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Technology · NASDAQ: SHOP

Shopify: how the business works

Shopify sells software that businesses use to run online stores and checkouts, and processes their payments, earning revenue of $11.6 billion in FY2025.

By · Checked against filings: . Editorial policy. Corrections

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Shopify Inc. · Ottawa, Ontario, Canada · Founded 2004

Updated for Q3 FY2026 · checked

Revenue, FY2025
$11.6B
Operating income, FY2025
$1.5B
Net income, FY2025 (after investment losses)
$1.2B
Merchants' orders through Shopify (GMV, not revenue), FY2025
$378.4B
Tobi Lütke's share of votes, Apr 21, 2026
40.02%

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

The short version

Shopify in 5 points

  1. 1 · What it sells

    Shopify sells software that businesses use to run online stores and checkouts, and processes their card payments, with revenue of $11.6 billion in FY2025.

    More: what it sells

  2. 2 · Who pays it

    Merchants are Shopify's main payers: in FY2025, 76.2% of revenue came from payments and other merchant solutions and 23.8% from subscription plans.

    More: who pays it

  3. 3 · What it keeps from $100

    Of every $100 that came in during FY2025, Shopify kept $10.6 as net income, after a $186 million loss on its stakes in other companies and a one-off $123 million loss on settling its convertible notes, while operating income was $12.70 per $100 of revenue.

    More: what it keeps from $100

  4. 4 · Where the operating profit comes from

    Shopify reports one segment, so there is no operating-profit split, but subscriptions earned 40.2% of FY2025 gross profit on 23.8% of revenue (Cityfort calculation from the FY2025 10-K).

    More: where the operating profit comes from

  5. 5 · The one thing to watch

    Transaction and loan losses rose from $227 million in FY2024 to $417 million in FY2025, while loans and merchant cash advances reached $2.35 billion at Sep 30, 2026.

    More: the one thing to watch

Sources: From Shopify's FY2025 10-K and Q3 FY2026 10-Q · checked

See the full receipt and the management scorecard below

Sources (2)
Next: Where $100 goes

01Where the money goes · FY2025

Where does $100 of Shopify's money go?

Of every $100 that came in (revenue plus other income), this is where it went.

Shopify · FY2025

Receipt for every $100

Where $100 of Shopify's money went in FY2025
Cost of revenues (card-network, processing, hosting)$51.8
Sales and marketing$14.3
Research and development$13.2
General and administrative$4.1
Transaction and loan losses$3.6
Income tax$2.4
Kept as net income$10.6
Total$100

Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.

How this is worked out

Cityfort calculation from the FY2025 10-K. Of every $100 that came in during FY2025 (revenue of $11,556 million plus $41 million of other income, net): each line = line ÷ $11,597 million × 100.

Sources (1)
Next: The business in one line

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02The business in one line

What does Shopify do?

Merchants pay Shopify a monthly plan fee and a cut of the payments their customers make; about half the money goes on the cost of providing those services, mostly card-network and processing fees, and what is left pays for product, marketing and profit.

  • In FY2025, merchant solutions, mostly payment processing fees, brought in 76.2% of revenue ($8.8 billion) and subscription plans 23.8% ($2.75 billion).
  • Shopify kept $12.70 of operating income per $100 of FY2025 revenue. Its net income also moves with the value of its stakes in other companies.
Next: Who pays it

03Who pays it

Who pays Shopify?

  • Merchants using payments and other services

    76%

    of revenue

    Fees on card payments and currency conversion through Shopify Payments, plus lending, referral fees, shipping labels, hardware and ads (merchant solutions).

  • Merchants paying for plans

    24%

    of revenue

    Subscription fees for the platform and POS Pro, plus apps, themes and domain names (subscription solutions). Most merchants are on Basic and Grow plans, but most GMV comes from Shopify Plus and enterprise merchants.

  • Merchants using payments and other services76%
  • Merchants paying for plans24%

How spread out the customers are

Shopify's FY2025 10-K says no single merchant has ever been more than 5% of its revenue in a reporting period. Shopify has merchants in more than 175 countries.

Sources (1)
Next: Why it makes money

04Why it makes money

Why does Shopify make money?

Shopify earns a small cut of a fast-growing flow of merchants' sales, and that cut has grown as more payments run through Shopify Payments.

Revenue per $100 of GMV rose from $2.63 in FY2021 to $3.05 in FY2025 as more merchants used Shopify Payments. Payments carry lower gross margins than plans, so gross margin fell from 53.8% to 48.1%. Operating expenses fell from 48.0% to 35.4% of revenue, so operating margin still rose.

Revenue per $100 of GMV (Cityfort calculation from the FY2025 10-K and the FY2022 40-F)

$2.6$3.1

FY2021 to FY2025

  1. Merchants pay for a plan to run their store
  2. Their customers place orders: $378.4 billion of GMV in FY2025
  3. Most of those orders are paid through Shopify Payments, which charges a fee
  4. Merchants add loans, shipping labels and other services
  5. Fees grow with merchants' sales, faster than Shopify's operating expenses
  6. Shopify spends on product and marketing to add merchants

↺ Step 6 feeds back into step 1.

