This article first appeared on GuruFocus.
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GMV: $119 billion, up 29.5% (up 30% in constant currency); sixth consecutive quarter at these growth levels.
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Revenue: $3.7 billion, up 32% both reported and in constant currency.
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Merchant Solutions Revenue: Grew 35%, driven by GMV strength and increased payments penetration.
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Subscription Solutions Revenue: Grew 20%, led by standard plan subscriptions.
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MRR: Grew 19% year-over-year; Plus MRR represented 34% of MRR, growing 18% year-over-year.
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Gross Profit: Grew 28%, in line with guidance.
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Gross Margin: 47.6%, consistent with Q2; Merchant Solutions gross margin expanded year-over-year for the third consecutive quarter; Subscription Solutions gross margin was 79%.
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Operating Expenses: 32% of revenue, down from 37% last year; gross profit growth outpaced opex growth by ~12 points each quarter.
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Free Cash Flow: $816 million, a 22% margin.
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Payments Penetration: Surpassed 68%, up 3 points year-over-year; Shop Pay GMV grew 50% year-over-year.
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Offline GMV: Grew 30% year-over-year; crossed $200 billion in lifetime offline GMV; total locations on Shopify up 52% year-over-year; 55% of merchants adding point-of-sale were new to Shopify.
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International GMV: Grew 32%; Europe GMV grew 33% in constant currency; North America GMV grew 28% in constant currency.
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B2B GMV: Grew 74%.
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Shop GMV: More than doubled year-over-year.
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AI Channel Metrics: AI traffic up 2.6x year-over-year; AI orders up 3.3x; shoppers converting 64% more often; catalog-powered searches converting at 2x the rate of general AI search.
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Q4 Outlook: Revenue growth expected in the low 30s year-over-year (less than 1 point FX headwind); gross profit dollars to grow in the high 20s; operating expenses 29%30% of revenue; free cash flow margin in line with Q4 of last year.
Release Date: November 03, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Revenue grew 32% to $3.7 billion, marking the seventh consecutive quarter of low-30s growth, with GMV up 29.5% to $119 billion.
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Free cash flow margin was 22%, and operating expenses declined to 32% of revenue from 37% last year, demonstrating strong operating leverage.
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Shopify Inc (NASDAQ:SHOP) is at the forefront of agentic commerce, with AI-driven traffic up 2.6x year-over-year and orders up 3.3x, positioning it for future growth.
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International GMV grew 32%, offline GMV grew 30%, and B2B GMV surged 74%, showcasing broad-based growth across channels and geographies.
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Shop Pay GMV grew 50% year-over-year, and the Shop app GMV more than doubled, highlighting the growing adoption of Shopify Inc (NASDAQ:SHOP)’s payment and buyer network.
