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Defining the next era of commerce Q4 2025
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2 Advisories This presentation contains forward-looking statements and forward looking information (collectively, “forward-looking statements”) that are based on our managementʼs current estimates, beliefs and assumptions and managementʼs perception of historic trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. These statements may be identified by words such as “expect,” "enable", "will", "may", "should", "assume", "plan", "intends", "believe", "become", and “continue” or other similar words. Although we believe that the plans, intentions, expectations, assumptions and strategies reflected in these forward-looking statements are reasonable, these statements relate to future events or our future financial performance, and involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond our control, and that may cause our actual results to be materially different from any future results expressed or implied by these forward-looking statements. Although the forward-looking statements contained in this presentation are based upon what we believe are reasonable assumptions, investors are cautioned against placing undue reliance on these statements since actual results may vary from the forward-looking statements. These risks are described in further detail in our Annual Report on Form 10-K, in 'Item 1A : Risk Factors' and 'Item 7A : Quantitative and Qualitative Disclosures About Market Riskʼ and as further described in subsequent quarterly reports and other filings with the U.S. Securities and Exchange Commission and the securities commissions or similar securities regulatory authorities in each of the provinces or territories of Canada, which are available on www.sec.gov and on www.sedarplus.ca. If one or more of these risks or uncertainties occur, or if our underlying assumptions prove to be incorrect, actual results may vary significantly from those expressed, implied or projected by the forward-looking statements. References to long-term trends in our model are forward-looking and made as of the current date. Nothing in this presentation should be regarded as a representation by any person that these long-term trends will be achieved and we undertake no duty to update these long-term trends or any other forward-looking statements contained in this presentation, except as required by law. We believe that the case studies presented in this presentation provide a representative sample of how our merchants have been able to use various features of our platform to grow their respective businesses. References in this presentation to growth and sales following implementation of our platform do not necessarily mean that our platform was the only factor contributing to such increases. To supplement our financial information, which is prepared and presented in accordance with United States generally accepted accounting principles ("GAAP"), Shopify uses certain non-GAAP and other financial measures to assist investors in understanding our financial and operating performance. These measures are not recognized measures for financial statement presentation under GAAP, do not have standardized meanings, and may not be comparable to similar measures presented by other public companies. These measures should be considered a supplement to, not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Please refer to the Appendix titled “Non-GAAP and Other Financial Measures” for further information. This presentation contains information concerning our industry, including information relating to the size of the markets in which we participate, that are based on industry surveys and publications or other publicly available information, other third-party survey data and research reports. This information involves many assumptions and limitations, there can be no guarantee as to the accuracy or reliability of such assumptions and you are cautioned not to give undue weight to this information. While we believe this information to be reliable, it has not been independently verified. This presentation contains trademarks, service marks, trade names and copyrights of Shopify and other companies, which are the property of their respective owners. February 2026
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3 Investment Thesis We help accelerate the power of entrepreneurship and merchant success. We are a leading platform for entrepreneurship… … and increasingly all of commerce. As our merchants do better, Shopify does better.