Sources (3)
Next: Business segments

05Business segments · FY2025; revenue types, as Shopify reports one segment

Which businesses make up Shopify?

  • Merchant solutions

    76%

    Mostly Shopify Payments fees, plus lending, referral fees, shipping labels, hardware and ads. Gross margin was 37.7% in FY2025 and it earned 59.8% of gross profit (Cityfort calculation from the FY2025 10-K).

    Revenue $8.8B

  • Subscription solutions

    24%

    Plan fees, POS Pro, apps, themes and domains. Gross margin was 81.1% in FY2025, so it earned 40.2% of gross profit on 23.8% of revenue (Cityfort calculation from the FY2025 10-K). Shopify reports one segment, so there is no operating-profit split.

    Revenue $2.8B

How the mix changed

  • Merchant solutions
  • Subscription solutions

Revenue by segment, FY2021 to FY2025.

US$

See the numbers
How the mix changed (US$)
YearMerchant solutionsSubscription solutions
FY2021$3.3B$1.3B
FY2022$4.1B$1.5B
FY2023$5.2B$1.8B
FY2024$6.5B$2.4B
FY2025$8.8B$2.8B
Sources (3)
Next: How has it done

06The numbers · Consolidated · US$

How has Shopify done?

Revenue

$11.6BFY2025

Revenue grew every year, from $4.6 billion in FY2021 to $11.6 billion in FY2025, and was $3.74 billion in Q3 FY2026, up 32%.

US$

See the numbers
Revenue (US$)
PeriodRevenue (US$)
FY2021$4.6B
FY2022$5.6B
FY2023$7.1B
FY2024$8.9B
FY2025$11.6B
Q1 FY2024$1.9B
Q2 FY2024$2.0B
Q3 FY2024$2.2B
Q4 FY2024$2.8B
Q1 FY2025$2.4B
Q2 FY2025$2.7B
Q3 FY2025$2.8B
Q4 FY2025$3.7B
Q1 FY2026$3.2B
Q2 FY2026$3.6B
Q3 FY2026$3.7B

Net profit

$1.2BFY2025

Operating income went from losses in FY2022 and FY2023, which included a $1.34 billion logistics impairment, to $1.47 billion in FY2025; net income swings with the value of Shopify's stakes in other companies.

US$

See the numbers
Net profit (US$)
PeriodNet profit (US$)EPS ($)
FY2021$2.9B$2.29
FY2022−$3.5B−$2.73
FY2023$132M$0.10
FY2024$2.0B$1.55
FY2025$1.2B$0.94
Q1 FY2024−$273M−$0.21
Q2 FY2024$171M$0.13
Q3 FY2024$828M$0.64
Q4 FY2024$1.3B$0.99
Q1 FY2025−$682M−$0.53
Q2 FY2025$906M$0.69
Q3 FY2025$264M$0.20
Q4 FY2025$743M$0.57
Q1 FY2026−$581M−$0.45
Q2 FY2026$1.5B$1.16
Q3 FY2026$462M$0.36

Profit kept per $100 of revenue

$10.7FY2025

Net income per $100 of revenue swung from $63.20 in FY2021 to a $61.80 loss in FY2022 on investment marks, while operating income per $100 rose from $5.82 to $12.70 over FY2021–FY2025.

$ of profit per $100 of revenue (net margin)

See the numbers
Profit kept per $100 of revenue ($ of profit per $100 of revenue (net margin))
YearNet marginEBITDA margin
FY202163.2%7.3%
FY2022−61.8%−13.0%
FY20231.9%−19.1%
FY202422.7%12.5%
FY202510.7%13.0%

Free cash flow

$2.0BFY2025

Free cash flow rose from $485 million in FY2021 to $2.01 billion in FY2025, after a $186 million outflow in FY2022; Q2 and Q3 FY2026 include $37 million and $30 million from moving merchant cash advances to investing cash flows.

US$ · cash from operations minus spending on plants and equipment

See the numbers
Free cash flow (US$ · cash from operations minus spending on plants and equipment)
YearCash from operationsCapital spendingFree cash flow
FY2021$536M$50.8M$485M
FY2022−$136M$50M−$186M
FY2023$944M$39M$905M
FY2024$1.6B$19M$1.6B
FY2025$2.0B$26M$2.0B
See all yearly numbers
Shopify annual financials, FY2021–FY2025, US$
YearRevenueEBITDANet profitEPS ($)Operating cashCapexFree cash
FY2021$4.6B$335M$2.9B$2.29$536M$50.8M$485M
FY2022$5.6B−$729M−$3.5B−$2.73−$136M$50M−$186M
FY2023$7.1B−$1.3B$132M$0.10$944M$39M$905M
FY2024$8.9B$1.1B$2.0B$1.55$1.6B$19M$1.6B
FY2025$11.6B$1.5B$1.2B$0.94$2.0B$26M$2.0B

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Dec 31; Shopify's fiscal year is the calendar year, so Q3 FY2026 is July–September 2026. FY2021 is converted from the 40-F's US$ thousands). Net profit is the share belonging to the company's owners.

Download Shopify's yearly and quarterly numbers (CSV, with source ids)

Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares

Sources (13)
Next: What they said, and what happened

07Who runs it

Who runs Shopify, and did they deliver?

