[Q2 2025 Financial Results Overview](index=1&type=section&id=Q2%202025%20Financial%20Results%20Overview) Shopify's **Q2 2025** achieved strong **revenue growth** and consistent **free cash flow margins**, fueled by strategic investments and accelerated regional performance [Executive Summary & Key Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Key%20Highlights) **Shopify** reported an exceptional **Q2 2025**, achieving **31% revenue growth** and a **16% free cash flow margin**, marking eight consecutive quarters of double-digit **free cash flow margins**. Management attributed this success to strategic investments and noted accelerating **GMV** and **revenue growth** across key regions, particularly Europe [Overall Performance & Management Commentary](index=1&type=section&id=Overall%20Performance%20%26%20Management%20Commentary) **Shopify** delivered strong **Q2 2025** results with significant **revenue growth** and consistent **free cash flow margins**. Management emphasized the payoff from past strategic investments and highlighted accelerating growth in **GMV** and **revenue** across North America, Europe, and Asia Pacific, with Europe showing particular strength - **Shopify** achieved **31% revenue growth** and **16% free cash flow margin**, marking eight consecutive quarters of double-digit **free cash flow margins**[1](index=1&type=chunk) - **GMV** and **revenue growth** rates accelerated in North America, Europe, and Asia Pacific, quarter over quarter. Europe was a particular source of strength, where **GMV** grew **42%** on a **constant currency basis**[2](index=2&type=chunk) [Selected Business Performance Information](index=1&type=section&id=Selected%20Business%20Performance%20Information) Key financial metrics for **Q2 2025** demonstrated robust year-over-year growth across **GMV**, **MRR**, **Revenue**, **Gross Profit**, **Operating Income**, and **Free Cash Flow**, with **revenue growth** rate increasing by **10 percentage points** Selected Business Performance (Q2 2025 vs. Q2 2024) | Metric | June 30, 2025 (US $ millions) | June 30, 2024 (US $ millions) | YoY Growth | | :--- | :--- | :--- | :--- | | GMV | 87,837 | 67,245 | 30.6% | | MRR | 185 | 169 | 9.5% | | Revenue | 2,680 | 2,045 | 31.0% | | Gross profit | 1,302 | 1,045 | 24.6% | | Operating income | 291 | 241 | 20.7% | | Free cash flow | 422 | 333 | 26.7% | | YoY revenue growth rate | 31% | 21% | +10 p.p. | | Free cash flow margin | 16% | 16% | 0 p.p. | [Company Information](index=2&type=section&id=Company%20Information) This section details **Shopify** as a leading global commerce company, highlighting its platform and extensive merchant reach across **175+** countries [About Shopify](index=2&type=section&id=About%20Shopify) **Shopify** is a leading global commerce company that provides essential internet infrastructure, offering tools for businesses of all sizes to start, scale, market, and run their retail operations. Its platform is engineered for speed, customization, reliability, and security, serving millions of businesses in over **175** countries - **Shopify** is a leading global commerce company providing essential internet infrastructure for commerce, offering trusted tools to start, scale, market, and run a retail business of any size[8](index=8&type=chunk) - **Shopify** powers millions of businesses in more than **175** countries and is trusted by numerous global brands[8](index=8&type=chunk) [Financial Outlook](index=2&type=section&id=Financial%20Outlook) This section outlines **Shopify's Q3 2025 financial outlook** and includes disclaimers regarding forward-looking statements and associated risks [Q3 2025 Outlook](index=2&type=section&id=Q3%202025%20Outlook) For **Q3 2025**, **Shopify** expects **revenue growth** in the mid-to-high twenties percentage range year-over-year, with **gross profit** dollars growing at a low-twenties percentage rate. **Operating expenses** are projected to be **38%** to **39%** of **revenue**, stock-based compensation at **$130 million**, and **free cash flow margin** in the mid-to-high teens Q3 2025 Financial Outlook | Metric | Q3 2025 Outlook | | :--- | :--- | | Revenue growth (YoY) | Mid-to-high twenties percentage rate | | Gross profit dollars growth (YoY) | Low-twenties percentage rate | | Operating expense as % of revenue | 38% to 39% | | Stock-based compensation | $130 million | | Free cash flow margin | Mid-to-high teens | [Forward-Looking Statements](index=9&type=section&id=Forward-Looking%20Statements) This section contains a standard disclaimer regarding forward-looking statements, highlighting that actual results may differ materially from projections due to various known and unknown risks. These risks include economic conditions, consumer spending, international trade impacts, reliance on third-party cloud providers, cybersecurity threats, and software defects. Investors are cautioned against undue reliance on these statements - Forward-looking statements, including **financial outlook** for the next fiscal quarter, are based on current projections and expectations but are subject to known and unknown risks[20](index=20&type=chunk) - Risks that may cause actual results to differ materially include economic conditions, consumer spending, international trade, reliance on third-party cloud providers, cyberattacks, and software defects[20](index=20&type=chunk) [Condensed Consolidated Financial Statements](index=3&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents **Shopify's** unaudited condensed consolidated financial statements, including operations, balance sheets, and cash flows for **Q2 2025** [Condensed Consolidated Statement of Operations](index=3&type=section&id=Condensed%20Consolidated%20Statement%20of%20Operations) **Shopify's Q2 2025** Statement of Operations shows total revenues of **$2,680 million**, a **31%** increase year-over-year, driven primarily by merchant solutions. **Gross profit** rose to **$1,302 million**, and **net income** significantly increased to **$906 million**, largely due to a positive **net other income (expense)** including taxes Condensed Consolidated Statement of Operations (Q2 2025 vs. Q2 2024) | Metric (US $ millions) | June 30, 2025 | June 30, 2024 | YoY Change | | :--- | :--- | :--- | :--- | | **Revenues** | | | | | Subscription solutions | 656 | 563 | +16.5% | | Merchant solutions | 2,024 | 1,482 | +36.6% | | **Total Revenues** | **2,680** | **2,045** | **+31.0%** | | Cost of revenues | 1,378 | 1,000 | +37.8% | | **Gross profit** | **1,302** | **1,045** | **+24.6%** | | Total operating expenses | 1,011 | 804 | +25.7% | | **Operating income** | **291** | **241** | **+20.7%** | | Net other income (expense), including taxes | 615 | (70) | N/A | | **Net income** | **906** | **171** | **+430%** | | Net income excluding the impact of equity investments | 338 | 291 | +16.2% | - **Net other income (expense)**, including taxes, significantly contributed to the **net income** increase, encompassing interest income, gains/losses on **equity investments** and other investments, foreign exchange, and income taxes[11](index=11&type=chunk) [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of **June 30, 2025**, **Shopify's total assets** increased to **$14,561 million** from **$13,924 million** at **December 31, 2024**, driven by growth in current assets, particularly **marketable securities** and loans. **Total shareholders' equity** also grew to **$12,124 million** Condensed Consolidated Balance Sheets (June 30, 2025 vs. December 31, 2024) | Metric (US $ millions) | June 30, 2025 | December 31, 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **14,561** | **13,924** | **+637** | | Current assets | 8,001 | 7,254 | +747 | | Long-term assets | 6,560 | 6,670 | -110 | | **Total Liabilities** | **2,437** | **2,366** | **+71** | | Current liabilities | 2,078 | 1,956 | +122 | | Long-term liabilities | 359 | 410 | -51 | | **Total Shareholders' Equity** | **12,124** | **11,558** | **+566** | - **Cash and cash equivalents** increased to **$1,542 million** from **$1,498 million**, while **marketable securities** grew to **$4,278 million** from **$3,981 million**[13](index=13&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) **Shopify's Q2 2025 cash flow** statement shows **net cash provided by operating activities** increased to **$428 million**. Investing activities resulted in a reduced net cash outflow of **$252 million**, and financing activities provided **$44 million**. Overall, **cash**, **cash equivalents**, and restricted cash increased by **$233 million**, ending the period at **$1,542 million** Condensed Consolidated Statements of Cash Flows (Q2 2025 vs. Q2 2024) | Metric (US $ millions) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | 428 | 340 | | Net cash used in investing activities | (252) | (424) | | Net cash provided by financing activities | 44 | 3 | | Effect of foreign exchange on cash | 13 | (1) | | Net increase (decrease) in cash, cash equivalents and restricted cash | 233 | (82) | | Cash, cash equivalents and restricted cash – end of period | 1,542 | 1,541 | - A significant net gain on **equity investments** and other investments (**$-682 million**) in **Q2 2025**, compared to a loss (**$76 million**) in **Q2 2024**, impacted **operating cash flow** adjustments[14](index=14&type=chunk) [Non-GAAP Financial Measures & Analysis](index=7&type=section&id=Non-GAAP%20Financial%20Measures%20%26%20Analysis) This section details **Shopify's** non-GAAP financial measures, including **free cash flow**, **net income excluding equity investments**, and **constant currency analysis** [Free Cash Flow Reconciliation](index=7&type=section&id=Free%20Cash%20Flow%20Reconciliation) **Shopify's free cash flow** for **Q2 2025** increased to **$422 million** from **$333 million** in **Q2 2024**, maintaining a consistent **16% free cash flow margin**. This non-GAAP measure is calculated by subtracting **capital expenditures** from **net cash provided by operating activities** Free Cash Flow Reconciliation (Q2 2025 vs. Q2 2024) | Metric (US $ millions) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | 428 | 340 | | Less: capital expenditures | (6) | (7) | | **Free cash flow** | **422** | **333** | | Revenue | 2,680 | 2,045 | | **Free cash flow margin** | **16%** | **16%** | - **Free cash flow** and **free cash flow margin** are non-GAAP financial measures provided to help investors understand operating results and business performance in the same manner as management[23](index=23&type=chunk) [Net Income Excluding Equity Investments Reconciliation](index=7&type=section&id=Net%20Income%20Excluding%20Equity%20Investments%20Reconciliation) **Net income excluding the impact of equity investments**, a non-GAAP measure, was **$338 million** for **Q2 2025**, up from **$291 million** in **Q2 2024**. This adjustment removes the volatile gains or losses from **equity investments**, which management deems irrelevant to core operational results Net Income Excluding Equity Investments Reconciliation (Q2 2025 vs. Q2 2024) | Metric (US $ millions) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | | :--- | :--- | :--- | | Net income | 906 | 171 | | Less: equity investments, marked to market, net of taxes | 568 | (120) | | **Net income excluding the impact of equity investments** | **338** | **291** | - The impact of gains or losses on **equity investments** is excluded as it is not considered relevant to the fundamentals of **Shopify's** business, given that valuations are outside of management's control[11](index=11&type=chunk) [Financial Performance Constant Currency Analysis](index=8&type=section&id=Financial%20Performance%20Constant%20Currency%20Analysis) **Shopify** provides a **constant currency analysis** to offer a clearer comparison of period-to-period operating results by removing the impact of foreign exchange rate fluctuations. On a **constant currency basis**, **GMV** grew **29%**, **revenue** grew **30%**, and **gross profit** grew **24%** year-over-year for **Q2 2025** Financial Performance Constant Currency Analysis (Q2 2025 vs. Q2 2024) | Metric | 2025 as reported | 2024 as reported | Percentage change YoY | Constant currency impact | Percentage change YoY constant currency | | :--- | :--- | :--- | :--- | :--- | :--- | | GMV | 87,837 | 67,245 | 31% | 1,042 | 29% | | Revenue | 2,680 | 2,045 | 31% | 17 | 30% | | Subscription solutions revenue | 656 | 563 | 17% | 3 | 16% | | Merchant solutions revenue | 2,024 | 1,482 | 37% | 14 | 36% | | Gross profit | 1,302 | 1,045 | 25% | 9 | 24% | | Operating income | 291 | 241 | 21% | 8 | 17% | - This analysis helps investors understand financial and operating performance by isolating the effects of foreign exchange rate fluctuations[18](index=18&type=chunk) [Additional Information](index=2&type=section&id=Additional%20Information) This section provides supplementary information, including quarterly conference call details, regulatory filings, and definitions of key financial metrics [Quarterly Conference Call & Filings](index=2&type=section&id=Quarterly%20Conference%20Call%20%26%20Filings) **Shopify's Q2 2025** results were discussed in a conference call on August **6, 2025**, with a webcast available on their investor relations website. The company's Form **10-Q** for the quarter ended **June 30, 2025**, including unaudited financial statements, is available on **Shopify's** website and filed with US and Canadian securities regulators - A conference call to discuss **Q2** results was held on August **6, 2025**, with an archived webcast available on **Shopify's** investor relations website[6](index=6&type=chunk) - **Shopify's** Form **10-Q** for **Q2 2025**, including financial statements and MD&A, is available on www.shopify.com and filed on EDGAR and SEDAR+[7](index=7&type=chunk) [Endnotes & Key Metric Definitions](index=9&type=section&id=Endnotes%20%26%20Key%20Metric%20Definitions) This section provides definitions for key financial and operational metrics used in the report, including **Gross Merchandise Volume** (**GMV**), **Monthly Recurring Revenue** (**MRR**), and **Free Cash Flow** (**FCF**), clarifying their calculation and significance - **Gross Merchandise Volume** (**GMV**) represents the total dollar value of orders facilitated through the **Shopify** platform, net of refunds, and inclusive of shipping, handling, duty, and taxes[21](index=21&type=chunk) - **Monthly Recurring Revenue** (**MRR**) is the aggregate value of all subscription plans in effect on the last day of the period, used as a directional indicator for **subscription solutions revenue**[22](index=22&type=chunk) - **Free cash flow** is a non-GAAP financial measure calculated as **cash flow from operations** less **capital expenditures**, providing insight into operating results and business performance[23](index=23&type=chunk)

