Shopify

SHOP · Nasdaq · Information Technology · Financials, fiscal 2016 to 2025

SHOP · Last close · October 26, 2026

$168.18

Shopify's revenue rose 30.1% to $11.6 billion in fiscal 2025. Its operating margin was 12.7%, up from 12.1% a year earlier. Free cash flow was $2.0 billion, up 25.7%. The diluted share count rose 0.3%.

Shopify Inc. Latest fiscal year ended December 31, 2025 10-K filed February 11, 2026 · 0001594805-26-000007 Updated October 23, 2026

Revenue

$11.6B

30.1%

Operating margin

12.7%

0.6 pts

Net income

$1.2B

39.0%

Free cash flow

$2.0B

25.7%

Return on capital

16.3%

0.0 pts

Market cap

$218.3B

Oct 26 close

P/E

113.6x

On $1.48 EPS, 4 qtrs

Operating margin is operating income as a share of revenue. Free cash flow is cash from operations minus capital spending. Return on capital is after-tax operating income as a share of the money invested in the business: debt plus equity, minus cash. Market cap is the last closing share price times the latest diluted share count, so it is approximate. P/E is the last close divided by diluted earnings per share over the last four quarters, or the latest fiscal year where the quarters aren't available; there is none when the company made a loss.

About these figures. Share counts and per-share figures for earlier years are restated for a stock split (10-for-1), so every year is on today's share basis.

What Shopify does

Shopify sells software that lets businesses set up and run online stores and also sell in physical shops, on social media, on AI platforms and elsewhere. Its customers, which it calls merchants, range from people just starting out to large companies that sell directly to consumers or to other businesses. At the end of 2025 it had merchants in more than 175 countries: 44% in the United States, 31% in Europe, the Middle East and Africa, 16% in Asia Pacific, Australia and China, and 5% each in Canada and Latin America.

It earns money in two ways. Subscription solutions, mostly fees for its monthly or yearly plans plus sales of apps, store designs and domain names, made up 24% of 2025 revenue. Merchant solutions, at 76%, are fees tied to what merchants sell, chiefly payment processing and currency conversion fees from Shopify Payments, plus lending, shipping labels, in-store payment hardware and advertising. Shopify calls its market competitive and highly fragmented. It says merchants may instead use ecommerce software vendors, payment processors, point-of-sale providers, lenders, shipping and fulfillment services, or marketplaces.

Shopify had about 7,600 employees worldwide at the end of 2025 and works mainly remotely. Outside developers offer more than 21,000 apps in its App Store. All merchants use the same, latest version of its cloud-based software, and Shopify runs most of the platform on Google Cloud.

Its biggest risks, as it describes them

Failing to attract new merchants, keep the ones it has, or sell them more services.
Losing ground to competitors, or failing to improve its platform as merchants' needs change.
Its reliance on two suppliers for the technology behind Shopify Payments.
Outages at the outside cloud providers that run its platform.
Losses on Shopify Capital funding if merchants' sales fall short, money to lend runs low, or fraud occurs.

From Shopify's annual report on Form 10-K, filed February 11, 2026, in our words; the 10-K has the full description and every risk factor. Updated with each new 10-K.

Charts show fiscal years, from the 10-K filings.

Revenue and margins

Revenue

US$ billions, fiscal years

Margins

Percent of revenue

GrossOperatingNetFree cash flow

Net income and earnings per share

From fiscal 2020 to 2025, earnings per share grew 29.3% a year and net income 31.0% a year, as new shares raised the share count by 6% and diluted each share's earnings.

Net income

US$ billions, fiscal years; loss years in red.

Diluted earnings per share

US$ per share, fiscal years, restated for any stock splits; loss years in red.

Returns on capital

Return on capital and on equity

Percent. Return on capital is after-tax operating income over the money invested in the business (debt plus equity, minus cash); return on equity is net income over shareholders' equity. Both use the average of opening and closing balances.

Return on capitalReturn on equity

Cash flow

Free cash flow

US$ billions. Cash from operations minus capital expenditure; negative years in red.

