SHOPIFY (SHOP) Company Report

Shopify merchants generated $14.6 billion in sales over the Black Friday Cyber Monday weekend, marking a 27% increase year-over-year (24% on a constant currency basis).
The company is experiencing significant growth driven by international expansion (growing in the high 30s% to low 40s%), increasing focus on larger enterprise merchants (those with $25 million and above in annual GMV), and the in-store business.
Shopify Payments' GPV penetration reached 65% as of Q3, with Shop Pay at 67%, and the company anticipates continued penetration growth despite international expansion acting as a near-term headwind.
Future growth levers include product expansion into new countries (e.g., payments in 15 more countries and capital product in eight countries), the Shop App (which saw 140% year-over-year GMV growth), and early-stage initiatives in Agentic Commerce and advertising.

5 days ago

Transcript

Shopify Discusses Holiday Sales, Growth Drivers, and Future Strategy at UBS Conference

SHOP

Revenue Acceleration/Inflection

New Projects/Investments

Product Launch

Shopify merchants achieved $14.6 billion in sales over the Black Friday Cyber Monday weekend, representing a 27% increase (24% on a constant currency basis) from the previous year, effectively doubling the $7.5 billion recorded in 2022.
Key growth drivers include strong performance in the online business, significant expansion in international markets (growing in the high 30s% to low 40s%) led by Europe, and increasing success in the enterprise segment, particularly with merchants generating $25 million and above in annual GMV.
Shopify Payments GPV penetration reached 65% as of Q3, with the Shop Pay button adoption at 67%, and while international expansion initially presents a headwind to overall penetration, it offers substantial future growth potential.
The in-store business already constitutes a low double-digit portion of GMV, and the Shop App has seen 140% year-over-year GMV growth, with early-stage advertising (Shop Campaigns) and Agentic Commerce (AI) initiatives identified as future opportunities.
Future growth into 2026 and 2027 is anticipated from continued international and enterprise expansion, product rollouts in new countries, and potential contributions from pricing adjustments.

5 days ago

Transcript

Shopify Highlights Strong Black Friday Cyber Monday Sales and Growth Drivers at UBS Conference

SHOP

Revenue Acceleration/Inflection

New Projects/Investments

Shopify reported $14.6 billion in sales during the Black Friday Cyber Monday 2025 weekend, marking a 27% increase year-over-year (24% on a constant currency basis) and effectively doubling the sales from BFCM 2022.
The company's growth is driven by international expansion, particularly in Europe, which is growing in the high 30s% to low 40s%, and by increased focus on larger enterprise merchants (those with $25 million and above in annual GMV).
Shopify Payments GPV penetration reached 65% as of Q3, with continued opportunity for higher adoption in North America and internationally, while the Shop Pay button achieved 67% penetration.
Shopify is also investing in future growth through the Shop App, which saw 140% year-over-year GMV growth, early-stage advertising products (Shop Campaigns), and preparing for Agentic Commerce to drive merchant sales volume.

5 days ago

Transcript

Shopify reports record Black Friday-Cyber Monday sales

SHOP

Revenue Acceleration/Inflection

Shopify merchants achieved a record $14.6 billion in global sales over the Black Friday-Cyber Monday weekend, representing a 27% increase from the previous year (24% on a constant currency basis).
Over 81 million customers worldwide purchased from Shopify-powered brands, with sales peaking at $5.1 million per minute at 12:01 PM EST on Black Friday.
More than 15,800 entrepreneurs made their first sale, and over 94,900 merchants experienced their highest-selling day ever on Shopify during the period.

6 days ago

8-K

Shopify Cyber Monday Outage Impacts Operations and Shares

SHOP

Profit Warning

Shopify experienced a widespread outage on Cyber Monday, beginning around 9:45 a.m. ET and persisting for several hours, preventing some merchants from accessing admin dashboards and point-of-sale checkouts.
Thousands of users reported problems, with Downdetector recording more than 27,000 reports, leading to merchant complaints about lost sales and inability to fulfill orders.
The disruption threatened critical holiday revenue for businesses, despite Shopify merchants generating $11.5 billion in Black Friday–Cyber Monday sales in 2024 and overall Cyber Monday spending expected to exceed $53 billion.
By early afternoon, Shopify shares were down about 5% due to the ongoing outage.
Merchants on social media demanded concrete remedies, including waiving monthly fees, and reported difficulties contacting Shopify Support.

