leaders as our members of the Board of Directors. We maintain a majority independent Board of Directors. Under the supervision of the NGSC, we conduct Board of Directors and Committee evaluations to facilitate an assessment of the performance of the Board of Directors and its Committees, assessing its strengths and weaknesses and laying a foundation for discussion and future improvement. Intellectual Property We consider our intellectual property rights, including those in our know-how and the software code of our proprietary technology, to be, in the aggregate, material to our business. We rely on a combination of contractual commitments and statutory and common law rights to protect our intellectual property rights in our technology and know-how. We seek to control access to our trade secrets and other confidential information related to our proprietary technology by entering into confidentiality agreements with our employees, consultants, merchants, vendors and business partners who have access to our confidential information, and we maintain policies and procedures designed to control access to and distribution of our confidential information. 55 Our know-how is an important element of our business. The development and management of our platforms requires sophisticated coordination among many skilled and specialized employees. Despite our efforts to protect our intellectual property rights in our technology and know-how, unauthorized parties may attempt to copy or obtain and use our technology to develop products and services with the same functionality as our platform. Policing unauthorized access to and use of our technology is difficult. Our competition could also independently develop technologies like ours, and our intellectual property rights may not be broad enough for us to prevent our competition from selling products and services incorporating those technologies. For more information, see “Risk Factors-Risks Relating to our Business and Industry-If we fail to adequately maintain, protect or enforce our intellectual property rights, our competitive position could be impaired and we may lose valuable assets, generate reduced revenue, and incur costly litigation to protect our rights.” We own and use unregistered common law marks and service marks on or in connection with our proprietary technology and related services. While most of the intellectual property we use is owned by us, we have obtained rights to use intellectual property of third parties through licenses and services agreements. Although we believe these licenses are sufficient for the operation of our business, these licenses typically limit our use of the third parties’ intellectual property to specific uses and for specific time periods. From time to time, we may become involved in legal proceedings relating to intellectual property arising in the ordinary course of our business, including challenges to the validity of our intellectual property rights and claims of intellectual property infringement. For more information, see “Risk Factors-Risks Relating to our Business and Industry-We may incur costs to defend against, face liability for or be vulnerable to intellectual property infringement claims brought against us by others.”. We are not presently and have never been a party to any such legal proceedings that, in the opinion of our management, would individually or taken together have a material adverse effect on our business, financial condition, results of operations or cash flows. Government Regulation As with any company operating on the internet, we grapple with a growing number of local, national and international laws and regulations. These laws are often complex, sometimes contradict other laws, and are frequently evolving. Laws may be interpreted and enforced in different ways in various locations around the world, posing a significant challenge to our global business. This ambiguity includes laws and regulations possibly affecting our business, such as those related to data privacy and security, pricing, taxation, content regulation, digital services and intermediatory regulations, intellectual property ownership and infringement, anti-money laundering, anti-corruption, product liability, consumer protection, extended producer responsibility, product safety and export control. Changes to such laws and regulations could cause us or third-party partners on which we rely to incur additional costs and change our or their respective business practices in order to comply. Data Protection and Privacy We are subject to laws across several jurisdictions regarding privacy and protection of data, in particular, in Israel, the European Union, the United States and other jurisdictions. Data protection, privacy, cybersecurity, consumer protection, content regulation, and other laws and regulations can be very stringent and vary from jurisdiction to jurisdiction. These laws govern how companies collect, process, and share data, grant rights to data subjects, and require that companies implement specific information security controls to protect certain types of information. For example, we are subject to the Israeli Privacy Protection Law, 1981 ("PPL"), and its regulations, including but not limited to the Israeli Privacy Protection Regulations (Data Security) 2017 (“Security Regulations”), as well as the guidelines of the Israeli Privacy Protection Authority (“PPA”). These impose obligations regarding how personal data is processed, maintained, transferred, disclosed, accessed, and secured. Therefore, significant changes to the PPL, its regulations or the PPA guidelines necessitate adjustments to our data protection and security practices. In this context, material amendments to the PPL were approved by the Israeli Parliament in August 2024 and came into effect on August 14, 2025 (“Amendment 13”). Amendment 13, among other changes, expands the PPA’s investigative authority and significantly increases its power to impose monetary sanctions for violations of the PPL or its regulations, with amounts considerably higher than those previously available. Additionally, Amendment 13 introduces new obligations for parties processing personal data, which may require us to modify our data