Shopify $SHOP Q1'26 Results:

↗️$3,170.0M rev (+34.3% YoY, -13.7% QoQ) beat est by 2.6%

↘️GM* (48.8%, -0.8 PPs YoY)🟡

➡️Operating Margin* (16.5%, +2.6 PPs YoY)

➡️FCF Margin (15.0%, -0.4 PPs YoY)🟡

↗️Net Margin (-18.3%, +10.6 PPs YoY)

↗️EPS* $0.36 beat est by 5.9%

*non-GAAP

Segment Revenue

➡️Subscription solutions $750M rev (+21.0% YoY, 80.3% Gross Margin)🟡

↗️Merchant solutions $2,420M rev (+39.1% YoY, 39.0% Gross Margin)🟢

Key Metrics

↗️GMV $100.74B (+34.8% YoY)🟢

➡️MRR 212B (+16.5% YoY)🟡

Operating expenses

↘️S&M*/Revenue 15.3% (-1.3 PPs YoY)

↘️R&D*/Revenue 10.7% (-1.7 PPs YoY)

↘️G&A*/Revenue 2.7% (-0.8 PPs YoY)

Dilution

↗️SBC/rev 4%, +0.9 PPs QoQ

↘️Basic shares up 0.6% YoY, -0.2 PPs QoQ🟢

↗️Diluted shares up 0.6% YoY, +0.4 PPs QoQ🟢

Guidance

➡️Q2'26 $3,410.0 - $3,450.0M guide (+28.0% YoY) in line with est

Pros

Revenue growth remains structurally robust.

GMV scale indicates durable platform demand.

Merchant Solutions drove superior expansion.

Operating leverage improved meaningfully.

FCF margin confirms cash discipline.

Expense ratios declined across functions.

Cons

Gross margin contracted modestly.

MRR growth lagged core transaction growth.

GAAP net loss remained substantial.

SBC intensity increased sequentially.

Loan exposure continued to expand.