SHOP · Shopify Inc.

Shopify's Q1 2026 results underscore the company's strong execution and durable growth model. Revenue increased 34% year-over-year to $3.17 billion, driven by broad-based strength across geographies, merchant sizes, and channels. GMV surpassed $100 billion for the first time in a single quarter, up 35% to $100.7 billion, reflecting robust merchant adoption and consumer spending on the platform. Subscription solutions revenue grew 21% to $750 million, while merchant solutions revenue surged 39% to $2.42 billion, indicating strong take rates and value-added services uptake. Gross profit rose 32% to $1.55 billion, with gross margin slightly declining to 48.8% from 49.5% a year ago, likely due to mix shift toward lower-margin merchant solutions. Operating income nearly doubled to $382 million, with operating margin expanding to 12.0% from 8.6%, driven by revenue growth outpacing expense growth. Net loss improved to $581 million from $682 million, but excluding the impact of equity investment mark-to-market losses, net income was $360 million, up from $226 million. Free cash flow was $476 million, representing a 15% margin, consistent with the prior year. Management highlighted the company's AI edge and durable model, with President Harley Finkelstein stating, 'Shopify has entered the AI era with a clear edge.' For Q2 2026, Shopify expects revenue growth in the high-twenties percentage range, gross profit dollar growth in the mid-twenties, operating expenses at 35-36% of revenue, stock-based compensation of $145 million, and free cash flow margin in the mid-teens. The guidance suggests continued strong growth with disciplined expense management, reinforcing the company's ability to invest strategically while maintaining profitability.