Shopify Raises Third-Quarter Revenue Growth Outlook

The Tip Desk · August 5, 2026 · 2 min read

The commerce platform posted $3.58 billion of second-quarter revenue, up 34%, and now expects low-thirties year-over-year growth in the third quarter.

Shopify Inc. (SHOP) said it expects revenue to grow at a low-thirties percentage rate in the third quarter of 2026, a step up from the high-twenties year-over-year rate it had forecast three months earlier.

The commerce platform reported $3.58 billion of revenue for the quarter ended June 30, 2026, up 34% from a year earlier, or 33% in constant currency. Gross profit rose to $1.71 billion from $1.30 billion, and operating income increased to $488 million from $291 million. Free cash flow was $654 million, an 18% margin.

President Harley Finkelstein said the company posted more than 30% growth in GMV, revenue, gross profit and free cash flow. Chief Financial Officer Jeff Hoffmeister said GMV growth accelerated on top of last year’s already strong second quarter, with results across merchant sizes, channels and geographies, and that operating leverage flowed through to the 18% free cash flow margin.

GMV reached $115.57 billion, up 32% from $87.84 billion a year earlier, or 30% in constant currency. Merchant solutions revenue was $2.78 billion, up 37% from $2.02 billion, or 35% in constant currency. Subscription solutions revenue was $802 million. Monthly recurring revenue was $221 million at June 30.

Net income was $1.50 billion, including $1.06 billion of equity-investment marks, net of taxes. Net income excluding those marks was $439 million. Total operating expenses were $1.22 billion, including sales and marketing of $498 million, research and development of $445 million, general and administrative of $136 million, and transaction and loan losses of $141 million.

Cash used in financing activities included $1.42 billion of common-stock repurchases. Cash and cash equivalents were $1.66 billion at June 30, with marketable securities of $3.29 billion.

For the third quarter, Shopify also expects gross profit dollars to grow at a mid-to-high twenties percentage rate, operating expenses of 33% to 34% of revenue, stock-based compensation of $150 million, and a free cash flow margin in the high-teens to low-twenties. The prior outlook, issued with first-quarter results, had called for a mid-teens free cash flow margin and operating expenses of 35% to 36% of revenue.

Shopify powers millions of businesses in more than 175 countries.