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Jun 30, 2025
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.
Revenue by Segment
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
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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