Total Revenue

7%

The modest 7% increase contrasts sharply with the higher growth seen in earlier periods (23% in Q1 2024 " " " and 27% in Q1 2025 " " ), suggesting that after a period of explosive expansion driven by strong merchant adoption and GMV gains, the market is normalizing amid increased competition and potential saturation.

Commerce Solutions

5%

With commerce revenue now growing only 5% YoY, this slowdown compared to the earlier 20% " " and 29% " increases likely reflects a maturing market for payment processing and GMV-related fees, as well as a decrease in the momentum of previously high-growth areas such as increasing Shopify Payments penetration.

Subscription Solutions

12%

The 12% YoY jump is more moderate than the 34% increase in Q1 2024 " " and the 21% in Q1 2025 " " ; this indicates that after aggressive pricing adjustments and rapid merchant expansion, the subscription base is entering a phase of steady, but slower, growth with longer-term contracts and stabilized monthly recurring revenue figures.

North American Market

10%

A 10% rise in North American sales—comprising 55% of total revenue—reflects continued domestic resilience, echoing earlier factors such as strong same-store sales and resilient consumer spending " " , even though the robust offline and payment growth seen in prior periods now yields a more moderate increase.

Operating Margins

+2 percentage points

The 2-point expansion in margins builds on earlier operational improvements (from losses to 5% in Q1 2024 " " and to 9% in Q1 2025 " " ) but is now more modest, as increased reinvestment in innovation and technology along with higher investments in marketing and personnel partly offset the benefits of cost efficiencies and the absence of dilutive cost items from previous restructuring.

Order Volumes

15%

A 15% YoY surge in order volumes, while still robust, is lower than the approximately 23% increases seen in earlier periods. " " This suggests that after a period of high merchant activity and significant growth in GMV, order volume gains are moderating, potentially due to market maturation and a shift in the mix of orders.

Revenue Growth

Q3 2025

no prior guidance

mid to high 20s year over year "

no prior guidance

Gross Profit Growth

Q3 2025

no prior guidance

low 20s "

no prior guidance

Operating Expenses

Q3 2025

no prior guidance

38% to 39% of revenue "

no prior guidance

Stock-Based Compensation

Q3 2025

no prior guidance

$130,000,000 for Q3 "

no prior guidance

Free Cash Flow Margin

Q3 2025

no prior guidance

mid to high teens "

no prior guidance

International Growth and Global Expansion

In Q1 2025, international growth was highlighted with 36% GMV growth in Europe, expansion of Shopify Payments into new markets, and enhanced multicurrency support. " " " In Q4 2024, a 33% international GMV growth and strong performance in EMEA were emphasized. " " " In Q3 2024, robust European performance and strong cross‐border commerce were noted. " " "

In Q2 2025, Shopify showcased significant progress with 42% international GMV growth, deeper localization (e.g. Shop Pay Installments in Canada, Shopify Capital launched in Germany and The Netherlands) and continued focus on cross-border commerce (15% of total GMV). " " " "

Consistent focus with increasing momentum and deeper product localization. The sentiment remains optimistic, with clear strategic investments to expand globally.

Enterprise and Upmarket Merchant Expansion

Q1 2025 saw strong enterprise growth with high-profile signings (VF Corp, Carrying Beauty) and a robust enterprise pipeline. " " " Q4 2024 highlighted multiple large brands (Reebok, Karl Lagerfeld) and global sports teams. " " Q3 2024 emphasized composable platform benefits and managing early-stage enterprise pipelines. " " "

In Q2 2025, Shopify announced new enterprise clients including Starbucks, Canada Goose, and others; expanded into new verticals such as automotive, education, and mining; and stressed scalability and partnerships with SIs. " " "

A recurring emphasis with broader vertical expansion. The focus is deepening as Shopify continues to attract larger and more diverse global brands, enhancing its enterprise value proposition.

AI-Driven Commerce Innovations

Q1 2025 featured deep AI integration with improvements to Sidekick, internal AI usage, and the acquisition of Vantage Discovery. " " " Q4 2024 emphasized AI’s transformative role with enhancements to Sidekick and internal productivity boosts. " " " Q3 2024 saw AI features in Shopify Inbox and Shop App enhancements using machine learning. " " "

In Q2 2025, new AI tools were launched including an AI Store Builder, further enhancements to Sidekick, and the introduction of Catalog and Universal Cart along with strategic AI partnerships. " " "

A consistent and deepening focus on integrating AI across merchant tools and operations. The sentiment is strongly positive as Shopify leverages AI to drive innovation and competitive differentiation.

Pricing Strategy and Revenue Model Adjustments

Q1 2025 discussed Plus pricing changes and trial model shifts that drove Subscription Solutions and Merchant Solutions growth. " " Q4 2024 focused on enterprise value propositions and price elasticity while outlining past pricing adjustments. " Q3 2024 highlighted the impact of Plus pricing changes on subscription revenue and stable MRR growth. "

Q2 2025 reiterated the GMV‐based revenue model and introduced Commerce Components by Shopify, emphasizing a modular pricing approach. The discussion centered on aligning merchant success with revenue growth. "

An evolving approach with continuous adjustments. While longer trial periods present short-term comparability headwinds, the overall sentiment is one of strategic balance between pricing flexibility and long-term revenue alignment.

