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Shopify Inc.
NASDAQ: SHOP Technology IT 🔎 Screen
Nasdaq 100
🏹 Trader: 📊 High Volume View all →
$164.5B
Market Cap
170.2
P/E
2.33
PEG
20.7%
ROCE
9.8%
ROE
0.01
D/E
16.4%
OPM
-28.1%
% from 52W High
58
α RS
🔍 SHOP is showing a high-conviction setup because it matches 11 of 39 tracked screener presets, Sector RRG has Technology in the Leading quadrant with the trail still rolling over, and an ECS of 85.2 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RRG ECS
Sources
Conviction 11/39 · Technology in Leading quadrant · ECS 85.2
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🌏 Global Investor Returns
Currency-adjusted total returns for SHOP including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Shopify Inc., a commerce technology company, provides tools to start, scale, market, and run a business of various sizes in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The Company offers Shopify platform that enables merchants to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics, and reporting and access financing for running their business across all of their sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. It also provides Shopify Payments, a fully integrated payment processing service that allows merchants to accept and process payment cards online and offline. In addition, the company engages in the sale of themes and apps; shipping labels through Shopify Shipping; point-of-sale hardware; advertising on the Shopify App Store; and Shop Campaigns for buyer acquisitions, as well as registration of domain names. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is based in Ottawa, Canada.

Key Ratios Snapshot
📈 Growth Pattern
📊 Quick Scorecard
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⭐ Superinvestors Holding SHOP
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Manager Shares Value % of Fund Period
Cathie Wood ARK Investment Management 4.18M $495.6M 3.85% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$3.6B
+34% YoY
Operating Income
$488M
+68% YoY
Operating Margin
13.6%
+2.8pp YoY
Net Income
$1.5B
+66% YoY
What Went Right
  • GMV grew 32% to $116B, marking the fifth straight quarter of 30%+ GMV growth.
  • Shop Pay surpassed $400B lifetime GMV in June, and Shop Pay GMV grew 53% YoY.
  • International GMV grew 37%, offline POS GMV grew 32%, and B2B GMV grew 76%.
What to Watch
  • Q3 gross profit growth is guided to mid-to-high 20s, below revenue growth of low-30s, driven by mix shift to merchant solutions and payments strength.
  • Transaction and loan losses rose to 3.9% of revenue from ~3.0% in the prior year, with capital products a larger driver this quarter.
  • A higher year-over-year tax rate of roughly 1 point partially offset free cash flow margin expansion.
Management Guidance
  • Q3 revenue growth expected in the low 30s YoY; no significant FX impact.
  • Q3 gross profit dollar growth expected in the mid-to-high 20s YoY.
  • Q3 operating expenses expected 33%-34% of revenue; stock-based compensation expected to be $150M.
  • Q3 free cash flow margin expected in the high-teens to low-20s, including less than 1 point of tailwind from the merchant cash advances accounting change.
Investor Lens
The thesis is stronger: Shopify delivered 30%+ growth across GMV, revenue, operating income and free cash flow at scale, with management seeing long runway in US e-commerce share and international penetration. AI/agentic commerce is still small, but agentic traffic and orders tripled YoY and Catalog conversion is ~2x scraped data, supporting the long-tail merchant base. However, Q3 guidance implies some moderation in revenue and gross profit growth, making growth durability and payments mix the key watch items.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong Q2: 32% GMV, 34% revenue, 18% FCF margin.
Revenue
Revenue grew 34% YoY to $3.6B. Merchant solutions revenue grew 37% to $2.8B, while subscription solutions grew 22% to $802M, with GMV rising 32% to $116B.
Profitability
Net income grew 66% YoY to $1.5B, and operating income grew 68% to $488M. Excluding equity investment gains, net income was $439M versus $338M in Q2 2025.
Margins
Operating margin improved approximately 2.8pp to 13.6%. Gross profit margin was 47.7%, down slightly from 48.6% as payments mix pressure was offset by higher-margin revenue streams. OpEx ratio improved to 34% of revenue from roughly 37% in Q1?
Balance Sheet
Free cash flow came in at $654M, an 18% margin. No balance sheet, CapEx or debt details were discussed.
Key Risks
Management expects Q3 revenue growth to moderate to the low-30s and gross profit growth to mid-to-high 20s. Transaction and loan losses rose to 3.9% of revenue. Higher taxes and payments mix continue to pressure incremental margin.
Outlook
Q3 revenue growth is expected in the low 30s YoY, with gross profit growth in the mid-to-high 20s and FCF margin in the high-teens to low-20s. Management also guided to operating expenses of 33%-34% of revenue.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-05
GMV and revenue grew over 30% year-over-year, driven by strong international, offline, and B2B performance. AI tools like Sidekick and Catalog are accelerating merchant success, while high retention and expanding payments penetration support durable growth.
Q1 2026 Q1 2026 2026-05-05
Q1 2026 saw 35% GMV and 34% revenue growth, with strong free cash flow and broad-based expansion across geographies and merchant segments. AI-driven tools like Sidekick and Shop Campaigns are accelerating merchant success, while new partnerships and the Universal Commerce Protocol strengthen the platform's industry position.
Q4 2025 Q4 2025 2026-02-11
Record revenue and GMV growth in 2025, with Q4 revenue surpassing $3B and full-year GMV up 29%. Major advances in AI-driven commerce, global expansion, and a $2B share repurchase highlight strong financials and strategic positioning.
Q3 2025 Q3 2025 2025-11-04
Q3 2025 saw 32% growth in both GMV and revenue, with strong international and enterprise momentum, and AI driving innovation and merchant efficiency. Gross margin declined due to a mix shift, but free cash flow and profitability remain robust. Guidance calls for continued double-digit growth and stable margins.
Q2 2025 Q2 2025 2025-08-06
Q2 revenue grew 31% year-over-year to $2.7B, with GMV up 31% and free cash flow margin at 16%. Strong growth in Europe and the U.S., major product innovations, and new enterprise clients drove results, while guidance calls for continued double-digit growth and disciplined investment.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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