Shopify is a Canadian company that started in 2006. It was created by Tobias Lütke and his friends after they built a store to sell snowboards online. The company helps people open and run online shops. It offers tools for building websites, taking payments, and shipping products.
Shopify is used by small businesses and big brands. It powers millions of stores around the world. The platform works on phones, computers, and in physical stores. It also helps with marketing, customer service, and business growth. Its headquarters is in Ottawa, Ontario. It has thousands of employees and serves customers in many countries.
Shopify Fiscal Q4 2025
Shopify (Shop) reported its Q4 and full‑year 2025 results, with fourth‑quarter earnings per share coming in at $0.5, slightly below estimates but still 11% higher than the prior quarter’s $0.44.
Also, revenue reached $3.67 billion, beating expectations of $3.59 billion and rising 30% from the $2.81 billion reported a year earlier.
Highlights
- Q4 revenue increased 31% to $3.67B, with a 19% free‑cash‑flow margin.
- This marked 10 consecutive quarters of double‑digit free‑cash‑flow margins.
- Quarterly GMV reached $123.8B, up from $94.5B last year.
- Full‑year GMV rose to $378.4B, reflecting 29% annual growth.
- 2025 revenue grew 30% to $11.56B, nearly 4x higher than in 2020.
- Gross profit for the year increased to $5.56B, and free cash flow reached $2.0B.
- Shopify now holds over 14% of the US ecommerce market.
- Growth was broad‑based:
- 36% international revenue growth
- 27% offline revenue growth
- 96% B2B GMV growth
- 37% Gross Payments Volume growth
- 62% Shop Pay GMV growth
- Operating income for 2025 reached $1.47B, up from $1.08B in 2024.
Outlook
For Q1 2026, the company expects revenue to grow in the low‑30% range year‑over‑year, with gross profit rising in the high‑20% range.
Operating expenses should be 37–38% of revenue, stock‑based compensation is projected at $140 million, and free‑cash‑flow margin is expected to land in the low‑to‑mid teens, slightly below last year’s first quarter.
Boards Statements
Harley Finkelstein, Shopify’s President, said 2025 was a year of rapid growth and major progress as the company built the foundation for a new era of AI‑powered commerce. He added that 2026 will be a year focused on builders, and Shopify plans to support them from their first sale to full scale.
CFO Jeff Hoffmeister said Shopify ended Q4 with strong revenue growth and solid cash generation, with revenue up 31% year‑over‑year and a 19% free‑cash‑flow margin.
For 2025 overall, revenue grew 30%, and free‑cash‑flow margin reached 17%. He noted that Shopify delivered these results while investing heavily in AI tools and platform upgrades, and that the company saw strength across all merchant sizes and regions heading into 2026.
Impact on the Stock Market
Shopify’s Q4 2025 earnings sparked a sharp market reaction, with shares falling more than 10% despite the company beating revenue expectations and issuing strong guidance.
Investors focused on the EPS miss and rising concerns about future margin pressure, even as Shopify announced a $2 billion share buyback.
The stock also reversed lower as the earnings shortfall overshadowed Shopify’s AI‑driven growth initiatives and solid top‑line momentum, making the stock down roughly 12%.
