Filing Flows › Shopify (SHOP) › Q1 2025
Shopify (SHOP) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 8, 2025
Shopify (SHOP) reported revenue of $2.4B for the first quarter 2025 (Q1 2025), +27% from a year earlier and -16% from the quarter before. Operating margin was 8.6%, net loss $682M (28.9% of revenue).
Shopify, Q1 2025: revenue $2.4B (+27% year over year), operating margin 8.6%, net loss $682M, operating cash flow $367M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $2.4B | -16% | +27% |
| Operating profit | $203M | — | — |
| Net earnings | −$682M | — | — |
| Operating cash flow | $367M | -40% | +54% |
| Free cash flow | $363M | — | +56% |
What changed
Revenue was $2.4B in Q1 2025, up 27% year over year and down 16% from the previous quarter. Merchant solutions was the largest line at 74% of revenue. Merchant solutions added $0.39B year over year (up 29%), 78% of the total change.
Gross margin was 49.5%, down 1.9 points from a year earlier. Operating profit was $0.20B, a 8.6% margin (up 4.0 points year over year). Of the extra revenue versus a year earlier, 23% reached operating profit, above the 5% margin then. Operating expenses grew 11% against revenue growth of 27%. The fastest-growing cost line was Other operating costs (+47%). The quarter ended with a net loss of $0.68B, after a profit of $1.3B the previous quarter. Net interest and other expense of $1.0B was the main reason.
Operating cash flow was $0.37B (up 54% year over year). Non-cash charges added back $0.01B of depreciation and amortization and $0.11B of share-based compensation. Working capital and other items added $0.93B. After capital expenditures ($4.0M), free cash flow as the company reports it was $0.36B.
Questions
What was Shopify's revenue in the first quarter 2025?
Shopify (SHOP) reported revenue of $2.4B for the first quarter 2025 (Q1 2025), +27% from a year earlier and -16% from the quarter before.
Was Shopify profitable in the first quarter 2025?
Operating profit was $203M (8.6% of revenue) and net loss $682M.
Source: Shopify 10-Q on SEC EDGAR.