Shopify Inc. reported third‑quarter 2025 revenue of $2.844 billion, a 32% year‑over‑year increase that surpassed the consensus estimate of $2.75 billion. Gross merchandise volume reached $92.01 billion, up 32% from the same period last year.
Operating income for the quarter was $343 million, down from $434 million in Q3 2024, as operating expenses rose to $1.05 billion from $835 million. Adjusted earnings per share were $0.34, matching analyst expectations, while GAAP EPS was $0.20, reflecting higher transaction and loan losses and unrealized investment losses.
Merchant Solutions revenue climbed 38.2% to $2.145 billion, while Subscription Solutions grew 14.6% to $699 million. The company maintained an 18% free‑cash‑flow margin and continued to invest heavily in artificial‑intelligence research and development, which contributed to the rise in operating expenses.
For Q4 2025, Shopify guided revenue growth in the mid‑to‑high‑20s percent range and gross‑profit dollars in the low‑to‑mid‑20s percent range, indicating confidence in continued demand for its platform. The guidance also reflects the company’s focus on scaling its core platform while managing the cost impact of AI investments.
Management highlighted that the strong revenue performance was driven by increased merchant activity and higher average transaction values, while the decline in operating income was largely due to higher operating expenses and one‑time transaction‑loss adjustments. The company also noted that its free‑cash‑flow margin remained robust, supporting ongoing investment in platform enhancements and customer experience improvements.
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