Benchmark将Shopify的目标价从125美元上调至140美元，维持"买入"评级。(格隆汇) ...

3)消费者信心：大学密歇根大学和世界大型企业联合会指数均呈现出逐季的适度改善，更重要的是，会 议委员会的"预期指数"表明消费者对未来商业状况和劳动力市场的悲观情绪有所减轻，同时对未来收入 水平的预期也有所增强; 4)消费者支出模式：大摩的调查工作表明，消费者因拟议的关税而减少支出的倾向有所下降。 话虽如此，但从需求角度来看，宏观趋势表明： 1)非实体店销售额：在整个第二季度一直保持在 6%至 7%的增速区间内，与第一季度最后一个月的约 7%基本一致，并且在季度层面有所提升(第二季度的跟踪数据达到中个位数水平，而第一季度则在低个 位数水平); 2)零售销售额：从 5 月到 6 月保持稳定，使得第二季度的水平与 2025 年第一季度的水平基本一致; 智通财经APP获悉，Shopify(SHOP.US)将于周三美股盘前公布第二季度业绩。在此之前，摩根士丹利发 布对其进行前瞻分析。大摩指出，第一季度表现强劲，宏观经济数据持续稳定，加之代理商务模式的灵 活性增强，使得该公司表现明显优于大盘软件股。大摩预计在第二季度，市场会有各种不同的波动和变 化，不过稳健的长期布局使其保持乐观态度。大摩给予Shopify"增持"评级， ...