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4 Enabling entrepreneurship at scale We lower the barrier to start, reduce time to first sale, and help more people turn ambition into businesses. Merchant independence and alignment We win when merchants do. They own their brand, data and relationships. Our revenue grows with their sales. Expanding TAM Omnichannel, global, and B2B tailwinds; new agentic channels and plans grow the pie itself. Cohorts that strengthen over time Merchants stay and adopt more products as they grow, with every new cohort outpacing the broader market. Building the foundation to power the future of agentic commerce Enabled by the Universal Commerce Protocol (UCP) and Shopify Catalog, which provides agents real-time access to billions of products. One platform, every surface Online, POS, social, marketplaces, agentic channels, B2B, and global - on one inventory and one customer record. Lower complexity. More selling. Innovation and product velocity Fast, continuous shipping. Features roll out across the base with minimal merchant lift. Strong ecosystem and best-in-class partnerships API-first and partner first. Thousands of apps and agencies, plus deep channel integrations extend the platform first. Conversion engine at checkout Shop Pay and our increasing buyer network lift conversion and repeat rate, turning traffic into sales. Compounding growth at scale Multiple product and geography vectors drive revenue and free cash flow higher as unit economics improve. Built to scale From entrepreneur to global brand - modular architecture, enterprise-grade security, and compliance reduce adoption friction. Durable cash generation Lean, software-first model producing growing cash flows for reinvestment and capital returns. Enabling entrepreneurship Product innovation Durable business model
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5 Shopify Snapshot FEATURED MERCHANT Millions of merchants in 175+ countries Revenue in FY2025 (up 30% YoY) $11.6B 2025 * Cumulative Shopify GMV since Shopifyʼs inception. ** The US ecommerce market is based on US Census Bureau data (Quarterly Retail E-Commerce Sales, not adjusted) for 2025. Shopify market share represents sales by Shopify merchants based on Shopifyʼs 2025 US GMV (excluding merchant sales made through POS). Global commerce* since Shopifyʼs inception $1.6T US ecommerce market share** and expect further penetration >14%
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6 MONEY Shopify Messaging Shop Campaigns MARKETING CONSUMER FACING Sidekick AI Website Builder Universal Commerce Protocol Shopify Catalog AI B2B on Shopify BUSINESS-TO-BUSINESS Hydrogen Oxygen PLATFORM CROSS-BORDER Cross-border sales tools Managed Markets Languages FX & VAT Duties & import tax calculator BACK OFFICE Shopify Tax Shopify Protect Shopify Flow Shopify Functions Shopify Bill Pay Shopify Subscriptions MULTI CHANNEL Shopify Fulfilment Network SHIPPING ECOSYSTEM PRO OFFLINE Shop Pay Installments PAYMENTS Shopify Product Network MODULAR Merchant-first focus through product innovation Shopify Agentic Plan
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7 A unified operating system for commerce anywhere, anytime B2B Agentic CommerceOnline Brick & mortar Pop-upsMarketplaces Social
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8 We continue to expand Shopifyʼs breadth to make it even easier for merchants to start and scale their business Order management Back office Shipping Apps Financial services Cross-border AI-driven analyticsMarketing
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9 + Q4 Brands* Consumersʼ favorite brands powered by Shopify * Includes both launched and signed merchants as of February 11, 2026.
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10 Launching 100 to 150+ product features and updates every six months Shopify Editions – Continuous Innovation Horizons Summer The Boring Edition Winter Unified Summer Foundations Winter Imagine My Business Summer Building To Last Winter Connect To Consumer Summer The Renaissance Winter The Renaissance Winter 2
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11 while promoting brand loyalty and repeat purchases Order tracking | New arrivals Post-purchase offers Sign-in with Shop converting them at every stage of the shopping journey… Recommendations + search Shop Minis | Shop store Shop connects merchants with hundreds of millions of shoppers... Shop Campaigns | Shop Pay Shopify Product Network Shop Pay Installments The consumer-facing side of Shopify, connecting merchants with buyers
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12 Unlocking opportunities that are only possible on Shopify cumulative GMV* since launch in 2017$324B Hundreds of millions of buyers have opted-in to Shop Pay * Gross Merchandise Volume (GMV) represents the total dollar value of orders facilitated through the Shopify platform including certain apps and channels for which a revenue-sharing arrangement is in place in the period, net of refunds, and inclusive of shipping and handling, duty and value-added taxes. Q1 Q2 Q3 Q4 Shop Pay GMV and Growth (YoY) 0% 20% 40% 60% 80% 57% 65% 67% 59% $22B $27B $29B $43B * Numbers may not foot due to rounding.gp
