Shopify (SHOP) Q4 2025 earnings summary

Executive summary

• Achieved record revenue of $11.6B in 2025, up 30% year-over-year, with Q4 revenue surpassing $3B and strong global expansion and product innovation.

• GMV reached $378.4B in 2025, up 29% year-over-year, with Q4 GMV exceeding $124B and continued US ecommerce market share gains above 14%.

• Free cash flow exceeded $2B for the year, with a 17% margin and ten consecutive quarters of double-digit free cash flow margin.

• Major advances in AI-driven commerce, including the launch of the Universal Commerce Protocol with Google and expanded agentic commerce capabilities.

• Announced a $2B share repurchase program, reflecting confidence in long-term value and strong financial position.

Financial highlights

• Q4 revenue up 31% year-over-year; full-year revenue up 30% to $11.6B.

• Q4 GMV reached $124B, up 31%; full-year GMV $378.4B, up 29%.

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

• Merchant Solutions revenue in Q4 grew 35%, with Shopify Payments processing $84B (68% of GMV); full-year Merchant Solutions revenue was $8.80B, up 35%.

• Free cash flow for 2025 was $2.01B, up 26%, with a margin of 17%.

Outlook and guidance

• Q1 2026 revenue growth expected in the low 30s percent year-over-year, driven by payments, merchant acquisition, and international expansion.

• Gross profit dollars expected to grow in the high 20s percent; operating expenses to be 37%-38% of revenue.

• Q1 free cash flow margin projected in the low to mid-teens, reflecting seasonality and a slightly higher tax rate.

• Sustained focus on compounding growth through product innovation, international expansion, and AI-driven commerce.

• Commitment to balanced operating leverage and continued investment in growth opportunities.