Shopify's Standout 2025: The Launchpad for a New Era of Commerce in 2026

Core Insights - Shopify reported a Q4 revenue growth of 31% year-over-year and a free cash flow margin of 19%, marking ten consecutive quarters of double-digit free cash flow margins [1][2] - For the full year 2025, Shopify achieved a revenue growth of 30%, which is 4 percentage points higher than 2024, and a free cash flow margin of 17% [2][3] - The company is focusing on AI commerce and expects 2026 to be a year of building and scaling for its merchants [2] Financial Performance - Q4 2025 GMV reached $123.841 billion, up from $94.460 billion in Q4 2024, representing a growth of 31% [3][4] - Q4 2025 revenue was $3.672 billion, compared to $2.812 billion in Q4 2024, also reflecting a 31% increase [3][4] - Gross profit for Q4 2025 was $1.693 billion, up from $1.352 billion in Q4 2024, indicating a growth of 25% [3][4] - Operating income for Q4 2025 was $631 million, compared to $465 million in Q4 2024, showing a growth of 36% [3][4] Growth Drivers - International revenue grew by 36% year-over-year, while offline revenue increased by 27% [5] - B2B GMV saw a significant growth of 96%, and Gross Payments Volume grew by 37% [5] - Shop Pay GMV experienced a growth of 62% [5] 2026 Outlook - For Q1 2026, Shopify expects revenue growth to be in the low-thirties percentage range year-over-year, similar to Q4 2025 [8] - Gross profit dollars are anticipated to grow at a high-twenties percentage rate year-over-year [8] - Free cash flow margin is expected to be in the low-to-mid teens, slightly below Q1 of 2025 [8] Share Repurchase Program - Shopify's Board of Directors has authorized a share repurchase program of up to $2 billion, which will commence on February 17, 2026 [9][28] - The program aims to execute repurchases through various means, including open-market purchases and privately negotiated transactions [9][28]