Shopify 2Q Profit Jumps as Subscriptions, Merchant Services Drive Revenue Growth

By Adriano Marchese

Shopify posted a surge in second-quarter profit, driven by gains across both its subscription software and merchant services units.

The e-commerce platform provider posted on Wednesday a rise in net income to $1.5 billion, or $1.16 a share, up from $906 million, or 69 cents a share, in the comparable quarter a year ago.

Adjusted earnings were 42 cents a share. According to FactSet, analysts were expecting 40 cents a share.

Revenues rose to $3.58 billion from $2.68 billion, topping analyst projections of a more modest rise to $3.45 billion.

Both subscription solutions and merchant solutions, its two core segments, saw significant growth. Subscription solutions revenue rose to $802 million from $656 million, while merchant solutions, its largest unit, rose to $2.78 billion from $2.02 billion.

Gross merchandise volume, which measures the total value of all goods sold across its platform, rose to $115.57 billion from $87.84 billion.

"GMV growth accelerated on top of last year's already strong second quarter with solid results across all merchant sizes, channels and geographies," said President Harley Finkelstein.

Looking at the third quarter, the company expects revenue to grow at a low-thirties percentage rate, with gross profit dollars growing at a mid-to-high twenties percentage rate.

Operating expenses are expected to be in the range of 33% to 34% of revenue.

Free cash flow margin is expected to be in the high-teens to low-twenties.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

August 05, 2026 07:42 ET (11:42 GMT)