Shopify Delivers Again as Merchants Clear $100 Billion in Q1 GMV

Rhea-AI Summary

Shopify (NASDAQ/TSX: SHOP) reported Q1 2026 results for the quarter ended March 31, 2026. Key metrics: GMV $100.743 billion, revenue $3.17 billion (+34% YoY), gross profit $1.546 billion, operating income $382 million, and free cash flow $476 million with a 15% free cash flow margin.

The company provided Q2 2026 guidance: revenue growth in the high-twenties, gross profit dollars up mid-twenties, operating expenses 35%–36% of revenue, stock-based compensation $145 million, and mid-teens free cash flow margin.

Positive

• GMV $100.743B in Q1 2026
• Revenue $3.17B and 34% YoY growth
• Operating income $382M (up ~88% YoY)
• Free cash flow $476M (up ~31% YoY)
• MRR $212M (up ~16% YoY)

Negative

• Guided operating expenses at 35%–36% of revenue for Q2 2026
• Stock-based compensation guidance of $145M for Q2 2026

News Market Reaction – SHOP

-15.62% 3.5x vol

203 alerts

-15.62% Session close to close

-20.5% Trough in 7 hr 42 min

$166.34B Market Cap

3.5x Rel. Volume

In the May 5 session, SHOP declined 15.62%, reflecting a significant negative market reaction. Argus tracked a trough of -20.5% from its starting point during tracking. Our momentum scanner triggered 203 alerts that day, indicating exceptionally high trading interest and price volatility. Trading volume was very high at 3.5x the daily average, suggesting heavy selling pressure.

Data tracked by StockTitan Argus on the day of publication.

Market Context

The stock dropped -15.6% in the session following this news. A negative reaction despite the reporte...

Analysis

The stock dropped -15.6% in the session following this news. A negative reaction despite the reported Q1 metrics, such as 34% year-over-year revenue growth and a 15% free cash flow margin, would fit the pattern seen on Feb 11, when strong 2025 results preceded a -6.7% move. History shows that solid fundamentals have not always produced immediate strength. Recent Form 144 filings outlining planned insider share sales could add to perceived overhang, even as the business continues to scale GMV and profitability.

Key Figures

GMV: 100,743 MRR: 212 Revenue: 3,170 +5 more

8 metrics

GMV 100,743 Three months ended March 31, 2026 (US $ millions)

MRR 212 Three months ended March 31, 2026 (US $ millions)

Revenue 3,170 Three months ended March 31, 2026 (US $ millions)

Gross profit 1,546 Three months ended March 31, 2026 (US $ millions)

Operating income 382 Three months ended March 31, 2026 (US $ millions)

Free cash flow 476 Three months ended March 31, 2026 (US $ millions)

YoY revenue growth rate 34% Three months ended March 31, 2026 vs. 2025

Free cash flow margin 15% Three months ended March 31, 2026

Historical Context

5 past events · Latest: Apr 14 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 14	Earnings date notice	Neutral	+2.3%	Scheduled Q1 2026 earnings release and conference call announcement.
Mar 09	Partnership expansion	Positive	+2.5%	Deeper Klaviyo integration to support localized, multi-market commerce growth.
Mar 06	Insider sale plans	Negative	+2.5%	CEO Tobias Lütke adopting automatic disposition plans for up to 1,987,032 shares.
Feb 11	Full-year results	Positive	-6.7%	Strong 2025 revenue, GMV, and free cash flow with new share repurchase plan.
Jan 28	Earnings date notice	Neutral	+1.0%	Announcement of Q4 and full-year 2025 results release and call timing.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Major fundamental updates have sometimes seen price divergence, while partnership and scheduling headlines have generally aligned with modest positive moves.

Recent Company History

Over the past few months, Shopify has highlighted a strong 2025 performance with revenue of $11.6B, free cash flow of $2.0B, and GMV of $378.4B, alongside a $2B share repurchase authorization. Partnership news like the Klaviyo integration and routine earnings-date announcements have tended to coincide with small positive moves. However, the robust 2025 results on Feb 11 were followed by a -6.7% reaction, indicating that even strong fundamentals have not always translated into immediate price strength ahead of this Q1 2026 report.

Key Terms

gmv, mrr, free cash flow, free cash flow margin, +4 more

8 terms

gmv financial

"Selected Business Performance Information (1) (In US $ millions...) GMV | 100,743..."

