Shopify Q3 2025 earnings: revenue and merchant sales both climb 32%
Shopify's revenue and merchant sales volume each grew about 32% year-over-year in Q3 2025, with strong free cash flow and upbeat guidance for the holiday quarter.
| Q3 2025 | Reported |
|---|---|
| EPS | $0.20 |
| Revenue | $2.84B |
Figures as reported by the company to the SEC for the quarter ended September 30, 2025. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Total sales flowing through Shopify’s platform (gross merchandise volume, or GMV) rose 32% year-over-year to $92 billion, and revenue grew at roughly the same pace to $2.84 billion, showing merchants continued to sell more through the platform.
- Merchant solutions — services like payment processing, shipping and lending that Shopify sells alongside its core subscription plans — grew fastest, up about 38% year-over-year, while subscription revenue (the recurring fees merchants pay to use the platform) rose a slower 15%, showing more of the growth is coming from transaction-based services than from new store sign-ups.
- Shopify generated $507 million in free cash flow — the cash left over after running the business and funding growth — equal to an 18% margin on revenue, the ninth straight quarter the company has kept that margin in double digits.
- Over the trailing twelve months the company’s gross margin was about 48% and its operating margin was around 14%, meaning it kept a substantial share of each sales dollar after costs even while continuing to invest in growth.
- Trailing twelve-month earnings per share fell about 17% year-over-year even as trailing revenue climbed 32%, a gap suggesting costs, investment spending or other charges grew faster than bottom-line profit despite strong sales growth.
- For the fourth quarter, Shopify guided investors to expect revenue growth in the mid-to-high 20% range and gross profit growth in the low-to-mid 20% range, signaling management expects the growth trend to continue into the holiday shopping season.
- CFO Jeff Hoffmeister described the quarter as showing ‘consistent growth and profitability, quarter after quarter,’ calling it a standout period with both revenue growth and free cash flow margin exceeding the prior quarter’s already strong results.
Q3 2025 in context
| Metric | Sep 2025 | Sep 2024 | Change |
|---|---|---|---|
| Revenue | $2.8B | $2.2B | +31.5% |
| Net income | $264M | $828M | -68.1% |
| Free cash flow | $507M | $421M | +20.4% |
| Diluted EPS | $0.20 | $0.64 | -68.8% |
| Gross margin | 48.9% | 51.7% | -2.8 pts |
| Operating margin | 12.1% | 13.1% | -1.0 pts |
| Net margin | 9.3% | 38.3% | -29.0 pts |
Figures for the quarter ended Sep 2025 and the quarter ended Sep 2024, as reported to the SEC.
How the stock took it
Shopify Inc closed at $172.94 on Nov 3, 2025, the last session before the report, and at $162.92 on Nov 5, 2025, the first session after it — -5.8% across the report.
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Sources: Digital Commerce 360 · company report