Shopify Inc.

Q2 GMV was $116 billion, up 32% year over year, and revenue was $3.6 billion, up 34% year over year. Free cash flow margin was 18%, and management said the company achieved greater than 30% growth in GMV, revenue, gross profit, operating income, and free cash flow. On a constant-currency basis, GMV grew over 30% and revenue grew 33%; North America GMV grew 28%, Europe grew 34%, offline GMV was up 32%, and B2B GMV grew 76%. Shop Pay GMV grew 53% year over year and Shop app native GMV grew over 70%. For Q3, management expects revenue growth in the low 30s year over year, gross profit dollars to grow in the mid- to high 20s, OpEx at 33% to 34% of revenue, and free cash flow margin in the high teens to low 20s.

Harley Finkelstein framed the quarter as proof that Shopify’s model is working at scale and that the company is well positioned for an “agentic” commerce era. He emphasized that Shopify’s platform, ecosystem, Catalog, Sidekick, Shop Pay, and checkout are becoming more valuable as commerce fragments across more surfaces and AI-driven discovery grows. His tone was highly confident and expansive, repeatedly stressing that the company is still early in its opportunity and that merchants are already benefiting from AI, especially smaller, specialized brands.

Jeff Hoffmeister said the quarter was driven by broad-based GMV strength that flowed through the income statement, resulting in more than 30% growth across GMV, revenue, gross profit, operating income, and free cash flow. He noted Merchant Solutions gross profit grew 39% with gross margin up slightly, Subscription Solutions gross profit grew 19% with gross margins just under 80%, OpEx was 34% of revenue, and transaction loans and losses were 3.9% of revenue. He also said free cash flow margin was just over 18%, about 1.5 points of year-over-year expansion excluding the MCA accounting change, and guided Q3 revenue growth to the low 30s with OpEx at 33% to 34% of revenue.

Analysts focused on monetizing AI/agentic commerce, enterprise onboarding speed, the serviceable TAM, Catalog’s role in demand generation, Sidekick’s impact and possible direct monetization, and headless/composable use cases. Management said agentic transactions carry the same economics as online store transactions, with no new fees or separate pricing, and that Shopify wants to keep opening more places for merchants to sell. Harley also said enterprise migrations are happening faster, that some merchants use Shopify as a “final migration,” and that there is no clear GMV upper bound; he added that international remains underpenetrated. On Sidekick, management stressed it is primarily an indirect monetization and retention tool today, with usage and utility rising as merchants move from setup toward analytics and decision-making.