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Sep 30
Shopify Q3 2025 Earnings Report
Shopify reported strong revenue growth and consistent free cash flow margin in Q3 2025.
Key Takeaways
Shopify delivered a robust Q3 2025 with 32% year-over-year revenue growth, driven by gains in both subscription and merchant solutions, and maintained strong profitability with an 18% free cash flow margin.
Revenue grew 32% YoY to $2.84B, exceeding Q2 performance.
Gross Merchandise Volume (GMV) reached $92.01B, up from $69.72B YoY.
Free cash flow hit $507M with an 18% margin, marking the 9th straight quarter of double-digit margins.
Operating income increased to $343M despite higher transaction and loan losses.
Shopify
Shopify
Shopify Revenue by Segment
Revenue by Segment
Subscription Solutions Revenue
CapyFin.comMerchant Solutions Revenue
CapyFin.com Forward Guidance
Shopify expects continued revenue and gross profit growth into Q4 2025, with operating discipline and sustained free cash flow margin.
Positive Outlook
- Revenue growth expected in mid-to-high twenties YoY for Q4
- Gross profit dollars expected to grow low-to-mid twenties YoY
- Free cash flow margin to remain above Q3 levels
- Operating expenses expected to be 30–31% of revenue
- Stock-based compensation forecasted at $130M
Challenges Ahead
- Stock-based compensation continues to be a significant expense
- Operating expenses remain elevated relative to revenue
- Transaction and loan losses increased to $148M
- No geographic revenue breakdown provided
- No employee headcount disclosed in the report
Revenue & Expenses
Visualization of income flow from segment revenue to net income