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Jun 30
Shopify Q2 2025 Earnings Report
Shopify reported strong top-line growth and robust profitability in Q2 2025.
Key Takeaways
Shopify delivered an outstanding Q2 2025 with 31% revenue growth, high free cash flow, and significant net income driven by gains from equity investments.
Revenue grew 31% YoY to $2.68B in Q2 2025.
Net income reached $906M, including equity investment gains.
Free cash flow margin remained strong at 16%.
GMV surged to $87.8B with broad-based regional acceleration.
Shopify
Shopify
Shopify Revenue by Segment
Revenue by Segment
Subscription Solutions Revenue
CapyFin.comMerchant Solutions Revenue
CapyFin.com Forward Guidance
Shopify expects continued strong revenue and gross profit growth in Q3 2025, maintaining solid free cash flow margins despite higher stock-based compensation.
Positive Outlook
- Revenue expected to grow in mid-to-high twenties percentage YoY
- Gross profit dollars expected to grow in low twenties percentage YoY
- Free cash flow margin projected in mid-to-high teens
- Continued momentum in Europe and Asia Pacific regions
- Stable operating expense ratio at 38% to 39% of revenue
Challenges Ahead
- Stock-based compensation projected at $130 million
- Macroeconomic risks remain for global e-commerce
- High competition may impact merchant acquisition costs
- Dependence on equity investment valuations for net income volatility
- Potential foreign exchange impacts on international growth
Revenue & Expenses
Visualization of income flow from segment revenue to net income