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SHOP

SHOPIFY INC.

Technology • CIK: 0001594805

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Market Cap
$192.66B
P/E (TTM)
107.7x
Rev Growth (TTM)
Net Margin (TTM)
16.7%
FCF Yield (TTM)
1.0%
FCF Margin (TTM)
17.8%

LATEST EARNINGS

Q4 2025
16 days ago
View source
Revenue
$3.67B
+31.0%
Net Income
$743.00M
EPS
N/A
Gross
46.1% -2.0%
Operating
17.2% +0.7%
Net
20.2% -25.8%
  • Revenue grew 31% year-over-year to $3,672 million in Q4 2025, matching the prior year's growth rate.
  • Full-year 2025 revenue grew 30% to $11,556 million, accelerating from 26% growth in 2024.
  • Free cash flow for Q4 2025 was $715 million, with a margin of 19%.
  • Full-year 2025 free cash flow reached $2,007 million, a 24% increase from 2024, with a margin of 17%.

Cash Flow Health

Free Cash Flow7/8 positive
TTM$1.9B
Q3 '25
$507M+20%
Q2 '25
$422M+16%
FCF Margin
TTM17.8%
Q3 '2517.8%+13%
Sector: 14.5%Above Avg
OCF Margin18.0%
OCF/NI1.08x
CapEx Coverage96.2x
FCF Yield1.0%
FCF Growth (2Y)
Cash Conversion Cycle
12 days
DSO: 12+DIO: 0DPO: 0

Capital Allocation & Returns

Total Shareholder Yield
TTM0.0%
Div Yield0.0%

Insufficient data

Dividend & Payout Metrics
Dividend Yield (TTM)0.0%
Free Cash Flow (TTM)$1.9B
Capital Return / FCF0.0%
Est. Dividends Paid (TTM)$0
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
9.9%
Stable
+7.1%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
10.6%
Asset Turnover
0.76x
8Q: 0.67x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 8.1%9.9% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
260.09x
8Q:
Invested Cap Turn
1.93x
8Q:
CapEx Intensity
0.4%
8Q:
CapEx/Depreciation
0.63x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 7 quarters + TTM

MetricTTMQ3 2025Q2 2025Q1 2025Q4 2024Q3 2024Q2 2024Q1 2024
Revenue
$10.7B
$2.8B6.1%
$2.7B13.6%
$2.4B16.1%
$2.8B30.1%
$2.2B5.7%
$2.0B9.9%
$1.9B
Operating Income
$1.3B
$343.0M17.9%
$291.0M43.3%
$203.0M56.3%
$465.0M64.3%
$283.0M17.4%
$241.0M180.2%
$86.0M
Net Income
$1.8B
$264.0M70.9%
$906.0M232.8%
$-682.0M152.7%
$1.3B56.2%
$828.0M384.2%
$171.0M162.6%
$-273.0M
Operating Cash Flow
$1.9B
$513.0M19.9%
$428.0M16.6%
$367.0M40.3%
$615.0M45.4%
$423.0M24.4%
$340.0M42.9%
$238.0M
Free Cash Flow
$1.9B
$507.0M20.1%
$422.0M16.3%
$363.0M40.6%
$611.0M45.1%
$421.0M26.4%
$333.0M43.5%
$232.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
107.7x
Valuation Lenses
Earnings
107.7x
vs sector
Cash Flow
41.9x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
10.9P/E per %ROIC
ROIC: 9.9%
Shareholder Returns
Dividend
Buyback
Total Yield
Market Cap$192.66B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
78/100
High Quality

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
15.5%
8Q:
Return on Invested Capital (ROIC)Top 25%
9.9%
8Q:
+7.1%
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 10.6%
Asset Turnover: 0.76x

Earnings Quality

Cash Conversion

1.08x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin48.7%

Capital Efficiency

Invested Capital Turnover1.93x

Working Capital

Cash Conversion Cycle12 days

Growth Quality & Momentum

Growth Rates

Revenue Growth YoY
N/A
OpInc Growth YoY
21.2%
EPS Growth YoY
N/A
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
48.7%
Operating
12.2%
Above Avg in sector
Net
16.7%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+1.1 pts
FCF: 17.8% | Net: 16.7%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $6.35B
Interest Coverage
+Net cash position: $6.35B
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis