Shopify (SHOP) · Software
Shopify Q2 2026 earnings: summary, key numbers & outlook
Results filed 5 Aug 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Shopify delivered 34% revenue growth (33% in constant currency) and 18% free cash flow margins in the quarter ended June 30, 2026.
Shopify's second quarter was strong across the board. Revenue was $3,583 million, up 34% from a year ago. Gross merchandise volume (GMV), the total value of orders on the platform, reached $115,567 million. Operating income was $488 million, and free cash flow was $654 million, an 18% margin. Net income was $1,502 million, mostly because of gains on equity investments. Excluding those gains, it was $439 million.
For the third quarter of 2026, management expects revenue to grow at a low-thirties percentage rate and free cash flow margin in the high-teens to low-twenties. The main tension is that gross profit is expected to grow more slowly, at a mid-to-high twenties rate, than revenue. Transaction and loan losses also rose to $141 million from $80 million a year earlier. Operating expenses are guided to 33% to 34% of revenue.
Key numbers
- Revenue · GAAP
- $3.6B
- Gross profit · GAAP
- $1.7B
- Operating income · GAAP
- $488.0M
- Net income · GAAP
- $1.5B
- Net income excluding the impact of equity investments · non-GAAP
- $439.0M
- Net cash provided by operating activities · GAAP
- $658.0M
- Free cash flow · non-GAAP
- $654.0M
- Free cash flow margin · non-GAAP
- 18%
up 34% from a year ago (33% in constant currency)
up 31% from a year ago
up 68% from a year ago
up from 16% a year ago
| Segment or metric | Value | Change |
|---|---|---|
| GMV | $115.6B | up 32% from a year ago (30% in constant currency) |
| MRR | $221.0M | from 185 a year ago |
| Subscription solutions revenue | $802.0M | up 22% from a year ago |
| Merchant solutions revenue | $2.8B | up 37% from a year ago |
Where each number comes from
- Revenue: “Revenue | 3,583 | 2,680 Gross profit | 1,708 | 1,302 Operating income | 488 | 291 Free cash flow | 654 | 422 YoY revenue growth rate | 34% | 31%”
- Gross profit: “Revenue | 3,583 | 2,680 Gross profit | 1,708 | 1,302 Operating income | 488 | 291 Free cash flow | 654 | 422 YoY revenue growth rate | 34% | 31%”
- Operating income: “Total operating expenses | 1,220 | 1,011 Operating income | 488 | 291 Net other income, including taxes(2) | 1,014 | 615 Net Income | 1,502 | 906”
- Net income: “Total operating expenses | 1,220 | 1,011 Operating income | 488 | 291 Net other income, including taxes(2) | 1,014 | 615 Net Income | 1,502 | 906”
- Net income excluding the impact of equity investments: “Net Income | 1,502 | 906 less: equity investments, marked to market, net of taxes | 1,063 | 568 Net income excluding the impact of equity investments(3) | 439 | 338”
- Net cash provided by operating activities: “Net cash provided by operating activities | 658 | 428 Cash flows from investing activities Purchases of property and equipment | (4) | (6)”
- Free cash flow: “Operating income | 488 | 291 Free cash flow | 654 | 422 YoY revenue growth rate | 34% | 31% Free cash flow margin | 18% | 16%”
- Free cash flow margin: “Operating income | 488 | 291 Free cash flow | 654 | 422 YoY revenue growth rate | 34% | 31% Free cash flow margin | 18% | 16%”
- GMV: “2025 as reported | 87,837 | 2,680 | 656 | 2,024 | 1,302 | 291 2026 as reported | 115,567 | 3,583 | 802 | 2,781 | 1,708 | 488 Percentage change YoY | 32% | 34% | 22% | 37% | 31% | 68%”
- MRR: “GMV | 115,567 | 87,837 MRR | 221 | 185 Revenue | 3,583 | 2,680 Gross profit | 1,708 | 1,302 Operating income | 488 | 291”
- Subscription solutions revenue: “2025 as reported | 87,837 | 2,680 | 656 | 2,024 | 1,302 | 291 2026 as reported | 115,567 | 3,583 | 802 | 2,781 | 1,708 | 488 Percentage change YoY | 32% | 34% | 22% | 37% | 31% | 68%”
- Merchant solutions revenue: “2025 as reported | 87,837 | 2,680 | 656 | 2,024 | 1,302 | 291 2026 as reported | 115,567 | 3,583 | 802 | 2,781 | 1,708 | 488 Percentage change YoY | 32% | 34% | 22% | 37% | 31% | 68%”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $3.6B | +33.7% | +13.0% |
| Operating income | $488.0M | +67.7% | +27.7% |
| Net income | $1.5B | +65.8% | — |
| Diluted EPS | $1.16 | +68.1% | — |
| Free cash flow | $654.0M | +55.0% | +37.4% |
| Gross margin | 47.7% | −0.9 pts | −1.1 pts |
| Operating margin | 13.6% | +2.7 pts | +1.5 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Operating expenses as a percentage of revenue | third quarter of 2026 | 33% to 34% |
| Stock-based compensation | third quarter of 2026 | $150 million |
Key takeaways
Revenue growth accelerated to 34%
Revenue was 3,583 million versus 2,680 million a year ago, with the YoY revenue growth rate at 34% versus 31% in the prior-year quarter. Constant currency growth was 33%.
