Shopify Inc.
E-commerce Software & PaymentsFounded 2006- Updated June 2026
Reviewed by Swet Parvadiya
Last reviewed: June 2026
CorpDigest
Shopify Inc.
Financial Performance
Last reviewed: June 2026 · By Swet Parvadiya
Revenue
$8.9B
Market Cap
$115.0B
Net Income
$1.3B
Employees
8,300
Revenue of $8.88 billion in 2024 — from $7.06 billion in 2023 — grew 25.7 percent, sustaining double-digit growth on a base that had already crossed $5 billion. Net income of $1.3 billion represents the first sustained profitability at scale after years of investing aggressively in platform infrastructure, logistics experiments, and international expansion. The 14.6 percent net margin is below the platform software industry's best performers but appropriate for a company still investing in growth. The composition of $8.88 billion in revenue explains the business model's durability. Merchant Solutions — payment processing fees, capital fees on merchant loans, shipping integrations — constitutes the larger share of revenue and grows with GMV. A merchant processing $5 million annually generates approximately $100,000 in Shopify Payments fees; the $29/month subscription fee is economically trivial relative to that relationship. The subscription revenue provides a stable floor while Merchant Solutions scales with the overall volume of commerce flowing through the platform. The $236 billion in annual GMV processed across 1.75 million merchants in 175 countries represents the economic activity that Shopify's infrastructure enables. On Black Friday 2024, $11.5 billion in a single day demonstrates both the peak capacity of the platform and the strategic value of the Shopify Payments infrastructure — every dollar processed through Shopify Payments generates a processing fee, and that fee applies to the most commercially concentrated day in the retail calendar. The $115 billion market capitalization against $8.88 billion in revenue — a 12.9x price-to-sales multiple — reflects investor confidence that GMV continues growing as the merchant base expands in international markets and as existing merchants grow their own businesses on the platform. The alignment between Shopify's revenue and merchant success — the company earns more when merchants earn more — is the structural reason that multiple is defensible relative to platforms whose revenue is not directly tied to their users' economic outcomes.
Revenue Trend Analysis
YoY Change
+25.8%
6-Year CAGR
+42.2%
Peak Year
2024
Trend
Consistent Growth
Shopify Inc. has reported revenue across 7 fiscal years, compounding at +42.2% annually over 6 years. The most recent year saw a 25.8% increase versus the prior year. Revenue peaked in 2024 at $8.9B. Out of 6 reported periods, 6 showed growth and 0 showed a decline.
| Fiscal Year | Revenue | Net Income | YoY Change |
|---|---|---|---|
| FY2024 | $8.9B | $1.3B | +25.8% |
| FY2023 | $7.1B | N/A | +26.1% |
| FY2022 | $5.6B | N/A | +21.4% |
| FY2021 | $4.6B | $2.9B | +57.4% |
| FY2020 | $2.9B | $320M | +85.7% |
| FY2019 | $1.6B | N/A | +47.1% |
| FY2018 | $1.1B | N/A | — |
Source: SEC EDGAR filings, annual earnings releases, and verified financial disclosures.
Click any row to see year details.
Shopify reported full-year 2024 revenue of $8.88 billion, up 26 percent year over year from $7.06 billion in 2023. Subscription Solutions contributed $2.35 billion, growing 27 percent, while Merchant Solutions contributed $6.53 billion, growing 26 percent. Gross profit was $4.49 billion at a gross margin of 50.6 percent, a slight contraction from 2023 driven by mix shift toward lower-margin Payments. GAAP operating income was $1.10 billion versus an $808 million operating loss in 2023, when the company absorbed restructuring charges from the Deliverr divestiture. Non-GAAP operating income was $1.51 billion, representing a 17 percent operating margin. Free cash flow reached $1.59 billion, an 18 percent free cash flow margin, the highest in company history. Net income was $2.02 billion, boosted by equity investment gains. Cash and marketable securities ended 2024 at roughly $5.5 billion with negligible long-term debt outside convertible notes. The combination of accelerating GMV growth, payments penetration gains, and operating leverage following the 2023 headcount reductions produced the most efficient year in Shopify's history.
Shopify's pandemic-era revenue growth of 86 percent in 2020 and 57 percent in 2021 collapsed to 21 percent in 2022 as consumer spending shifted back to services. Revenue rose from $4.61 billion in 2021 to $5.60 billion in 2022, well below pre-pandemic trajectory expectations. Gross margin compressed from 53.8 percent in 2021 to 47.9 percent in 2022 as the Deliverr-driven logistics mix expanded and fulfillment investments scaled. Operating loss widened to $822 million on a GAAP basis. The biggest impact was on the equity-method investment in Affirm and other minority holdings, which generated $1.6 billion of unrealized losses, pushing net loss to $3.46 billion. The stock dropped from a November 2021 peak of about $176 (post-split) to a low near $26 in October 2022, an 85 percent drawdown. The board approved a 10-for-1 stock split effective June 29, 2022 and shifted Tobias Lütke's economic class to a founder share with a 40 percent variable voting cap. The recalibration set the stage for the July 2022 layoffs and the eventual Deliverr unwind in May 2023.
Shopify has moved from negative free cash flow in 2022 to materially positive free cash flow in 2024. FCF was negative $186 million in 2022, positive $905 million in 2023, and $1.59 billion in 2024, a 270 percent year-on-year increase. The free cash flow margin expanded from negative 3 percent to positive 18 percent over that span. The improvement reflects three factors: the May 2023 layoffs that removed roughly 2,000 roles and approximately $200 million of annual operating expense, the Deliverr divestiture that removed capital-intensive logistics costs, and operating leverage on payments revenue that scales largely with no incremental headcount. Capital allocation has historically prioritized organic investment and selective M&A; Shopify does not pay a dividend and has not run a buyback program despite ending 2024 with about $5.5 billion in cash and marketable securities. The largest equity investments on the balance sheet are the residual Flexport stake from the 2023 Deliverr swap and the Affirm position from the Shop Pay Installments partnership, both of which contribute volatile unrealized gains and losses to GAAP net income. Convertible senior notes issued in 2020 remain the only significant long-term debt.
Shopify listed in May 2015 at $17 per share on the NYSE and TSX, raising $131 million at a $1.27 billion valuation. Adjusted for the June 2022 10-for-1 stock split, the IPO price was effectively $1.70. The stock peaked at a split-adjusted $176.29 on November 19, 2021, briefly making Shopify the largest company in Canada by market cap at over $200 billion. The post-pandemic correction took shares to about $26 in October 2022. As of 2024 the market cap recovered to roughly $115 billion at $90 per share, with the stock up roughly 240 percent over the prior two years on the back of margin recovery and AI-driven re-rating. Shopify has never paid a dividend. The company executed the 10-for-1 split alongside a governance change creating a founder share class for Tobias Lütke that grants him a variable voting cap of 40 percent. Insider ownership concentrated through Lütke and management remains a key feature of the equity story, alongside the float-heavy institutional shareholder base anchored by Vanguard, BlackRock, and Capital Group.
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CorpDigest. "Shopify Inc. Revenue & Financials." CorpDigest, https://corpdigest.com/company/shopify/financials.<div style="font-family:system-ui,sans-serif;font-size:14px;line-height:1.5;border:1px solid #e2e8f0;border-radius:8px;padding:12px 16px;max-width:520px"><strong>Shopify Inc. reported $9B in revenue (FY2024).</strong><br>Source: <a href="https://corpdigest.com/company/shopify/financials" target="_blank" rel="noopener">CorpDigest — Shopify Inc. financials</a></div>