Shopify Q3 Revenue Rises 31.6% to $3.74 Billion as GMV Tops $119 Billion
Shopify grew third-quarter revenue 31.6% to $3.74 billion as gross merchandise volume on its platform climbed 29.5% to $119.1 billion, and the commerce software company forecast revenue growth in the low-thirties percent for the fourth quarter.
Revenue rose from $2.84 billion a year earlier, according to the earnings release Shopify filed with an 8-K on Tuesday. Net income increased 75.0% to $462 million, or $0.36 per diluted share, from $264 million, or $0.20. Non-GAAP diluted EPS rose 44.1% to $0.49 from $0.34.
"We powered $119 billion in GMV, while continuing to build commerce into every surface, every agent, and increasingly, everywhere," President Harley Finkelstein said in the release.
Merchant solutions lead the way
Merchant solutions revenue, which includes payments, jumped 35.5% to $2.91 billion from $2.15 billion. Subscription solutions revenue grew 19.6% to $836 million from $699 million, and monthly recurring revenue rose 19.2% to $230 million from $193 million.
Gross profit increased 28.0% to $1.78 billion from $1.39 billion. Operating income grew faster, up 65.6% to $568 million from $343 million, as revenue outpaced operating expenses.
Cash flow and buybacks
Free cash flow rose to $816 million from $507 million, lifting the free cash flow margin to 21.8% of revenue from 17.8% a year earlier, based on IDD's calculation from the reported figures. Shopify spent $562 million repurchasing its shares in the quarter, compared with no buybacks in the year-ago period, the company said.
Fourth-quarter outlook
For the fourth quarter, Shopify expects:
- Revenue to grow at a low-thirties percentage rate year over year
- Gross profit dollars to grow at a high-twenties percentage rate
- Operating expenses of 29% to 30% of revenue
- Stock-based compensation of $155 million
- A free cash flow margin consistent with the fourth quarter of 2025
By the numbers
- Revenue: $3.74 billion, up 31.6%
- GMV: $119.1 billion, up 29.5%
- Operating income: $568 million, up 65.6%
- Diluted EPS: $0.36, versus $0.20
- Free cash flow: $816 million, versus $507 million
- Share repurchases: $562 million
Sources
- Shopify Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001594805-26-000067)
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Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.