practices and policies, appoint mandatory positions, and consequently, to incur substantial costs to align our privacy and data protection practices in Israel. Moreover, the Privacy Protection Regulations (Provisions Regarding Information Transferred to Israel from the European Economic Area), 2023 (“EU Regulations”) may, in certain cases, provide additional rights to data subjects from the EEA whose personal data is stored in databases located in Israel or whose personal data is stored together with such data. 56 In addition, the Privacy Protection Regulations (Transfer of Data to Databases Outside the State Borders), 5761-2001 (the “Cross-Border Transfer Regulations”), restrict and impose conditions on the transfer of personal information from databases in Israel to locations outside Israel. These regulations may require us to implement additional contractual, technical, and organizational measures to enable such transfers and maintain compliance, which could increase our costs. Additionally, our use of artificial intelligence tools in connection with the processing of personal information is subject to the PPL and may present unique privacy and information security challenges. We conduct ongoing compliance assessments and apply legal, technical, and operational controls designed to help ensure that our use of artificial intelligence remains compliant with applicable laws and regulatory expectations. Failure to comply with the PPL, its regulations, and PPA guidelines (including in connection with our AI-enabled solutions) may expose us to enforcement actions, administrative fines (which, in some cases, may reach millions of NIS), civil claims (including class actions), and, in certain cases, criminal liability. Upon Amendment 13 coming into effect in August 2025, the sanctions for non-compliance with the PPL and its regulations (including the Security Regulations and the EU Regulations) were significantly increased. In this respect, privacy and data protection laws and regulations may require us to adjust our data protection and data security practices, information security measures, certain organizational procedures, applicable positions (such as an information security manager) and other technical and organizational security measures. In addition, to the extent that any administrative supervision procedure is initiated by the a privacy protection authority that reveals certain irregularities with respect to our compliance with privacy and data protection laws or regulations, in addition to our exposure to administrative fines, civil claims (including class actions) and in certain cases criminal liability, we may also need to take certain remedial actions to rectify such irregularities, which may increase our costs. For further information on the laws regarding privacy and data protection which we are subject to, see “Risk Factors-Risks Relating to our Business and Industry.” We are subject to stringent and changing laws, regulations, standards and contractual obligations related to privacy, data protection, and data security. Our actual or perceived failure to comply with such obligations could harm our business. While it is generally the laws of the jurisdiction in which a business is located that apply, there is a risk that data protection regulators of other countries may seek jurisdiction over our activities in locations in which we process data or serve merchants or shoppers but do not have an operating entity. Where the local data protection and privacy laws of a jurisdiction apply, we may be required to register our operations in that jurisdiction or make changes to our business so that shopper data is only collected and processed in accordance with applicable local law. In addition, because our services are accessible worldwide, certain foreign jurisdictions may claim that we are required to comply with their privacy and data protection laws, including in jurisdictions where we have no local entity, employees or infrastructure. In such cases, we may require additional legal review and resources to ensure compliance with any applicable privacy or data protection laws and regulations. In addition, in many jurisdictions there may in the future be new legislation that may affect our business and require additional legal review. There is uncertainty in many of the countries where we operate with respect to the liability of internet service providers or providers of digital services, the application of existing regulations to our business as they relate to, or the enactment of new regulations relating to, issues such as e-commerce, electronic or mobile payments, information requirements for internet, digital services providers or other intermediatory providers. Such uncertainty could negatively affect our operations and use of our services, require us to change or adjust our platforms and could result in changes to our operations or business model and may incur significant expenses should we have to change our model. Anti-Corruption and Sanctions We are subject to laws and regulations of the jurisdictions in which we operate, including the United States, United Kingdom, EU and Israel, that govern or restrict our business and activities in certain countries and with certain persons, including the economic sanctions regulations administered by the U.S. Treasury Department’s Office of Foreign Assets Control, and the export control laws administered by the U.S. Commerce Department’s Bureau of Industry and Security and the U.S. State Department’s Directorate of Defense Trade Controls. See “Risk Factors-Risks Relating to our Business and Industry-We are subject to governmental sanctions and export controls that may subject us to liability if we are not in full compliance with applicable economic sanctions and export control laws.” 57 We are subject to laws and regulations related to payments which are complex and vary across different jurisdictions. We are also subject to payment card association operating rules, certification requirements, and rules governing electronic funds transfers, including the PCI DSS, which could change or be reinterpreted to make it more difficult for us to comply. Any failure to comply with these rules or requirements may