- SHOP
- ADBE
- CMRC
Shopify Inc. SHOP is benefiting from strong merchant retention, which is strengthening revenue durability as successful businesses expand sales and adopt additional services across its unified commerce platform.
Over the past five years, merchants reaching $1 million in annual gross merchandise volume (GMV) recorded 92% retention, rising to 97% among those reaching $10 million. These figures highlight Shopify’s ability to retain higher-value merchants as they scale, preserving subscription relationships and transaction activity.
The benefits compound as merchants mature. Shopify’s first-quarter 2015 merchant cohort now generates five times its initial quarterly GMV, while revenues from that cohort have grown 3.3 times. Adoption of Shopify Payments, point-of-sale and business-to-business capabilities embeds merchants deeper into the platform and creates cross-selling opportunities.
In second-quarter 2026, GMV increased 32% year over year to $115.57 billion, while revenues rose 34% to $3.58 billion. Merchant Solutions revenues climbed 37%, supported by transaction growth and Shopify Payments penetration of 68%. Monthly recurring revenues increased 19% to $221 million, reflecting continued demand across subscription plans.
High retention also allows Shopify to expand revenues from existing merchants without depending solely on new sign-ups. The Zacks Consensus Estimate projects revenues to increase 31.48% year over year in 2026, reflecting expectations of robust business momentum. Thus, Shopify’s high merchant retention should help sustain revenue growth over time.
SHOP’s Merchant Retention Faces Growing Competition
Commerce.com CMRC, parent of BigCommerce, competes with an open SaaS platform serving B2B and B2C merchants. Commerce.com’s net revenue retention improved to 95.8% in second-quarter 2026 from 94.5% a year earlier, reflecting better revenue retention and expansion among existing customers. Commerce.com’s AI-driven tools and flexible integrations could help defend merchant relationships.
Adobe ADBE competes through Adobe Commerce, which combines customizable stores, loyalty programs and personalized promotions. These features help retailers encourage repeat purchases and give them more reasons to stay with the platform. Adobe’s broader customer-experience ecosystem could deepen enterprise merchant relationships, challenging Shopify’s retention among larger brands.
SHOP’s Price Performance, Valuation & Estimates
SHOP’s shares have gained 37.4% over the past three months, outperforming the Zacks Computer and Technology sector, which has advanced 5.4%.
