Shopify (SHOP) Q4 2025 earnings summary

Executive summary

• Achieved $11.6B in revenue for 2025, up 30% year-over-year, with record-breaking Q4 results and strong global expansion driven by AI innovation and product launches like the Universal Commerce Protocol.

• Gross Merchandise Volume (GMV) reached $378.4B in 2025, reflecting 29% YoY growth and continued market share gains in US ecommerce.

• Merchant Solutions accounted for 76% of revenue, with Subscription Solutions at 24%.

• Durable, profitable growth achieved through disciplined cash generation, operational efficiency, and investments in AI-driven commerce.

• Launched a $2B share repurchase program, reflecting strong financial and operating position.

Financial highlights

• Revenue grew 30% YoY to $11.6B in 2025; GMV up 29% to $378.4B.

• Gross profit for 2025 was $5.6B, up 24%-27% YoY, with gross margin at 48.1%.

• Free cash flow reached $2.01B in 2025, with a 17% margin and ten consecutive quarters of double-digit free cash flow margin.

• Q4 revenue exceeded $3B for the first time; Q4 GMV reached $124B, up 31% YoY.

• Operating income for 2025 was $1.47B, a 37% increase year-over-year.

Outlook and guidance

• Q1 2026 revenue growth expected in the low 30% range year-over-year, with gross profit dollars to grow in the high 20s.

• Q1 operating expenses projected at 37%-38% of revenue, with free cash flow margin in the low to mid-teens.

• Sustained focus on international expansion, product innovation, and leveraging AI for merchant growth.