GMV growth outpaced expectations of scale
GMV reached 115,567 million, up 32% (30% in constant currency) from 87,837 million. Management said growth was solid across all merchant sizes, channels, and geographies.
Merchant solutions drove most of the growth
Merchant solutions revenue grew 37% to 2,781 million, while subscription solutions revenue grew 22% to 802 million. MRR rose to 221 million from 185 million.
Operating leverage lifted profit and cash flow
Operating income was 488 million versus 291 million, and free cash flow was 654 million for an 18% margin versus 16%. Transaction and loan losses rose to 141 million from 80 million.
Net income was boosted by equity gains
Net income was 1,502 million, but excluding the impact of equity investments it was 439 million versus 338 million. The company also repurchased 1,420 million of common stock in the quarter.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $2.8B * |
| Q1 2025 | $2.4B |
| Q2 2025 | $2.7B |
| Q3 2025 | $2.8B |
| Q4 2025 | $3.7B * |
| Q1 2026 | $3.2B |
| Q2 2026 | $3.6B |
| Q3 2026 | $3.7B |
Data
| Q1 2025 | -$0.53 |
| Q2 2025 | $0.69 |
| Q3 2025 | $0.20 |
| Q1 2026 | -$0.45 |
| Q2 2026 | $1.16 |
| Q3 2026 | $0.36 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 16.5% |
| Q1 2025 | 8.6% |
| Q2 2025 | 10.9% |
| Q3 2025 | 12.1% |
| Q4 2025 | 17.2% |
| Q1 2026 | 12.1% |
| Q2 2026 | 13.6% |
| Q3 2026 | 15.2% |
Data
| Q4 2024 | $611.0M |
| Q1 2025 | $363.0M |
| Q2 2025 | $422.0M |
| Q3 2025 | $507.0M |
| Q4 2025 | $715.0M |
| Q1 2026 | $476.0M |
| Q2 2026 | $654.0M |
| Q3 2026 | $816.0M |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Shopify's key results in Q2 2026?
Revenue was $3,583 million, up 34% from a year ago, and GMV was $115,567 million. Operating income was $488 million and free cash flow was $654 million, an 18% margin.
How much did Shopify earn in net income?
Net income was $1,502 million versus $906 million a year ago. Excluding the impact of equity investments, a non-GAAP measure, it was $439 million versus $338 million.
What is Shopify's outlook for Q3 2026?
Shopify expects revenue to grow at a low-thirties percentage rate and gross profit dollars to grow at a mid-to-high twenties rate. It expects operating expenses of 33% to 34% of revenue and a free cash flow margin in the high-teens to low-twenties.
Which parts of the business grew fastest?
Merchant solutions revenue grew 37% to $2,781 million, faster than subscription solutions revenue, which grew 22% to $802 million. GMV grew 32%.
Did Shopify buy back stock or change its cash flow presentation?
Shopify repurchased $1,420 million of common stock in the quarter, with none in the prior-year quarter. Starting in April 2026, merchant cash advance cash flows moved from operating to investing activities.
Documents
SEC filing