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Shopify (SHOP) FY2025 results: revenue $11.6 billion, up 30.1% on the year

Shopify Inc. (SHOP) reported revenue of $11.6 billion for fiscal 2025, the year ended 31 December 2025, up 30.1% on the year before. Net income was $1.2 billion, down 39.0%, and diluted earnings per share $0.94. The figures are the company's own, from the 10-K it filed with the SEC on 11 February 2026.

Revenue
$11.6 billion
+30.1% on the year
FY2018FY2025
Operating margin
12.7%
12.1% a year earlier
FY2018FY2025
Net income
$1.2 billion
-39.0% on the year
FY2018FY2025
Diluted EPS
$0.94
-39.4% on the year
FY2018FY2025

this yearthe year beforeHover a bar for its figure.

The year in brief

What management said about the year

Guidance figures: 4 new.

  • 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%.
  • 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.
  • 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.
  • 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.
  • 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.
Read the Q4 FY2025 earnings call summary

From this 10-K

Shopify provides internet infrastructure for commerce. Millions of merchants in more than 175 countries use its platform to sell online, in physical stores and across social media and AI platforms, and to run the back end behind those sales: inventory, transactions and relationships with buyers. The company charges for the platform by subscription and charges again for the services a merchant buys on top of it, chiefly payment processing. In 2025 the platform handled $378.4 billion of merchant orders, 29% more than the year before.

Shopify Inc., the 10-K for 2025

Shopify provides internet infrastructure for commerce. Millions of merchants in more than 175 countries use its platform to sell online, in physical stores and across social media and AI platforms, and to run the back end behind those sales: inventory, transactions and relationships with buyers. The company charges for the platform by subscription and charges again for the services a merchant buys on top of it, chiefly payment processing. In 2025 the platform handled $378.4 billion of merchant orders, 29% more than the year before.

What merchants pay for

The business has two halves. Subscription solutions, 24% of total revenues in 2025, is the sale of plans: most merchants take the Basic and Grow plans, while the majority of order volume comes from merchants on the Shopify Plus plan and the enterprise offering, which start at several times the price of the Advanced plan and add functionality for selling wholesale, acquiring customers and automating a storefront. Subscriptions usually run a month at a time, though Plus and enterprise merchants begin on annual or multi-year terms. Merchant solutions, the other 76% of total revenues, is everything bought alongside: payment processing and currency conversion through Shopify Payments, lending, shipping labels, point-of-sale hardware, referral fees from partners and advertising in the app store. The fourth quarter has historically earned more from merchant solutions than the other three, and the filing states that the business may become more seasonal as those offerings grow.

Who sells on it

Merchants run from first-time entrepreneurs to companies with large direct-to-consumer or business-to-business operations, across a wide array of retail verticals, and no single merchant has ever accounted for more than five percent of total revenues in a single reporting period. The base splits 44% in the United States, 31% in Europe, the Middle East and Africa, 16% in Asia Pacific, Australia and China, 5% in Canada and 5% in Latin America. Aldo, BarkBox, Carrier, Meta, Vuori, SKIMS and Supreme are among the merchants the filing names. Around the platform sits an ecosystem of app developers, theme designers, marketers and affiliates, and more than 21,000 apps were available in the Shopify App Store at the end of 2025.

The platform

The platform is a multi-tenant cloud system run as single-branch software, which means every merchant is on the latest version and older versions are not maintained, so a new release reaches everyone at once. Open source shaped it from the start: the founder was on the core team that built Ruby on Rails, the technology that still powers much of it. Most platform operations run on Google Cloud. Security rests on firewalls, encryption, intrusion detection, two-factor authentication and extra safeguards for card processing. AI features are built across the platform, among them Sidekick, the company's commerce assistant, and Agentic Storefronts, which lets an agent handle product discovery and checkout on AI platforms.

Competition

The filing describes the market as transforming, competitive and highly fragmented, and says it expects competition to increase. Merchants may instead pick standalone or integrated products from ecommerce software vendors, content management systems, payment processors, point-of-sale providers, domain registrars and shipping label providers. The filing lists what the company competes on, among them ease of use for merchants and their buyers, integration of multiple sales channels, breadth and depth of functionality, data analytics, the ability to use emerging technologies including AI, the ability to scale, security and reliability, and brand recognition.

People

There were approximately 7,600 employees worldwide at the end of 2025, working remote-first and gathering in person through what the company calls Local Access in certain cities, team events it terms Bursts, and a company-wide summit held in Toronto in 2025. Talent is managed through a craft-first system the company calls ~Mastery. Engagement is measured by regular pulse checks including a semi-annual survey, and wellness programmes cover financial, mental, physical and social health, with an employee assistance programme offering confidential help on any work, health or life concern.

From Shopify's annual report on Form 10-K for the year ended 31 December 2025. The filing

Written from the 10-K filed 11 February 2026: read the full 10-K.

The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025

Income statement (profit and loss)

$ millionFY2025FY2024FY2023On the yearLast 8 years
Revenue11,5568,8807,060+30.1%
Cost of revenue6,0014,4083,545+36.1%
Gross profit5,5554,4723,515+24.2%
Gross margin48.1%50.4%49.8%
Research and development1,5361,3671,730+12.4%
Operating income1,4681,075-1,418+36.6%
Operating margin12.7%12.1%-20.1%
Pre-tax income1,5092,228185-32.3%
Income tax27820953.0+33.0%
Effective tax rate18.4%9.4%28.6%
Net income1,2312,019132-39.0%
Net margin10.7%22.7%1.9%
Diluted EPS$0.94$1.55$0.10-39.4%
$ million except per share.
Read moreFree cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ millionFY2025FY2024FY2023On the yearLast 8 years
Operating cash flow2,0331,616944+25.8%
Capital expenditure26.019.039.0+36.8%
Free cash flow2,0071,597905+25.7%
Free cash flow margin17.4%18.0%12.8%
Cash from investing-1,190-1,586-1,244
Cash from financing-81161.060.0
Depreciation and amortisation31.036.070.0-13.9%
Share-based compensation449430615+4.4%
Diluted shares, weighted1,305m1,302m1,296m+0.3%

Balance sheet

$ millionFY2025FY2024FY2023On the yearLast 8 years
Shareholders' equity13,47311,5589,066+16.6%
Debt0.0918916
Operating lease liabilities171190217-10.0%
Other liabilities1,5451,2581,100+22.8%
Total liabilities and equity15,18913,92411,299+9.1%
Fixed assets53.047.049.0+12.8%
Goodwill491452427+8.6%
Intangible assets30.022.029.0+36.4%
Investments5,2084,6903,710+11.0%
Cash and equivalents1,5451,4981,413+3.1%
Receivables500342282+46.2%
Inventory21.026.019.0-19.2%
Other assets7,3416,8475,370+7.2%
Total assets15,18913,92411,299+9.1%

10-K for the year ended 31 December 2025, filed 11 February 2026: the filing.