Shopify Delivers Another Exceptional Quarter in Q2

Executive Summary

• Shopify Inc. reported financial results for the quarter ended June 30, 2025, achieving 31% year-over-year revenue growth and a 16% free cash flow margin, marking eight consecutive quarters of double-digit free cash flow margins.
• The company reported strong performance across all major regions, with Gross Merchandise Volume (GMV) reaching $87.8 billion, up 31% from the prior year period.
• Management provided Q3 2025 guidance, expecting revenue to grow at a mid-to-high twenties percentage rate year-over-year and free cash flow margin to remain in the mid-to-high teens.

Key Details

• Revenue: $2,680 million for the three months ended June 30, 2025, compared to $2,045 million in the same period of 2024 (31% YoY growth).
• Gross Merchandise Volume (GMV): $87,837 million, compared to $67,245 million in the prior year period.
• Monthly Recurring Revenue (MRR): $185 million, compared to $169 million in the prior year period.
• Gross Profit: $1,302 million, compared to $1,045 million in the prior year period.
• Operating Income: $291 million, compared to $241 million in the prior year period.
• Free Cash Flow: $422 million, compared to $333 million in the prior year period.
• Net Income: $906 million (including $568 million from equity investments marked to market); Net income excluding the impact of equity investments was $338 million.
• Regional Performance: GMV growth accelerated in North America, Europe, and Asia Pacific. Europe was a particular source of strength, with GMV growing 42% on a constant currency basis.
• Q3 2025 Outlook:
  • Revenue expected to grow at a mid-to-high twenties percentage rate YoY.
  • Gross profit dollars expected to grow at a low-twenties percentage rate YoY.
  • Operating expense expected to be 38% to 39% of revenue.
  • Stock-based compensation expected to be $130 million.
  • Free cash flow margin expected to be in the mid-to-high teens.
• Balance Sheet Highlights (as of June 30, 2025):
  • Cash and cash equivalents: $1,542 million.
  • Total assets: $14,561 million.
  • Total shareholders' equity: $12,124 million.
• Cash Flow Highlights:
  • Net cash provided by operating activities: $428 million.
  • Net cash used in investing activities: $252 million (primarily due to purchases of marketable securities and loans).
  • Net cash provided by financing activities: $44 million.

Notable Quotes

• "Today's results are the payoff from bold bets we made years ago," said Harley Finkelstein, President of Shopify. "The investments we're making now will fuel our next chapter. At Shopify, innovation never stops. No matter how good the numbers look, there's always a new frontier in commerce-and we'll continue to lead the way."
• "Shopify delivered another outstanding quarter, with both GMV and revenue growth rates accelerating in North America, Europe, and Asia Pacific, quarter over quarter. Europe was a particular source of strength, where GMV grew 42% on a constant currency basis," said Jeff Hoffmeister, Chief Financial Officer of Shopify. "Merchants of every size-from first-time founders to global brands-are choosing Shopify to grow their businesses and their success is what is driving our success."