Internet, Everywhere, Nov. 03, 2026 (GLOBE NEWSWIRE) -- Shopify announced today financial results for the quarter ended September 30, 2026. Shopify achieved 32% revenue growth (32% in constant currency) and a 22% free cash flow margin.
"Shopify is uncommonly good at operating in two realities at the same time: the world our merchants exist in today, and the one they are moving towards. Q3 is the perfect example. We powered $119 billion in GMV, while continuing to build commerce into every surface, every agent, and increasingly, everywhere," said Harley Finkelstein, President of Shopify.
"We extended our track record of consistent execution, with 32% revenue growth and a 22% free cash flow margin," said Jeff Hoffmeister, Chief Financial Officer of Shopify. "Delivering these results at our scale speaks to the strength of our model, our multiple growth drivers, and our expanding addressable market."
Selected Business Performance Information(1)
(In US $ millions, except percentages)
Three months ended
September 30, 2026 September 30, 2025
------------------
GMV 119,145 92,013
MRR 230 193
Revenue 3,742 2,844
Gross profit 1,781 1,391
Operating income 568 343
Free cash flow 816 507
YoY revenue growth rate 32% 32%
Free cash flow margin 22% 18%
(1) See endnotes below for definitions of GMV and MRR and additional information on constant currency, free cash flow, and free cash flow margin, which are non-GAAP financial measures and are reconciled to the comparable GAAP measures in the non-GAAP reconciliations at the end of this press release. Please refer to the Condensed Consolidated Statements of Cash Flows for additional information on the presentation of cash flows in 2026 and 2025.
2026 Outlook
The outlook that follows supersedes all prior financial outlook statements made by Shopify, constitutes forward-looking information within the meaning of applicable securities laws, is based on a number of assumptions, and is subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond Shopify's control. Please see "Forward-looking Statements" at the end of this press release.
For the fourth quarter of 2026, we expect:
-- Revenue to grow at a low-thirties percentage rate on a year-over-year
basis;
-- Gross profit dollars to grow at a high-twenties percentage rate on a
year-over-year basis;
-- Operating expenses as a percentage of revenue to be 29% to 30%;
-- Stock-based compensation to be $155 million; and
-- Free cash flow margin to be consistent with the fourth quarter of 2025.
Quarterly Conference Call
Shopify's management team will hold a conference call to discuss its third-quarter results today, November 3, 2026, at 8:30 a.m. ET. The conference call will be webcast in the Investor Relations section of Shopify's website at www.shopify.com/investors/events. An archived replay of the webcast will be available following the conclusion of the call.
Shopify's Form 10-Q for the quarter ended September 30, 2026, including the unaudited Condensed Consolidated Financial Statements and accompanying Notes, and Management's Discussion and Analysis, will be available on Shopify's website at www.shopify.com and will be filed on EDGAR at www.sec.gov and on SEDAR+ at www.sedarplus.ca.
About Shopify
Shopify provides essential internet infrastructure for commerce. Shopify's all-in-one platform makes it easier to start, run, and grow a business, powering sales online, in-store, and everywhere in between. Millions of businesses in 175+ countries use Shopify--from entrepreneurs to brands like Aldo, BarkBox, Carrier, Meta, SKIMS, Supreme, and Vuori.
For more information, visit www.shopify.com.
CONTACT INVESTORS: Shane Kleinstein CONTACT MEDIA: Jackie Warren
Director, Investor Senior Lead,
Relations Communications
IR@shopify.com press@shopify.com
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Shopify Inc. Condensed Consolidated Statements of
Operations
(In US $ millions)
Three months ended
September 30, 2026 September 30, 2025
------------------
Revenues
Subscription solutions 836 699
Merchant solutions 2,906 2,145
3,742 2,844
------------------ ------------------
Cost of revenues
Subscription solutions 175 128
Merchant solutions 1,786 1,325
1,961 1,453
------------------ ------------------
Gross profit 1,781 1,391
------------------------------ ------------------ ------------------
Operating expenses
Sales and marketing 466 410
Research and development 497 375
General and
administrative 130 115
Transaction and loan
losses 120 148
Total operating expenses 1,213 1,048
------------------------------ ------------------ ------------------
Operating income 568 343
Net other expense,
including taxes(2) (106) (79)
------------------------------
Net Income 462 264
less: equity
investments, marked to
market, net of taxes (122) (103)
------------------------------
Net income excluding the
impact of equity
investments(3) 584 367
(2) Net other expense, including taxes includes interest
income, gains and losses on equity and other investments,
loss on embedded derivative related to convertible
note, foreign exchange gains and losses, and our provision
for income taxes.
(3) Net income excluding the impact of equity investments
is a non-GAAP financial measure which is reconciled
at the end of this press release. This measure excludes
the impact of any gains or losses on our equity investments
in third parties and embedded derivative related to
convertible note. Shopify believes this measure provides
useful information to investors given that valuations
of third parties in public and private markets are
outside of our control, and therefore, fluctuations
in those valuations are not relevant to the fundamentals
of our business and have little analytical or predictive
value regarding our ability to drive operational results.
This measure does not have a standardized meaning
under US GAAP and may not be comparable to similar
measures presented by other companies.
(Note: More detailed Condensed Consolidated Statements
of Operations and Comprehensive Income are available
in the Quarterly Report on Form 10-Q filed concurrently
with this press release with US and Canadian regulators
and available on www.sec.gov and www.sedarplus.ca.)
Shopify Inc. Condensed Consolidated Balance Sheets
(In US $ millions)
September 30, 2026 December 31, 2025
Assets
Current assets
Cash and cash equivalents 1,868 1,545
Marketable securities 2,859 4,233
Trade and other receivables, net 483 500
Loans and merchant cash advances,
net 2,350 1,784
Other current assets 226 234
7,786 8,296
------------------ -----------------
Long-term assets
Long-term assets(4) 327 210
Deferred tax assets 83 33
Long-term investments 524 975
Equity and other investments 4,911 4,582
Equity method investment 538 602
Goodwill 495 491
6,878 6,893
------------------ -----------------
Total assets 14,664 15,189
------------------ -----------------
Liabilities and shareholders' equity
Liabilities
Accounts payable 630 570
Deferred tax liabilities 63 55
Other liabilities(5) 1,222 1,091