  • Tobias (Tobi) Lütke

    Co-founder and Chief Executive Officer · since 2008

    Co-founded Shopify in 2004 and has been CEO since 2008. 2025 pay was $35.0 million, almost all in stock options and restricted share units. The Apr 29, 2026 Form 10-K/A names him Chair of the Board.

  • Harley Finkelstein

    President

    With Shopify since 2010; earlier its COO. 2025 pay was $7.5 million.

  • Jeff Hoffmeister

    Chief Financial Officer · since 2022

    Joined from Morgan Stanley in 2022. 2025 pay was $10.5 million.

  • Jessica Hertz

    Chief Operating Officer · since 2025

    Appointed COO on Oct 9, 2025, after Kasra Nejatian left the role in September; earlier Shopify's General Counsel. 2025 pay was $12.0 million.

  • Joe Natale

    Director · since 2025

    On the board since June 2025. A Jul 2, 2026 8-K describes him as "Chair of the Board and the Company's Lead Independent Director" and expected Audit Committee chair.

What they said, and what happened

3 delivered · 1 too early to tell

  1. Said on Feb 11, 2026

    Shopify said it expected Q1 FY2026 revenue to grow at a low-thirties percentage rate, with a free cash flowCash from operations minus spending on buildings and equipment. Learn more margin in the low-to-mid teens.

    What happened

    Revenue grew 34% and the free cash flow margin was 15%.

    Delivered

  2. Said on May 5, 2026

    Shopify said it expected Q2 FY2026 revenue to grow at a high-twenties percentage rate, with a free cash flow margin in the mid-teens.

    What happened

    Revenue grew 34% and the free cash flow margin was 18%, which includes $37 million from moving merchant cash advances to investing cash flows.

    Delivered

  3. Said on Aug 5, 2026

    Shopify said it expected Q3 FY2026 revenue to grow at a low-thirties percentage rate, with operating expenses of 33% to 34% of revenue and a free cash flow margin from the high teens to the low twenties.

    What happened

    Revenue grew 32%, operating expenses were 32.4% of revenue (Cityfort calculation from the Q3 FY2026 earnings release) and the free cash flow margin was 22%, including $30 million from the cash-flow change.

    Delivered

  4. Said on Nov 3, 2026

    Shopify said it expected Q4 FY2026 revenue to grow at a low-thirties percentage rate, with a free cash flow margin consistent with Q4 FY2025.

    What happened

    Q4 FY2026 results are not out yet. The Q4 FY2025 free cash flow margin was 19%.

    Too early to tell
Sources (8)
Next: What could go wrong

08What could go wrong

What could go wrong for Shopify?

  • Governance

    One person controls 40% of the votes

    Tobi Lütke held 40.02% of the votes at Apr 21, 2026 with about 6.2% of the shares, through Class B shares (10 votes each) and the Founder Share. The Founder Share keeps his voting power at 40% or more, up to 49.9%. Shopify's 10-K lists this concentration as a risk.

    Watch Voting percentages in the next Form 10-K/A ownership table.

  • Other

    Net income swings with stakes in other companies

    Shopify marks its stakes in Affirm, Global-E, Klaviyo and others to market through net income. Q1 FY2026 showed a $581 million net loss on $382 million of operating income; Q2 FY2026 showed $1,502 million of net income. Its stakes with market prices were worth $2,596 million at Sep 30, 2026.

    Watch "Net unrealized gain (loss) on equity and other investments" in each quarterly release.

  • Other

    Rising losses on payments and merchant loans

    Transaction and loan losses rose from $227 million in FY2024 to $417 million in FY2025. Loans and merchant cash advances grew from $1.22 billion at Dec 31, 2024 to $2.35 billion at Sep 30, 2026. Shopify says lending depends on merchants' sales and on banking partners.

    Watch Transaction and loan losses and the loans and merchant cash advances balance in each 10-Q.

  • Concentration

    Two partners behind Shopify Payments

    Shopify Payments, which handled 65.6% of FY2025 GMV, runs under agreements with Stripe and PayPal that renew every 12 months unless ended. Shopify says it could add other providers, but a sudden exit could bring delays and costs.

    Watch Changes to the payment service provider agreements in the 10-K risk factors.

  • Pricing

    Lower gross margin as payments grow

    Gross margin fell from 53.8% in FY2021 to 48.1% in FY2025 and was 47.6% in Q3 FY2026. Shopify says payments carry lower gross margins than plans because of third-party costs, and expects the shift toward merchant solutions to continue.

    Watch Gross margin in each quarterly release.

  • Competition

    Competition and easy switching

    Shopify's 10-K says some competitors have more resources and larger customer bases, and that switching to a competitor may not be hard or costly for many merchants.

    Watch GMV growth and MRR in each quarterly release.

  • Demand

    Consumer spending and currencies

    Merchants' sales depend on consumer spending, which Shopify names as a risk. Merchants outside the US brought in 36.6% of FY2025 revenue, and many costs are in Canadian dollars, euros and pounds.

    Watch GMV growth on a reported and constant-currency basis.

