Shopify (SHOP) is maintaining its long-term strategy of balancing growth and profitability, with no expected 2026 free cash flow margin compression, Oppenheimer said in a note Friday.

Lower Q1 profitability reflects timing of slightly higher taxes, which should normalize over the year, the brokerage said following a recent investor meeting with Shopify Chief Financial Officer Jeff Hoffmeister and Head of Investor Relations Carrie Gillard.

The company is well-positioned for agentic commerce as it prioritizes driving artificial intelligence adoption, launches new tools such as Sidekick, and uses AI to increase efficiencies while keeping headcount "flattish," according to the note.

Management also pointed to a growing advertising opportunity, which provides a "large, untapped" total addressable market to support long-term growth, the brokerage said.

Oppenheimer has an outperform rating on Shopify, with a price target of $200.

Shares of Shopify were up more than 4% in recent trading Friday.

Price: 129.18, Change: +5.38, Percent Change: +4.35