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13 AI helps merchants sell everywhere and operate smarter. As a company, it helps us build better. Shopify Catalog Solutions to succeed in an AI shopping world. Enabled by the Universal Commerce Protocol, co-developed by Shopify and Google. Agentic commerce Sidekick Agentic Plan Agentic Storefronts AI tools for merchants to run their business AI tools for merchants AI internal tools Scout Building with AI within Shopify SimGym Tinker
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14 *20+ endorsing partners across the ecosystem Agentic commerce AI tools for merchants AI internal tools→→ Universal Commerce Protocol (UCP) An open standard for integrating commerce with agents so merchants keep the brand and attribution, buyers get trustworthy experiences, and agentic commerce can scale. “ Shopify is building the foundation for agentic commerce. – Tobi Lutke SUPPORTED BY* DEVELOPED BY “
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15 Universal Cart Shop from any store, anywhere, from a single cart Checkout Kit Embed Shopify Checkout directly into agents “ AI is the biggest shift in commerce since the internet. - Harley Finkelstein Catalog distributes products across agents and surfaces. Agentic commerce AI tools for merchants AI internal tools→→ Shopify Catalog The global product search and syndication layer that powers agentic commerce, providing AI agents with real-time access to billions of products across millions of consumers favorite brands. Available to brands off Shopify through the Agentic Plan. New as of January 2026
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16 Leverage Catalog to surface real-time product data to different AI chats. Merchants can choose to enable checkout across the agentic surfaces they want. Agentic commerce AI tools for merchants AI internal tools→→ Agentic Storefronts Sell directly in AI chats with built-in tools that syndicate products to every AI platform. Current AI integrations include ChatGPT, Google AI Mode, Gemini, Copilot, the Shop app (January 2026)
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17 Agentic commerce AI tools for merchants AI internal tools→→ Sidekick gives every merchant leverage: it knows the business, sets priorities, and does the work Powered by Shopifyʼs unified stack—store, checkout, data, and apps — Sidekick turns intent into execution that grows sales and saves time Full‑context decisions: first‑party orders, customers, inventory, and installed apps in one model. Native execution: actions run safely in Shopify with permissions, audit trail, and rollback. Built‑in distribution: available across Admin, mobile, and editor surfaces—no integration tax. Sidekick Sidekick turns intent into execution that grows sales and saves time. Powered by Shopifyʼs unified stack—store, checkout, data, and apps — Sidekick turns intent into execution that grows sales and saves time. Sidekick Sidekick gives every merchant leverage: it knows the business, sets priorities, and does the work. Proof it moves real work — not just words Winter Editions ʼ26 shipped 20+ Sidekick upgrades. Since then: ~3,800 apps generated; 29,000+ Flows created ([X]% via Sidekick); [TBC] theme edits ([X]% via Sidekick); 28,000+ emails edited; 1.2M photos edited; 354,000+ to‑do lists surfaced. Almost 4,000 Custom apps generated 29,000+ Automations created with Shopify Flow 1.2M+ Photos edited Almost 355,000 To-do lists built How merchants win Why this is only possible here In the three weeks following Winter ‘26 Editions Grow with less guesswork: Sidekick Pulse surfaces the next best actions based on real store and market signals. Ship faster, end to end: Generate custom apps, build Flows, edit themes, and draft/segment emails — without leaving Admin. Operate lean: Automate repetitive work, cut context switching, and move from idea to impact in minutes. One place to work: Reports, segments, and custom theme blocks, all built inside Sidekick.
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SimGym Use AI shoppers to simulate how buyers browse, add to cart and spend on a storefront - before changes go live. Run quick, risk‑free tests for redesigns or campaigns, then get recommendations with projected impact on add‑to‑cart rate, cart value, and navigation. Powered by data from billions of purchases, SimGym allows merchants to ship changes with confidence. Agentic commerce AI tools for merchants AI internal tools→→ Announced at Winter ‘26 Shopify Editions.
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Get excited about building even if the first idea hasnʼt clicked yet. Create images, videos, and text to turn sparks into shareable drafts. Tinker is an AI sandbox for entrepreneurs, with all the tools in one app. Agentic commerce AI tools for merchants AI internal tools→→ V2 Tinker Current and aspiring entrepreneurs can access the latest AI tools in one place to explore and prototype. Announced at Winter ‘26 Shopify Editions. Live in March 2026.