  • Regulation

    Payments, lending and privacy rules

    Shopify Payments, Shop Pay Installments, Shopify Balance and Shopify Capital are subject to payments, lending, anti-money-laundering and privacy laws in many countries. Shopify says breaches could bring fines or forced changes to its platform.

    Watch New regulatory matters in the 10-K and 10-Q risk factors.

Sources (7)
Next: Supporters vs. critics

09Both sides

What do supporters and critics point to?

Facts each side points to. We don't say which side is right.

What supporters point to

  • Revenue grew every year from $4.6 billion in FY2021 to $11.6 billion in FY2025, and rose 32% in Q3 FY2026.
  • Operating income went from losses in FY2022 and FY2023 to $1.47 billion in FY2025, and was $568 million in Q3 FY2026 alone.
  • Free cash flow was $2.01 billion in FY2025, $17.37 per $100 of revenue.
  • Shopify had no borrowings at Sep 30, 2026 and $4.73 billion of cash and marketable securities.
  • No single merchant has ever been more than 5% of revenue in a reporting period.

What critics point to

  • Tobi Lütke held 40.02% of the votes at Apr 21, 2026 with about 6.2% of the shares.
  • Gross margin fell from 53.8% in FY2021 to 48.1% in FY2025 as payments grew.
  • Net income swings with stakes in other companies: a $581 million loss in Q1 FY2026, then $1,502 million in Q2 FY2026.
  • Transaction and loan losses rose from $227 million in FY2024 to $417 million in FY2025.
  • Part of the Q2 and Q3 FY2026 free cash flow, $37 million and $30 million, came from moving merchant cash advances to investing cash flows; earlier periods were not recast.
Next: What to watch next

10What to watch next

What should you watch next at Shopify?

Next event

Q4 FY2026 results

Date not announced yet.

  • Free cash flow against Shopify's Q4 statement

    Shopify said on Nov 3, 2026 it expects a Q4 FY2026 free cash flow margin consistent with Q4 FY2025 (19%). Q4 FY2025 results came on Feb 11, 2026.

  • Gross margin as payments grow

    Gross margin was 47.6% in Q3 FY2026, against 48.9% a year earlier, while Shopify Payments handled 68% of GMV.

  • Losses on loans and payments

    Transaction and loan losses were $120 million in Q3 FY2026; loans and merchant cash advances were $2.35 billion at Sep 30, 2026.

  • Buybacks

    $2,524 million of the $5 billion buyback authorization was left at Sep 30, 2026.

Next: Key facts

11Key facts

Key facts about Shopify

What does Shopify do?
Shopify sells software that businesses use to build and run online stores, checkouts and in-person points of sale, and it processes their card payments through Shopify Payments. Merchants placed $378.4 billion of orders (GMV) through Shopify in FY2025, and Shopify's revenue was $11.6 billion.
How does Shopify make money?
Shopify's business model has two revenue streams. Merchants pay monthly or annual subscription plan fees, and Shopify earns fees on the payments, loans, shipping labels and other services merchants use. In FY2025 subscription solutions were $2,752 million and merchant solutions $8,804 million of Shopify's $11,556 million revenue.
What is Shopify's revenue by segment?
Shopify reports one operating segment. It splits revenue into merchant solutions (76.2% of FY2025 revenue, $8,804 million) and subscription solutions (23.8%, $2,752 million); subscription solutions were 29.1% of revenue in FY2021.
What are Shopify's subscription solutions?
Shopify's subscription solutions are plan fees for its platform, the POS Pro offering for physical shops, apps, themes and domain names. They brought in $2,752 million in FY2025, and monthly recurring revenue (MRR) from plans was $230 million at Sep 30, 2026, up from $193 million a year earlier.
What is Shopify Payments?
Shopify Payments is Shopify's built-in card payment service and the biggest driver of its merchant solutions revenue. It handled 65.6% of Shopify's GMV in FY2025 ($248.1 billion) and 68% in Q3 FY2026, and it runs under agreements with Stripe and PayPal.
Who are Shopify's customers?
Shopify's customers are merchants, from small businesses to large brands on Shopify Plus, in more than 175 countries. Shopify says no single merchant has ever been more than 5% of its revenue in a reporting period. Merchants based in the United States brought in 63.4% of FY2025 revenue.
How big is Shopify?
Shopify had revenue of $11.6 billion, operating income of $1.47 billion and net income of $1.23 billion in FY2025. In Q3 FY2026 (July to September 2026) revenue was $3.74 billion, up 32% from a year earlier.
Is Shopify profitable?
Shopify had operating income of $1,468 million in FY2025 and $568 million in Q3 FY2026, after operating losses in FY2022 and FY2023. Its net income swings with the market valueShare price × number of shares: what all the shares were worth at one dated price. Learn more of its stakes in other companies: a $581 million net loss in Q1 FY2026, then $1,502 million of net income in Q2 FY2026.
Who owns Shopify?
Shopify's founder and CEO Tobi Lütke held 40.02% of the votes at Apr 21, 2026, through Class B shares and a special Founder Share, while owning about 6.2% of all shares (Cityfort calculation from the 2026 Form 10-K/A). BlackRock reported 5.1% of the listed Class A shares at Jun 30, 2026.
Does Shopify have debt?
Shopify had no borrowings at Sep 30, 2026 and held $4,727 million of cash and marketable securities. It repaid its $920 million of convertible notes in November 2025, and its $100 million credit line was undrawn.
Sources (8)
Next: Go deeper

Terms on this page

Each explains the term in plain English, with the same number from other companies on Cityfort.

