Shopify | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 2.844 B

LB filings
2025.11.04 12:07
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Revenue: As of FY2025 Q3, the actual value is USD 2.844 B, beating the estimate of USD 2.76 B.

EPS: As of FY2025 Q3, the actual value is USD 0.2, missing the estimate of USD 0.2544.

EBIT: As of FY2025 Q3, the actual value is USD 262 M.

Financial Metrics by Segment

Segment Revenue

  • Subscription Solutions: $699 million for Q3 2025, up from $610 million in Q3 2024, representing a 15% increase. For the nine months ended September 30, 2025, subscription solutions revenue was $1,975 million, up from $1,684 million in the same period in 2024, representing a 17% increase.
  • Merchant Solutions: $2,145 million for Q3 2025, up from $1,552 million in Q3 2024, representing a 38% increase. For the nine months ended September 30, 2025, merchant solutions revenue was $5,909 million, up from $4,384 million in the same period in 2024, representing a 35% increase.

Operational Metrics

  • Gross Profit: $1,391 million for Q3 2025, up from $1,118 million in Q3 2024, representing a 24% increase. For the nine months ended September 30, 2025, gross profit was $3,862 million, up from $3,120 million in the same period in 2024, representing a 24% increase.
  • Operating Expenses: $1,048 million for Q3 2025, up from $835 million in Q3 2024, representing a 26% increase. For the nine months ended September 30, 2025, operating expenses were $3,025 million, up from $2,510 million in the same period in 2024, representing a 21% increase.
  • Net Income: $264 million for Q3 2025, down from $828 million in Q3 2024. For the nine months ended September 30, 2025, net income was $488 million, down from $726 million in the same period in 2024.

Cash Flow

  • Operating Cash Flow: $513 million for Q3 2025, up from $423 million in Q3 2024. For the nine months ended September 30, 2025, operating cash flow was $1,308 million, up from $1,001 million in the same period in 2024.

Unique Metrics

  • Monthly Recurring Revenue (MRR): $193 million as of September 30, 2025, up from $175 million as of September 30, 2024, representing a 10% increase.
  • Gross Merchandise Volume (GMV): $92.0 billion for Q3 2025, up from $69.7 billion in Q3 2024, representing a 32% increase. For the nine months ended September 30, 2025, GMV was $254.6 billion, up from $197.8 billion in the same period in 2024, representing a 29% increase.

Future Outlook and Strategy

Core Business Focus

  • Expansion of Shopify Payments: Continued focus on increasing the penetration rate of Shopify Payments, which was 65% for the nine months ended September 30, 2025, up from 61% in the same period in 2024.
  • Investment in AI and Machine Learning: Ongoing investment in data analytics, machine learning, and AI to enhance platform functionality and merchant success.
  • International Expansion: Continued expansion of platform capabilities and offerings internationally to grow addressable markets and meet merchant needs.

Non-Core Business

  • Strategic Partnerships and Acquisitions: Formation of strategic partnerships and potential acquisitions to enhance ecosystem and partner programs, including the acquisition of Vantage Discovery Inc. for $59 million to accelerate AI-powered search capabilities.

Priority

  • Focus on Merchant Solutions: Emphasis on growing merchant solutions revenue, which accounted for 75% of total revenue for the nine months ended September 30, 2025, up from 72% in the same period in 2024.
  • Cost Management: Efforts to manage operating expenses, which increased by 21% for the nine months ended September 30, 2025, compared to a 30% increase in total revenue for the same period.
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