This article first appeared on GuruFocus.
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GMV: $116 billion, up 32% year-over-year, marking the fifth consecutive quarter of GMV growth above 30%.
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Revenue: $3.6 billion, up 34% year-over-year (33% on a constant currency basis).
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Merchant Solutions Revenue: Grew 37%, driven by GMV strength and increased payments penetration.
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Subscription Solutions Revenue: Grew 22%, led by monthly subscriptions for Standard plans.
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Gross Profit: Grew more than 30% year-over-year.
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Operating Income: Grew more than 30% year-over-year.
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Free Cash Flow Margin: 18% for Q2, exceeding outlook.
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Operating Expenses: 34% of revenue, a nearly 2-point improvement from Q2 last year.
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Payments Penetration: Reached 68% of global GMV, up 3 points year-over-year.
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Shop Pay GMV: Grew 53% year-over-year.
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Offline GMV: Grew 32% year-over-year.
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B2B GMV: Grew 76% year-over-year.
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International GMV: Grew 37% in the quarter.
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MRR: Grew 19% year-over-year.
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Subscription Solutions Gross Margin: Just under 80%.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Shopify Inc (NASDAQ:SHOP) delivered exceptional Q2 2026 results with GMV up 32% to $116 billion, revenue up 34% to $3.6 billion, and a free cash flow margin of 18%, marking the fifth consecutive quarter of GMV growth above 30%.
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The company’s AI-driven initiatives are showing strong early traction, with AI-driven traffic and orders to Shopify stores tripling year-over-year, and new buyer orders from AI channels coming in at nearly twice the rate of other channels.
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Shopify’s Catalog is proving to be a key asset, with AI searches powered by Catalog converting at twice the rate of those using scraped data, and 75% of AI-attributed orders coming from outside the top 100 categories, benefiting the long tail of smaller merchants.
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Sidekick, Shopify’s AI assistant, is gaining significant adoption with daily active merchants up 3.6x year-on-year, handling nearly 34 million conversations and creating over 36,000 custom apps in Q2, while also driving an 8% increase in new merchants reaching five orders within 15 days.
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The company continues to see strong enterprise momentum, with major brands like Guess, Fred Segal, Aritzia, Avon, e.l.f. Cosmetics, Claire’s, Burton, and Suitsupply choosing Shopify, and the $25 million+ merchant band is the fastest-growing segment.
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Shopify’s financial performance is robust with broad-based growth across merchant sizes, geographies, and channels, including international GMV growth of 37%, offline GMV growth of 32%, and B2B GMV growth of 76%.
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The company’s cohort strategy is proving durable, with merchants who reach $1 million in annual GMV having a 92% retention rate, and the Q1 2015 cohort now generating quarterly GMV 5 times its initial size.
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Shop Pay continues to gain traction, surpassing $400 billion in lifetime accelerated GMV, with Shop Pay GMV growing 53% year-over-year and the Shop app’s native GMV growing over 70% in Q2.
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The company is achieving strong operating leverage with operating expenses at 34% of revenue, a nearly 2-point improvement year-over-year, and free cash flow margin expansion of roughly 150 basis points.
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Shopify’s open ecosystem model is attracting major technology partners like OpenAI, Google, Meta, and Microsoft, positioning the company well for the agentic era of commerce.