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20 Agentic commerce AI tools for merchants AI internal tools→→ Internal AI tools to build better AI is central to our engine that powers everything we build. Spotlight on Scout Shopifyʼs AI Assistant for Voice of Customer Insights Support software that centralizes customer feedback so employees can glean merchant insights, and then feed them back into product development. indexed merchant feedback by Scout. 100M +
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21 Itʼs more than just the checkout… Itʼs about simplifying online stores and checkout at scale. The hard part is the logic behind it. Shopify helps merchants manage every back-end element. Taxes, shipping, and inventory Pricing and payments in various currencies Bundles, upsells, and subscriptions Localized payments and experiences Quick or advanced customizations And more… all while ensuring compliance. Checkout
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22 With solutions that make it easier for merchants to… … run and manage a business Shop Pay Installments • Shopify Flow Shopify Tax • Shopify Fraud Protection Shopify Credit • Shopify Subscriptions Shopify Bill Pay • AI Website Builder Sidekick … and discover new customers Tokengated Commerce Shopify Messaging … sell wherever buyers are B2B on Shopify PRO Marketplace Connect app Cross-border sales tools Managed Markets Agentic Storefronts AI-Assistance … thrive at any stage Hydrogen Oxygen Starter Plan Basic Plan Shopify Grow Advanced Plan Retail Plan Agentic Plan Shop Campaigns
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23 Built to scale: a plan for every stage, so that businesses never need to leave the Shopify platform * Price reflected here is the 3-year contract term. For the 1-year contract term the price is $2,500 per month + variable platform fee. V2 Starter $5 per month Basic $39 per month Retail $89 per month Grow $105 per month Advanced $399 per month Shopify Plus Commerce Components Modular Variable depending on merchant $2,300+ per month + variable platform fee* Modular Plans Commerce Components, Hydrogen, Oxygen, Agentic Commerce Components Hydrogen Oxygen Agentic Plan Enterprise Competitive rates for high volume merchants
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24 Strong ecosystem and best-in-class partnerships API-first and partner-first. Thousands of apps and agencies, plus deep channel integrations that extend the platform fast Jeff do not review 21,000+ Apps in our App Store (December 31, 2025)
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25 3.2x Growth 12% CAGR * Example of quarterly revenue from a single cohort, the Q1 2015 merchant cohort, excluding Logistics (as of December 2024). ** Growth calculation reflects last four quarters of revenue reported (ending in Q4 2025) divided by first four full quarters of revenue (Q2 2015-Q1 2016 for the Q1 2015 merchant cohort). 2021201720162015 2018 2019 2020 2022 2023 2024 2025 Our revenue cohorts get stronger over time… How our Q1 2015 cohort has grown
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26 Q1 2015 Q1 2016 Q1 2017 Q1 2018 Q1 2019 Q1 2020 Q1 2021 Q1 2022 Age in quarters Revenue growth …and that pattern persists across all our cohorts Q1 2023 Q1 2024 * Examples of quarterly revenue retention from merchant cohorts, excluding Logistics. ** Revenue retention calculation reflects the quarterly revenue in a given period for each cohort divided by each cohortʼs first full fiscal quarter of revenue after joining the platform, respectively. Q1 2025
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27 Cohorts compound over time — each quarter stacks past successes and fuels future momentum Idea 1 Idea 2 20242023Pre 2023 2022 2023 2024 2025 2025 Cohort expansion Accelerating growth Revenue ($USD Millions)
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Growing market Large and growing opportunity: Massive global market with accelerated ecommerce penetration
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29 Entrepreneurship is more accessible and more important than ever Monthly new business applications (US) 0K 200K 400K 600K 2017 2019 2021 2023 2025 ~5M new business formations in the US over each of the last 4 years – a step change in entrepreneurship 2015 Source: US Census Bureau, Seasonally Adjusted Business Applications as of December 2025.
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30 North America Europe, Middle East, Africa Asia-Pacific (ex-China) Latin America Our core market of ecommerce still has so much runway Ecommerce penetration of retail sales 2014 2025 6% 5% 4% 16% 11% 11% 2% 11% Source: eMarketer, “Retail and ecommerce Sales, by Country” as of December 2025.
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31 More merchant GMV More economies of scale More products and solutions More merchants
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Future of commerce We have multiple drivers of growth
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33 Grow our core merchant base SMB North America DTC Online Add Expand Innovate We have multiple vectors of durable growth Expand the types of merchants we serve Enterprise International B2B Offline + unified commerce Help our merchants grow Expand with our merchants More solutions per merchant Plan upgrades Innovate 700+ new features in last 24 months* Sidekick + Agentic Commerce New products Bring more buyers to our merchants Help merchants drive better conversion Cross-sell * As of December 2025 Edition.