Gross merchandise value (GMV) is the total dollar value of all goods and services sold through a platform or marketplace over a given period, measured before deducting fees, returns, or discounts. Investors watch GMV to gauge the raw size and growth of customer activity—like counting every ticket sold at a concert before subtracting organizer costs—while remembering it is not the same as revenue or profit.

mrr financial

"Selected Business Performance Information (1) ... MRR | 212 | | 182"

Monthly recurring revenue (MRR) is the predictable, repeating income a company expects to receive each month from subscriptions or ongoing contracts. Investors use it like a household budgeting number to judge how stable and scalable a business is — steady or growing MRR signals reliable cash flow and easier forecasting, while falling or volatile MRR warns of potential revenue weakness or customer churn.

free cash flow financial

"Shopify achieved 34% revenue growth and 15% free cash flow margins."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

free cash flow margin financial

"Free cash flow margin | 15 | % | | 15 | %"

Free cash flow margin is a measure of how much cash a company generates relative to its sales, showing the percentage of revenue that remains after covering operating expenses and investments in growth. It indicates how efficiently a company turns its sales into available cash that can be used for things like paying dividends, reducing debt, or expanding the business. A higher margin suggests better financial health and more flexibility to invest or return value to shareholders.

non-gaap financial

"free cash flow and free cash flow margin, which are non-GAAP financial measures..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

stock-based compensation financial

"Stock-based compensation to be $145 million; and Free cash flow margin..."

Stock-based compensation is when a company pays employees, directors or consultants with shares or the right to buy shares instead of or in addition to cash. It matters to investors because issuing stock or options spreads ownership thinner (like cutting a pie into more slices), which can reduce each existing share’s claim on profits and can also change reported earnings; investors watch it to assess true cost of running the business and how management is incentivized.

View in glossary

form 10-q regulatory

"Shopify’s Form 10-Q for the quarter ended March 31, 2026..."

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

forward-looking information regulatory

"The outlook that follows... constitutes forward-looking information within the meaning..."

Forward-looking information are predictions, plans, estimates or expectations about a company’s future performance, results or events, such as sales forecasts, project timelines, or anticipated costs. It matters to investors because these statements guide expectations but rely on assumptions and uncertain factors—like a weather forecast for a business—so investors should treat them as informed guesses rather than guarantees and consider the risks and possible changes behind the numbers.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Internet, Everywhere, May 05, 2026 (GLOBE NEWSWIRE) -- Shopify (NASDAQ, TSX: SHOP)  announced today financial results for the quarter ended March 31, 2026. Shopify achieved 34% revenue growth and 15% free cash flow margins.

"Shopify has entered the AI era with a clear edge: strong, durable growth and two decades of commerce intelligence. That puts us in a category of one, and we're about to see that advantage compound throughout 2026," said Harley Finkelstein, President of Shopify.

Jeff Hoffmeister, Chief Financial Officer, said, "Q1 delivered broad-based growth across geographies, merchant sizes, and channels, with over $100 billion of GMV in the first quarter alone. That is the platform compounding. The durability of this model allows us to invest strategically in growth, both in the merchant-facing tools that drive commerce innovation and in the internal capabilities that let us build and ship faster. ”

Selected Business Performance Information(1) (In US $ millions, except percentages)
	Three months ended
	March 31, 2026			March 31, 2025
GMV	100,743			74,750
MRR	212			182
Revenue	3,170			2,360
Gross profit	1,546			1,169
Operating income	382			203
Free cash flow	476			363
YoY revenue growth rate	34	%		27	%
Free cash flow margin	15	%		15	%
(1) See endnotes below for definitions of GMV and MRR and additional information on free cash flow and free cash flow margin, which are non-GAAP financial measures and are reconciled to the comparable GAAP measures in the non-GAAP reconciliation at the end of this press release.

2026 Outlook

The outlook that follows supersedes all prior financial outlook statements made by Shopify, constitutes forward-looking information within the meaning of applicable securities laws, is based on a number of assumptions, and is subject to a number of risks. Actual results could vary materially as a result of numerous factors, including certain risk factors, many of which are beyond Shopify’s control. Please see "Forward-looking Statements" at the end of this press release.

