Detailed financial statements for Shopify Inc. (SHOP): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Shopify Inc. functions as a premier commerce technology company, providing an extensive platform and associated services to empower businesses worldwide. Its reach extends across Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific region, and Latin America. The company's robust platform equips merchants to effectively display, organize, market, and sell their merchandise through a multitude of sales avenues.
Analysis Summary
Shopify Inc. reported revenue of $11.56B in the most recent fiscal year, growing at a 5-year CAGR of 31.6%. Net income reached $1.23B, with a 31.0% 5-year CAGR.
Trailing-twelve-month margins: gross margin 47.8%, operating margin 13.9%, net margin 14.5%. Free cash flow grew at 39.3% CAGR over 5 years.
At $157.44 (closing price, October 30, 2026), SHOP trades at a P/E of 105.66 and an ROE of 15.06%. Market capitalisation stands at $204.3B, placing it among large-cap names.
Balance sheet quality for SHOP: current ratio of 6.0, net cash position of $5.58B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is strong: free cash flow of $2.01B represents 163% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $389.3M | $673.3M | $1.07B | $1.58B | $2.93B | $4.61B | $5.60B | $7.06B | $8.88B | $11.56B |
| Cost of Revenue | $179.8M | $293.1M | $477.0M | $712.5M | $1.39B | $2.13B | $2.85B | $3.54B | $4.41B | $6.00B |
| Gross Profit | $209.5M | $380.3M | $596.3M | $865.6M | $1.54B | $2.48B | $2.75B | $3.52B | $4.47B | $5.55B |
| Research & Development | $74.3M | $136.0M | $230.7M | $355.0M | $552.1M | $854.4M | $1.50B | $1.73B | $1.37B | $1.54B |
| Selling, General & Admin | $172.3M | $293.4M | $457.5M | $626.6M | $847.4M | $1.28B | $1.94B | $1.71B | $1.80B | $2.13B |
| Operating Expenses | $246.7M | $429.4M | $688.2M | $1.01B | $1.45B | $2.21B | $3.58B | $4.93B | $3.40B | $4.09B |
| Operating Income | -$37.2M | -$49.2M | -$91.9M | -$141.1M | $90.2M | $268.6M | -$822.0M | -$1.42B | $1.07B | $1.47B |
| EBITDA | -$23.2M | -$25.8M | -$64.9M | -$60.2M | $319.0M | $3.21B | -$594.0M | $144.0M | $1.28B | $1.93B |
| Interest Expense | 0 | 0 | 0 | 0 | $9.6M | $3.5M | $1.1M | 0 | 0 | 0 |
| Pre-tax Income | -$35.4M | -$40.0M | -$64.6M | -$95.8M | $240.4M | $3.14B | -$3.62B | $185.0M | $2.23B | $1.51B |
| Income Tax | 0 | 0 | 0 | $29.0M | -$79.1M | $225.9M | -$163.0M | $53.0M | $209.0M | $278.0M |
| Net Income | -$35.4M | -$40.0M | -$64.6M | -$124.8M | $319.5M | $2.91B | -$3.46B | $132.0M | $2.02B | $1.23B |
| EPS | $-0.04 | $-0.04 | $-0.06 | $-0.11 | $0.27 | $2.32 | $-2.73 | $0.10 | $1.56 | $0.95 |
| EPS (Diluted) | $-0.04 | $-0.04 | $-0.06 | $-0.11 | $0.26 | $2.27 | $-2.73 | $0.10 | $1.55 | $0.94 |
| Shares Outstanding (Diluted) | 839.9 M | 957.7 M | 1,056.7 M | 1,130.3 M | 1,234.6 M | 1,273.6 M | 1,266.3 M | 1,295.5 M | 1,301.5 M | 1,305.0 M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $2.84B | $3.67B | $3.17B | $3.58B |
| Gross Profit | $1.39B | $1.69B | $1.55B | $1.71B |
| Operating Income | $343.0M | $631.0M | $382.0M | $488.0M |
| EBITDA | $502.0M | $752.0M | $505.0M | $636.0M |
| Net Income | $264.0M | $743.0M | -$581.0M | $1.50B |
| EPS | $0.20 | $0.58 | $-0.45 | $1.16 |
| EPS (Diluted) | $0.20 | $0.58 | $-0.45 | $1.16 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $84.0M | $141.7M | $410.7M | $649.9M | $2.70B | $2.50B | $1.65B | $1.41B | $1.50B | $1.53B |
