By Adriano Marchese

Shopify expects revenue to grow in the first quarter of 2026, extending the fourth-quarter momentum it saw across merchants, regions, and sales channels.

The commerce platform company, which supports online stores and retail businesses, on Wednesday said it expects revenue to grow at a low-thirties percentage rate in the first quarter of 2026, maintaining the momentum from the fourth quarter. Analysts expect a rise to $2.95 billion from $2.36 billion in the first quarter of 2025, representing a roughly 25% rise, according to FactSet.

In 2025, revenue rose to $11.56 billion, and analysts expect a rise to $14.26 billion, representing a roughly 23.4% rise.

Gross profit is expected to grow at a high-twenties percentage rate, with operating expenses hovering around 37% to 38% of revenue, it said.

Free cash flow margin is expected to be in the low-to-mid teens.

For the fourth quarter, Shopify posted a lower net income of $743 million, or 57 cents a share, down from $1.29 billion, or 99 cents a share, in the comparable quarter a year ago.

Adjusted earnings were 48 cents a share. According to FactSet, analysts were expecting 50 cents a share.

Revenue rose to $3.67 billion from $2.81 billion. Analysts were expecting a more modest rise to $3.59 billion.

Gross merchandise volume, which measures the total dollar value of all sales made through a platform, rose to $123.84 billion from $94.46 billion a year earlier.

Monthly recurring revenue also climbed in the quarter, rising to $205 million from $178 million.

Free cash flow was $715 million, up from $611 million, while free cash flow margin slipped to 19% from 22%.

Chief Financial Officer Jeff Hoffmeister said the company ended 2025 with strength across all merchant sizes, regions, and channels, setting up the company well for 2026.

In recent months, the stock has fallen sharply from its highs over the last year, from around C$253 to C$172.54 on Tuesday.

The dramatic declines are in lock-step with other software names as investors watch for clarity on artificial intelligence's impact and overall demand.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

February 11, 2026 07:47 ET (12:47 GMT)

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