Revenue growth accelerated to 33.7% YoY in 2026Q2, with operating margin expanding to 13.6% from 4.6% in 2024Q1, though gross margin compressed to 47.7% from 51.4%.
Shopify Inc. (SHOP) annual income statement — 13-year revenue, gross profit & net income history
| 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 |
|---|
| Sales/Revenue | 13.27B | 11.56B | 8.88B | 7.06B | 5.6B | 4.61B | 2.93B | 1.58B | 1.07B | 673.3M | 389.33M | 205.23M | 105.02M | 50.25M |
| Revenue Growth % | 32.5% | 30.14% | 25.78% | 26.07% | 21.43% | 57.43% | 85.63% | 47.05% | 59.4% | 72.94% | 89.7% | 95.43% | 108.98% | - |
| Cost of Goods Sold | 6.93B | 6B | 4.41B | 3.54B | 2.85B | 2.13B | 1.39B | 712.53M | 476.96M | 293.05M | 179.84M | 94.16M | 43.22M | 13.51M |
| COGS % of Revenue | - | 51.93% | 49.64% | 50.21% | 50.82% | 46.2% | 47.38% | 45.15% | 44.44% | 43.52% | 46.19% | 45.88% | 41.16% | 26.89% |
| Gross Profit | 6.34B | 5.55B | 4.47B | 3.52B | 2.75B | 2.48B | 1.54B | 865.64M | 596.27M | 380.25M | 209.5M | 111.07M | 61.8M | 36.74M |
| Gross Margin % | 47.77% | 48.07% | 50.36% | 49.79% | 49.18% | 53.8% | 52.62% | 54.85% | 55.56% | 56.48% | 53.81% | 54.12% | 58.84% | 73.11% |
| Gross Profit Growth % | - | 24.22% | 27.23% | 27.63% | 11% | 60.95% | 78.08% | 45.18% | 56.81% | 81.51% | 88.61% | 79.74% | 68.2% | - |
| Operating Expenses | 4.49B | 4.09B | 3.4B | 4.93B | 3.58B | 2.21B | 1.45B | 1.01B | 688.19M | 429.41M | 246.66M | 128.83M | 83.41M | 41.01M |
| OpEx % of Revenue | - | 35.37% | 38.25% | 69.87% | 63.86% | 47.97% | 49.54% | 63.79% | 64.12% | 63.78% | 63.35% | 62.77% | 79.42% | 81.6% |
| Selling, General & Admin | 2.33B | 2.13B | 1.8B | 1.71B | 1.94B | 1.28B | 847.39M | 626.61M | 457.51M | 293.41M | 172.32M | 89.11M | 57.49M | 27.33M |
| SG&A % of Revenue | - | 18.47% | 20.3% | 24.24% | 34.61% | 27.68% | 28.93% | 39.7% | 42.63% | 43.58% | 44.26% | 43.42% | 54.75% | 54.38% |
| Research & Development | 1.65B | 1.54B | 1.37B | 1.73B | 1.5B | 854.38M | 552.13M | 355.01M | 230.67M | 136M | 74.34M | 39.72M | 25.91M | 13.68M |
| R&D % of Revenue | - | 13.29% | 15.39% | 24.5% | 26.84% | 18.53% | 18.85% | 22.5% | 21.49% | 20.2% | 19.09% | 19.35% | 24.68% | 27.23% |
| Other Operating Expenses | 4M | 417M | 227M | 1.49B | 135M | 81.72M | 51.85M | 25.17M | -410K | -199K | 0 | 0 | 0 | 0 |
| Operating Income | 1.84B | 1.47B | 1.07B | -1.42B | -822M | 268.64M | 90.15M | -141.15M | -91.92M | -49.16M | -37.16M | -17.76M | -21.61M | -4.27M |
| Operating Margin % | 13.9% | 12.7% | 12.11% | -20.09% | -14.68% | 5.83% | 3.08% | -8.94% | -8.56% | -7.3% | -9.55% | -8.65% | -20.58% | -8.5% |
| Operating Income Growth % | - | 36.56% | 175.81% | -72.51% | -405.98% | 197.99% | 163.87% | -53.55% | -86.99% | -32.27% | -109.31% | 17.85% | -406.32% | - |
| EBITDA | 1.87B | 1.5B | 1.11B | -1.35B | -729M | 334.95M | 160.21M | -105.5M | -64.87M | -25.77M | -23.2M | -10.52M | -16.94M | -2.51M |
| EBITDA Margin % | 14.12% | 12.97% | 12.51% | -19.09% | -13.02% | 7.26% | 5.47% | -6.68% | -6.04% | -3.83% | -5.96% | -5.13% | -16.13% | -5% |
