10-QPeriod: Q1 FY2026

SHOPIFY INC. Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 5, 2026For Securities:SHOP

Summary

Shopify Inc. reported strong revenue growth in the first quarter of 2026, with total revenues reaching $3.2 billion, a 34% increase year-over-year. This growth was primarily driven by a robust expansion in Merchant Solutions revenue, which grew 39% to $2.4 billion, fueled by increased payment processing and currency conversion fees from Shopify Payments. Subscription Solutions revenue also showed healthy growth of 21% to $750 million, indicating continued demand for the core platform. While the company reported a net loss of $581 million for the quarter, this was largely influenced by significant unrealized losses on equity and other investments, amounting to $1.06 billion. Excluding these investment-related fluctuations, the operational performance demonstrates continued expansion. The company also initiated a substantial $2 billion share repurchase program, signaling confidence in its future and a commitment to returning value to shareholders. Shopify's Gross Merchandise Volume (GMV) surged by 35% to $100.7 billion, underscoring the growing success of its merchants and the platform's expanding reach.

Financial Highlights

46 data points
Beta

Revenue

$3.17B

48.8% Gross Margin

Net Income

-$581.00M

-18.3% Net Margin

EPS (Diluted)

$-0.45

Total Assets

$14.12B

Cash & Equivalents

$1.85B

Free Cash Flow

$476.00M

Financial Statements
Beta
Revenue$3.17B
Cost of Revenue$1.62B
Gross Profit$1.55B
R&D Expenses$437.00M
Operating Expenses$1.16B
Operating Income$382.00M
Net Income-$581.00M
EPS (Basic)$-0.45
EPS (Diluted)$-0.45
Shares Outstanding (Basic)1.30B
Shares Outstanding (Diluted)1.30B

Key Highlights

  • 1Total revenues grew 34% year-over-year to $3.2 billion, driven by strong performance in both subscription and merchant solutions.
  • 2Merchant Solutions revenue surged 39% to $2.4 billion, largely due to increased payment processing fees from Shopify Payments and higher GMV.
  • 3Subscription Solutions revenue increased 21% to $750 million, reflecting continued demand for the platform and growth in MRR.
  • 4Gross Merchandise Volume (GMV) increased 35% year-over-year to $100.7 billion, indicating merchant success and platform adoption.
  • 5The company announced a significant $2 billion share repurchase program, demonstrating confidence and commitment to shareholder value.
  • 6Despite a reported net loss of $581 million, a substantial portion was attributable to non-cash unrealized losses on equity and other investments.
  • 7The company's cash position remains strong, with cash, cash equivalents, and marketable securities totaling $5.7 billion as of March 31, 2026.

Frequently Asked Questions

The primary driver of Shopify's revenue growth was the Merchant Solutions segment, which saw a 39% increase to $2.4 billion. This growth was largely due to higher payment processing and currency conversion fees from Shopify Payments, directly correlating with the significant 35% increase in Gross Merchandise Volume (GMV) facilitated through the platform.

Shopify reported a net loss of $581 million. However, this loss was significantly impacted by $1.06 billion in unrealized losses on equity and other investments, which are non-cash items and subject to market volatility. Operationally, the company is focusing on revenue growth and managing operating expenses. The company also announced a substantial share repurchase program, signaling confidence in its long-term prospects.

The company announced a $2 billion share repurchase program. This indicates management's confidence in the company's financial health and future prospects, and it represents a commitment to returning capital to shareholders by reducing the number of outstanding shares.

Geographically, North America remains Shopify's largest market, accounting for 68% of total revenues in Q1 2026. Europe contributed 21% and APAC contributed 10%. While North America continues to dominate, international segments are also showing growth, with Europe up 20% and APAC up 10% year-over-year.