For the second quarter of 2026, we expect:

• Revenue to grow at a high-twenties percentage rate on a year-over-year basis;
• Gross profit dollars to grow at a mid-twenties percentage rate on a year-over-year basis;
• Operating expenses as a percentage of revenue to be 35% to 36%;
• Stock-based compensation to be $145 million; and
• Free cash flow margin to be in the mid-teens.

Quarterly Conference Call

Shopify’s management team will hold a conference call to discuss our first-quarter results today, May 5, 2026, at 8:30 a.m. ET. The conference call will be webcast in the Investor Relations section of Shopify’s website at www.shopify.com/investors/events. An archived replay of the webcast will be available following the conclusion of the call.

Shopify’s Form 10-Q for the quarter ended March 31, 2026, including the unaudited Condensed Consolidated Financial Statements and accompanying Notes, and Management's Discussion and Analysis, will be available on Shopify’s website at www.shopify.com and will be filed on EDGAR at www.sec.gov and on SEDAR+ at www.sedarplus.ca.

About Shopify

Shopify provides essential internet infrastructure for commerce. Shopify’s all-in-one platform makes it easier to start, run, and grow a business, powering sales online, in-store, and everywhere in between. Millions of businesses in 175+ countries use Shopify—from entrepreneurs to brands like Aldo, BarkBox, Carrier, Meta, Vuori, SKIMS, and Supreme.

For more information, visit www.shopify.com

CONTACT INVESTORS:	Carrie Gillard		CONTACT MEDIA:	Ben McConaghy
	Director, Investor Relations			Director, Communications
	IR@shopify.com			press@shopify.com

Shopify Inc. Condensed Consolidated Statements of Operations (In US $ millions)
	Three months ended
	March 31, 2026			March 31, 2025
Revenues
Subscription solutions	750			620
Merchant solutions	2,420			1,740
	3,170			2,360
Cost of revenues
Subscription solutions	148			123
Merchant solutions	1,476			1,068
	1,624			1,191
Gross profit	1,546			1,169
Operating expenses
Sales and marketing	496			405
Research and development	437			377
General and administrative	115			109
Transaction and loan losses	116			75
Total operating expenses	1,164			966
Operating income	382			203
Net other expense, including taxes(2)	(963	)		(885	)
Net loss	(581	)		(682	)
less: equity investments, marked to market, net of taxes	(941	)		(908	)
Net income excluding the impact of equity investments(3)	360			226
(2) Net other expense, including taxes includes interest income, gains and losses on equity and other investments, foreign exchange gains and losses, and our provision for income taxes.
(3) Net income excluding the impact of equity investments is a non-GAAP financial measure which is reconciled at the end of this press release. This measure excludes the  impact of any gains or losses on our equity investments in third parties. Shopify believes this measure provides useful information to investors given that valuations of third parties in public and private markets are outside of our control, and therefore, fluctuations in those valuations are not relevant to the fundamentals of our business and have little analytical or predictive value regarding our ability to drive operational results. This measure does not have a standardized meaning under US GAAP and may not be comparable to similar measures presented by other companies. GAAP and non-GAAP diluted net income (loss) per share are available in the Financial Supplemental posted on www.shopify.com/investors. Note: More detailed Condensed Consolidated Statements of Operations and Comprehensive Loss are available in the Quarterly Report on Form 10-Q filed concurrently with this press release with US and Canadian regulators and available on www.sec.gov and www.sedarplus.ca.

Shopify Inc. Condensed Consolidated Balance Sheets (In US $ millions)
	March 31, 2026		December 31, 2025
Assets
Current assets
Cash and cash equivalents	1,848		1,545
Marketable securities	3,895		4,233
Trade and other receivables, net	449		500
Loans and merchant cash advances, net	2,097		1,784
Other current assets	206		234
	8,495		8,296
Long-term assets
Long-term assets(4)	196		210
Deferred tax assets	117		33
Long-term investments	708		975
Equity and other investments	3,533		4,582
Equity method investment	581		602
Goodwill	491		491
	5,626		6,893
Total assets	14,121		15,189
Liabilities and shareholders’ equity
Liabilities
Accounts payable	529		570
Deferred tax liabilities	—		55
Other liabilities(5)	1,091		1,091
	1,620		1,716
Shareholders’ equity	12,501		13,473
Total liabilities and shareholders’ equity	14,121		15,189
(4) Long-term assets includes Property and equipment, net, Operating lease right-of-use assets, net, Intangible assets, net, and Other long-term assets.
(5) Other liabilities includes Accrued liabilities, Current and Long-term Deferred revenue, and Operating lease liabilities.
Note: More detailed Condensed Consolidated Balance Sheet and Notes to the Condensed Consolidated Financial Statements are available in the Quarterly Report on Form 10-Q filed concurrently  with this press release with US and Canadian regulators and available on www.sec.gov and www.sedarplus.ca.

