SHOPNasdaqServices-Prepackaged SoftwareUS GAAP · USD

Shopify Inc

Shopify Inc. provides cloud-based commerce infrastructure that helps merchants start, run, and scale businesses across online, in-store, and other digital sales channels. Its platform combines storefront software, back-end commerce tools, payments, point-of-sale, and merchant services for businesses operating in many countries.

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Revenue11.6bn USD
+30.1 %y/y
Operating profit (EBIT)1,468m USD
+36.6 %y/y
EBIT margin12.7%
+0.6 ppy/y
Net income1,231m USD
−39.0 %y/y
Free cash flow2,007m USD
+25.7 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-5051015bn USD2020: 2.9 bn USD2020: EBIT 0.09 bn USD20202021: 4.6 bn USD2021: EBIT 0.27 bn USD20212022: 5.6 bn USD2022: EBIT -0.82 bn USD20222023: 7.1 bn USD2023: EBIT -1.4 bn USD20232024: 8.9 bn USD2024: EBIT 1.1 bn USD20242025: 11.6 bn USD2025: EBIT 1.5 bn USD202511.61.5
RevenueOperating profit (EBIT)
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Business

Share of revenue
Subscription Solutions26 %

Recurring platform subscriptions, POS Pro, apps, domains, and themes.

Merchant Solutions74 %

Payments, currency conversion, referral fees, and other transaction-linked services.

Products

Reported · share of revenue
76.2%23.8%FY2025100 %
  • Services76.2 %
  • Subscription and Circulation23.8 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

Shopify sells to merchants of many sizes, from entrepreneurs launching their first store to larger direct-to-consumer and B2B businesses. Customers use the platform because it combines storefront creation, checkout, payments, inventory, and sales-channel management in one system. The merchant base is broad across retail verticals, with no single merchant representing a material share of revenue.

Entrepreneurs and small merchants

Buy basic plans, storefront tools, and starter commerce features to launch quickly.

Growing direct-to-consumer brands

Buy higher-tier plans, apps, and marketing tools to scale online sales.

Enterprise and Shopify Plus merchants

Buy advanced functionality, support, and multi-channel commerce capabilities.

B2B merchants

Use B2B features and back-end tools to support wholesale and account-based selling.

Retail and omnichannel merchants

Use POS and inventory tools to connect physical stores with online commerce.

Strategy

Shopify's strategy centers on attracting new merchants, keeping existing merchants on the platform as they grow, and increasing adoption of higher-value products and services. It also focuses on expanding sales channels, localizing features by geography, strengthening the app and partner ecosystem, and using AI and other technologies to improve merchant tools and buyer experiences.

Expand the merchant baseShort term

More merchants increase platform scale and create future upsell opportunities.

Increase merchant monetizationMedium term

Revenue grows as merchants adopt more features, higher plans, and payments.

Localize and internationalize the platformMedium term

Country-specific features and payments support broader merchant adoption.

Build ecosystem and AI capabilitiesLong term

Apps, partners, and AI features deepen platform utility and switching costs.

Geography

Shopify serves merchants in more than 175 countries, with a large share of its merchant base in the United States and Europe, the Middle East and Africa. Its platform is used globally, and the company also operates merchant services such as Shopify Capital in selected markets including the United States, the United Kingdom, Canada, and Australia. Geographic breadth matters because product localization, payments, and regulatory requirements differ by market.

Risks

Shopify depends on merchant growth, retention, and continued adoption of its platform and services, so weaker merchant activity or higher churn would affect the business model. It also faces intense competition, cybersecurity and data privacy exposure, regulatory complexity across countries, and operational risk from third-party suppliers and payment partners.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Merchant retention and growth risk1Competitive pressure2Cybersecurity and data privacy3Payments and financing exposure4International regulatory complexity5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Merchant retention and growth riskImpact: HighLikelihood: Medium

    Revenue depends on attracting new merchants and keeping existing ones active.

    Exposure: Subscription and merchant solutions revenue

  2. Competitive pressureImpact: HighLikelihood: Medium

    Ecommerce software, payment processors, and platforms can win merchants with lower-cost or integrated offerings.

    Exposure: Platform adoption and pricing power

  3. Cybersecurity and data privacyImpact: HighLikelihood: Medium

    The platform handles merchant and buyer data, making breaches costly and reputation-sensitive.

    ExposureMerchant trustLegal claimsCompliance
  4. Payments and financing exposureImpact: MediumLikelihood: Medium

    Shopify Payments and Shopify Capital create credit, fraud, and partner-performance risk.

    Exposure: Merchant solutions and lending services

  5. International regulatory complexityImpact: MediumLikelihood: Medium

    Operating across many countries exposes the company to privacy, consumer, tax, and financial-services rules.

    Exposure: Global operations

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Accounting

Judgemental items
Revenue recognition by product line

Subscription and merchant solutions have different timing and drivers, affecting comparability.

Impact: Mix shifts can change reported revenue growth and margins

Payment processing and transaction costs

Shopify Payments fees, rewards, and chargebacks are tied to merchant volume and estimates.

Impact: Affects merchant solutions cost of revenue

Credit and lending estimates

Shopify Capital and related financing activities require loss and collectability judgments.

Impact: Can affect provisions and asset values

Foreign currency effects

The company operates globally and transacts in multiple currencies.

Impact: Can affect revenue, expenses, and cash balances

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Last updated: 24/09/2026