WS Investor
04 Nov 2025, 15:22
Shopify Delivers Strong Q3 2025 Results with 32% Revenue Growth and Expanding Profitability
Shopify Inc. (NASDAQ, TSX: SHOP) reported outstanding third-quarter 2025 results, achieving 32% year-over-year revenue growth to $2.84 billion and maintaining an 18% free cash flow margin—its ninth consecutive quarter of double-digit free cash flow margins. Gross profit rose 24% to $1.39 billion, and operating income increased to $343 million from $283 million a year earlier.
Gross Merchandise Volume (GMV) surged 32% to $92.0 billion, while Monthly Recurring Revenue (MRR) grew 10% to $193 million. Free cash flow reached $507 million, up from $421 million in Q3 2024.
President Harley Finkelstein highlighted Shopify’s momentum across merchants “from first-time sellers to global icons like Estée Lauder,” emphasizing that the company’s scale and ecosystem continue to drive innovation and market leadership. CFO Jeff Hoffmeister added that Q3 demonstrated “consistent growth and profitability, quarter after quarter,” outperforming even the company’s strong Q2 results.
For the fourth quarter of 2025, Shopify expects revenue growth in the mid-to-high 20s percentage range year-over-year, gross profit growth in the low-to-mid 20s range, operating expenses at 30–31% of revenue, and a free cash flow margin slightly above the third quarter’s 18%.
Shopify Inc. (NASDAQ, TSX: SHOP) reported outstanding third-quarter 2025 results, achieving 32% year-over-year revenue growth to $2.84 billion and maintaining an 18% free cash flow margin—its ninth consecutive quarter of double-digit free cash flow margins. Gross profit rose 24% to $1.39 billion, and operating income increased to $343 million from $283 million a year earlier.
Gross Merchandise Volume (GMV) surged 32% to $92.0 billion, while Monthly Recurring Revenue (MRR) grew 10% to $193 million. Free cash flow reached $507 million, up from $421 million in Q3 2024.
President Harley Finkelstein highlighted Shopify’s momentum across merchants “from first-time sellers to global icons like Estée Lauder,” emphasizing that the company’s scale and ecosystem continue to drive innovation and market leadership. CFO Jeff Hoffmeister added that Q3 demonstrated “consistent growth and profitability, quarter after quarter,” outperforming even the company’s strong Q2 results.
For the fourth quarter of 2025, Shopify expects revenue growth in the mid-to-high 20s percentage range year-over-year, gross profit growth in the low-to-mid 20s range, operating expenses at 30–31% of revenue, and a free cash flow margin slightly above the third quarter’s 18%.