Shopify Inc.

shopify.com

What Do They Do?

Provides an integrated commerce platform and services that help merchants manage businesses and sell products online, in stores, and through other sales channels.

How Do They Make Money?

Shopify earns most of its revenue from merchant solutions: merchants pay processing and currency-conversion fees when transactions occur, alongside revenue from lending, partner referrals, shipping labels, point-of-sale hardware and advertising. Merchants also pay for platform subscriptions over monthly or longer terms.

revenue

Segment	Share	Revenue	How money arrives
Subscription solutions Recurring	24% FY2022: 27%		Recurring
Merchant solutions	76% FY2022: 73%

Who Are Their Customers?

Merchants of many sizes, from entrepreneurs to large direct-to-consumer and business-to-business businesses, use Shopify's platform to sell online and in stores.

Do Revenues Turn Into Profits?

Yes. It kept 11 cents of every revenue dollar as net income in FY2025 and turned 17 cents into free cash flow.

Operating income, FY2025

13% of revenue

▲ +37% vs FY2024 ($1.1B, 12%)

Net income, FY2025

11% of revenue

▼ −39% vs FY2024 ($2B, 23%)

Free cash flow, FY2025

17% of revenue

▲ +26% vs FY2024 ($1.6B, 18%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q2 FY2026, the three months to Jun 30, 2026

Revenue: ▲ +34%; vs $2.7B in Q2 FY2025
Net income: ▲ +66%; vs $906M in Q2 FY2025

Merchant solutions share of revenue vs 75.5% in Q2 FY2025

Aug 5, 2026 Shopify issued quarterly financial guidance It expects revenue growth at a low-thirties percentage rate and free cash flow margin in the high-teens to low-twenties.

Growing. Revenue grew 2.5x in 4 years, from $4.6B in FY2021 to $11.6B in FY2025, about 26% a year.

Revenue over time

Subscription solutions Merchant solutions

$20B$10B$0

FY2021 FY2022 FY2023 FY2024 FY2025

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