Shopify demonstrated strong performance in Q4 2025 with accelerated revenue growth and robust free cash flow generation, driven by broad-based merchant success and strategic investments in AI commerce solutions. The company is well-positioned for continued growth in 2026, supported by a new $2 billion share repurchase program.
Revenue grew 31% year-over-year to $3,672 million in Q4 2025, matching the prior year's growth rate.
positiveFull-year 2025 revenue grew 30% to $11,556 million, accelerating from 26% growth in 2024.
positiveFree cash flow for Q4 2025 was $715 million, with a margin of 19%.
positiveFull-year 2025 free cash flow reached $2,007 million, a 24% increase from 2024, with a margin of 17%.
positiveOperating income increased 36% year-over-year to $631 million in Q4 2025.
positiveFull-year 2025 operating income grew 37% to $1,468 million.
positiveAnnounced a new $2 billion share repurchase program, demonstrating financial strength and commitment to shareholder value.
positiveFree cash flow margin in Q1 2026 is expected to be in the low-to-mid teens, slightly below Q1 2025, indicating a potential near-term dip in profitability efficiency.
attentionSubscription solutions revenue growth was 17% year-over-year in Q4 2025, significantly lower than the 35% growth in merchant solutions revenue.
attentionOperating expenses as a percentage of revenue are expected to be 37% to 38% in Q1 2026, an increase from prior periods.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total | CC |
|---|---|---|---|---|---|
Subscription solutions | N/A | — | — | — | +16.0% |
Merchant solutions | N/A | — | — | — | +34.0% |
| Total Revenue | $0.00M | — | — | 100.0% | — |
Segment performance shows business unit health and growth drivers. Constant currency (CC) removes FX impact for like-for-like comparison.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
2025 was Shopify at full throttle - driving compounding growth, while laying the rails for the new era of AI commerce.
2026 will be the year of the builders, and we'll be powering them - from first sale to full scale.
We closed Q4 with strong top-line growth and disciplined cash generation with revenue up 31% year-over-year and a 19% free cash flow margin.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.