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34 $748M 1,000+ POS location capacity +27% YoY Offline revenue growth in 2025 18 countries POS hardware with integrated Payments +29% Offline GMV growth At a glance POS Hub available for pre-order now and generally available in March. Offline revenue in 2025* Offline Q4 2025 * Offline revenue includes revenue from Shopify Payments for offline, POS Pro, Retail Plan subscriptions, and POS hardware. WIP Retail Brands Offline Brands
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35 We continue to introduce more products in more geographies and localize our platform for more countries, lowering the barriers to entrepreneurship Going global Millions of merchants in 175+ countries* 16% 44% 31% 5% Annual revenue mix by region 2025 Launched Shopify Payments in 16 new regions Expanded Shop Pay Installments in the UK and Canada United States 63% EMEA 21% Latin America 1% Canada 5% Asia Pacific 10% United States Europe, Middle East, Africa Asia Pacific Latin America Countries with GMV over $1B in 2025 >25 32% international revenue growth since 2020 4.7X 2020 2025 of revenue mix Shopify Capital now in 8 countries USDC stablecoin live as first built-in cryptocurrency option for Shopify Payments * Represents the distribution of our merchant base as of December 31, 2025. Numbers may not foot due to rounding. Canada 5%
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36 Our enterprise-level offerings, whether full-stack, headless, or composable, are gaining widespread recognition built on a powerful go-to-market strategy Industry recognitions IDC Marketscape Leader in mid-market Forrester Wave Report Leader in B2B Independent study confirmed Best TCO in commerce* Gartner Magic Quadrant for Digital Commerce Leader in enterprise Forrester B2C Wave Leading vendor with top scores IDC Marketscape Leader in POS 20252024 Building powerful partnerships * Finding from an external study by a leading independent consulting firm from March 2024. Enterprise Leader in 2025 Gartner Magic Quadrant, highest on Ability to Execute Ranked #1 for the AI Commerce Use Case in Gartner Critical Capabilities Report Built to scale High-volume brands saying yes to Shopify
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37 YoY growth in 2025 96% Brands across industries are leveraging Shopify for B2B commerce YoY growth in Q484% Winter Editions shipped more B2B improvements than any prior release B2B Commerce Q1 Q2 Q3 Q4 57% 65% 67% 59% $22B $27B $29B $43B 109% 101% 98% 84% Q1 2025 Q2 2025 Q3 2025 Q4 2025 B2B YoY Growth
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Annual financials When our merchants become more successful, Shopify becomes more successful
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39 Helping our merchants grow their business drives our business Taking market share, while delivering 20% or greater GMV and revenue growth for the past three years $119B 2020 +98% $175B 2021 +47% $197B 2022 +12% $236B 2023 +20% $292B 2024 +24% $378B 2025 +29% YoY growth GMV Revenue $11.6B $2.9B $4.6B $5.6B $7 .1B 76% 24% Merchant Solutions Subscription Solutions Percentage of revenue in 2025 2021 2022 2023 2024 +57% +21% +26% +26% 2020 +86% YoY growth $8.9B 2025 +30%
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40 Shopify Payments penetration continues to increase over time Gross Payments Volume (GPV)* 66% 2025 54% 58% 62% GMV penetration % $248B 2020 $54B * Gross Payments Volume, or GPV, is the amount of GMV processed through Shopify Payments 49%45%
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41 $205M $83M Monthly Recurring Revenue* continues to grow Q4 2020 Q4 2021 Q4 2022 Q4 2023 Q4 2024 Q4 2025 * Monthly Recurring Revenue, or MRR, is the aggregate value of all subscription plans, excluding variable platform fees, in effect on the last day of the period, assuming merchants maintain their subscription the following month and is used by management as a directional indicator of subscription solutions revenue going forward.In Q1 2024, Shopify revised the inclusion of paid trials in the calculation of MRR. Revised MRR for Q1 2023, Q2 2023, Q3 2023, and Q4 2023 were $114 million, $135 million, $137 million, $144 million, respectively. 20% 5-Year CAGR
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42 Enabling a compelling business model of growth and profitability Gross profit 2020 20242021 2022 2023 $485M ($186M) $905M $1.6B$383M 2020 20252021 2022 2023 $2.5B $2.8B $3.5B $4.5B$1.5B 53.8% 49.2% 49.8% 50.4% 52.6% 13% -3% 11% 13% 18% Gross margin Gross profit Free cash flow margin Free cash flow Free cash flow* * Free Cash Flow and Free Cash Flow Margin are non-GAAP financial measures. See "Non-GAAP and Other Financial Measures" in the Appendix for more information. $5.6B 48.1% 2024 $2.0B 17% 2025 +78% +24%+61% +11% +28% +27% YoY growth
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Quarterly financials Shopify expands by shaping the future of commerce
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44 $88 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Revenue ($B) We are a growth company, with revenue and GMV compounding as we scale $75 $70 $94 $67 Q2 2024 $3.7 $2.2 $2.8 $2.4 $2.0 Merchant Solutions Subscription Solutions Percentage of revenue $61 $75 $56$55 $50 Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023 $1.9 $2.1 $1.7$1.7$1.5 Q3 2024 Q4 2024 Q1 2025 Q2 2025Q2 2024Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023 GMV ($B) YoY growth YoY growth $92 Q3 2025 +24% +26% +23% +31%+22%+23%+23%+22%+18%+15% +32% Q3 2025 $2.7 +26% +31% +27% +31%+21%+23%+24%+25%+31%+25% +32% $124 Q4 2025 +31% $2.8 Q4 2025 21% 79% +31% * Numbers may not foot due to rounding.