| Short-term Investments | $308.4M | $796.4M | $1.56B | $1.81B | $3.68B | $5.27B | $3.40B | $3.60B | $3.98B | $4.23B |
| Receivables | $21.5M | $69.0M | $133.2M | $240.7M | $421.5M | $667.0M | $857.5M | $1.16B | $1.66B | $2.37B |
| Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $19.0M | $26.0M | $21.0M |
| Total Current Assets | $422.9M | $1.03B | $2.13B | $2.74B | $6.88B | $8.54B | $6.05B | $6.28B | $7.25B | $8.30B |
| Property, Plant & Equipment | $45.7M | $50.4M | $61.6M | $246.2M | $211.5M | $301.9M | $486.0M | $147.0M | $140.0M | $141.0M |
| Goodwill | $15.5M | $20.3M | $38.0M | $311.9M | $311.9M | $356.5M | $1.84B | $427.0M | $452.0M | $491.0M |
| Intangible Assets | $6.4M | $17.2M | $26.1M | $167.3M | $135.7M | $138.5M | $390.0M | $29.0M | $22.0M | $30.0M |
| Total Assets | $490.6M | $1.11B | $2.25B | $3.49B | $7.76B | $13.34B | $10.76B | $11.30B | $13.92B | $15.19B |
| Accounts Payable | $34.3M | $44.3M | $61.3M | $90.5M | $168.7M | $284.0M | $364.0M | $364.0M | $360.0M | $570.0M |
| Short-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $918.0M | 0 |
| Total Current Liabilities | $66.5M | $94.8M | $138.7M | $316.4M | $438.3M | $702.7M | $856.0M | $898.0M | $1.96B | $1.39B |
| Long-term Debt | 0 | 0 | 0 | 0 | $758.0M | $911.0M | $913.0M | $916.0M | 0 | 0 |
| Total Liabilities | $80.1M | $112.5M | $164.0M | $473.7M | $1.36B | $2.21B | $2.52B | $2.23B | $2.37B | $1.72B |
| Retained Earnings | -$83.2M | -$123.2M | -$187.8M | -$304.2M | $15.3M | $2.94B | -$522.0M | -$390.0M | $1.63B | $2.86B |
| Total Equity | $410.5M | $1.00B | $2.09B | $3.02B | $6.40B | $11.13B | $8.24B | $9.07B | $11.56B | $13.47B |
| Total Debt | $13.9M | $16.5M | $24.9M | $151.7M | $912.9M | $1.17B | $1.40B | $1.15B | $1.13B | $188.0M |
| Net Debt | -$378.5M | -$921.6M | -$1.94B | -$2.30B | -$5.48B | -$6.59B | -$3.66B | -$3.86B | -$4.35B | -$5.58B |
| Working Capital | $356.4M | $930.9M | $1.99B | $2.43B | $6.44B | $7.84B | $5.19B | $5.38B | $5.30B | $6.90B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $2.41B | $1.53B | $1.85B | $1.66B |
| Total Assets | $15.02B | $15.19B | $14.17B | $14.47B |
| Total Liabilities | $2.53B | $1.72B | $1.63B | $1.79B |
| Total Equity | $12.50B | $13.47B | $12.54B | $12.68B |
| Total Debt | $1.11B | $188.0M | $179.6M | $178.0M |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | -$35.4M | -$40.0M | -$64.6M | -$124.8M | $319.5M | $2.91B | -$3.46B | $132.0M | $2.02B | $1.23B |
| Depreciation & Amortization | $14.0M | $23.4M | $27.1M | $35.7M | $70.1M | $66.3M | $93.0M | $70.0M | $36.0M | $31.0M |
| Stock-based Compensation | $22.9M | $49.2M | $95.7M | $158.5M | $246.9M | $330.8M | $549.0M | $615.0M | $430.0M | $449.0M |
| Change in Working Capital | $12.2M | -$25.7M | -$56.1M | $18.1M | -$93.7M | -$129.6M | -$99.0M | $195.0M | -$166.0M | -$117.0M |
| Operating Cash Flow | $14.0M | $7.9M | $9.3M | $70.6M | $425.0M | $535.7M | -$136.0M | $944.0M | $1.62B | $2.03B |
| Capital Expenditure | -$26.2M | -$24.3M | -$41.5M | -$62.4M | -$42.0M | -$50.8M | -$50.0M | -$39.0M | -$19.0M | -$26.0M |
| Acquisitions | -$14.1M | -$15.7M | -$19.4M | -$265.5M | -$11.1M | -$709.9M | -$2.39B | -$395.0M | -$167.0M | -$56.0M |
| Stock Repurchased | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -$12.2M | -$16.4M | -$32.2M | $8.2M | $383.0M | $484.9M | -$186.0M | $905.0M | $1.60B | $2.01B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $513.0M | $725.0M | $481.0M | $658.0M |
| Capital Expenditure | -$6.0M | -$10.0M | -$5.0M | -$4.0M |
| Free Cash Flow | $507.0M | $715.0M | $476.0M | $654.0M |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $107.0M | $115.0M | $132.0M | $128.0M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +72.9% | +59.4% | +47.0% | +85.6% | +57.4% | +21.4% | +26.1% | +25.8% | +30.1% | |
| Net Income Growth (YoY) | -13.1% | -61.4% | -93.4% | +355.9% | +812.2% | -218.7% | +103.8% | +1,429.5% | -39.0% | |
| EPS Growth (YoY) | +0.7% | -46.2% | -80.0% | +345.5% | +759.3% | -217.7% | +103.7% | +1,460.0% | -39.1% | |
| Shares Change (YoY) | +14.0% | +10.3% | +7.0% | +9.2% | +3.2% | -0.6% | +2.3% | +0.5% | +0.3% | |
| FCF Growth (YoY) | -33.9% | -96.9% | +125.5% | +4,560.1% | +26.6% | -138.4% | +586.6% | +76.5% | +25.7% | |
| Gross Margin | 53.8% | 56.5% | 55.6% | 54.9% | 52.6% | 53.8% | 49.2% | 49.8% | 50.4% | 48.1% |
| Operating Margin | -9.5% | -7.3% | -8.6% | -8.9% | 3.1% | 5.8% | -14.7% | -20.1% | 12.1% | 12.7% |
| EBITDA Margin | -6.0% | -3.8% | -6.0% | -3.8% | 10.9% | 69.6% | -10.6% | 2.0% | 14.4% | 16.7% |
| Net Margin | -9.1% | -5.9% | -6.0% | -7.9% | 10.9% | 63.2% | -61.8% | 1.9% | 22.7% | 10.7% |
| FCF Margin | -3.1% | -2.4% | -3.0% | 0.5% | 13.1% | 10.5% | -3.3% | 12.8% | 18.0% | 17.4% |
| Effective Tax Rate | -0.0% | -0.0% | -0.0% | -30.3% | -32.9% | 7.2% | 4.5% | 28.6% | 9.4% | 18.4% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $-0.01 | $-0.02 | $-0.03 | $0.01 | $0.31 | $0.38 | $-0.15 | $0.70 | $1.23 | $1.54 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | 839.9 M | 957.7 M | 1,056.7 M | 1,130.3 M | 1,195.7 M | 1,246.6 M | 1,266.3 M | 1,281.6 M | 1,294.6 M | 1,299.0 M |
What to look at in Technology companies
- Revenue growth 3y (>=15%/year) — Validates sustained traction, not a one-off.
- Gross margin (Sub-sector dependent) — SaaS >=70%, Internet >=55%, Semis >=45%, Hardware >=35%.
- FCF / Revenue (>=20%) — Real cash generated. Many tech firms dress up non-GAAP earnings.
- ROIC (>=15%) — Capital reinvested efficiency — Buffett's first metric.
- SBC / Revenue (<10% healthy) — Stock-based compensation. Silent dilution: >20% destroys value.
- Net Debt / EBITDA (<=2x (1.5x SaaS)) — Resilience in downturns and rate hikes.
Profitability
| Return on Equity | 15.06% |
| Return on Invested Capital | 11.66% |
| Return on Assets | 13.32% |
| Gross Margin | 47.77% |
| Operating Margin | 13.90% |
| Net Margin | 14.53% |
Financial Health
| Debt / Equity | 0.01 |
| Current Ratio | 5.35 |
| Piotroski F-Score | 5 |
| Altman Z-Score | 75.00 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | -101.83 | -252.37 | -226.60 | -361.44 | 419.24 | 59.37 | -12.71 | 779.00 | 68.16 | 169.44 |
| P/B | 8.77 | 10.09 | 7.00 | 14.90 | 21.15 | 15.42 | 5.33 | 11.01 | 11.91 | 15.52 |
| P/S | 9.25 | 15.01 | 13.63 | 28.47 | 46.20 | 37.23 | 7.85 | 14.14 | 15.50 | 18.09 |
| Gross Margin | 53.8% | 56.5% | 55.6% | 54.9% | 52.6% | 53.8% | 49.2% | 49.8% | 50.4% | 48.1% |
| Operating Margin | -9.5% | -7.3% | -8.6% | -8.9% | 3.1% | 5.8% | -14.7% | -20.1% | 12.1% | 12.7% |
| Net Margin | -9.1% | -5.9% | -6.0% | -7.9% | 10.9% | 63.2% | -61.8% | 1.9% | 22.7% | 10.7% |
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Explore sector: Technology · Software - Application
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