Shares of Global-E Online Ltd. (GLBE) tumbled 5.64% in pre-market trading on Wednesday, despite the company reporting first-quarter results that largely met or slightly exceeded analyst expectations. The e-commerce solutions provider also announced an extension of its strategic partnership with Shopify, raising questions about the reasons behind the stock's sharp decline.

Global-E reported Q1 revenue of $189.9 million, surpassing the FactSet estimate of $187.8 million. The company's adjusted gross margin came in at 45.4%, while adjusted EBITDA reached $31.6 million. Global Merchandise Volume (GMV) for the quarter stood at $1,243 million. Despite these seemingly positive results, investors appeared to react negatively to the report.

In a significant development, Global-E and Shopify signed a new multi-year strategic partnership agreement, extending their existing relationship. The deal allows for additional merchant-of-record (MOR) providers with Shopify merchants and covers both first-party (1P) and third-party (3P) MOR solutions. This partnership extension was expected to be viewed favorably, making the stock's decline more puzzling. The company also maintained its full-year 2025 guidance, projecting revenue in the range of $917 million to $967 million, which aligns with the current FactSet estimate of $929.4 million. The sustained outlook suggests that Global-E's management remains confident in its growth trajectory despite the market's apparent skepticism.