Shopify Stock Pops On Strong Sales, Global Momentum - CFO Highlights Merchant Surge Across Regions

Zinger Key Points

Shopify stock jumped 20.5% after Q2 revenue rose 31% to $2.68B, beating estimates; GMV and cash flow also surged.
Despite strong growth, gross margin dipped and Q3 guidance raised questions; larger merchants drove the revenue gains.
The market is reacting to NVIDIA's earnings. Learn how to time your next trade here →

Shopify SHOP stock gained after the company reported fiscal second-quarter results on Wednesday. The company’s quarterly revenue growth of 31% year-over-year to $2.68 billion beat the analyst consensus estimate of $2.55 billion.

The e-commerce platform company reported adjusted EPS of 35 cents, up 34.6% Y/Y, but missed the analyst consensus estimate of 29 cents.

Also Read: Shopify Shows Strong Global Momentum, But Guidance Raises Questions On Profitability Path

The adjusted net income was $338 million compared to $291 million a year ago.

Gross merchandise volume increased 30.6% Y/Y to $87.8 billion. Merchant solutions revenue increased 36.6% Y/Y to $2.02 billion. Subscription solutions revenue rose by 16.5% Y/Y to $656 million.

The quarter’s adjusted gross margin was 48.6%, compared to 51.1% in the same quarter last year. The adjusted gross profit grew by 24.6% Y/Y to $1.30 billion.

Shopify generated $428 million in operating cash flow and $422 million in free cash flow for the quarter. The free cash flow margin remained firm Y/Y at 16%.

CFO Jeff Hoffmeister highlighted that Shopify delivered another strong quarter, accelerating GMV and revenue growth across North America, Europe, and Asia Pacific. He noted that Europe stood out, with GMV rising 42% in constant currency terms. Hoffmeister attributed the company’s success to merchants of all sizes choosing Shopify to scale their businesses.

Bloomberg Intelligence stated that larger merchants likely drove the revenue growth, based on Shopify’s third-quarter outlook, rather than consumers pulling purchases forward ahead of tariffs.

Q3 2025 Outlook: Shopify expects revenue growth to be in the mid-to-high twenties percentage rate on a Y/Y basis, versus an analyst consensus estimate of $2.63 billion. It projects a mid-to-high free cash flow margin.

SHOP Price Action: Shopify stock is up 20.5% at $153.44 at the last check on Wednesday.

Read Next: