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.
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%.
Subscription 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.
