Canadian e-commerce platform Shopify reported a 30% rise in annual revenue to $11.55bn and authorised a $2bn share repurchase programme.
For the year ending 31 December 2025, gross merchandise volume (GMV) climbed to $378.44bn from $292.27bn in 2024.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Gross profit increased to $5.55bn from $4.47bn while operating income advanced to $1.46bn compared with $1.07bn a year earlier.
Net income stood at $1.23bn, down from $2.01bn in 2024.
Excluding the effect of equity investments, net income rose to $1.52bn from $1.23bn.
Free cash flow reached $2bn, up from $1.59bn, although the free cash flow margin edged down to 17% from 18%.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSubscription solutions revenue totalled $2.75bn, compared with $2.35bn in 2024, while merchant solutions revenue increased to $8.80bn from $6.53bn.
Total cost of revenues rose to $6bn from $4.40bn.
Operating expenses for 2025 amounted to $4.08bn, up from $3.39bn.
Sales and marketing costs increased to $1.66bn from $1.39bn, research and development to $1.53bn from $1.36bn, general and administrative expenses to $471m from $410m, and transaction and loan losses to $417m from $227m.
The board has approved a share repurchase programme of up to $2bn.
The company said it intends to carry out the buyback through pre-arranged algorithmic trading instructions, without fixed quarterly or annual minimum purchase levels.
Shopify president Harley Finkelstein said: “2025 was Shopify at full throttle – driving compounding growth, while laying the rails for the new era of AI commerce. 2026 will be the year of the builders, and we’ll be powering them – from first sale to full scale.”
In the fourth quarter ended 31 December 2025, revenue rose 31% year-on-year to $3.67bn from $2.81bn.
GMV reached $123.84bn, up from $94.46bn, while monthly recurring revenue increased to $205m from $178m.
Quarterly gross profit was $1.69bn, compared with $1.35bn a year earlier, and operating income rose to $631m from $465m.
Free cash flow totalled $715m, versus $611m, with a margin of 19% compared with 22% in Q4 2024.
The company said this marked ten consecutive quarters of double-digit free cash flow margins.
For the first quarter of 2026, Shopify expects revenue growth in the low-thirties percentage range year-on-year and gross profit dollars to expand at a high-twenties rate.
Operating expenses are projected at 37%-38% of revenue, including $140m in stock-based compensation, with a free cash flow margin in the low-to-mid teens.
