Shopify Accelerates Revenue Growth as Merchant Solutions Drive Gains
The e-commerce platform reported second-quarter revenue growth of 34%, surpassing the 31% rate seen in the same period last year.
Shopify (SHOP), the e-commerce platform provider, reported second-quarter revenue that grew 34% year-over-year. The result marked an acceleration from the 31% growth rate recorded in the second quarter of 2024.
Growth was supported by a rise in gross merchandise volume, which grew 32% year-over-year to $115.6 billion, up from $87.8 billion in the prior-year period. This pace exceeded the 29% growth rate reported for the full year 2024.
Merchant solutions revenue grew 37% year-over-year during the quarter. This growth outpaced the 22% year-over-year increase seen in subscription solutions revenue.
Operating income increased 68% year-over-year to $488 million, compared to $291 million in the second quarter of 2024. Free cash flow margin expanded to 18%, up from 16% in the second quarter of 2024 and 15% in the first quarter of 2025.
The company expects third-quarter revenue to grow at a "low-thirties percentage rate" year-over-year, an increase from the "high-twenties" guidance provided for the second quarter. Shopify expects third-quarter operating expenses to be 33% to 34% of revenue, down from the 35% to 36% range guided for the second quarter.
Shopify executed a common stock repurchase of $1.42 billion in the second quarter, following a $2 billion program authorized in February 2025. The company also changed its accounting treatment in April 2025, moving cash flows associated with merchant cash advances from operating cash flows to investing cash flows.