At a glance
Shopify Inc. is worth $213.34B, about 176 times its fiscal 2025 earnings. Revenue grew 30.1% to $11.56B in fiscal 2025, with 10.7% kept as profit; over 3 years it has grown 27.3% a year. It pays no dividend. The stock returned −5.3% over the past year with dividends reinvested and +4.0% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 40.7% in the 2020 crash (S&P 500: 33.7%) and 81.2% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 34 months after the lows.
The business in plain English
Shopify sells software that lets businesses run an online store, take in-store payments and reach shoppers on social media and AI platforms from one system. Its customers, called merchants, range from first-time entrepreneurs to large brands. As of December 31, 2025, it had millions of merchants in more than 175 countries: 44% in the United States, 31% in Europe, the Middle East and Africa, 16% in Asia Pacific, 5% in Canada and 5% in Latin America. Those percentages count merchants, not revenue. No single merchant has ever made up more than 5% of revenue.
Shopify earns money two ways. Merchant solutions, which rise with merchants' sales, brought in $8.8 billion, or 76.2% of fiscal 2025 revenue of $11.6 billion. Most of that is fees for processing payments and converting currencies through Shopify Payments, its built-in payment service; the rest includes lending, shipping labels, in-store checkout hardware and advertising. Subscription solutions brought in $2.75 billion, or 23.8%, from plan fees, apps, themes (store designs) and domain names. Most merchants use the cheaper Basic and Grow plans, but most order value comes from merchants on the pricier Shopify Plus and enterprise plans.
As of December 31, 2025, the Shopify App Store offered more than 21,000 add-on apps, many from outside developers. Holiday demand has historically lifted fourth-quarter revenue.
Price history
The interactive chart needs JavaScript.
SHOP -5.3% over the year to Oct 27, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Merchant solutions | $8.80B | 76.2% |
| Subscription solutions | $2.75B | 23.8% |
Latest results
- In Q2 FY2026 (ended Jun 30, 2026), revenue was $3.58B, up 33.7% from a year earlier, and net income was $1.50B (+65.8%).
- For fiscal 2025, revenue was $11.56B (+30.1% year over year; +27.3% a year from FY2022 to FY2025) with a 10.7% net margin.
Financial health check
| Revenue growth a year (FY2022–FY2025) | +27.3% good |
|---|---|
| Operating margin | 12.7% watch |
| Free cash flow margin | 17.4% good |
| Return on equity (FY2025) | 9.1% watch |
| Return on assets (FY2025) | 8.1% good |
| Net cash (cash minus debt) | $5.47B good |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2022 | $5.60B | $-3.46B | $-186.0M |
| FY2023 | $7.06B | $132.0M | $905.0M |
| FY2024 | $8.88B | $2.02B | $1.60B |
| FY2025 | $11.56B | $1.23B | $2.01B |
Valuation snapshot
| Market value | $213.34B |
|---|---|
| P/E ratio | 176.4 |
| Dividend yield | None |
Rank among 1514 US companies
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| SHOP price data to Oct 27, 2026 | +3.0% | -5.3% | +52.9% | +4.0% | +44.6% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +3.0% |
| 2025 | +51.4% |
| 2024 | +36.5% |
| 2023 | +124.4% |
| 2022 | -74.8% |
| 2021 | +21.7% |
| 2020 | +184.7% |
| 2019 | +187.2% |
| 2018 | +37.1% |
| 2017 | +135.6% |
| 2016 | +66.2% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 30.9% over that stretch · deepest drop along the way 40.7%, back to its old high 1.1 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 80.9% over that stretch · deepest drop along the way 81.2%, back to its old high 33.8 months after the low |
Who owns it
Large shareholders (13G filings)
| BlackRock, Inc. | 5.1% | Jun 30, 2026 |
| BAILLIE GIFFORD & CO | 4.9% | Dec 31, 2024 |
ETFs with the most weight in SHOP
| NITE Nightview Fund NITE | 3.8% |
| EBIZ Global X E-commerce ETF | 3.47% |
| PNQI Invesco NASDAQ Internet ETF | 3.19% |
| JXX Janus Henderson Transformational Growth ETF | 2.69% |
| SPRX Spear Alpha ETF | 2.47% |
| PJIO PGIM Jennison International Opportunities ETF | 2.29% |
| BKIV BNY Mellon Innovators ETF | 2.25% |
| CGXU Capital Group International Focus Equity ETF | 2.17% |
What could go wrong
- Payments rely on two outside suppliers. Shopify relies on two suppliers for the technology behind Shopify Payments, whose fees are the main part of merchant solutions, 76.2% of fiscal 2025 revenue. Trouble at either supplier could disrupt that income.
