Free cash flow remains resilient with a 14.8% margin in 2026Q1, supported by a lean capital expenditure profile that consistently maintains a CapEx/Revenue ratio near 0.2%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 2.15B | 2.03B | 1.62B | 944M | -136M | 535.71M | 424.96M | 70.61M | 9.32M | 7.9M | 14.02M | 15.76M | -801K | 1.4M |
| Operating CF Margin % | - | 17.59% | 18.2% | 13.37% | -2.43% | 11.62% | 14.51% | 4.47% | 0.87% | 1.17% | 3.6% | 7.68% | -0.76% | 2.78% |
| Operating CF Growth % | 96.67% | 25.8% | 71.19% | 794.12% | -125.39% | 26.06% | 501.8% | 657.35% | 18.01% | -43.63% | -11.04% | 2067.04% | -157.38% | - |
| Net Income | 1.33B | 1.23B | 2.02B | 132M | -3.46B | 2.91B | 319.51M | -124.84M | -64.55M | -39.99M | -35.35M | -18.79M | -22.31M | -4.84M |
| Depreciation & Amortization | 23.13M | 31M | 36M | 70M | 93M | 66.31M | 70.06M | 35.65M | 27.05M | 23.38M | 13.97M | 7.24M | 4.67M | 1.76M |
| Stock-Based Compensation | 215M | 449M | 430M | 615M | 549M | 330.76M | 246.94M | 158.46M | 95.72M | 49.16M | 22.9M | 7.8M | 3.79M | 1.45M |
| Deferred Taxes | 120.86M | -14M | 78M | -1M | -187M | 190.96M | -44.8M | -37.92M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 36.63M | 453M | -781M | -67M | 2.97B | -2.84B | -73.03M | 21.13M | 7.19M | 1M | 261K | 2.18M | 1.27M | 455K |
| Working Capital Changes | -175.14M | -117M | -166M | 195M | -99M | -129.64M | -93.72M | 18.14M | -56.09M | -25.65M | 12.25M | 17.32M | 11.77M | 2.57M |
| Change in Receivables | 0 | -360M | -230M | 116M | -128M | -307.09M | -29.15M | -56.18M | -83.34M | -50.85M | -15.28M | 1.18M | -3.93M | -1.2M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 262M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -262.45M | -1.19B | -1.59B | -1.24B | -719M | -2.38B | -1.93B | -569.48M | -810.63M | -527.17M | -269.69M | -83.84M | -40.37M | -5.33M |
| Capital Expenditures | -22.13M | -26M | -19M | -39M | -50M | -50.79M | -41.73M | -56.76M | -27.95M | -20.04M | -23.77M | -16.52M | -20.57M | -3.46M |
| CapEx % of Revenue | 0.18% | 0.22% | 0.21% | 0.55% | 0.89% | 1.1% | 1.42% | 3.6% | 2.6% | 2.98% | 6.11% | 8.05% | 19.59% | 6.89% |
| Acquisitions | 1.06M | -56M | -167M | -395M | -2.39B | -709.86M | -11.05M | -265.51M | -19.4M | -15.72M | -14.11M | 0 | 0 | -828K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -50.26M | -521M | -461M | -559M | -159M | -31.28M | -262K | -5.64M | -13.6M | -4.22M | -2.46M | -4.51M | -2.04M | -1.04M |
| Cash from Financing | -1.35B | -811M | 61M | 60M | 18M | 1.65B | 3.56B | 736.35M | 1.07B | 574.83M | 228.59M | 137.85M | 140K | 70.05M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 | 0 | 907.95M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -410.56M | 0 | 58.07M | 0 | 0 | 1.54B | 2.58B | 688.01M | 1.04B | 560.06M | 224.42M | 136.25M | 0 | 69.76M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -484.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -937.29M | -811M | 2.93M | 60M | 18M | 108.59M | 70.81M | 48.34M | 30.49M | 14.77M | 4.16M | 1.6M | 140K | 295K |
| Net Change in Cash | 551.26M | 47M | 85M | -236M | -854M | -200.6M | 2.05B | 239.23M | 269.01M | 57.66M | -26.06M | 68.12M | -41.58M | 65.87M |
| Free Cash Flow | 2.12B | 2.01B | 1.6B | 905M | -186M | 484.92M | 382.96M | 8.22M | -32.22M | -16.36M | -12.22M | -5.28M | -23.5M | -3.11M |
| FCF Margin % | 17.15% | 17.37% | 17.98% | 12.82% | -3.32% | 10.51% | 13.07% | 0.52% | -3% | -2.43% | -3.14% | -2.57% | -22.38% | -6.18% |
| FCF Growth % | 22.76% | 25.67% | 76.46% | 586.56% | -138.36% | 26.62% | 4560.05% | 125.51% | -96.94% | -33.9% | -131.42% | 77.53% | -656.15% | - |
