Shopify delivered another quarter of strong financial growth, reporting a 32% year-over-year increase in revenue and a 61% jump in free cash flow. However, its shares fell about 16% in early trading after the company’s gross merchandise volume came in slightly below Wall Street estimates.
Revenue reached $3.7 billion in the third quarter ended September 30, compared with $2.8 billion a year earlier. Free cash flow increased to $816 million, representing a 22% margin against 18% in the prior-year period. Operating income rose 66% to $568 million, while net income climbed 75% to $462 million.
The company’s GMV, which represents the total value of goods and services sold through its platform, reached $119.2 billion. That was marginally below the approximately $120.1 billion analysts had expected.
By segment, merchant solutions remained the largest revenue contributor, generating $2.9 billion, up 35% year-over-year. The segment includes services such as payment processing, shipping and merchant financing. Subscription solutions revenue grew 20% to $836 million, reflecting recurring fees paid by businesses using Shopify’s platform.
The news moving money, markets, and the world—before your day starts.
Daily. Free. Join 34,000+ readers across crypto, finance, and policy.
The company also highlighted growing activity from AI-powered commerce, disclosing that orders originating from AI-driven searches increased 3.3 times from a year earlier.
For the fourth quarter, Shopify expects revenue to increase at a low-thirties percentage rate year-over-year. Gross profit dollars are forecast to grow at a high-twenties rate, while operating expenses are expected to account for 29% to 30% of revenue. The company also expects its free cash flow margin to remain consistent with the fourth quarter of 2025.
