Shopify Inc. reported QQ3 2025 results that showcased a robust top-line expansion, with revenue of USD 2.844 billion, up 31.54% year over year (YoY) and 6.12% quarter over quarter (QoQ). Gross profit reached USD 1.391 billion, delivering a gross margin of 48.9%. However, despite a solid operating profit of USD 343 million and EBITDA of USD 316 million, net income declined materially versus the prior-year quarter, driven by the mix of operating expenses and non-operating items that weighed on the bottom line (net income of USD 264 million; YoY decline of 68.12%). The quarter reinforces Shopify’s ongoing strategy: scale GMV and monetization through merchant solutions (payments, shipping, and financing) while continuing disciplined investment in R&D and marketing to drive platform penetration and cross-sell opportunities.
Liquidity remains exceptionally strong. The company posted current and quick ratios of 13.63 and a cash per share of USD 4.88, with debt metrics showing a conservative balance sheet (debt ratio around 7.4%, debt-to-capitalization ~8.2%). Operating cash flow per share was USD 0.395 and free cash flow per share USD 0.390, aligning with a high-quality cash-generative profile that supports ongoing investment in growth initiatives and potential capital allocation optionality. On a relative basis, Shopify trades at premium valuation metrics (P/S ~67.9x, P/E ~183x) reflecting confidence in long-term monetization and market position, but also signaling sensitivity to growth trajectory and profitability improvements.
Looking ahead, investors should monitor: (1) the pace of GMV growth and take rate improvements from merchant solutions; (2) profitability trajectory as Shopify manages operating expenses and potential non-recurring items; (3) the continued expansion and monetization of payments and financing offerings; and (4) competitive dynamics and macro stability impacting merchant spend. Given the quality of liquidity and the potential for accretive monetization, Shopify remains a strategically important, but richly valued, component of a diversified technology exposure.