SHOPIFY INC. Annual Report, Year Ended Dec 31, 2025

Shopify Inc. reported a strong fiscal year 2025, with total revenues reaching $11.6 billion, a 30% increase year-over-year. Gross Merchandise Volume (GMV) also saw significant growth, up 29% to $378.4 billion. The company's business model continues to be driven by its "merchant solutions" segment, which accounted for 76% of total revenues, with "subscription solutions" making up the remaining 24%. This shift towards merchant solutions, particularly from Shopify Payments, indicates increasing merchant engagement with the platform's integrated services. Shopify demonstrated robust operational performance with income from operations growing to $1.5 billion. The company also reported a net income of $1.2 billion. Shopify's balance sheet remains strong, with cash, cash equivalents, and marketable securities totaling $5.8 billion, providing ample liquidity for ongoing operations and future investments. The company has successfully managed its debt, having settled its convertible senior notes. Despite a strong performance, investors should note the increasing cost of merchant solutions relative to subscription solutions, which impacts gross margins, and the company's continued investment in research and development and sales and marketing to fuel future growth.