Shopify Earnings Show Momentum
Shopify earnings show 31% Q4 revenue growth, a $2.0 billion buyback and Q1 2026 guidance above consensus, pushing traders to re-evaluate near-term growth.
KEY TAKEAWAYS
- Q4 revenue rose 31% year-over-year and free cash flow margin was 19%.
- Board authorized up to $2.0 billion share repurchase program, capped at 5% of outstanding shares.
- Q1 2026 guidance targets low-thirties percent revenue growth and low-to-mid-teens free cash flow margin.
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Shopify Inc. (SHOP) reported strong top-line momentum in its earnings released on Feb. 11, 2026. The company closed 2025 with robust revenue and cash flow, authorized a $2 billion share-repurchase program, and set Q1 2026 guidance above consensus for the quarter ending March 31, 2026.
Results and Q1 Guidance
Shopify’s fourth-quarter 2025 revenue rose 31% year over year, with a free cash flow margin of 19%, marking the tenth consecutive quarter of double-digit free cash flow margins. Full-year revenue reached $11.6 billion, and free cash flow totaled $2 billion, reflecting broad growth across its businesses.
For the first quarter of 2026, Shopify projected revenue growth in the low-thirties percent year over year and gross profit dollars growth in the high-twenties percent. It expects operating expenses to be roughly 37% to 38% of revenue, stock-based compensation of $140 million, and a free cash flow margin in the low-to-mid teens percent, slightly below the year-ago quarter. The outlook depends on factors including economic conditions, consumer spending, tariffs, and AI adoption, with risks detailed in the company’s Form 10-K. Harley Finkelstein, president, described 2025 as “Shopify at full throttle—driving compounding growth, while laying the rails for the new era of AI commerce.”
Share Repurchase Program and Filings
The board authorized a share repurchase program to buy up to $2 billion of Class A subordinate voting shares, effective Feb. 17, 2026. The program has no fixed expiration, is capped at 5% of outstanding shares, and allows purchases on the open market, in private transactions, or by other legally permitted means. Shopify said the plan complies with U.S. and Canadian securities laws.
The company will file its Form 10-K for the year ended Dec. 31, 2025, on EDGAR and SEDAR+ and make the report available on its investor-relations site. Management scheduled a webcast of the results, accessible through the company’s investor events page. The repurchase program aims to return capital while maintaining investment in growth, to be executed with discipline and flexibility to support long-term value.