Payouts and share count

Dividends and buybacks

US$ billions, cash paid in each fiscal year

DividendsShare buybacks

Diluted share count

Weighted-average diluted shares, billions

Valuation

Two ways to value Shopify yourself, both starting from its filings: a discounted cash flow model and the price-to-earnings method.

Discounted cash flow (DCF)

A discounted cash flow (DCF) model values a business as the cash it may generate in future, discounted back to today. The starting figures come from Shopify's 10-K (or, for net cash and shares, its latest 10-Q) and the assumptions are yours: start from one of three example scenarios, then change any figure to see what it implies for a share, and how that compares with the last share price.

Value per share on three example scenarios, from Shopify's fiscal 2025 free cash flow of $2.0B, net cash of $5.8B at December 31, 2025 and 1,305 million diluted shares, from its filings. The scenarios are fitted to Shopify: the base scenario's growth in years 1 to 5 is its revenue growth over the last 3 years, 27.3% a year, kept between 0% and 20%; the cautious and optimistic ones are lower and higher, and growth in years 6 to 10 is halfway to the long-run rate. The base scenario's discount rate is 10%: 9% for a business of moderate risk (Internet Services & Infrastructure), plus 1 point for unsteady results (a loss in fiscal 2022); the cautious and optimistic ones use a point more and a point less. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

From the filings

Starting free cash flow, US$ millions

Cash from operations minus capital spending in fiscal 2025.

Net cash, US$ millions Cash and short-term investments minus debt and finance leases at December 31, 2025. Negative means net debt.

Diluted shares, millions

Weighted-average diluted shares in fiscal 2025.

Your assumptions

Start from

Fitted to Shopify's own revenue growth, as above. Cautious: growth of 10% then 6% a year, 2% after year 10, a 11% discount rate. Base: growth of 20% then 11% a year, 2.5% after year 10, a 10% discount rate. Optimistic: growth of 25% then 14% a year, 3% after year 10, a 9% discount rate.

Free cash flow growth, years 1 to 5 (% a year)

Free cash flow growth, years 6 to 10 (% a year)

Growth after year 10 (% a year)Long-run growth forever after year 10. Usually close to inflation, and always below the discount rate.

Discount rate (% a year)The yearly return an investor wants for the risk. A higher rate gives a lower value.

Value per share on these assumptions

—

Last close, October 26, 2026: $168.18
Value on these assumptions, against the last close: —

Cash flows in years 1 to 10, valued today: —
Everything after year 10, valued today: —
Plus net cash: —
Share of value from after year 10: —

Projected free cash flow

US$ billions. Each column is one year's projected free cash flow, split into what it is worth today and the part removed by discounting.

Value todayRemoved by discounting

How the value changes with two assumptions

Value per share in US$, with the growth rates above. The highlighted cell matches the current assumptions.

How the model works. Free cash flow grows at the first rate for five years and the second rate for five more, and each year is discounted at the discount rate. Everything after year 10 is valued as year-10 cash flow × (1 + growth after year 10) ÷ (discount rate − growth after year 10), discounted back ten years. Net cash is added and the total is divided by diluted shares. The result depends entirely on the assumptions. It is not a forecast, a price target or a recommendation. The last close is the consolidated US closing price, from Databento.

Price-to-earnings (P/E) method

Another common way to value a company is to multiply its earnings per share by a price-to-earnings (P/E) multiple: the number of years of today's earnings an investor pays for a share. A higher multiple usually means investors expect earnings to grow. Choose a multiple, for example from similar companies, to see the value it gives.

Value per share on three example scenarios, from Shopify's earnings per share of $1.48 (over the last four quarters). Each grows earnings for a year at the cash flow scenarios' rates and applies a multiple to next year's earnings: 33.3×, the middle of Shopify's own P/E today, its peers' median and its sector's median (the Information Technology median) for the base scenario, 20% less and more for the cautious and optimistic ones. The price is brought back a year at 11%, 10% and 9%. Select one to load it into the calculator. These are the model's arithmetic on those assumptions, not a forecast or a price target.

Earnings per share, US$

Diluted earnings per share over the four quarters to June 30, 2026, from the 10-Qs and 10-K.

P/E multiple

P/E today is the last close divided by the latest earnings per share, the four quarters' where available. Peers: GoDaddy, Akamai Technologies.

