01—Abstract
Summary
Summary of the 10-K filed February 11, 2026. Cited figures are marked; the original filing is the authoritative source.
Shopify Inc. reported a strong fiscal year 2025, with total revenues reaching $11.6 billiona, a 30% increase year-over-year.
Gross Merchandise Volume (GMV) also saw significant growth, up 29% to $378.4 billionb. 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 billionc. 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.
02—Key points
Key Highlights
- Total revenues grew 30% year-over-year to $11.6 billion in fiscal year 2025.
- Gross Merchandise Volume (GMV) increased 29% to $378.4 billion.
- Merchant solutions revenue now represents 76% of total revenue, driven by strong performance in Shopify Payments.
- Income from operations was $1.5 billion, and net income was $1.2 billion.
- The company ended the year with a healthy liquidity position, holding $5.8 billion in cash, cash equivalents, and marketable securities.
- Shopify acquired Vantage Discovery Inc. in March 2025 to enhance its AI-powered search capabilities.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2025, Shopify Inc. kept $0.11.
- Revenue$11.56B100.0%
- Cost of revenue−$6.00B51.9%
- Gross profit$5.55B48.1%
- Operating costs−$4.09B35.4%
- Operating income$1.47B12.7%
- Interest, other & tax−$237.0M2.1%
- Net income$1.23B10.7%
Where FY2025 revenue went
$11.56B- Cost of revenue: $6.00B, 52% of revenue
- Other operating costs: $2.55B, 22% of revenue
- R&D: $1.54B, 13% of revenue
- Net income: $1.23B, 11% of revenue
- Interest, other & tax: $237.0M, 2.1% of revenue
Kept 11% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2025filed February 11, 2026Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $11.56B$8.88B | +30.1% |
| Cost of Revenue | $6.00B$4.41B | +36.1% |
| Gross Profit | $5.55B$4.47B | +24.2% |
| R&D Expenses | $1.54B$1.37B | +12.4% |
| Operating Expenses | $4.09B$3.40B | +20.3% |
| Operating Income | $1.47B$1.07B | +36.6% |
| Net Income | $1.23B$2.02B | −39.0% |
| EPS (Basic) | $0.95$1.57 | −39.5% |
| EPS (Diluted) | $0.94$1.55 | −39.4% |
| Shares Outstanding (Basic) | 1.30B1.29B | +0.7% |
| Shares Outstanding (Diluted) | 1.30B1.30B | +0.3% |
05—Questions
Frequently Asked Questions
What was Shopify's revenue growth in fiscal year 2025?
Shopify reported a 30% increase in total revenues for the year ended December 31, 2025, reaching $11.6 billion.
Which segment is driving Shopify's revenue growth?
The "merchant solutions" segment is the primary driver of Shopify's revenue, accounting for 76% of total revenues in fiscal year 2025. This is largely attributed to the performance of Shopify Payments.
How did Shopify's profitability fare in fiscal year 2025?
Shopify achieved an income from operations of $1.5 billion and a net income of $1.2 billion in fiscal year 2025, indicating strong profitability.
What is Shopify's financial position in terms of liquidity?
The company ended fiscal year 2025 with a strong liquidity position, holding $5.8 billion in cash, cash equivalents, and marketable securities.
What strategic acquisitions did Shopify make in 2025?
In March 2025, Shopify acquired Vantage Discovery Inc. to bolster its AI-powered search capabilities and accelerate the development of AI-driven search solutions.
06—Continue