Go deeper

More detail from the same filings. Open any section.

12What it sells

12What it sells

What does Shopify sell?

Shopify rents businesses the software to run an online store: product pages, checkout, in-person sales and order tools. It then earns fees each time their customers pay, mainly through its own payment service.

  • Subscription solutions ($2,752M in FY2025)

    Monthly or longer plans for the Shopify platform, from entry plans to Shopify Plus for large merchants, plus POS Pro, apps, themes and domain names. Some plans add a variable fee tied to sales.

  • Shopify Payments (in merchant solutions)

    Shopify's built-in card payment service. It charges processing and currency conversion fees and handled 65.6% of merchants' orders by value in FY2025.

  • Other merchant solutions

    Shopify Capital loans and merchant cash advances, referral fees from partners, shipping labels, point-of-sale hardware and ads. Merchant solutions in total brought in $8,804M in FY2025.

What it does

  • Does: Provides the store software and checkout that merchants sell through
  • Does: Processes card payments for merchants through Shopify Payments
  • Does: Lends to merchants and buys a share of their future sales (merchant cash advances)

What it does not do

  • Does not: Does not sell goods itself: GMV of $378.4 billion in FY2025 was merchants' orders, not Shopify's revenue
  • Does not: Does not run its own card network: card networks and two payment partners, Stripe and PayPal, sit behind Shopify Payments
  • Does not: Does not run warehouses: it sold most of its logistics businesses to Flexport in 2023
Sources (1)
13How the money flows

13How the money flows · FY2025

How does money flow through Shopify?

Money in

  • Merchant solutions (mostly payment fees)$8.8B
  • Subscription solutions (plans, apps, themes)$2.8B
  • Other income, net: $331 million of interest income, less a $186 million loss on equity investments, a one-off $123 million loss on settling the convertible notes and other items$41M

The company

Shopify

$11.6B came in

Money out

  • Cost of revenues (card-network, processing and hosting costs)$6.0B
  • Sales and marketing$1.7B
  • Research and development$1.5B
  • General and administrative$471M
  • Transaction and loan losses$417M
  • Income tax$278M
  • Net income$1.2B
  1. Merchants paid Shopify $11.6 billion in FY2025: $8.8 billion for payments and other services, $2.75 billion for plans.
  2. Cost of revenues took $6.0 billion, mostly card-network and processing fees on Shopify Payments.
  3. Sales and marketing, research and development, and administration took $3.7 billion.
  4. Losses on payments and merchant loans took $417 million, leaving $1.47 billion of operating income.
  5. After $41 million of other income, net, and $278 million of tax, $1.23 billion was left as net income.
Sources (1)
14What it needs to run

14What it needs to run

What does Shopify need to run?

  • Cloud computing

    Shopify runs most of its platform on Google Cloud, a third-party provider, so an outage there can affect merchants' stores.

  • Payment partners and card networks

    Shopify Payments runs under agreements with Stripe and PayPal that renew every 12 months unless ended. Card networks such as Visa, Mastercard and American Express charge fees on each payment.

  • Money to lend

    Shopify Capital lends to merchants and buys a share of their future sales, with banking partners in the US and some other markets. Loans and merchant cash advances were $2.35 billion at Sep 30, 2026.

  • Developers and partners

    App developers, theme designers, payment processors, shipping partners and sales channels add services that merchants use on the platform.

  • People

    The FY2025 10-K describes Shopify's workforce without giving a headcount. In May 2023 Shopify cut about 23% of its employees, with $148 million of severance costs.

Sources (2)
15Where it sells

15Where it sells · FY2025, by where the merchant is based

Where does Shopify sell?

  • United States63%
  • Europe, Middle East and Africa21%
  • Asia-Pacific10%
  • Canada5%
  • Latin America1%
Sources (1)
16Where growth could come from

16Where growth could come from

Where could Shopify's growth come from?

Shopify said on Nov 3, 2026 that for Q4 FY2026 it expects revenue growth at a low-thirties percentage rate, gross profit growth at a high-twenties rate, operating expenses of 29% to 30% of revenue, stock-based compensationPay given as shares instead of cash, which spreads ownership more thinly. Learn more of $155 million and a free cash flow margin consistent with Q4 FY2025 (19%).
Management statement, Nov 3, 2026. Reported as a statement, not our forecast.

  • Shopify Payments

    Working

    68% of GMV, Q3 FY2026

    GMV paid through Shopify Payments was $81.4 billion in Q3 FY2026, up from $60.2 billion a year earlier; its share of GMV rose from 65% to 68%.

    Status: Working, on track against what the company said.

  • Merchant solutions

    Working

    +35.5% in Q3 FY2026

    Merchant solutions revenue was $2,906 million in Q3 FY2026, up from $2,145 million a year earlier.

    Status: Working, on track against what the company said.

  • Subscription plans

    Working

    MRR $230M, Sep 30, 2026

    Subscription solutions revenue grew 19.6% to $836 million in Q3 FY2026. Shopify said MRR growth slowed in FY2025 because it extended paid trials.