7 days ago

WSJ

Shopify Partners with Liquid AI for AI Model Deployment

SHOP

New Projects/Investments

Product Launch

Shopify announced a multi-faceted partnership with Liquid AI to license and deploy Liquid Foundation Models (LFMs) across its platform, with the first production deployment being a sub-20ms text model to enhance search.
This agreement follows Shopify's participation in Liquid AI's $250 million Series A round in December 2024.
The companies have co-developed a generative recommender system that has shown to outperform prior systems in controlled testing, resulting in higher conversion rates from recommendations.
Liquid AI's LFMs are designed for sub-20 millisecond inference and have demonstrated 2-10x faster inference while outperforming popular open-source models with fewer parameters. Financial terms of the partnership were not disclosed.

Nov 13, 2025, 3:00 PM

Press Release

Commerce.com, Inc. Announces Third Quarter 2025 Financial Results

SHOP

Earnings

Guidance Update

Product Launch

Commerce.com, Inc. reported Q3 2025 total revenue of $86.0 million, an increase of 3% compared to the three months ended September 30, 2024, with non-GAAP net income of $6.2 million and Adjusted EBITDA of $8.8 million.
Total Annual Recurring Revenue (ARR) as of September 30, 2025, was $355.7 million, up 2% year-over-year, with ARR from Enterprise Accounts increasing 5% to $269.2 million.
For the fourth quarter of 2025, the company expects total revenue between $87.8 million to $92.8 million. The full-year 2025 total revenue is projected to be between $340.6 million and $345.6 million.
The company is focusing on scaling sustainable growth and leveraging strategic partnerships with AI leaders like Perplexity, Google, and PayPal, and announced new offerings including Feedonomics Surface and an embedded payment processing solution with PayPal.

Nov 6, 2025, 12:00 PM

Press Release

Shopify: Shiplify Analyzes Peak Residential Shipping Season

SHOP

Demand Weakening

New Projects/Investments

Revenue Acceleration/Inflection

Shiplify's analysis indicates that the week following Thanksgiving consistently marks the beginning of the residential freight peak season, with residential shipments surging by 123% in 2023 and 103.9% in 2024 compared to Thanksgiving week.
Early December is identified as the most concentrated period for residential LTL shipping, which introduces added complexity and hidden costs for carriers and 3PLs due to factors like liftgates and limited access points.
To mitigate these risks and protect margins, Shiplify emphasizes the critical need for digital accuracy in capturing accessorials and validating delivery data upfront.
Despite an ongoing "freight recession," consumer demand in direct-to-consumer eCommerce remains strong, with Shopify projecting over $226 billion in D2C orders for 2025.

Nov 5, 2025, 2:29 PM

Press Release

Shopify Reports Strong Q3 2025 Growth and Profitability

SHOP

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Shopify reported robust Q3 2025 financial performance, with GMV growing 32% and revenue increasing 32% (30% and 31% on a constant currency basis, respectively). The company also achieved an 18% free cash flow margin.
The company demonstrated consistent financial execution, with revenue growth accelerating from 27% in Q1 to 32% in Q3, and free cash flow margins improving from 15% in Q1 to 18% in Q3.
Strategic initiatives in AI are gaining traction, with over 750,000 shops using the Sidekick AI assistant for the first time in Q3 and partnerships with major AI platforms for agentic commerce.
Growth was broad-based across channels and segments, including B2B GMV nearly doubling at 98% year-over-year and Shopify Payments reaching 65% penetration of GMV. The company also noted continued migration of enterprise brands to its platform.

Nov 4, 2025, 1:30 PM

Transcript

Shopify Reports Strong Q3 2025 Results and Provides Q4 Outlook

SHOP

Earnings

Guidance Update

New Projects/Investments

Shopify reported strong Q3 2025 financial performance, with merchant solutions revenue increasing 38% and subscription solutions revenue growing 15%. The company achieved $507 million in free cash flow, representing 18% of revenue.
Operating expenses for Q3 2025 were 37% of revenue, demonstrating increased operating leverage, down from 45% in 2023 and 39% in 2024, primarily due to disciplined headcount management.
The company is heavily focused on AI, noting a 7x increase in AI-driven traffic to Shopify stores and an 11x increase in orders attributed to AI searches since January. Shopify is building "agentic commerce" tools and partnering with major AI platforms like ChatGPT.
Shopify continues to expand its enterprise footprint, attracting major brands across diverse verticals and displacing incumbent platforms, with offline GMV growing 31% in Q3.
For Q4 2025, Shopify anticipates revenue growth in the mid- to high-20s% year-over-year and expects Q4 free cash flow margin to be slightly above Q3, projecting a 2025 free cash flow margin similar to 2024.