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45 Shopify Payments penetration continues to drive higher year over year Gross Payments Volume (GPV)* GMV penetration % Q1 2024 60% Q3 2024 62% Q4 2024 64% Q1 2025 64% Q3 2025 65% $36B $84B Q2 2024 61% Q2 2025 64% Q4 2025 68% * Gross Payments Volume, or GPV, is the amount of GMV processed through Shopify Payments
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46 $777M 17% YoY Q3 2023 Q4 2023 Q1 2024 Q2 2024 Subscription solutions revenue continues to increase year-over-year Consistent growth across our ecosystem and plans Q3 2024 Q4 2024 Q1 2025 Q2 2025Q2 2023 Revenue - Standard Revenue - Shopify Plus Revenue - Apps, Themes, Domains, Variable Platform Fees 14% 27% 59% 14% 26% 60% 18% 25% 56% 13% 27% 60% 14% 26% 60% 15% 27% 59% 20% 26% 55% 14% 28% 58% 18% 28% 54% $382M 11% 30% 59% Q1 2023 18% 28% 54% Q3 2025 * Numbers may not foot due to rounding. 23% 26% 51% Q4 2025
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47 Delivering sustained and growing profitability YoY growth rateGross profit Q3 2024 Q4 2024 Q1 2025 Q2 2025Q2 2024Q1 2024Q4 2023Q3 2023Q2 2023Q1 2023 $717M +13% 51.1% 51.7% 48.1% 49.5%51.4%49.5%52.6%49.3%47 .5% Gross margin 48.6% 48.9% Q3 2025 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Gross Profit 717,000, 000 835,000, 000 901,000, 000 1,062,00 0,000 957,000, 000 1,045,00 0,000 1,118,00 0,000 1,352,00 0,000 1,169,00 0,000 1,302,00 0,000 1,391,00 0,000 1,692,00 0,000 Gross Margin 47.50% 49.30% 52.60% 49.50% 51.40% 51.10% 51.70% 48.10% 49.50% 48.60% 48.90% 46.10% Revenue 2680000 000 2844000 000 3,672,00 0,000 46.1% Q4 2025 $835M +27% $901M +36% $1.1B +33% $957M +33% $1.0B +25% $1.1B +24% $1.4B +27% $1.2B +22% $1.3B +25% $1.4B +24% $1.7B +25%
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48* Chart depicts Operating Leverage, which is measured using Operating Expenses (Opex) as a percentage of revenue. Numbers may not foot due to rounding. Operating Expenses, excluding one-time items, is a non-GAAP measure that is reconciled in the Appendix. Excludes one-time items including severance, loss on sale of businesses, real estate impairments, accelerated stock-based compensation and legal settlements. 60% Q1 2023 47% Q1 2024 41% Q1 2025 37% Q2 2025 42% Q2 2024 48% Q2 2023 37% Q3 2025 39% Q3 2024 43% Q3 2023 32% Q4 2024 36% Q4 2023 Delivering Continued Operating Leverage Total operating expenses, excluding one-time items, as a percentage of revenue 29% Q4 2025
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49 Remain committed to driving balanced levels of operating leverage with continued focus on key investments to support our long-term growth Sales and marketing Research and development General and administrative Transaction and loan losses Total adjusted operating expenses as percentage of revenue Q4 2023 Q4 2024 Q4 2025 31% * Chart depicts Operating Leverage, which is measured using Adjusted Operating Expenses (Opex) as a percentage of revenue. Numbers may not foot due to rounding. Adjusted Operating Expenses is a non-GAAP measure that is reconciled in the Appendix. Excludes stock-based compensation, related payroll taxes, acquired intangibles and one-time items (severance, loss on sale of businesses, real estate impairments, accelerated stock-based compensation and legal settlements). 2% 4% 11% 14% 3% 3% 10% 12% 3% 3% 8% 12% 27% 26%
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50 Committed to delivering strong free cash flow margins while investing in growth opportunities Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 6% 6% 16% 21% 12% 16% 19% 22% 15% 16% * Free Cash Flow (FCF) margin is a non-GAAP financial measure. See "Non-GAAP and Other Financial Measures" in the Appendix for more information. 18% Q3 2025 19% Q4 2025