    Status: Working, on track against what the company said.

  • Merchants outside North America

    Working

    EMEA 21% of FY2025 revenue

    Revenue from merchants in Europe, the Middle East and Africa was $2,426 million in FY2025, up 42.1% from $1,707 million (Cityfort calculation from the FY2025 10-K).

    Status: Working, on track against what the company said.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

Sources (4)
17The company's own measures (non-GAAP)

17The company's own measures · FY2025 and Q3 FY2026

What do Shopify's own measures show?

Adjusted (non-GAAP) figures and operating measures are Shopify's own, shown next to the official (GAAP) number where one exists. They are never added together.

  • Official (GAAP): Net income, FY2025

    $1.2B

    Company's own measure: Net income excluding the impact of equity investments, FY2025

    $1.5B

    Shopify leaves out gains and losses on its equity investments (such as Affirm, Global-E and Klaviyo) and on the embedded derivative of its convertible notes, net of tax.

  • Official (GAAP): Net income, Q3 FY2026

    $462M

    Company's own measure: Net income excluding the impact of equity investments, Q3 FY2026

    $584M

    The same measure; the equity investment loss it leaves out was $122 million, net of tax.

  • Official (GAAP): Net income, Q3 FY2026

    $462M

    Company's own measure: Non-GAAP net income, Q3 FY2026

    $638M

    Also adds back stock-based compensation and related taxes ($147 million) and amortization of acquired intangibles, less the tax effect.

  • Official (GAAP): Diluted EPS, Q3 FY2026

    $0.36

    Company's own measure: Non-GAAP diluted EPS, Q3 FY2026

    $0.49

    The same exclusions as non-GAAPThe company's own "adjusted" numbers, not the official (GAAP) ones. Always read them next to the official figure. Learn more net income; a year earlier it was $0.34 against GAAP $0.20.

  • Official (GAAP)

    No official figure measures this; it is the company's own operating measure.

    Company's own measure: Gross merchandise volume (GMV), FY2025

    378.4 billion dollars

    The total value of orders through Shopify's platform, net of refunds and including shipping and taxes. It is not Shopify's revenue: FY2025 revenue was $11.6 billion.

  • Official (GAAP)

    No official figure measures this; it is the company's own operating measure.

    Company's own measure: Gross merchandise volume (GMV), Q3 FY2026

    119.1 billion dollars

    Up 29% from $92.0 billion a year earlier, as Shopify reported. Q3 FY2026 revenue was $3.74 billion.

  • Official (GAAP)

    No official figure measures this; it is the company's own operating measure.

    Company's own measure: Monthly recurring revenue (MRR), Sep 30, 2026

    230 million dollars

    The value of all subscription plans in effect on the last day of the period, without variable platform fees; $193 million a year earlier. Q3 FY2026 subscription solutions revenue was $836 million.

  • Official (GAAP)

    No official figure measures this; it is the company's own operating measure.

    Company's own measure: Shopify Payments penetration, Q3 FY2026

    68%

    The share of GMV paid through Shopify Payments ($81.4 billion), up from 65% a year earlier.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out · Stock-based compensation and dilution: pay that becomes shares

Sources (5)
18Financial strength and debt

18Financial strength · Sep 30, 2026

How much debt does Shopify have?

Shopify had no borrowings at Sep 30, 2026 and held $4.73 billion of cash and marketable securities, down from $5.78 billion at Dec 31, 2025 after $2.48 billion of share buybacks.
  • Total debt$0M
  • Cash and investments$4.7B
  • Net cash (cash minus debt)$4.7B
  • Net worth (shareholders' money)$12.7B
Debt to equity
0×
$ of debt for every $1 of shareholders' money
  • Cash, cash equivalents and marketable securities were $4.7 billion at Sep 30, 2026 (Q3 FY2026 10-Q): $1,868M cash plus $2,859M current marketable securities; $524M of long-term marketable securities are separate.
  • Shopify also held $4,911 million of equity and other investments at Sep 30, 2026, including stakes in Affirm ($1,405 million), Global-E ($879 million) and Klaviyo ($292 million). Their value moves with share prices, so they are not counted as cash here.
  • Loans and merchant cash advances to merchants were $2,350 million at Sep 30, 2026. Operating lease liabilities of $188 million are not counted as debt.
  • Shopify's 0.125% convertible notes ($920 million) matured in November 2025 and were settled for about $1.0 billion of cash. A $100 million revolving credit line with Royal Bank of Canada was undrawn at Sep 30, 2026.
Sources (4)
19Who owns it

19Who owns it · ownership as of Apr 21, 2026

Who owns Shopify?

