Michael

Michael from Morgan Stanley questioned the drivers behind the sequential deceleration in service fee take rates, particularly the impact of larger enterprise merchants, and the expected trajectory given upcoming renewal impacts. He also sought details on the mechanical changes and beta learnings from the new managed markets solution.

Answer

Nir Debbi, Co-founder and President, Global-e, attributed service fee take rate volatility to mix shifts and a higher share of larger enterprise merchants, while emphasizing no significant overall change is expected. Amir Schlachet, Co-founder and CEO, Global-e, explained that the new managed markets flow now works through Shopify payments for a streamlined merchant experience, with beta testing underway for a full 2026 rollout.

Michael from Planta Bell asked for clarification on channel inventory dynamics across all regions, specifically how they relate to sell-in and sell-through numbers, and requested more detail on the performance of different gaming subsegments, including simulation, console, and PC gaming.

Answer

CEO Hanneke Faber noted that global gaming net sales were up 5% with double-digit demand growth, driven by China. She highlighted strong demand at the top end, with Pro gaming up over 25% and Sim gaming up over 10%, while the lower end also saw solid growth. CFO Matteo Anversa confirmed that overall channel inventory across all regions is healthy and within target weeks on hand. He clarified that a B2B/VC channel inventory dynamic from Q1 (sell-in outpacing sell-through) was resolved in Q2 (reverse dynamic), and in the Americas, sell-out outpaced sell-in, which is a positive sign for Q3.

Michael (on behalf of Alex Blostein) sought clarification on the somewhat slower pace of share buybacks in the quarter, asking if it was related to the GreensLedge acquisition or a signal of an imminent larger deal. He also asked for an expansion on the financial parameters and criteria Raymond James uses for larger-sized M&A deals, including timing of accretion.

Answer

CFO Butch Oorlog clarified that the buyback pace was primarily influenced by a pause related to the senior note offering, and that the firm also utilized liquidity to redeem subordinated notes, keeping total capital deployment within guidance. CEO Paul Shoukry reiterated that the buyback target of $400-$500 million per quarter has not changed. For M&A, Shoukry outlined three consistent criteria: strong cultural fit, strategic fit (where 1+1 > 2), and attractive financial valuation for both shareholders. He emphasized discipline, ample capital, and a track record of retaining leadership from acquired firms.

Michael (on behalf of Joseph Giordano) asked for more details on Amphenol's strong year-over-year and sequential performance in the commercial aerospace market, specifically inquiring about the different parts of aerospace or applications where the company is achieving content or share gains.

Answer

CEO Adam Norwitt expressed satisfaction with the commercial aerospace business, attributing strong performance and content gains to the "quantum increase" in product breadth from the CIT acquisition. He detailed Amphenol's engagement across all electronic-intensive parts of an aircraft, from engines to cabin systems, leveraging CIT's cable, wire, and complex interconnect assemblies to offer the industry's broadest product range, further supported by a strong global footprint.