Revenue growth has accelerated to 34.3% in 2026Q1, though structural margin pressure is evident as gross margins have declined from historical peaks above 51% to 48.8%.
| 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 | 12.37B | 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 % | 31.85% | 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 | 6.43B | 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 | 5.93B | 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 % | 47.97% | 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 | 4.29B | 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 | 2.23B | 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 | 1.6B | 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 | 1.65B | 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 % | 13.32% | 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 | 1.67B | 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 % | 13.5% | 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 % | 36.22% | 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) | 23M | 31M | 36M | 70M | 93M | 66.31M | 70.06M | 35.65M | 27.05M | 23.38M | 13.97M | 7.24M | 4.67M | 1.76M |
| EBIT | 1.57B | 1.47B | 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 | 341M | 331M | 308M | 241M | 75M | 11.86M | 15.11M | 48.18M | 29.44M | 7.85M | 1.54M | 200K | 57K | 42K |
| Interest Income | 341M | 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 | -2M | 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 | 1.65B | 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 % | 13.3% | 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 | 313M | 278M | 209M | 53M | -163M | 225.93M | -79.14M | 29.03M | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 19.03% | 18.42% | 9.38% | 28.65% | 4.5% | 7.19% | -32.93% | -30.29% | 0% | 0% | 0% | 0% | 0% | 0% |
| 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 |
| Net Margin % | 10.77% | 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 % | -17.27% | -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) | 1.33B | 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 |
| 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) | 1.02 | 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 % | -17.74% | -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 | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Consumer discretionary spending sensitivity
As reported in recent financial statements, Shopify's top-line expansion has accelerated to 34.3% in 2026Q1, demonstrating that the company's strategic pivot toward high-volume merchant solutions and enterprise-tier adoption is successfully offsetting the normalization of post-pandemic e-commerce trends across its core North American market.
The consistent double-digit revenue growth suggests that the platform's ecosystem remains highly effective at capturing increased transaction volume from its existing merchant base. Investors should monitor whether this acceleration is driven by sustainable organic GMV growth or if it relies too heavily on the continued expansion of lower-margin payment processing services.
Based on reported figures, consolidated gross margins have trended downward from historical peaks above 51% to 48.8% in 2026Q1, reflecting the increasing weight of lower-margin merchant solutions within the total revenue mix as the company prioritizes scale over pure software-only margin profiles.
This margin compression appears to be a deliberate trade-off for deeper platform integration and increased merchant stickiness. While the divestiture of logistics assets was intended to stabilize profitability, the current margin profile suggests that the company remains tethered to the variable costs inherent in payment processing and financial services.
According to recent SEC filings, Shopify has demonstrated improved operating efficiency, with operating income reaching $382 million in 2026Q1, suggesting that management is successfully managing SG&A growth relative to the rapid expansion of gross profit despite the inherent volatility of the company's transactional business model.
The ability to scale operating income while maintaining significant R&D investment indicates a maturing cost structure. However, the fluctuation in quarterly operating margins warrants further investigation into whether this efficiency is sustainable or merely a result of temporary cost-containment measures implemented during periods of lower net income.
As indicated by the provided data, net income has experienced significant quarterly swings, including a $581 million loss in 2026Q1, which suggests that non-operating items and accounting adjustments continue to mask the underlying cash-generating capability of the core software and merchant services business.
The inconsistency in bottom-line performance makes it difficult to assess the true earnings power of the firm without adjusting for non-cash expenses and one-time items. Investors should remain cautious, as the reported EPS volatility may not fully reflect the operational health of the underlying merchant ecosystem.
Based on an analysis of the income statement, the primary risk to the current narrative is the potential for margin erosion if competitive pressures from alternative checkout solutions force a reduction in take rates or increase the cost of merchant acquisition in a saturated market.
Short-term growth in merchant solutions may be masking a long-term vulnerability where the company's reliance on transaction-based revenue leaves it exposed to pricing wars. If the 'attach rate' fails to expand further, the company may struggle to justify its current valuation premium relative to more stable, high-margin SaaS peers.
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.