Tobi Lütke held 40.02% of the votes at Apr 21, 2026 while owning about 6.2% of the shares. The 14 directors and executive officers as a group held about 6.3% of the shares (Cityfort calculation from the 2026 Form 10-K/A); the filing states no group voting share. Shopify is a foreign private issuer: it files no US proxy statement and its insiders file no Form 4s.
Officers and directors (as a group), shares
6.3%
Share classes
Shopify share classes: shares outstanding (millions) and votes per share
ClassShares (millions)Votes per shareHeld by% of shares% of votesTraded
Class A subordinate voting shares (Traded on Nasdaq and the Toronto Stock Exchange. Shares outstanding on Oct 30, 2026 (10-Q cover); percentages as of Apr 21, 2026 (Form 10-K/A).)1,208.51Public investors and institutions94.0%59.9%Yes
Class B restricted voting shares (Not traded; each converts into one Class A share. Shares outstanding on Oct 30, 2026; percentages as of Apr 21, 2026.)78.110Mostly Tobi Lütke, who controls 77,750,132 shares (99.59% of the class)6.0%38.3%No
Founder Share (one share)0See note: Its votes vary so that, with his other shares, Tobi Lütke holds at least 40% of all votes, capped at 49.9%; it carried 1.78% of votes at Apr 21, 2026.Tobi Lütke–1.8%No
Holders of 5% or more
Shopify holders of 5% or more, from the proxy statement or later Schedule 13G filings; each row shows its own date
HolderSharesVotesAs ofSourceNote
Tobi Lütke (co-founder, CEO)6.2%40.0%Apr 21, 2026S2% of all Class A and Class B shares, a Cityfort calculation from the 2026 Form 10-K/A; % of votes as stated there. He controls 77,750,132 Class B shares and the Founder Share, plus Class A shares.
BlackRock, Inc.5.1%–Jun 30, 2026S24% of Class A: 61,634,523 shares at Jun 30, 2026 (Schedule 13G filed Jul 30, 2026).

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Learn: Dual-class shares: when votes and ownership don't match · How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes

Sources (3)
20What it does with profit

20What it does with profit

What does Shopify do with its profit?

Shopify pays no dividend and said it does not expect to for the foreseeable future. Its first buyback program, $2 billion from February 2026, was raised by $3 billion on Jun 2, 2026. It filed a shelf registration on Nov 3, 2026 that lets it sell securities later; no sale under it is described in the filings used here.

  • Buyback · Sep 30, 2026

    First nine months of FY2026: 21,145,824 Class A shares bought back at an average of $117.09. $2,524 million of the $5 billion authorization was left at Sep 30, 2026.

    $2.5B

Sources (3)
21Governance signals

21Governance signals

What do Shopify's governance filings show?

Auditor
PricewaterhouseCoopers LLP (Ottawa), since 2011
Auditor changes
None in the period covered
Audit qualifications
None reported
Related-party dealings
Shopify paid about $1 million in 2025 for business travel on a private aircraft owned by Tobi Lütke, at market rates. It also has a commercial agreement with Flexport, in which it holds a stake; the revenue share under it was nil in 2025.
Credit rating
Not checked for this page

Flags to know about

  • disclosure · Nov 6, 2026

    No credit rating found

    No credit rating from S&P, Moody's or Fitch was found in Shopify's filings, its investor site or a web search on Nov 6, 2026. Shopify had no debt securities outstanding when it filed its Nov 3, 2026 shelf registration.

  • other

    Foreign private issuer

    Shopify files 10-Ks and 10-Qs voluntarily but remains a foreign private issuer. It is exempt from US proxy rules and insider trade reporting, so there is no US proxy statementThe yearly filing about shareholder votes, the board and executive pay. Learn more and no Form 4s; Part III comes in a 10-K/A.

  • disclosure · Jul 2, 2026

    Two filings name different board chairs

    The Apr 29, 2026 Form 10-K/A says Tobi Lütke serves as Chair of the Board. The Jul 2, 2026 8-K calls director Joe Natale "Chair of the Board and the Company's Lead Independent Director". The filings used here do not describe a change.

  • other · Jul 2, 2026

    Audit Committee chair resigned

    Director Prashanth Mahendra-Rajah, chair of the Audit Committee, resigned on Jul 2, 2026 to take a full-time role at the US Department of Commerce.

  • disclosure

    No employee count

    The FY2025 10-K describes Shopify's workforce but gives no employee number.

Sources (6)
22What the market paid

22What the market paid · price as of Nov 5, 2026

What did the market pay for Shopify on Nov 5, 2026?

Price as of Nov 5, 2026 (shown for education; prices change daily).

Price as of Nov 5, 2026: Shopify's Class A shares closed at $143.75 on Nasdaq, from Nasdaq's historical price table. Market value of about $184.9 billion (Cityfort calculation from the Nov 5, 2026 closing price and the Q3 FY2026 10-Q cover) = $143.75 × 1,286.5 million Class A and Class B shares (Oct 30, 2026). Class B shares are not traded but convert one-for-one; Class A alone gives $173.7 billion. P/E is price ÷ earnings per share: 152.9 on FY2025 diluted EPS of $0.94, which moves with gains and losses on Shopify's stakes in other companies.

Share price
$143.75
Market value (market cap)
$184.9B
P/E
152.9×

More price-based ratios · as of Nov 5, 2026

Each ratio divides a number from the company's filings by the market value or share price on Nov 5, 2026. Prices change daily, so these ratios do too.