| FCF per Share | 1.63 | 1.54 | 1.23 | 0.70 | -0.15 | 0.38 | 0.31 | 0.01 | -0.03 | -0.02 | -0.01 | -0.01 | -0.04 | -0.00 |
| FCF Conversion (FCF/Net Income) | 1.59x | 1.65x | 0.80x | 7.15x | 0.04x | 0.18x | 1.33x | -0.57x | -0.14x | -0.20x | -0.40x | -0.84x | 0.04x | -0.29x |
| Interest Paid | 0 | 0 | 1M | 1M | 1M | 1.29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 84M | 0 | 116M | 50M | 27M | 10.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Consumer discretionary spending sensitivity
As indicated by the provided financial data, the relationship between net income and operating cash flow remains highly inconsistent, with the OCF/NI ratio fluctuating from -0.82 in 2026Q1 to 1.99 in 2024Q2, suggesting that GAAP earnings are frequently distorted by non-cash items and accounting adjustments.
The significant divergence between net income and operating cash flow suggests that investors should prioritize cash-based metrics over bottom-line GAAP figures to gauge true operational health. This volatility appears to stem from the company's complex revenue recognition and the impact of stock-based compensation, which warrants further investigation into the underlying cash-generating capability of the core platform.
Based on reported figures, Shopify has maintained a consistent free cash flow margin profile, peaking at 21.7% in 2024Q4, which demonstrates that the company's pivot toward an asset-light model is successfully translating top-line growth into tangible cash generation despite the inherent seasonality of the e-commerce sector.
The ability to generate positive free cash flow even during periods of reported net losses suggests that the business model possesses inherent structural advantages in managing its cost base. Investors should monitor whether this FCF trajectory can be sustained as the company scales its enterprise-tier offerings and faces potential competitive headwinds in the payments space.
According to recent SEC filings, Shopify's capital expenditure remains remarkably low, with CapEx/Revenue ratios consistently hovering near 0.2%, reflecting a strategic shift away from the capital-intensive logistics infrastructure that previously burdened the balance sheet and suppressed the company's overall return on invested capital.
This low capital intensity appears to provide the company with significant financial flexibility, allowing for the reallocation of resources toward high-margin software development and payment rail enhancements. The minimal investment required to maintain the platform suggests that the business is well-positioned to scale without the need for significant external financing.
As reported in financial statements, the company initiated a substantial $484.2 million share repurchase program in 2026Q1, signaling a shift in management's capital allocation priorities toward returning value to shareholders rather than solely focusing on the aggressive reinvestment cycles that characterized the company's earlier growth phases.
The transition toward share repurchases may indicate management's confidence in the long-term durability of the platform's cash flows. However, investors should monitor whether this capital deployment strategy is sustainable if the company encounters increased competitive pressure or requires additional liquidity to fund future strategic acquisitions.
Quick answers to the most common questions about buying SHOP stock.
Shopify Inc. (SHOP) generated $2.03B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Shopify Inc. (SHOP) generated $2.01B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Shopify Inc. (SHOP) spent $26.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.