SHOP Q2 2025 Earnings

Call Details

• Call Title: Shopify Q2 2025 Earnings Call
• Date: August 6, 2025 at 12:30 PM UTC
• Management Team:
  • Carrie Gillard (Director of Investor Relations)
  • Harley Finkelstein (President)
  • Jeff Hoffmeister (Chief Financial Officer)

Call Summary

Financial Performance

• GMV in Q2 was $88B, up 31% year-over-year and up 29% on a constant currency basis.
• Revenue for Q2 was $2.7B, up 31% year-over-year.
• Free cash flow for Q2 was $422M, representing 16% of revenue, and continued a streak of positive free cash flow for 11 consecutive quarters.
• Merchant solutions revenue increased 37% year-over-year, driven primarily by GMV strength and higher payments penetration.
• Subscription solutions revenue grew 17% year-over-year while Q2 MRR was up 9% year-over-year.
• ShopPay GMV increased by 65% to $27B in Q2, and ShopPay penetration was 64%, up from 61% last year.
• Operating income was $291M, or 11% of revenue, with operating expenses of $1.0B, or 38% of revenue.
• Gross margin for the quarter was 48.6%, with subscription gross margin at 81.6% and merchant solutions gross margin at 37.9%.

Guidance

• Q3 revenue growth is expected to be in the mid to high 20s percent year-over-year.
• The company expects FX tailwinds in Q3 to be similar to what was experienced in Q2.
• Core merchant trends and GMV momentum are stated to have carried into Q3, supporting the revenue outlook.
• No explicit numeric guidance was provided for Q3 GMV, gross margin, operating margin, or free cash flow rate.
• The previously discussed tariff impacts that were incorporated into prior outlooks did not materialize in Q2.
• The company reiterated that subscription solutions growth in 2025 will be impacted by extended paid trials, which is a headwind to near-term subscription growth rates.