Shopify Inc. Condensed Consolidated Statements of Cash Flows (In US $ millions)
	Three months ended
	March 31, 2026			March 31, 2025
Cash flows from operating activities
Net loss for the period	(581)			(682)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization and depreciation	7			8
Stock-based compensation	132			114
Provision for transaction and loan losses	48			43
Deferred income tax recovery	(139)			(129)
Revenue related to non-cash consideration	(12)			(13)
Net loss on equity and other investments	1,061			1,021
Net loss on equity method investment	21			23
Unrealized foreign exchange loss (gain)	14			(12)
Changes in operating assets and liabilities	(70)			(6)
Net cash provided by operating activities	481			367
Cash flows from investing activities
Purchases of property and equipment	(5)			(4)
Purchases of marketable securities	(843)			(1,718)
Maturities of marketable securities	1,463			1,331
Purchases and originations of loans	(1,349)			(805)
Repayments and sales of loans	1,043			637
Purchases of equity and other investments	(1)			(4)
Acquisition of businesses, net of cash acquired	—			(56)
Other	2			—
Net cash provided by (used in) investing activities	310			(619)
Cash flows from financing activities
Proceeds from the exercise of stock options	6			59
Repurchases of common stock	(491)			—
Net cash (used in) provided by financing activities	(485)			59
Effect of foreign exchange on cash, cash equivalents and restricted cash	(3)			4
Net  increase (decrease) in cash, cash equivalents and restricted cash	303			(189)
Cash, cash equivalents and restricted cash – beginning of period	1,545			1,498
Cash, cash equivalents and restricted cash – end of period	1,848			1,309

Reconciliation of Non-GAAP Financial Measures Free Cash Flow Reconciliation (In US $ millions, except percentages) The following table illustrates how free cash flow is calculated in this press release:
	Three months ended
	March 31, 2026		March 31, 2025
Net cash provided by operating activities	481		367
less: capital expenditures(6)	(5	)	(4	)
Free cash flow	476		363
Revenue	3,170		2,360
Free cash flow margin	15	%	15	%
(6) Capital expenditures is equivalent to the amount included in “Purchases of property and equipment” on our Condensed Consolidated Statements of Cash Flows for the reported period.

Net Income Excluding the Impact of Equity Investments Reconciliation (In US $ millions) The following table illustrates how Net income excluding the impact of equity investments is calculated in this press release:
	Three months ended
	March 31, 2026		March 31, 2025
Net loss	(581	)	(682	)
less: equity investments, marked to market, net of taxes	(941	)	(908	)
Net income excluding the impact of equity investments(3)	360		226

Constant Currency Analysis (In US $ millions, except percentages) The following table converts our GMV, revenues, gross profit, and operating income using the comparative period's monthly average exchange rates. We have provided the below disclosure as we believe it presents a clear comparison of our period-to-period operating results by removing the impact of fluctuations in foreign exchange rates and to assist investors in understanding our financial and operating performance. The table below and our Condensed Consolidated Statements of Operations disclosure are supplements to our Condensed Consolidated Financial Statements, which are prepared and presented in accordance with US GAAP (excluding GMV).
	Three months ended March 31,
	GMV			Revenue			Subscription solutions revenue			Merchant solutions revenue			Gross profit			Operating income
2025 as reported	74,750			2,360			620			1,740			1,169			203
2026 as reported	100,743			3,170			750			2,420			1,546			382
Percentage change YoY	35	%		34	%		21	%		39	%		32	%		88	%
Constant currency impact	3,302			54			10			44			32			21
Percentage change YoY constant currency	30	%		32	%		19	%		37	%		30	%		78	%