Analysts expect the Ottawa, Canada-based company to report quarterly earnings at 29 cents per share, up from 26 cents per share in the year-ago period. Shopify is projected to report quarterly revenue of $2.55 billion, compared to $2.04 billion a year earlier, according to data from Benzinga Pro. On May 8, Shopify reported fiscal first-quarter results. The company's quarterly revenue growth of 26.8% year over year to $2.36 billion beat the analyst consensus estimate of $2.33 billion. Shopify Inc. SHOP will ...

Core Insights - Beyond the Wall Investing offers a subscription service that provides access to high-quality equity research reports, potentially saving investors thousands of dollars annually [1] - Shopify (NASDAQ: SHOP) has received only two articles rated as "Hold," indicating concerns about future growth due to tariffs and macroeconomic deceleration despite its current massive growth rates [1] Group 1 - The subscription service includes features such as a fundamentals-based portfolio, weekly analysis from institutional investors, and alerts for short-term trade ideas based on technical signals [1] - The investing group also provides ticker feedback upon request and facilitates community chat for discussions among investors [1] Group 2 - The analyst has no current stock or derivative positions in any mentioned companies and does not plan to initiate any positions in the near future [1]

Core Insights - Notable companies reporting quarterly results include Disney, Fortinet, and Shopify, all of which have favorable Zacks Rank ratings [1] Disney – DIS - Disney is expected to report its fiscal third quarter results, with a Zacks Rank of 2 (Buy) [2] - The stock has risen over 30% in the last year, reaching a 52-week high of $124 in late June [2] - Cost-cutting initiatives and strategic pivots have led to strong performance, with major box office hits like Inside Out 2 and Lilo & Stitch grossing over $1 billion globally [3] - Streaming platforms Disney+ and Hulu have seen increased profitability, aided by measures against password sharing and the introduction of extra-member fees [3] - Q3 is projected to see 2% growth in revenue and 6% growth in earnings [3] - The forward earnings multiple stands at 20.1X, with a price-to-sales ratio below 2X, indicating value [4] Fortinet – FTNT - Fortinet, with a Zacks Rank of 2 (Buy), is gaining traction due to its AI-powered threat detection and post-quantum cryptography readiness [5] - Following a record Q1, Q2 revenue is expected to reach $1.62 billion, a 13% increase, with EPS projected to rise 3% to $0.59 [6] - Fortinet has exceeded earnings expectations for 29 consecutive quarters since May 2018, contributing to a stock gain of over 70% in the past year [6] Shopify – SHOP - Shopify holds a Zacks Rank of 1 (Strong Buy) and has seen its stock increase over 15% year-to-date, with a remarkable 140% gain over the last year [10] - The introduction of AI-powered tools has enhanced its commerce platform, driving popularity among merchants [10] - Strategic partnerships with Meta Platforms, Amazon, and TikTok have expanded Shopify's ecosystem [11] - Q2 sales are projected to rise 24% to $2.54 billion, with EPS expected to increase 8% to $0.28 [11] - Analysts anticipate Gross Merchandise Volume (GMV) to reach $81 billion, marking seven consecutive quarters of over 20% GMV growth [11] Conclusion - Disney, Fortinet, and Shopify are highlighted as key stocks to watch as they prepare to report quarterly results, with potential for further upside [13]

