Shopify Inc. (NASDAQ:SHOP) saw its stock surge by nearly 22% at Wednesday’s market open after delivering stronger-than-expected second-quarter results and issuing an optimistic outlook for the upcoming quarter.
The e-commerce platform reported second-quarter revenue of $2.68 billion, exceeding analyst expectations of $2.55 billion. Its Merchant Solutions division was a key driver, contributing $2.02 billion—comfortably ahead of the $1.89 billion forecast. Meanwhile, subscription revenue came in at $656 million, narrowly missing the $659.1 million estimate.
Monthly recurring revenue (MRR) reached $185 million, falling slightly short of the projected $192.3 million.
Shopify also posted operating income of $291 million, topping the consensus estimate of $247.7 million. However, operating expenses came in marginally above forecast at $1.01 billion versus the expected $999.6 million.
Gross merchandise volume (GMV), a closely watched metric, jumped to $87.84 billion for the quarter, significantly beating the $81.65 billion forecast.
“Today’s results are the payoff from bold bets we made years ago,” said Harley Finkelstein, President of Shopify. “The investments we’re making now will fuel our next chapter.”
Looking ahead, Shopify expects third-quarter 2025 revenue to grow in the mid-to-high 20% range year-over-year, with gross profit growth anticipated in the low 20% range. Analysts, on average, had forecasted revenue growth of 21.54%, based on LSEG data.
Operating expenses are projected to account for 38% to 39% of revenue, while stock-based compensation is expected to be around $130 million. The company also said it anticipates free cash flow margin in the mid-to-high teens.
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