| EBITDA Growth % | 47.02% | 34.92% | 182.42% | -84.91% | -317.64% | 109.07% | 251.87% | -62.63% | -151.67% | -11.11% | -120.51% | 37.91% | -574.75% | - |
| D&A (Non-Cash Add-back) | 29M | 31M | 36M | 70M | 93M | 66.31M | 70.06M | 35.65M | 27.05M | 23.38M | 13.97M | 7.24M | 4.67M | 1.76M |
| EBIT | -548M | 1.51B | 1.3B | 74M | -687M | 3.14B | 248.94M | -95.81M | -91.92M | -49.16M | -37.16M | -17.76M | -21.61M | -4.27M |
| Net Interest Income | 301M | 331M | 308M | 241M | 75M | 11.86M | 15.11M | 48.18M | 29.44M | 7.85M | 1.54M | 200K | 57K | 42K |
| Interest Income | 301M | 331M | 308M | 241M | 76M | 15.36M | 24.67M | 48.18M | 29.44M | 7.85M | 1.54M | 200K | 57K | 42K |
| Interest Expense | 0 | 0 | 0 | 0 | 1.15M | 3.46M | 9.56M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 497M | 41M | 1.15B | 1.6B | -2.8B | 2.87B | 150.21M | 45.33M | 27.37M | 9.16M | 1.81M | -1.03M | -696K | -568K |
| Pretax Income | 2.34B | 1.51B | 2.23B | 185M | -3.62B | 3.14B | 240.36M | -95.81M | -64.55M | -39.99M | -35.35M | -18.79M | -22.31M | -4.84M |
| Pretax Margin % | 17.64% | 13.06% | 25.09% | 2.62% | -64.7% | 68.1% | 8.21% | -6.07% | -6.01% | -5.94% | -9.08% | -9.16% | -21.24% | -9.63% |
| Income Tax | 413M | 278M | 209M | 53M | -163M | 225.93M | -79.14M | 29.03M | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 17.64% | 18.42% | 9.38% | 28.65% | 4.5% | 7.19% | -32.93% | -30.29% | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | 1.93B | 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 |
| Net Margin % | 14.53% | 10.65% | 22.74% | 1.87% | -61.79% | 63.2% | 10.91% | -7.91% | -6.01% | -5.94% | -9.08% | -9.16% | -21.24% | -9.63% |
| Net Income Growth % | -17.78% | -39.03% | 1429.55% | 103.81% | -218.71% | 812.23% | 355.93% | -93.39% | -61.4% | -13.12% | -88.16% | 15.78% | -361.26% | - |
| Net Income (Continuing) | 1.93B | 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 |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.49 | 0.94 | 1.55 | 0.10 | -2.73 | 2.27 | 0.26 | -0.11 | -0.06 | -0.04 | -0.04 | -0.03 | -0.03 | -0.01 |
| EPS Growth % | -17.22% | -39.35% | 1450% | 103.66% | -220.26% | 773.08% | 336.36% | -80.03% | -46.17% | 0.71% | -38.49% | 9.25% | - | - |
| EPS (Basic) | - | 0.95 | 1.56 | 0.10 | -2.73 | 2.32 | 0.27 | -0.11 | -0.06 | -0.04 | -0.04 | -0.03 | -0.03 | -0.01 |
| Diluted Shares Outstanding | 1.3B | 1.3B | 1.3B | 1.3B | 1.27B | 1.27B | 1.23B | 1.13B | 1.06B | 957.75M | 839.89M | 617.16M | 666.21M | 663.02M |
| Basic Shares Outstanding | 1.3B | 1.3B | 1.29B | 1.28B | 1.27B | 1.25B | 1.2B | 1.13B | 1.06B | 957.75M | 839.89M | 617.16M | 666.21M | 663.02M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying SHOP stock.
For fiscal year 2025, Shopify Inc. (SHOP) reported total revenue of $11.56B. This represents a 22896.1% increase compared to $50.3M in 2013.
Shopify Inc. (SHOP) is profitable, generating $1.23B in net income for the fiscal year ending 2025 with a net profit margin of 10.7%.
