Shopify 8-K
PositiveEarningsNew guidance
Merchant solutions led growth at 35% Y/Y; Q4 revenue growth guided to low-thirties Y/Y.
Filed 2026-11-03 08:08 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with Q4 guidance. Merchant solutions revenue growth of 35% Y/Y led the quarter, as gross merchandise volume (GMV), the total value of orders facilitated through Shopify, reached $119B.
Q4 revenue growth is guided at low-thirties Y/Y vs +32% in Q3, and gross profit dollars growth at high-twenties vs +28%. Shopify also expects Q4 free cash flow margin to be consistent with Q4 2025.
Key Figures
| Metric | Q3 2026 |
|---|---|
| Revenue | $3.74B, +32% Y/Y |
| Gross margin | 47.6%, vs 48.9% |
| Operating income | $568M, +66% Y/Y |
| Net income, GAAP | $462M, +75% Y/Y |
| Net income, non-GAAP | $638M, +45% Y/Y |
| Diluted EPS attributable to shareholders, GAAP | $0.36, +80% Y/Y |
| Diluted EPS attributable to shareholders, non-GAAP | $0.49, +44% Y/Y |
| Operating cash flow | $818M, +59% Y/Y |
| Free cash flow | $816M, +61% Y/Y |
| GMV | $119.1B, +29% Y/Y |
- Merchant solutions revenue was $2.91B, +35% Y/Y, versus subscription solutions revenue of $836M, +20% Y/Y. Monthly recurring revenue (MRR)—the value of subscription plans in effect at quarter-end, assuming continuation for the following month—was $230M, +19% Y/Y.
- Free cash flow margin increased to 22% from 18% Y/Y. Beginning in April 2026, Shopify presents merchant cash advance cash flows within investing activities rather than operating activities; in Q3, the change shifted a net $30M cash use to investing activities.
- Shopify repurchased $562M of common stock. Diluted weighted-average shares declined 1.7% Y/Y, to 1.291B from 1.313B. GAAP net income included a $122M after-tax equity-investment mark-to-market loss; the non-GAAP measure excludes the impact of equity investments and the embedded derivative.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue growth | Q4 2026 | Low-thirties percentage rate Y/Y | — | — |
| Gross profit dollars growth | Q4 2026 | High-twenties percentage rate Y/Y | — | — |
| Operating expenses as a percentage of revenue | Q4 2026 | 29%-30% | — | — |
| Stock-based compensation | Q4 2026 | $155M | — | — |
| Free cash flow margin | Q4 2026 | Consistent with Q4 2025 | — | — |
Investor Takeaways
- Track GMV and merchant solutions revenue growth: continued expansion would support Shopify’s account of increasing commerce across more sales surfaces; a slowdown would challenge it.
- Watch Q4 free cash flow margin and operating expenses as a share of revenue to assess whether Shopify sustains cash generation while managing costs.
The summary is written by an AI model reading the filing.
Model 005 · prompt v173 · 2026-11-03 15:39:25Z