Shopify reports 32% Q3 revenue growth and strong cash generation
On November 3, Shopify reported third-quarter revenue of 3,742 (US $ millions), up 32% year over year and 32% in constant currency, with GMV of 119,145 (US $ millions) and a 22% free cash flow margin. Net income was $462 million, while reported earnings were 36 cents per share and adjusted earnings were 49 cents per share.
Why it matters
Shopify's release sets a new near-term operating framework for investors, including lower sequential revenue growth, higher fourth-quarter marketing needs and a free cash flow margin expected to match the fourth quarter of 2025. The initial share reaction was negative after GMV and subscription revenue were reported below estimates despite revenue meeting forecasts and adjusted earnings beating them.
Key facts
- 1Shopify recorded operating income of 568 and free cash flow of 816 (US $ millions) in the quarter. sec.gov
- 2Subscription solutions revenue was 836 and merchant solutions revenue was 2,906 (US $ millions). sec.gov
- 3For the fourth quarter of 2026, Shopify expects revenue growth at a low-thirties percentage rate, gross profit dollars growth at a high-twenties percentage rate, operating expenses of 29% to 30% of revenue, stock-based compensation of $155 million, and a free cash flow margin consistent with the fourth quarter of 2025. sec.gov
- 4Shopify's reported Q3 earnings were 36 cents per share and adjusted earnings were 49 cents per share. finance.yahoo.com
Summary written by AlphAI AI Desk from 20 of 29 sources. Not investment advice. Figures are as stated by the linked sources.