Shares used for the market value: 1,286.53 million ($143.75 × 1,286.53 million shares ≈ $184.9B). Source: Form 10-Q, Q3 2026 (quarter ended Sep 30, 2026); Form 10-K/A (Amendment No. 1, Part III), fiscal 2025

Source: SHOP historical quotes, Nasdaq (close Nov 5, 2026: $143.75); Form 10-Q, Q3 2026 (quarter ended Sep 30, 2026); Form 10-K, fiscal 2025 (year ended Dec 31, 2025)

Sources (9)
23How it got here

23How it got here

How did Shopify get here?

  1. 2004

    Milestone

    Founded in Ottawa

    Tobi Lütke co-founded Shopify in September 2004; it was incorporated in Canada that month.

  2. 2021

    Milestone

    Profit mostly from stakes

    FY2021 net income of $2.91 billion included a $2.86 billion unrealized gain on equity investments; operating income was $269 million.

  3. 2022

    Crisis

    Net loss on stakes and a 10-for-1 split

    FY2022 ended with a $3.46 billion net loss, including about $3.0 billion of unrealized losses on equity investments. Each share became ten in June 2022.

  4. 2023

    Business-model change

    Exit from logistics and job cuts

    Shopify sold most of its logistics businesses to Flexport, with a $1.34 billion impairment, and cut about 23% of employees in May 2023.

  5. 2025

    Milestone

    First 10-K and move to Nasdaq

    Shopify filed its first 10-K, for FY2024, in February 2025 after years of 40-F filings. Its US listing moved from the NYSE to Nasdaq on Mar 31, 2025.

  6. 2025

    Milestone

    New COO and debt repaid

    Jessica Hertz became COO in October 2025. In November Shopify settled its $920 million of convertible notes for about $1.0 billion of cash, leaving it with no debt.

  7. 2026

    Business-model change

    First share buybacks

    Shopify started a $2 billion buyback in February 2026, raised it to $5 billion on Jun 2, 2026, and bought back $2.48 billion of shares by Sep 30.

Sources (10)

24Sources and changes

Where every number on this page comes from

Sources (24 documents)
  1. S1Form 10-K, fiscal 2025 (year ended Dec 31, 2025) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 11, 2026
  2. S2Form 10-K/A (Amendment No. 1, Part III), fiscal 2025 · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 29, 2026
  3. S3Form 10-K, fiscal 2024 (year ended Dec 31, 2024) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 11, 2025
  4. S4Form 40-F, fiscal 2022: audited consolidated financial statements (US GAAP, US$ thousands) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 16, 2023
  5. S5Form 40-F, fiscal 2022: Exhibit 13, management's discussion and analysis · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 16, 2023
  6. S6Form 10-Q, Q3 2026 (quarter ended Sep 30, 2026) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 3, 2026
  7. S9Q3 2026 earnings release (Form 8-K, Exhibit 99.1) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 3, 2026
  8. S10Q2 2026 earnings release (Form 8-K, Exhibit 99.1) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 5, 2026
  9. S11Q1 2026 earnings release (Form 8-K, Exhibit 99.1) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 5, 2026
  10. S12Q4 and full-year 2025 earnings release (Form 8-K, Exhibit 99.1) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 11, 2026
  11. S13Q3 2025 earnings release (Form 8-K, Exhibit 99.1) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 4, 2025
  12. S14Q2 2025 earnings release (Form 8-K, Exhibit 99.1) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 6, 2025
  13. S15Q1 2025 earnings release (Form 8-K, Exhibit 99.1) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 8, 2025
  14. S16Q4 and full-year 2024 earnings release (Form 8-K, Exhibit 99.1) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 11, 2025
  15. S17XBRL company facts, Shopify Inc. (CIK 0001594805) · SEC EDGAR (data.sec.gov) · Tier 1: company or exchange filing · Nov 6, 2026
  16. S18Form 8-K (Items 3.01, 7.01), Mar 18, 2025: transfer of US listing from NYSE to Nasdaq (Exhibit 99.1) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 19, 2025
  17. S19Form 8-K (Item 7.01), Jun 2, 2026: $3 billion increase to share repurchase program (Exhibit 99.1) · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jun 2, 2026
  18. S21Form 8-K (Item 5.02), Jul 2, 2026: director resignation · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 2, 2026
  19. S22Form 8-K (Item 5.02), Sep 9, 2025: departure of COO Kasra Nejatian · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 10, 2025
  20. S23Form 8-K (Item 5.02), Oct 9, 2025: appointment of Jessica Hertz as COO · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 9, 2025
  21. S24Schedule 13G, BlackRock, Inc. (5.1% of Class A, event date Jun 30, 2026) · BlackRock, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jul 30, 2026
  22. S25Form S-3ASR automatic shelf registration statement · Shopify Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 3, 2026
  23. S26SHOP historical quotes, Nasdaq (close Nov 5, 2026: $143.75) · Nasdaq, Inc. · Tier 1: company or exchange filing · Nov 5, 2026
  24. S27EDGAR submissions, Shopify Inc. (CIK 0001594805) · SEC EDGAR · Tier 1: company or exchange filing · Nov 6, 2026
Changes to this page (v1 · Nov 6, 2026)
  1. v1 · Nov 6, 2026First version, through Q3 FY2026 (quarter ended Sep 30, 2026). (first version)

Numbers come only from tier 1 and tier 2 sources. Read how we research.

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