Shopify Beats 3Q Forecasts Fueled by Strong Merchant Growth — Update
By Adriano Marchese
Shopify's third-quarter sales rose by nearly a third, topping the company's earlier forecast and continuing a torrid pace of growth by adding more merchants to its platform and selling more merchandise.
The Ottawa-based ecommerce platform on Tuesday posted net income of $264 million, from $828 million, in the prior-year period, which on a per-share basis was 20 cents, down from 69 cents.
Adjusted earnings came in at 34 cents a share, meeting analyst expectations, according to FactSet.
Revenue rose to 32% to $2.84 billion, beating its own guidance of mid-to-high twenties percentage growth. It also topped Wall Street expectations for the company's revenue to rise to $2.76 billion, according to FactSet.
While the market has been bracing for a consumer pullback, Shopify's performance shows that its merchants, with the help of new AI and enterprise tools, are proving resilient, driving platform growth even in a shaky retail environment.
Subscription solutions rose to $699 million, while merchant solutions revenue, its largest, rose to $2.15 billion from $1.55 billion.
In premarket trading in New York, the stock is down 2.5% to $168.59.
The company has been posting steady growth this year, with recent performance pushing its valuation to the top of the Toronto Stock Exchange. So far in 2025, the stock has risen 59% on the TSX to close on Monday at 242.96 Canadian dollars ($172.85) with a market cap of C$315.78 billion.
Gross merchandise volume, which measures the total dollar value of orders through Shopify's platform, jumped 32% to $92.01 billion.
For the current quarter, which includes the key holiday shopping season, Shopify said it expects revenue to grow in the range of mid-to-high-twenties percentage rate. Analysts polled by FactSet expect the top-line to grow 22.6% from last year's level.
Gross profit dollars are projected to grow at a low-to-mid-twenties percentage rate, and operating expenses are expected to be between 30% and 31%, with stock-based compensation of $130 million.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
November 04, 2025 07:59 ET (12:59 GMT)
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