Subscription Solutions and MRR/Trial Model Dynamics

Q1 2025 saw strong Subscription Solutions revenue growth of 21% and MRR up 21%, driven by Plus pricing and the start of a shift to three-month trials. " " Q4 2024 reported 27% revenue growth with noted headwinds due to the longer trial model and MRR growth challenges. " " Q3 2024 detailed a 26% increase in Subscription Solutions revenue and stable MRR improvements across categories. "

In Q2 2025, Subscription Solutions grew 17% and MRR increased 9% year-over-year. The shift back to three-month trials resulted in a modest MRR pickup as new merchants remained in trial longer. "

Consistently monitored with slight headwinds from extended trial periods. Despite short-term MRR challenges, the long-term outlook remains positive as the trial model is viewed as beneficial for merchant durability.

Margin Pressure and Operational Efficiency

Q1 2025 noted gross margin pressures on Merchant Solutions driven by payment mix and emphasized AI-driven operational efficiency. " " " Q4 2024 described reduced gross margins due to hosting costs and PayPal impacts while highlighting improved free cash flow margins. " " " Q3 2024 discussed lower gross margins partly due to amortized partnership benefits and noted discipline in operating expenses. " "

In Q2 2025, overall gross margins declined (48.6% vs. 51.1% previously) due to higher hosting costs and changes in partnership mixes, yet operating expenses improved (38% of revenue) with strong free cash flow demonstrated. " "

A persistent theme where margin pressures from product mix and increased costs are offset by efficiency measures and disciplined expense management. The sentiment is cautious but confident in operational improvements.

Marketing Spend and ROI Concerns

Q1 2025 detailed a returns-based, flexible marketing spend strategy using data and AI to optimize ROI. " " " Q4 2024 reiterated strong performance marketing focus with constant strategy. " Q3 2024 emphasized disciplined spend reductions in non-performance areas and continued ROI focus. " "

In Q2 2025, planned marketing spend increased to support key growth products and markets with a continued focus on performance-based investments, despite higher overall expense percentages. " "

A recurring focus with an upward adjustment in spending aimed at capturing growing market opportunities. The sentiment remains optimistic, supported by strong performance marketing metrics and data-driven flexibility.

Investments in Core Platform and Growth Areas

Q1 2025 reinforced investments in its core platform, international expansion, and enterprise/B2B offerings. " " Q4 2024 detailed robust investments in platform enhancements, international localization, offline commerce, and AI initiatives. " " Q3 2024 highlighted product enhancements such as Shopify Flow, Inbox, and a new data migration tool to drive operational improvements. " " "

In Q2 2025, Shopify continued its balanced growth strategy by further investing in its core platform and expanding product capabilities (like enhanced localization and vertical expansion), underpinning long‐term growth while maintaining free cash flow discipline. " " "

A sustained, future-oriented strategy with consistent heavy investments. This commitment to technology and market expansion is expected to have a large positive impact on the company’s future growth.

B2B Segment Expansion

Q1 2025 reported triple-digit B2B GMV growth (109% YoY) with enterprise signings and unified commerce solutions. " " Q4 2024 highlighted six consecutive quarters of over 100% B2B GMV growth with a 132% increase in GMV and industry recognition. " Q3 2024 noted over 145% YoY growth with new product enhancements attracting exclusive B2B merchants. " "

In Q2 2025, B2B GMV grew by 101% YoY, and Shopify expanded into new verticals such as mining and drilling services, underlining the strategic importance of the B2B segment. " "

Consistent strong growth with a slight dip in YoY percentage compared to record highs, yet the segment remains a major driver with diversification into new verticals, reflecting positive long-term momentum.

Mobile Commerce Adoption and Shop App Performance

Q3 2024 featured enhancements in the Shop App with an 18% increase in recommendation sessions and AI-powered improvements in Shopify Inbox. " " Q4 2024 showed the Shop App achieving 84% GMV growth and improvements in features like cart sinking and Shop Pay performance. " " Q1 2025 did not provide specific details on mobile commerce.

In Q2 2025, the Shop App delivered strong results with 140% YoY native GMV growth, a 46% increase in sign-ins, and new AI-driven enhancements (including improved search and home feed), positioning it as a future driver of direct-to-consumer shopping. "

An emerging area with significant performance improvements. The mobile commerce narrative has strengthened, with innovations in the Shop App and Shop Pay driving optimism for future direct-to-consumer growth.

Regulatory and Tariff Impacts

Q1 2025 discussed tariff exposure and the de minimis exemption impact being minimal, with close monitoring of regulatory changes. " " " Q4 2024 focused on the importance of the de minimis exemption and features to help merchants manage duties, while advocating process improvements. " Q3 2024 emphasized preparedness for external regulatory shifts without significant disruption. "

In Q2 2025, Shopify reported that tariff impacts remained minimal with no significant changes in buyer behavior, and cross-border GMV continued at 15%. Regulatory changes (like de minimis rules) did not materially affect performance. " "

A stable and consistently monitored topic. Though regulatory and tariff changes are acknowledged, they have not materially disrupted performance, and the outlook remains neutral with proactive product adjustments to mitigate any potential impacts.