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51 Weʼre just getting started However commerce evolves, Shopify will be the engine behind it. The merchants who are the backbone of the economy demand it of us.
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Appendix Non-GAAP and other financial measures
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53 To supplement our financial information, which is prepared and presented in accordance with United States generally accepted accounting principles ("GAAP"), Shopify uses certain non-GAAP and other financial measures to provide additional information in order to assist investors in understanding our financial and operating performance. These measures are not recognized measures for financial statement presentation under U.S. GAAP and do not have standardized meanings, and may not be comparable to similar measures presented by other public companies. Adjusted operating expenses is a non-GAAP financial measure that excludes the effect of stock-based compensation expenses and related payroll taxes, amortization of acquired intangibles, accelerated stock-based compensation, severance, impairment of right-of-use assets and leasehold improvements, provisions associated with litigation-related accruals and impairment on sales of Shopify’s logistics businesses. Operating expenses, excluding one time items, is a non-GAAP financial measure that excludes accelerated stock-based compensation, severance, impairment of right-of-use assets and leasehold improvements, provisions associated with litigation-related accruals and impairment on sales of Shopify’s logistics businesses. Operating leverage is a non-GAAP ratio that is calculated by dividing operating expenses, excluding one-time items by revenue. Free cash flow is a non-GAAP financial measure calculated as cash flow from operations less capital expenditures. Free cash flow margin is a non-GAAP ratio calculated as free cash flow divided by revenue. Management uses non-GAAP and other financial measures internally for financial and operational decision-making and as a means to evaluate period-to-period comparisons. Shopify believes that these measures provide useful information about operating results, enhance the overall understanding of past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by management in its financial and operational decision making. The non-GAAP and other financial measures used herein should be considered a supplement to, and not a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. Please see the slides that follow for a reconciliation of the non-GAAP financial measures used herein. February 2026 Non-GAAP and other financial measures
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54 Reconciliation of GAAP operating expenses to adjusted operating expenses Expressed in US $ millions, except percentages Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 GAAP Sales and marketing 287 321 295 317 361 353 331 348 405 415 410 433 less: Sales and marketing SBC and related payroll taxes 15 12 13 14 12 10 15 13 13 12 13 10 less: Accelerated stock-based compensation - 1 4 - - - - - - - - - less: Amortization of acquired intangibles 2 1 - - - - - 1 - - - - less: Severance related costs - 28 - - - - - - - - - - Adjusted Sales and marketing 270 279 278 303 349 343 316 334 392 403 397 423 % of Revenue 18% 16% 16% 14% 19% 17% 15% 12% 17% 15% 14% 12% GAAP Research and development 458 648 313 311 335 349 332 351 377 394 375 390 less: Research and development SBC and related payroll taxes 106 88 70 69 72 73 77 81 84 85 78 87 less: Accelerated stock-based compensation - 164 - - - - - - - - - - less: Severance related costs - 102 - - - - - - - - - - less: Amortization of acquired intangibles - - - - - - 1 - 1 1 1 1 Adjusted Research and development 352 294 243 242 263 276 254 270 292 308 296 302 % of Revenue 23% 17% 14% 11% 14% 13% 12% 10% 12% 11% 10% 8%