Regulatory Disclosures and Forward-looking Statements

Advisory Regarding Forward-looking Statements

This press release contains forward-looking statements and forward-looking information (collectively, “forward-looking statements”), including statements related to Shopify’s financial outlook, such as expected revenue and expenses for the next fiscal quarter, Shopify's expectations regarding its ability to support merchants as they scale, and Shopify's expectations regarding the development of emerging technologies, including AI. These statements can be identified by words such as "will" and “expect” and are based on Shopify's current projections and expectations about future events and financial results. Known and unknown risks may cause actual results to differ materially from those described in the forward-looking statements. These risks include, but are not limited to, the Company’s ability to maintain expected growth and manage expenses, the impact of changes in economic conditions and consumer spending in key markets such as the United States, Europe, and globally, the impact of measures that affect international trade, including tariffs, the adoption and impact of emerging technologies such as AI, our reliance on third-party providers to deliver services, a cyberattack or security breach, and serious errors or defects in software or hardware. Other factors and risks that may cause actual results to differ materially from those set out in the forward-looking statements are set out in Shopify's Form 10-Q under the heading “Risk Factors” and other filings made with US and Canadian securities regulators, available at www.sec.gov and www.sedarplus.ca. Undue reliance should not be placed on the forward-looking statements in this press release, which are based on information available to management on the date hereof and represent management’s beliefs regarding future events, projections, and financial trends, which, by their nature, are inherently uncertain. The forward-looking statements are provided to give additional information about management’s expectations and beliefs and may not be appropriate for other purposes. Shopify undertakes no duty to publicly update or revise any forward-looking statements, except as may be required by law.

Endnotes:

Gross Merchandise Volume, or GMV, represents the total dollar value of orders facilitated through the Shopify platform including certain apps and channels for which a revenue-sharing arrangement is in place in the period, net of refunds, and inclusive of shipping and handling, duty, and value-added taxes.

Monthly Recurring Revenue, or MRR, is the aggregate value of all subscription plans, excluding variable platform fees, in effect on the last day of the period, assuming merchants maintain their subscription the following month and is used by management as a directional indicator of subscription solutions revenue going forward.

Free cash flow and free cash flow margin are non-GAAP financial measures that are reconciled in the non-GAAP reconciliation within this press release. These non-GAAP financial measures do not have standardized meanings under US GAAP and may not be comparable to similar measures presented by other companies. Shopify believes free cash flow and free cash flow margin provide useful information to help investors and others understand our operating results and the performance of our business in the same manner as management. Shopify does not reconcile forward-looking non-GAAP free cash flow margin because certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. Free cash flow is a non-GAAP financial measure calculated as cash flow from operations less capital expenditures.

FAQ

How much GMV did Shopify (SHOP) process in Q1 2026?

Shopify processed $100.743 billion in GMV in Q1 2026. According to Shopify, this represents GMV for the three months ended March 31, 2026, and underscores broad merchant activity across geographies and channels on the platform.

What were Shopify's (SHOP) Q1 2026 revenue and year-over-year growth?

Shopify reported $3.17 billion revenue in Q1 2026, a 34% YoY increase. According to Shopify, growth was broad-based across merchant sizes and channels, contributing to higher gross profit and operating income for the quarter.

What did Shopify (SHOP) report for free cash flow and margin in Q1 2026?

Shopify reported $476 million free cash flow with a 15% free cash flow margin in Q1 2026. According to Shopify, free cash flow improved in absolute terms versus the prior year while margin remained in the mid-teens.

What guidance did Shopify (SHOP) give for Q2 2026 revenue and margins?

Shopify expects Q2 2026 revenue to grow in the high-twenties percent and gross profit dollars in the mid-twenties. According to Shopify, this outlook supersedes prior guidance and is subject to assumptions and risks disclosed by the company.

How will Shopify's (SHOP) operating expenses and stock-based comp affect Q2 2026?

Shopify guided operating expenses of 35%–36% of revenue and stock-based compensation of $145 million for Q2 2026. According to Shopify, these line items reflect continued investment in merchant tools and internal capabilities while maintaining growth focus.

When and where will Shopify (SHOP) discuss its Q1 2026 results?

Shopify's management held a conference call on May 5, 2026 at 8:30 a.m. ET with a webcast available on the company investor relations site. According to Shopify, an archived replay will be posted after the call for on-demand access.