Shopify Inc. (SHOP) reported an operating income of $1.47B, resulting in an operating profit margin of 12.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Shopify Inc. (SHOP) generated $5.55B in gross profit for the year, representing a gross profit margin of 48.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin compression from mix
Metrics are mathematically derived from official filings.
Revenue Growth Accelerates on Platform Strength
Shopify's revenue growth accelerated to 33.7% year-over-year in 2026Q2, up from 26.8% in 2025Q1, according to the latest quarterly report, suggesting sustained momentum in merchant adoption and GMV expansion.
The sequential acceleration from 26.8% to 33.7% over five quarters indicates that the company is gaining traction, possibly due to increased enterprise adoption and international expansion. Revenue growth has consistently exceeded 20% for the past two years, outpacing peers like Wix (13.2%) and GoDaddy (8.3%), which may reflect Shopify's competitive positioning in the e-commerce platform space. Investors should monitor whether this growth rate is sustainable as the base becomes larger.
Gross Margin Erodes Amid Mix Shift
Gross margin declined from 51.4% in 2024Q1 to 47.7% in 2026Q2, as reported in financial statements, indicating a structural shift toward lower-margin revenue streams such as merchant solutions and payments.
The 370 basis point contraction in gross margin over the period suggests that Shopify's revenue mix is increasingly weighted toward lower-margin services, which may be a deliberate strategy to deepen merchant relationships but could pressure profitability. Compared to peers like Wix (68.1%) and GoDaddy (61.6%), Shopify's gross margin is notably lower, reflecting its heavier reliance on payment processing and fulfillment services. This trend warrants close monitoring as it may indicate a trade-off between growth and margin quality.
Operating Leverage Emerges as Revenue Scales
Operating margin expanded from 4.6% in 2024Q1 to 13.6% in 2026Q2, per the income statement, demonstrating that operating expenses are growing slower than revenue, a sign of improving operational efficiency.
While revenue grew 33.7% year-over-year in 2026Q2, operating expenses (R&D and SG&A combined) grew at a slower pace, allowing operating income to scale. The operating margin improvement from 4.6% to 13.6% over five quarters suggests that Shopify is beginning to realize operating leverage, though it remains below GoDaddy's 22.9% margin. This trend may continue if the company maintains disciplined expense management, but investors should watch for any resurgence in spending.
Net Income Volatility Masks Underlying Strength
Net income swung from a -$682M loss in 2025Q1 to a $1.5B profit in 2026Q2, per reported figures, with EPS fluctuating between -$0.53 and $1.16, indicating that reported earnings are heavily influenced by non-operating items.
The extreme volatility in net income, including a $1.3B profit in 2024Q4 and a $906M profit in 2025Q2, suggests that investment gains or losses and tax effects are distorting underlying profitability. Excluding these items, operating income has been consistently positive and growing, which may provide a clearer picture of the company's earnings power. Stock-based compensation of around $100-130M per quarter adds to the divergence between GAAP and non-GAAP earnings, and investors should adjust for these factors when assessing valuation.
R&D and SG&A Scale Efficiently
R&D and SG&A expenses grew from $820M in 2024Q1 to $1.08B in 2026Q2, as per the income statement, representing a 31% increase while revenue grew 89% over the same period, indicating improving cost discipline.
The slower growth in operating expenses relative to revenue has been a key driver of margin expansion, with R&D and SG&A as a percentage of revenue declining from 43% in 2024Q1 to 30% in 2026Q2. This suggests that Shopify is becoming more efficient in its spending, possibly due to economies of scale and better resource allocation. However, the absolute dollar increase in R&D ($110M) and SG&A ($149M) over the period indicates continued investment, which may be necessary to sustain growth.
Margin Compression and Valuation Risks
Despite strong revenue growth, gross margin has declined by 370 basis points over five quarters, and the stock trades at a premium multiple, which short-sellers may argue leaves little room for error if growth decelerates.
The persistent decline in gross margin, coupled with a high valuation (P/E not provided but likely elevated), could make the stock vulnerable to any slowdown in revenue growth or further margin erosion. Additionally, the company's reliance on merchant solutions, which carry lower margins, may continue to pressure profitability. If competition intensifies or the macroeconomic environment weakens, Shopify's growth rate could decelerate, and the market may re-rate the stock downward. Investors should weigh these risks against the company's strong top-line momentum.