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55 Expressed in US $ millions, except percentages Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 GAAP General and administrative 123 131 137 100 124 60 114 112 109 122 115 125 less: General and administrative SBC and related payroll taxes 18 19 20 19 26 23 23 24 25 22 24 27 less: Impairment of right-of-use assets and leasehold improvements - - 38 - - - - - - 10 3 - less: Severance related costs - 18 - - - - - - - - - - less: Litigation contingencies / benefit related to legal contingencies - - - - - (55) - - - - - - Adjusted General and administrative 105 94 79 81 98 92 91 88 84 90 88 98 % of Revenue 7% 6% 5% 4% 5% 4% 4% 3% 4% 3% 3% 3% GAAP Transaction and loan losses 42 31 34 45 51 42 58 76 75 80 148 114 % of Revenue 3% 2% 2% 2% 3% 2% 3% 3% 3% 3% 5% 3% GAAP Operating expenses 910 2,471 779 773 871 804 835 887 966 1,011 1,048 1,062 less: Operating SBC and related payroll taxes 139 119 103 102 110 106 115 118 122 119 115 124 less: Accelerated stock-based compensation - 165 4 - - - - - - - - - less: Amortization of acquired intangibles 2 1 - - - - 1 1 1 1 1 1 less: Impairment of right-of-use assets and leasehold improvements - - 38 - - - - - - 10 3 - less: Severance related costs - 148 - - - - - - - - - - less: Litigation contingencies / benefit related to legal contingencies - - - - - (55) - - - - - - less: Impairment on sale of Shopify’s logistics businesses - 1,340 - - - - - - - - - - Adjusted Operating expenses 769 698 634 671 761 753 719 768 843 881 929 937 % of Revenue 51% 41% 37% 31% 41% 37% 33% 27% 36% 33% 33% 26%
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56 Reconciliation of GAAP operating expenses to adjusted operating expenses Expressed in US $ millions, except percentages Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 GAAP Operating expenses 910 2,471 779 773 871 804 835 887 966 1,011 1,048 1,062 less: Accelerated stock-based compensation - 165 4 - - - - - - - - - less: Impairment of right-of-use assets and leasehold improvements - - 38 - - - - - - 10 3 - less: Severance related costs - 148 - - - - - - - - - - less: Litigation contingencies / benefit related to legal contingencies - - - - - (55) - - - - - - less: Impairment on sale of Shopify’s logistics businesses - 1,340 - - - - - - - - - - Operating expenses, excluding one-time items 910 818 737 773 871 859 835 887 966 1,001 1,045 1,062 % of Revenue 60% 48% 43% 36% 47% 42% 39% 32% 41% 37% 37% 29%
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57 Reconciliation of free cash flow * Capital expenditures is equivalent to the amount included in “Purchases of property and equipment” on our Condensed Consolidated Statements of Cash Flows for the reported period. In US $ millions, except percentages Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Q4’24 Q1’25 Q2’25 Q3’25 Q4’25 Net cash provided by (used in) operating activities 100 118 278 448 238 340 423 615 367 428 513 725 less: Capital expenditures* (14) (21) (2) (2) (6) (7) (2) (4) (4) (6) (6) (10) Free cash flow 86 97 276 446 232 333 421 611 363 422 507 715 Revenue 1,508 1,694 1,714 2,144 1,861 2,045 2,162 2,812 2,360 2,680 2,844 3,672 Free cash flow margin 6% 6% 16% 21% 12% 16% 19% 22% 15% 16% 18% 19% In US $ millions, except percentages 2020 2021 2022 2023 2024 2025 Net cash provided by (used in) operating activities 425 536 (136) 944 1,616 2,033 less: Capital expenditures* (42) (51) (50) (39) (19) (26) Free cash flow 383 485 (186) 905 1,597 2,007 Revenue 2,929 4,612 5,600 7,060 8,880 11,556 Free cash flow margin 13% 11% (3)% 13% 18% 17% * Capital expenditures is equivalent to the amount included in "capital purchases/Acquisitions of property and equipment" on our Consolidated Statement of Cash Flows for the reported period.
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