subject us to higher transaction fees, fines, penalties, damages, and civil liability, and may result in the loss of our ability to accept credit and debit card payments. Depending on how our platforms evolve, we may be subject to additional laws in other jurisdictions across the world. Additionally, we are subject to anti-corruption, anti-bribery, anti-money laundering and similar laws, such as the FCPA, U.S. domestic bribery statute contained in 18 U.S.C. 201, U.S. Travel Act, the USA PATRIOT Act, the U.K. Bribery Act 2010, Chapter 9 (sub-chapter 5) of the Israeli Penal Law, 1977, the Israeli Prohibition on Money Laundering Law-2000 and other applicable laws in the jurisdictions in which we operate. Historically, technology companies have been the target of FCPA and other anti-corruption investigations and penalties. See “Risk Factors-Risks Relating to our Business and Industry-We are subject to anti-corruption, anti-bribery, anti-money laundering and similar laws, and non-compliance with such laws can subject us to criminal penalties or significant fines and harm our business and reputation.” Further, we are currently subject to a variety of laws and regulations related specifically to payment processing, including those governing cross-border and domestic money transmission, gift cards and other prepaid access instruments, electronic funds transfers, foreign exchange, counter-terrorist financing, banking and import and export restrictions. Concern about the use of e-commerce platforms for illegal conduct, such as money laundering or to support terrorist activities, may in the future result in legislation or other governmental action that could require changes to our platforms or impose additional compliance burdens and costs on us. See “Risk Factors-Risks Related to our Business and Industry-Changes in laws and regulations related to the internet or changes in the internet infrastructure itself may diminish the demand for our platforms and services, and could harm our business.” Depending on how our platform evolves, we may become subject to additional laws in the United States, the United Kingdom, the EU, Israel and elsewhere. Environmental, Health, and Safety (EHS) We are subject to laws and regulations regarding protection of the environment as well as workers health and safety. Certain environmental laws may impose liability regardless of knowledge, fault, or legality of the action at the time taken. There are also increasing expectations regarding product stewardship, including end-of-life considerations, and we may become subject to such laws due to our role as merchant of record. Depending on how our platforms evolve, we may become subject to additional laws on these or other matters in the United States, the United Kingdom, the EU, Israel and elsewhere. Product liability & product safety Our business and operations will increasingly be subject to laws and regulations regarding product liability and safety associated with placing goods in the market, notably in the EU and United Kingdom. Recent and upcoming developments in such laws and regulations are likely to increase the compliance burden and risks on our business, and to require us to make changes to the way in which we operate. For example, a new EU Product Safety Regulation, which came into effect as of December 13, 2024, will extend the EU’s product safety regime to additional parties including providers of certain platforms and fulfilment services, in addition to imposing greater compliance obligations including information provision requirements and requirements to designate responsible persons and facilitate or implement corrective measures such as product recalls. Specific product safety and liability laws and regulations also apply or will or are expected to take effect soon, in relation to certain types of products. For example, the pending EU Toy Safety Regulation, is likely to result in more stringent guidelines for the manufacturing, labeling, and distribution of toys including the introduction of digital product passports. In the UK, additional product safety regulatory developments may lead to changes to the current product liability regime. Depending on how such new laws and regulations are implemented, evolve, and are enforced and interpreted, in particular with regards to their applicability over personal importation scenarios, we or the merchants may become subject to additional requirements or limitations as well as the extent to which we are successful in adapting our business and operations to comply with such laws and regulations, we could be subject to regulatory action such as investigations and penalties, actions from consumers resulting in damages including by way of collective redress mechanisms, and other negative legal, regulatory and reputational consequences. 58 C. Organizational Structure The following sets forth our significant subsidiaries as of the date of this Annual Report. All ownership is 100%. • Globale UK Limited (England) • Global-e US Inc. (Delaware, USA). • Flow Commerce Inc. (Delaware, USA) Certain other subsidiaries of the Company have been omitted because they would not be a “significant subsidiary” as defined in rule 1-02(w) of Regulation S-X as of the date of this Annual Report. D. Property, Plants and Equipment We are headquartered in Petah-Tikva, Israel, where we occupy approximately 111,514 square feet of office space pursuant to a lease that expires on September 1, 2027 (with automatically renew for an additional 5 years). We currently lease additional office space in Israel, the UK, the U.S. and Ireland, and we are party to agreements whereby we have access to and the right to use certain office space in the U.S., France, Australia, Japan, Korea, Romania, Germany, Spain, Hong-Kong, Sweden, Switzerland, Canada and the United Arab Emirates. We do not own any real property. We evaluate, based on our growth, the need to procure additional space as we continue to add employees, expand geographically and expand our work spaces. We believe that our facilities are adequate to meet our needs for the immediate future, and that, should it be needed, suitable additional space will be available to accommodate any such expansion of our operations.