Shopify Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 11 February 2026: press release. Guidance figures: 4 new. The quarter’s numbers.

Read the filing

Key takeaways

• Q4 revenue up 31% year over year: Q4 revenue was $3,672 million against $2,812 million, up 31%; in constant currency growth was 29%. Source
• Full-year growth of 30%: Full-year revenue was $11,556 million, up 30% from $8,880 million, four percentage points above the 2024 growth rate. Source
• Merchant solutions grew 35% in Q4: Merchant solutions revenue was $2,895 million in Q4 against $2,146 million, and $8,804 million for the year against $6,530 million. Source
• Transaction and loan losses rose: Transaction and loan losses were $114 million in Q4 against $76 million, and $417 million for the year against $227 million. Source
• GMV growth tracks merchant success: Management said 29% GMV growth for 2025 scales with merchant success; prior years were 24% in 2024, 20% in 2023 and 12% in 2022. Source
• Free cash flow margin 19% in Q4: Q4 free cash flow was $715 million against $611 million, a 19% margin against 22%. Full-year free cash flow was $2,007 million against $1,597 million. Source

“2025 was Shopify at full throttle - driving compounding growth, while laying the rails for the new era of AI commerce”

Harley Finkelstein, President of Shopify

Guidance

What changed from last quarter

• New guidance: Q1 2026 expectations issued for revenue, gross profit, operating expenses, stock-based compensation and free cash flow margin; the prior release gave Q4 2025 expectations. Source
• New: Share repurchase program authorized, to be executed with pre-arranged algorithmic trading instructions and no set quarterly or annual minimums. Source

Fourth-quarter results and growth

• Q4 revenue up 31% year over year: Q4 revenue was $3,672 million against $2,812 million, up 31%; in constant currency growth was 29%. Source
• Full-year growth of 30%: Full-year revenue was $11,556 million, up 30% from $8,880 million, four percentage points above the 2024 growth rate. Source
• Operating income higher in both periods: Q4 operating income was $631 million against $465 million; full-year operating income was $1,468 million against $1,075 million. Source
• Net income affected by equity investments: Q4 net income was $743 million against $1,293 million, after equity investments marked to market. Excluding that effect, Q4 was $594 million against $458 million. Source

Segments and regions

• Merchant solutions grew 35% in Q4: Merchant solutions revenue was $2,895 million in Q4 against $2,146 million, and $8,804 million for the year against $6,530 million. Source
• Recurring revenue rose in both measures: Subscription solutions revenue was $777 million in Q4 against $666 million. Monthly recurring revenue was $205 million at period end against $178 million. Source
• International and offline revenue grew: For the year, international revenue grew 36% and offline revenue 27%. Offline revenue includes Shopify Payments for offline, POS Pro and Retail plan subscriptions and POS Hardware. Source

“We ended 2025 with strength across all merchant sizes, regions, and channels, setting us up well for 2026.”

Jeff Hoffmeister, Chief Financial Officer

Products, payments and B2B

• Payments volume up 37%: Gross Payments Volume grew 37% and Shop Pay GMV grew 62% in 2025, compared with 2024. Source
• B2B GMV grew 96%: B2B GMV grew 96% in 2025. Management said B2B is a very small portion of total GMV, offered only to Plus merchants. Source
• Merchant base spans small and large brands: The company says millions of businesses in 175+ countries use Shopify, from entrepreneurs to brands including Aldo, BarkBox, Carrier, Meta and Supreme. Source

Costs and margins

• Gross profit up 25% in Q4: Gross profit was $1,693 million in Q4 against $1,352 million, and $5,555 million for the year against $4,472 million; constant-currency Q4 growth was 24%. Source
• Transaction and loan losses rose: Transaction and loan losses were $114 million in Q4 against $76 million, and $417 million for the year against $227 million. Source
• Sales, marketing and R&D rose: Sales and marketing was $433 million in Q4 against $348 million; research and development $390 million against $351 million; general and administrative $125 million against $112 million. Source
• Stock-based compensation up year over year: Stock-based compensation was $115 million in Q4 against $109 million, and $449 million for the year against $430 million. Source

“We are launching this share repurchase program from a position of financial and operating strength, as clearly demonstrated by the results we announced today.”

Jeff Hoffmeister, Chief Financial Officer of Shopify

Demand and merchant activity

• GMV growth tracks merchant success: Management said 29% GMV growth for 2025 scales with merchant success; prior years were 24% in 2024, 20% in 2023 and 12% in 2022. Source
• AI reshaping how buyers shop: Management said AI is reshaping how buyers discover and purchase, and framed 2025 investments against that shift. Source
• Share of US ecommerce above 14%: Management put Shopify's share of US ecommerce above 14%, based on US Census data and internal estimates. Source

Cash flow and balance sheet

• Free cash flow margin 19% in Q4: Q4 free cash flow was $715 million against $611 million, a 19% margin against 22%. Full-year free cash flow was $2,007 million against $1,597 million. Source
• Operating cash flow rose: Net cash from operating activities was $725 million in Q4 against $615 million, and $2,033 million for the year against $1,616 million. Source
• Convertible notes repaid in Q4: Convertible senior notes matured for $1,043 million in Q4, shown as a financing outflow. Source
• Cash and securities at year end: At December 31, 2025, cash and cash equivalents were $1,545 million and marketable securities $4,233 million, against $1,498 million and $3,981 million a year earlier. Source
• Merchant loan book rose: Loans and merchant cash advances, net, were $1,784 million at year end against $1,224 million a year earlier. Source

Strategy, investment and capital

• Investing in AI and commerce platform: Management said it delivered Q4 margins while investing in Catalog, Sidekick, Universal Commerce Protocol and its full platform of commerce solutions. Source
• Acquisitions and equity investments: Acquisitions of businesses totalled $56 million for 2025 against $30 million, and purchases of equity and other investments were $99 million against $137 million. Source
• Capital allocation principles unchanged: The CFO said capital allocation principles remain unchanged, prioritizing growth while staying disciplined, flexible and focused on long-term value. Source
• 2026 framed as year of builders: President Harley Finkelstein said 2026 will be the year of the builders, with the company powering them from first sale to full scale. Source

Coming up, as management said on 11 February 2026

• Repurchase program takes effect: The $2 billion repurchase program takes effect February 17, 2026, with no fixed expiration date, and may be changed or stopped at any time. Source
• Form 10-K filing for 2025: The annual report on Form 10-K for 2025, with audited financial statements, will be available on the company website and filed on EDGAR. Source

Figures management reported

Earlier plans management reported on

• Not stated: Management said the new financial forecast supersedes all earlier statements of this kind made by the company. Source
• Not stated: Management said its capital allocation principles remain unchanged from earlier statements. Source

Other quarters

• Q2 FY2026 earnings call
• Q1 FY2026 earnings call
• Q3 FY2025 earnings call
• Q2 FY2025 results

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.