Merchant Success Drives Shopify’s Excellent Q1 - Delivering Strong Revenue Growth AND Profitability

Internet, Everywhere - May 8, 2025 - Shopify Inc. (NASDAQ, TSX: SHOP) announced today financial results for the quarter ended March 31, 2025. Shopify achieved 27% revenue growth and 15% free cash flow margin. Shopify has now delivered double-digit free cash flow margins for seven  consecutive quarters. 

“Our Q1 results confirm two clear facts. First, we are delivering both growth and profitability at scale. Second, businesses perform better on Shopify, regardless of market conditions,” said Harley  Finkelstein, President of Shopify. “We built Shopify for times like these. We handle the complexity so merchants can focus on their customers. We ship products faster than anyone else, giving merchants the edge they need to succeed.” 

Jeff Hoffmeister, Chief Financial Officer of Shopify, added, “Q1 marked another very strong set of financial results for Shopify, with 27% revenue growth and 15% free cash flow margin. We have now achieved eight consecutive quarters of pro forma revenue growth of 25% or more and seven consecutive quarters of GMV growth greater than 20%, all while increasing our free cash flow. These metrics highlight our strong performance and dedication to supporting our merchants’ success.” ⁽¹⁾ 

2025 Outlook

The outlook that follows supersedes all prior financial outlook statements made by Shopify, constitutes forward-looking information within the meaning of applicable securities laws, is based on a number of assumptions, and subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond Shopify’s control. Please see “Forward-looking Statements” below for more information. 

For the second quarter of 2025, we expect:

• Revenue to grow at a mid-twenties percentage rate on a year-over-year basis; 
• Gross profit dollars to grow at a high-teens percentage rate on a year-over-year basis;
• Operating expense as a percentage of revenue to be 39% to 40%; 
• Stock-based compensation to be $120 million; and
• Free cash flow margin to be in the mid-teens, similar to the first quarter of 2025. 

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss first-quarter results today, May 8, 2025, at 8:30 a.m. ET. The conference call will be webcast on the investor relations section of Shopify’s website at www.shopifyinvestors.com/news-and-events. An archived replay of the webcast will be available following the conclusion of the call. 

Shopify’s Form 10-Q for the quarter ended March 31, 2025, including the unaudited Condensed Consolidated Financial Statements, the accompanying Notes, and Management’s Discussion and Analysis will be available on Shopify’s website at www.shopify.com and will be filed on EDGAR at www.sec.gov and on SEDAR+ at www.sedarplus.ca. 

About Shopify

Shopify is a leading global commerce company that provides essential internet infrastructure for commerce, offering trusted tools to start, scale, market, and run a business of any size. Shopify makes commerce better for everyone with a platform and services that are engineered for speed, customization, reliability, and security, while delivering a better shopping experience for consumers online, in store, and everywhere in between. Shopify powers millions of businesses in more than 175 countries and is trusted by brands such as BarkBox, Vuori, BevMo, Carrier, JB Hi-Fi, Meta, ButcherBox, SKIMS, Supreme, and many more. 

For more information visit www.shopify.com 

Forward-looking Statements 

This press release contains forward-looking statements and forward-looking information (collectively,  “forward-looking statements”), including statements related to Shopify’s financial outlook, such as  expected revenue and expenses for the next fiscal quarter. These statements can be identified by  words such as “expect” and are based on Shopify’s current projections and expectations about future  events and financial results. Known and unknown risks may cause actual results to differ materially  from those described in the forward-looking statements. These risks include, but are not limited to,  the Company’s ability to maintain expected growth and manage expenses, the impact of changes in  economic conditions and consumer spending in key markets such as the United States and Europe  and globally, the impact of measures that affect international trade, including tariffs, our reliance  on third party cloud providers to deliver services, a cyberattack or security breach, and serious  errors or defects in software or hardware. Other factors and risks that may cause actual results to  differ materially from those set out in the forward-looking statements are set out in Shopify’s Annual  Report on Form 10-K under the heading “Risk Factors” and other filings made with US and Canadian  securities regulators, available at www.sec.gov and www.sedarplus.ca. Undue reliance should not  be placed on the forward-looking statements in this press release, which are based on information  available to management on the date hereof and represent management’s beliefs regarding future  events, projection and financial trends, which, by their nature, are inherently uncertain. The forward looking statements are provided to give additional information about management’s expectations and  beliefs and may not be appropriate for other purposes. Shopify undertakes no duty to publicly update  or revise any forward-looking statements, except as may be required by law.

⁽¹⁾ Pro forma revenue excludes revenues earned from previously divested logistics businesses.

⁽²⁾ Gross Merchandise Volume, or GMV, represents the total dollar value of orders facilitated through the Shopify platform including certain apps and channels for which a revenue-sharing arrangement is in place in the period, net of refunds, and inclusive of shipping and handling, duty, and value-added taxes.

Monthly Recurring Revenue, or MRR, is calculated by multiplying the number of merchants by the average monthly subscription plan fee in effect on the last day of that period and is used by management as a directional indicator of subscription solutions revenue going forward assuming merchants maintain their subscription plan the following month. In the three months ended March 31, 2024, the Company revised the inclusion of paid trials in the calculation of MRR.

Free cash flow and free cash flow margin are non-GAAP financial measures which are reconciled in the non-GAAP reconciliation at the end of this press release. Shopify believes free cash flow and free cash flow margin provide useful information to help investors and others understand our operating results and the performance of our business in the same manner as management. Shopify does not reconcile forward- looking non-GAAP free cash flow margin as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. Free cash flow is a non-GAAP financial measure calculated as cash flow from operations less capital expenditures.