- Founder holds outsized voting power. A special Founder Share gives founder Tobias Lütke a variable number of votes that can far outweigh the shares he owns. Holders of Class A shares have limited say over most corporate matters.
- Merchant financing may not be repaid. Through Shopify Capital, the company funds merchants and is repaid from their future sales or payments. If merchants' sales slump, the economy weakens or fraud rises, Shopify may not get its money back.
- Merchants can leave at short notice. Plans typically run month to month, and merchants have no obligation to renew. Winning new merchants costs Shopify far more than keeping existing ones, so weaker retention could hurt its results.
- Weak spending or tariffs could hurt merchants. Most of Shopify's revenue is tied to its merchants' sales. Weaker economies or trade measures such as tariffs could cut spending by merchants and their customers, shrinking Shopify's fees.
- Profits may not hold up. Shopify lost $3.46 billion in fiscal 2022 and plans substantial further investment. Fiscal 2025 net income fell 39% even as revenue grew 30%, a reminder that earnings can swing.
Recent events
- Quarterly results released
- Executive or board change
- Shareholder vote results; Other company announcement
- Investor presentation or announcement
- Other company announcement
- Quarterly results released
- Quarterly results released; Investor presentation or announcement
- Other company announcement
- Quarterly results released
For income and retirement investors
Shopify pays no dividend, and its annual report says it does not expect to pay one for the foreseeable future. It spent nothing repurchasing its own shares in fiscal 2022 through 2025, though it has a repurchase program it says may not be fully completed. For an income investor, that means any return must come from a rising share price, and getting cash out means selling shares.
The share price has swung hard in downturns. In the 2020 COVID crash it fell 40.7% between February 19 and March 16, 2020, then recovered by April 17. In the 2022 market slump it dropped 81.2% from January 3 to October 11, 2022, and did not regain its earlier peak until August 6, 2025, almost 34 months later. Anyone who needed cash and sold during that stretch would have locked in deep losses. A single stock like Shopify carries more risk than a diversified fund that spreads money across many companies.
Questions investors ask
How does Shopify make money?
Mostly from fees tied to its merchants' sales. In fiscal 2025, merchant solutions brought in $8.8 billion, or 76.2% of Shopify's $11.6 billion in revenue. That is mainly payment-processing and currency-conversion fees from Shopify Payments, plus lending, shipping labels, in-store checkout hardware and advertising. The other 23.8%, about $2.75 billion, came from subscription solutions: monthly or longer plan fees, apps, themes and domain names. Both lines depend on keeping merchants on the platform and helping them grow.
Does Shopify pay a dividend?
No. Shopify pays no dividend and says in its annual report that it does not expect to pay any on its Class A shares for the foreseeable future. It also spent nothing repurchasing its own shares from fiscal 2022 through 2025. Instead, it plans to keep making substantial investments in its business. It held $5.47 billion in cash and investments as of June 30, 2026. For investors who want regular income, any return from Shopify has to come from a rising share price.
Is Shopify profitable?
Yes, as of fiscal 2025. Shopify earned net income of $1.23 billion on revenue of $11.56 billion, a net margin (profit as a percentage of revenue) of 10.7%. Free cash flow, the cash left after running the business and paying for equipment, was $2.01 billion. Profits have been uneven, though: Shopify lost $3.46 billion in fiscal 2022, and fiscal 2025 net income fell 39% from the year before. In the quarter ended June 30, 2026, it earned $1.50 billion on revenue of $3.58 billion.
How has Shopify stock performed over the long term?
Strongly over 10 years, but with huge swings. As of October 27, 2026, the share price had gained 44.6% a year over 10 years, a total rise of about 3,910%. Five-year results were far weaker, at 4% a year, a span that includes a 74.8% loss in calendar 2022. Over the year to that date the shares fell 5.3%. Their deepest fall from a peak, over about 11 years of trading, was 84.8%. Past returns do not predict future ones.
Is Shopify stock expensive?
By earnings, it is priced high. As of October 27, 2026, the shares traded at 176.4 times fiscal 2025 earnings of $0.94 a share, giving Shopify a market value of about $213 billion. That price-to-earnings (P/E) ratio means paying about $176 for each $1 of yearly profit. Earnings per share fell from $1.55 in fiscal 2024, which pushes the ratio up, while revenue grew 30.1%. A price this high relies on fast growth continuing; if growth slows, the shares could fall sharply.