Earnings growth in the years ahead (% a year) Starts at Shopify's revenue growth over the last 3 years, 27.3% a year, kept between 0% and 20%, as the base scenario does.

Earnings per share in the years ahead, US$

Year 1Year 2Year 3Year 4Year 5

Type your own estimate for any year; the years after it carry on at the growth rate.

Apply the multiple to earnings

A multiple on a future year's earnings gives the price then, brought back to today at the discount rate below.

Discount rate (% a year) The yearly return an investor wants for the risk, as in the cash flow model.

Value per share today at this multiple

—

Last close, October 26, 2026: $168.18
Value at this multiple, against the last close: —
Shopify's P/E at the last close: 113.6×

Company	Last close	Earnings per share	P/E today
ShopifySHOP	$168.18	$1.48	113.6×
Akamai TechnologiesAKAM	$98.50	$2.77	35.6×
GoDaddyGDDY	$109.82	$6.72	16.3×

How the P/E method works. Value per share is earnings per share times the multiple. On a future year's earnings, that gives the price in that year, which is brought back to today at the discount rate: price ÷ (1 + discount rate) for each year ahead. It is quick and easy to compare across companies, but it ignores debt and cash, and earnings can swing with one-off gains and charges, so a multiple says most about steady, profitable businesses. Like the cash flow model, the result depends entirely on the assumptions you choose. It is not a forecast, a price target or a recommendation.

Balance sheet

Fiscal year end	FY21	FY22	FY23	FY24	FY25
Cash and short-term investments	7,768	5,053	5,008	5,479	5,778
Debt incl. finance leases	911	913	916	918	0
Net debt (negative means net cash)	−6,857	−4,140	−4,092	−4,561	−5,778
Net debt to EBITDA	−20.5x	—	—	−4.1x	−3.9x
Debt to equity	0.1x	0.1x	0.1x	0.1x	0.0x
Interest coverage	76.9x	−234.9x	−1,418.0x	1,075.0x	1,468.0x
Current ratio	12.2x	7.1x	7.0x	3.7x	6.0x
Quick ratio	12.2x	7.1x	7.0x	3.7x	5.9x

US$ millions unless stated, at each fiscal year end. Net debt to EBITDA is debt minus cash, divided by operating income before depreciation and amortization: roughly how many years of those earnings the net debt equals. Debt to equity is debt as a multiple of shareholders' equity. Interest coverage is operating income divided by interest expense. The current ratio is current assets over current liabilities; the quick ratio leaves out inventory.

Insider trades

No officer, director or 10% owner of Shopify reported buying or selling its shares on the open market between October 27, 2025 and October 26, 2026.

From Form 4 filings with the SEC. Grants, option exercises and shares withheld for tax aren't counted. Insider trades at all companies

Piotroski F-score

The F-score counts how many of nine simple tests of profitability, funding and efficiency a company passed in a year (Piotroski, 2000). The more tests passed, the stronger the year: 8 or 9 is strong, 0 to 2 weak. Companies that report no gross profit are scored on the other eight.

Test	FY23	FY24	FY25
Net income is positive	Pass	Pass	Pass
Cash from operations is positive	Pass	Pass	Pass
Return on assets rose	Pass	Pass	Fail
Cash from operations exceeds net income	Pass	Fail	Pass
Debt fell relative to assets	Fail	Pass	Pass
Current ratio rose	Fail	Fail	Pass
Share count didn't rise	Fail	Fail	Fail
Gross margin rose	Pass	Pass	Fail
Revenue rose relative to assets	Pass	Pass	Pass
F-score	6 of 9	6 of 9	6 of 9
Accruals ratio	−7.4%	3.2%	−5.5%

The accruals ratio is net income minus cash from operations, over average total assets.

Compare

Put Shopify side by side with any other company we cover: revenue, growth, margins, cash flow and returns, with ten years of charts.

