Shopify’s latest quarter shows a business growing across geographies and product lines, with healthy cash generation and clear momentum in payments and checkout. Below is a concise readout of the key metrics and the takeaways we think matter most for merchants and partners.
Headline results
Topline and GMV: Revenue rose 31% year over year to $2.68B as GMV climbed 31% to $87.8B. MRR ended the quarter at $185M. Gross profit reached $1.30B and operating income was $291M. Free cash flow came in at $422M (a 16% margin), extending Shopify’s run of double‑digit FCF margins.
Mix: Merchant Solutions delivered $2.02B (+36.6% YoY), while Subscription Solutions was $656M (+16.6% YoY).
Regional trend: Management highlighted Europe as a standout, with GMV up 42% on a constant‑currency basis.
Profit note: Reported net income was $906M, boosted by gains on equity investments; excluding those, net income was $338M.
What stood out on the call
Payments penetration and Shop Pay scale: Shopify said Shopify Payments reached 64% GMV penetration. Shop Pay processed about $27B of GMV in the quarter (+65% YoY), and Shop App native GMV grew +140% YoY—evidence that frictionless checkout continues to pull through more volume. (Nasdaq)
Omnichannel and B2B momentum: Offline (in‑store) GMV increased 29% YoY, and B2B GMV jumped 101%—two signals that Shopify is winning merchants that sell beyond a single web storefront. (Nasdaq)
Tariff watch = non‑event: Management noted the tariff impact they had modeled did not materialize this quarter, and demand in the U.S. remained solid. (Investopedia,Barron's)
Quality of growth and operating discipline
Cash generation: Free cash flow of $422M at a 16% margin underscores disciplined spend while growing at scale.
Operating costs and risk lens: GAAP operating expenses were $1.01B; within that, transaction and loan losses rose to $80M (from $42M a year ago). That’s something to monitor as Shopify expands financial products and absorbs more payment volume.
Subscription health:MRR grew ~9–10% YoY to $185M, with Shopify Plus comprising 35% of MRR, pointing to continued traction up‑market even as Merchant Solutions drives most of the dollar growth. (Nasdaq)
Guidance and market reaction
Q3 outlook: Shopify expects revenue growth in the mid‑to‑high 20s% YoY, gross profit growth in the low‑20s%, OpEx at 38–39% of revenue, and free cash flow margin in the mid‑to‑high teens. (Shopify)
Investor response: Shares jumped ~20% after the print, trading near pandemic‑era highs—reflecting upside on revenue/GMV and confidence in forward guidance. (Barron's)
Why this matters for enterprise ecommerce leaders
Payments and checkout are growth levers. With Payments at 64% penetration and Shop Pay at multibillion‑dollar quarterly scale, the attach rate—and the conversion lift that comes with accelerated checkout—remain key. If you’re not running Payments/Shop Pay across web, POS, and social channels, you’re likely leaving conversion on the table. (Nasdaq)
Omnichannel is accelerating. Offline GMV growth (+29%) highlights the value of a unified stack—catalog, inventory, and customer data—across online and store. For brands with meaningful retail footprints, Shopify’s POS and unified data model continue to be strategic. (Nasdaq)
B2B is no longer a side bet. Triple‑digit B2B GMV growth suggests more complex catalogs and account‑based selling are moving onto Shopify. If you sell into wholesale or distribution, the platform’s B2B capabilities are maturing quickly. (Nasdaq)
International is a real growth vector. Europe’s pace (42% CC) shows where incremental demand is—plan for localized experiences, multi‑currency, and duty/VAT handling to capture it.
Keep an eye on credit risk. The rising transaction and loan losses line is still modest in context, but it’s worth tracking as Shopify scales financial services.
Bottom line: Shopify delivered broad‑based growth, better‑than‑planned demand, and strong cash flow, with payments and checkout doing heavy lifting and Europe out in front. The near‑term guide is solid, and the product mix continues to tilt toward features that improve conversion and lifetime value—right where enterprise operators want it. (Shopify, Investopedia)
If you’d like help translating these themes into your roadmap—expanding Shop Pay, unifying POS with ecommerce, or pressure‑testing B2B on Shopify—Kasama’s team is happy to share playbooks from recent enterprise implementations.
