Earnings
Shopify's Standout 2025: The Launchpad for a New Era of Commerce in 2026
SHOP · Price
Executive Summary
- Shopify reported Q4 2025 revenue of $3.672 B, up 31% YoY, and a full‑year 2025 revenue of $11.556 B, up 30% versus 2024.
- Free cash flow margin for the quarter was 19% (free cash flow $715 M) and FY 2025 free cash flow margin was 17% (free cash flow $2.0 B).
- The Board authorized a $2 B share repurchase program, to be launched Feb 17 2026, underscoring confidence in cash generation and capital allocation discipline.
Key Details
- Quarterly Financial Highlights (Q4 2025)
- Revenue: $3.672 B vs. $2.812 B (2024)
- Gross profit: $1.693 B vs. $1.352 B
- Operating income: $631 M vs. $465 M
- Free cash flow: $715 M (19% margin) vs. $611 M (22% margin)
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Net income: $743 M vs. $1,293 M (2024)
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Full‑Year Financial Highlights (FY 2025)
- Revenue: $11.556 B vs. $8.880 B (2024) – 30% YoY growth
- Gross profit: $5.555 B vs. $4.472 B
- Operating income: $1.468 B vs. $1.075 B
- Free cash flow: $2.007 B (17% margin) vs. $1.597 B (18% margin)
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Net income: $1.231 B vs. $2.019 B
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Key Operating Metrics
- GMV Q4 2025: $123,841 M (31% YoY); FY 2025: $378,441 M (29% YoY)
- MRR Q4 2025: $205 M (15% YoY); FY 2025: $205 M (15% YoY)
- Subscription solutions revenue FY 2025: $2.752 B (+17% YoY)
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Merchant solutions revenue FY 2025: $8.804 B (+35% YoY)
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Growth Drivers Highlighted
- International revenue growth of 36% YoY.
- Offline revenue up 27% YoY.
- B2B GMV growth of 96% YoY.
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Gross Payments Volume growth of 37% YoY.
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2026 Outlook (Q1)
- Revenue expected to grow low‑30s % YoY, similar to Q4 2025.
- Gross profit projected to rise high‑20s %.
- Operating expenses as % of revenue forecast at 37–38%.
- Stock‑based compensation anticipated at $140 M.
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Free cash flow margin expected in the low‑to‑mid teens, slightly below Q1 2025.
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Share Repurchase Authorization
- Up to $2 B (≈ $2.4 B CAD) of Class A subordinate voting shares.
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No set quarterly/annual minimums; repurchases to be executed via algorithmic trading, open‑market purchases, or block trades.
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Investor Call
- Conference call scheduled for Feb 11 2026 at 8:30 a.m. ET; webcast available on Shopify’s investor relations site.
Notable Quotes
- “2025 was Shopify at full throttle… 2026 will be the year of the builders, and we’ll be powering them.” – Harley Finkelstein, President
- “We closed Q4 with strong top‑line growth and disciplined cash generation… setting us up well for 2026.” – Jeff Hoffmeister, CFO
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Jun 02, 2026 · 17:00