Shopify (SHOP) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered $100.7B–$101B in GMV (up 35% YoY) and $3.2B in revenue (up 31–34% YoY), with robust growth across geographies, merchant sizes, and channels.

• Free cash flow reached $476M (15% margin), with four consecutive quarters of 30%+ revenue and GMV growth.

• AI is deeply embedded in operations, powering product development, merchant tools, and internal productivity.

• Major brands and enterprise merchants continue to migrate to the platform, with the number of merchants doing over $100M in GMV nearly doubling in two years.

• Net loss for Q1 2026 was $581M, primarily due to unrealized losses on equity investments, while operating income improved to $382M.

Financial highlights

• Subscription Solutions revenue grew 21% YoY to $750M; Merchant Solutions revenue rose 39% to $2.4B–$2.42B.

• Gross profit increased 32% to $1.55B, with gross margin at 48.8–49%.

• Shopify Payments processed $67B GMV (67% penetration); Shop Pay processed $35B GMV (+59% YoY), with international GMV up 70%.

• Free cash flow margin sustained at 15% in Q1 2026.

• Operating expenses rose to $1.16B (29–37% of revenue), with a 4-point YoY improvement.

Outlook and guidance

• Q2 2026 revenue expected to grow in the high 20s percent YoY, with gross profit dollars to grow in the mid-20s.

• Operating expenses in Q2 projected at 35–36% of revenue, improving from Q1.

• Free cash flow margin for Q2 expected in the mid-teens.

• Management expects continued investment in AI, international expansion, and new merchant solutions.