Shopify 8-K

PositiveEarningsNew guidance

Merchant momentum and operating leverage lifted cash flow margins; equity-investment mark-to-market gains boosted GAAP profit.

Filed 2026-08-05 07:01 ET

Summary

Q2 2026 results with Q3 guidance. Shopify reported 34% revenue growth (33% in constant currency), alongside growth in GMV, gross profit and free cash flow. Management cited broad-based merchant momentum and operating leverage behind the 18% free cash flow margin.

Key Figures

Metric Q2 2026 Q2 2025 Y/Y
Revenue $3.58B $2.68B 34%
Gross profit $1.71B $1.30B 31.2%
Operating income $488M $291M 67.7%
Net income (GAAP) $1.50B $906M 65.9%
Net income excluding impact of equity investments (non-GAAP) $439M $338M 29.9%
Operating cash flow $658M $428M 53.7%
Free cash flow (non-GAAP) $654M $422M 55.0%
GMV $115.6B $87.8B 32%
MRR $221M $185M 19.5%
  • Free cash flow margin was 18%, vs 16%; revenue growth was 33% in constant currency. Management attributed margin performance to operating leverage.
  • GAAP net income included $1.06B of after-tax mark-to-market gains on equity investments, vs $568M in Q2 2025.
  • Share repurchases were $1.42B; quarter-end cash and cash equivalents were $1.66B. From April, merchant cash advance cash flows were presented in investing activities; these generated a $37M net investing cash use in Q2.

Guidance

Metric Period Guidance Prior Direction
Revenue (GAAP) Q3 2026 Low-thirties percentage growth Y/Y — —
Gross profit dollars (GAAP) Q3 2026 Mid-to-high twenties percentage growth Y/Y — —
Operating expenses as a percentage of revenue Q3 2026 33%-34% — —
Stock-based compensation Q3 2026 $150M — —
Free cash flow margin (non-GAAP) Q3 2026 High-teens to low-twenties — —

Investor Takeaways

  • Watch Q3 revenue and gross profit growth, operating expenses as a share of revenue, and free cash flow margin against the outlook.

The summary is written by an AI model reading the filing.

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