Core Viewpoint - Shopify is expected to report strong revenue and GMV growth in its upcoming Q2 2025 results, driven by an expanding merchant base and innovative solutions [1][3][9]. Revenue Expectations - Shopify anticipates revenue growth at a mid-twenties percentage rate year-over-year, with the Zacks Consensus Estimate for revenues at $2.54 billion, reflecting a 24.25% increase from the previous year [1][2]. Earnings Projections - The consensus estimate for earnings is set at 28 cents per share, indicating a 7.69% growth from the same quarter last year [2]. Gross Merchandise Volume (GMV) Insights - GMV for Q1 2025 was reported at $74.75 billion, a 22.8% year-over-year increase, with expectations for Q2 GMV to reach $81 billion, representing a 20.8% growth [3][4]. Merchant Growth and Adoption - Shopify's merchant base is growing, contributing to GMV growth, with same-store sales growth and international expansion playing significant roles [3][4][12]. Innovations and Tools - The increasing usage of Shop Pay and new features like Shopify Balance and AI-powered tools are expected to enhance merchant efficiency and cash flow management [5][9][14]. Market Performance - Shopify shares have gained 11.5% year-to-date, outperforming the Zacks Computer & Technology sector and the Zacks Internet Services industry [7]. Strategic Partnerships - Collaborations with companies like Cognizant and Google Cloud are aimed at modernizing retail commerce platforms and enhancing personalized shopping experiences [13][14]. Valuation Considerations - Shopify's stock is currently trading at a premium, with a forward Price/Sales ratio of 12.74X compared to industry averages [10].

Core Insights - Shopify's stock rebounded by over 5% following positive news regarding the European Union delaying retaliatory tariffs against the U.S. for six months, which helped restore investor optimism despite previous negative economic data [1][4][5] Group 1: Economic Context - Investors are closely monitoring economic indicators ahead of Shopify's Q2 earnings report, with the stock showing a gain of 4.8% as of 11:29 a.m. ET [2] - A weak jobs report for June and revised numbers for May had previously spooked investors, leading to a sell-off in stocks [5] - The U.S. economy's growth is crucial for Shopify, as its performance is tied to the growth of U.S. companies and the creation of new businesses [6] Group 2: Earnings Outlook - Profit growth for Shopify has been slowing, and the upcoming Q2 report will provide insights into the company's current trajectory [4][7] - The next few quarters are critical for Shopify investors, as uncertainties surrounding hiring and tariffs may take time to resolve [7]

Core Viewpoint - US AI application software stocks experienced an initial rise on Monday, indicating positive market sentiment towards this sector [1] Company Summaries - Palantir (PLTR.US) saw an increase of over 3% ahead of its latest earnings report scheduled for after market close today [1] - Unity Software (U.US) rose by more than 7%, reflecting strong investor interest [1] - Shopify (SHOP.US) increased by over 4.5%, suggesting positive market dynamics for e-commerce platforms [1] - Cloudflare (NET.US) experienced a rise of over 3.7%, indicating continued growth in the cloud services sector [1]

Core Viewpoint - The AI application software stocks in the US market experienced an upward trend on Monday, with notable gains in several companies ahead of their earnings reports [1] Company Summaries - Palantir (PLTR.US) saw an increase of over 3% and is set to release its latest earnings report after the market closes today [1] - Unity Software (U.US) rose by more than 7% [1] - Shopify (SHOP.US) increased by over 4.5% [1] - Cloudflare (NET.US) gained more than 3.7% [1]