Has Shopify successfully leveraged its momentum into the third quarter of 2025? According to the financial report released, the answer is decidedly positive. The e-commerce giant continued to demonstrate strong performance, meeting and even exceeding expectations. Company President, Harley Finkelstein, emphasized that the company’s model – Build. Ship. Grow. – is “running at full speed,” and this scale drives relentless momentum: GMV is up 32%, and revenue is up 32%. A deeper review of the data reveals an impressive mix of revenue-driven growth and efficient expense management.

Analysis of Operational Performance and Growth

During the three months ended September 30, 2025, Shopify recorded revenues of $2.844 billion, reflecting impressive growth of 32% compared to $2.162 billion in the same quarter of 2024. Similar growth was recorded in Gross Merchandise Volume (GMV), which totaled $92.013 billion, compared to $69.715 billion in the previous year, a 32% increase. The revenue breakdown indicates significant improvement in the Merchant Solutions segment, which jumped 38% from $1.552 billion to $2.145 billion. The Subscription Solutions segment grew at a more moderate rate of 15% to $699 million. Total Gross Profit increased by 24% to $1.391 billion.

Improvement in Profitability and Margins

One of the standout figures is the improvement in operating profitability. GAAP Operating Income grew from $283 million in Q3 2024 to $343 million in the current quarter. The GAAP Operating Margin stood at 12%. Additionally, the company presented its ninth consecutive quarter of double-digit Free Cash Flow (FCF) margins , which stood at 18%, with Free Cash Flow of $507 million. CFO Jeff Hoffmeister stressed that the company is delivering consistent growth and profitability, and this Q3 surpassed the robust performance of Q2.

Forward Look: The Holiday Quarter Outlook

Shopify provided an encouraging outlook for the fourth quarter of 2025, a crucial holiday quarter for e-commerce companies. The company anticipates that revenue will grow at a mid-to-high-twenties percentage rate on a year-over-year basis. This growth is projected against Q4 2024 revenues of $2.812 billion. Furthermore, it expects Gross Profit dollars to grow at a low-to-mid-twenties percentage rate year-over-year , and the Free Cash Flow margin to be slightly above Q3 2025. These forecasts reflect continued confidence in the platform’s ability to attract new merchants and grow with global brands. Investors should monitor the company’s ability to meet these projections, especially considering that operating expense as a percentage of revenue is expected to be 30% to 31% in Q4 , amid the current macroeconomic environment and shifts in consumer spending.