Similar companies

Company	Year	Revenue growth	Operating margin	Free cash flow margin	Return on capital	Net debt to EBITDA	F-score	Compare
Shopify	FY25	30.1%	12.7%	17.4%	16.3%	−3.9x	6
GoDaddy	FY25	8.3%	22.8%	31.8%	30.6%	2.2x	5	Compare
Akamai Technologies	FY25	5.4%	13.5%	24.0%	6.3%	2.3x	6	Compare
Cloudflare	FY25	29.9%	−9.6%	13.3%	−29.7%	—	3	Compare
Wix.com	FY25	13.2%	0.1%	29.2%	—	9.9x	7	Compare

Each company's latest fiscal year. Fiscal years end in different months, so the periods don't line up exactly. Free cash flow margin is free cash flow as a share of revenue. Net debt to EBITDA is explained under the balance sheet, and the F-score above.

10 years of figures

Fiscal year	FY16	FY17	FY18	FY19	FY20	FY21	FY22	FY23	FY24	FY25
Income statement
Revenue	—	673	1,073	1,578	2,930	4,612	5,600	7,060	8,880	11,556
Revenue growth	—	—	59.4%	47.0%	85.6%	57.4%	21.4%	26.1%	25.8%	30.1%
Gross profit	210	380	596	866	1,542	2,481	2,754	3,515	4,472	5,555
Research and development	74	136	231	355	552	854	1,503	1,730	1,367	1,536
Operating income	−37	−49	−92	−141	90	269	−822	−1,418	1,075	1,468
Net income	−35	−40	−65	−125	320	2,915	−3,460	132	2,019	1,231
Diluted EPS (US$)	−0.04	−0.04	−0.06	−0.11	0.26	2.29	−2.73	0.10	1.55	0.94
Diluted shares (millions)	840	958	1,057	1,130	1,235	1,274	1,266	1,296	1,302	1,305
Cash flow
Cash from operations	14	8	9	71	425	536	−136	944	1,616	2,033
Capital expenditure	24	20	28	57	42	51	50	39	19	26
Free cash flow	−10	−12	−19	14	383	485	−186	905	1,597	2,007
Dividends paid	0	0	0	0	0	0	0	0	0	0
Share buybacks	0	0	0	0	0	0	0	0	0	0
Acquisitions	14	16	19	266	0	60	1,754	31	30	56
Stock-based compensation	23	49	96	158	247	331	549	615	430	449
Balance sheet at fiscal year end
Cash and short-term investments	392	938	1,970	2,455	6,388	7,768	5,053	5,008	5,479	5,778
Debt incl. finance leases	—	—	—	0	758	911	913	916	918	0
Total assets	491	1,114	2,255	3,490	7,763	13,340	10,757	11,299	13,924	15,189
Total liabilities	80	112	164	474	1,362	2,207	2,518	2,233	2,366	1,716
Shareholders' equity	410	1,001	2,091	3,016	6,401	11,133	8,239	9,066	11,558	13,473
Margins and ratios
Gross margin	—	56.5%	55.6%	54.9%	52.6%	53.8%	49.2%	49.8%	50.4%	48.1%
Operating margin	—	−7.3%	−8.6%	−8.9%	3.1%	5.8%	−14.7%	−20.1%	12.1%	12.7%
Net margin	—	−5.9%	−6.0%	−7.9%	10.9%	63.2%	−61.8%	1.9%	22.7%	10.7%
Free cash flow margin	—	−1.8%	−1.7%	0.9%	13.1%	10.5%	−3.3%	12.8%	18.0%	17.4%
Return on capital	—	—	—	—	13.5%	9.9%	−15.5%	−22.3%	16.3%	16.3%
Return on equity	−11.7%	−5.7%	−4.2%	−4.9%	6.8%	33.2%	−35.7%	1.5%	19.6%	9.8%
Return on assets	−9.6%	−5.0%	−3.8%	−4.3%	5.7%	27.6%	−28.7%	1.2%	16.0%	8.5%
Net debt to EBITDA	—	—	—	—	−35.1x	−20.5x	—	—	−4.1x	−3.9x

US$ millions unless stated. Where a later 10-K restated a year, the latest filed figure is shown. Download all figures (CSV, US$ millions)

Source: Shopify's Form 10-K filings, from SEC EDGAR. For information only, not investment advice. The Filing Desk is not affiliated with Shopify.