Shopify Reports 32 Percent Revenue Growth in Q3 2025

Shopify Inc. announced financial results for the third quarter ended September 30, 2025, reporting revenue of 2.84 billion dollars and achieving 32 percent year-over-year growth. The company has now posted nine consecutive quarters of double-digit free cash flow margins, with the third quarter reaching 18 percent.

The e-commerce platform reported gross merchandise volume of 92.01 billion dollars for the quarter, representing a 32 percent increase from 69.72 billion dollars in the same period of 2024. Gross profit reached 1.39 billion dollars compared to 1.12 billion dollars in the prior year quarter, while operating income climbed to 343 million dollars from 283 million dollars.

Revenue growth was driven by both subscription solutions and merchant solutions segments. Subscription solutions revenue totaled 699 million dollars, up from 610 million dollars in the third quarter of 2024, representing a 15 percent increase. Merchant solutions revenue surged 38 percent to 2.15 billion dollars from 1.55 billion dollars in the comparable period.

The company generated 507 million dollars in free cash flow during the quarter, compared to 421 million dollars in the third quarter of 2024. Monthly recurring revenue reached 193 million dollars on the last day of the quarter, up from 175 million dollars at the end of September 2024. Net income for the period was 264 million dollars, though this figure included a 103 million dollar negative impact from equity investments marked to market.

Operating expenses totaled 1.05 billion dollars in the third quarter, up from 835 million dollars in the prior year period. Sales and marketing expenses increased to 410 million dollars from 331 million dollars, while research and development spending rose to 375 million dollars from 332 million dollars. Transaction and loan losses more than doubled to 148 million dollars from 58 million dollars.

The company ended the quarter with total assets of 15.04 billion dollars, up from 13.92 billion dollars at year-end 2024. Cash and cash equivalents stood at 2.41 billion dollars, compared to 1.50 billion dollars at the end of December 2024. Marketable securities totaled 3.94 billion dollars.

Shopify provided guidance for the fourth quarter of 2025, projecting revenue growth at a mid-to-high-twenties percentage rate on a year-over-year basis. The company expects gross profit dollars to grow at a low-to-mid-twenties percentage rate. Operating expenses as a percentage of revenue are anticipated to be 30 to 31 percent, with stock-based compensation expected at 130 million dollars. Free cash flow margin is projected to be slightly above the third quarter 2025 level.

The commerce platform currently powers millions of businesses in more than 175 countries and serves brands including Aldo, BarkBox, Carrier, Meta, SKIMS and Supreme. New entrepreneurs make their first sale on Shopify every 26 seconds according to company data.

Shopify shares trade on both the NASDAQ and Toronto Stock Exchange under the ticker symbol SHOP. The company held a conference call on November 4, 2025, to discuss the third quarter results with investors and analysts.