Global Finance News
09 May 2025, 10:04
Shopify Q1 2025 Results: Strong Growth and Profitability with 27% Revenue Increase, 15% Free Cash Flow Margin
Shopify reported Q1 2025 revenue of $2.36 billion, marking 27% growth year-over-year, driven by a 23% increase in GMV to $74.75 billion. Subscription solutions revenue rose 21% to $620 million, and merchant solutions revenue climbed 29% to $1.74 billion. Gross profit was $1.17 billion, with a 22% increase, while operating income more than doubled to $203 million from $86 million a year ago.
Free cash flow grew to $363 million, representing a 15% margin, its seventh consecutive quarter with double-digit margins. Despite a GAAP net loss of $682 million (mostly due to a $908 million mark-to-market loss on equity investments), net income excluding investment impacts was $226 million, up from $144 million.
For Q2 2025, Shopify expects mid-20% revenue growth, high-teens gross profit growth, and a similar mid-teens free cash flow margin. Operating expenses are expected to be 39–40% of revenue.
Shopify reported Q1 2025 revenue of $2.36 billion, marking 27% growth year-over-year, driven by a 23% increase in GMV to $74.75 billion. Subscription solutions revenue rose 21% to $620 million, and merchant solutions revenue climbed 29% to $1.74 billion. Gross profit was $1.17 billion, with a 22% increase, while operating income more than doubled to $203 million from $86 million a year ago.
Free cash flow grew to $363 million, representing a 15% margin, its seventh consecutive quarter with double-digit margins. Despite a GAAP net loss of $682 million (mostly due to a $908 million mark-to-market loss on equity investments), net income excluding investment impacts was $226 million, up from $144 million.
For Q2 2025, Shopify expects mid-20% revenue growth, high-teens gross profit growth, and a similar mid-teens free cash flow margin. Operating expenses are expected to be 39–40% of revenue.