Shopify Inc. (NASDAQ:SHOP) stock jumped more than 12% in premarket trading after the e-commerce company delivered stronger-than-expected fourth-quarter results, issued robust first-quarter revenue guidance, and unveiled a new $2 billion share repurchase authorization.
For the quarter ended December 31, 2025, Shopify reported adjusted earnings per share of $0.57, surpassing analyst estimates of $0.51. Revenue rose 31% year over year to $3.67 billion, ahead of the $3.59 billion consensus forecast. The result marked the eleventh straight quarter in which revenue increased by at least 25%, excluding logistics.
“2025 was Shopify at full throttle – driving compounding growth, while laying the rails for the new era of AI commerce,” said Harley Finkelstein, President of Shopify. Full-year 2025 revenue reached $11.56 billion, up 30% compared with 2024.
During the fourth quarter, Shopify generated $715 million in free cash flow, translating into a 19% free cash flow margin. Gross merchandise volume (GMV) advanced 31% to $123.84 billion.
Chief Financial Officer Jeff Hoffmeister emphasized the company’s focus on both expansion and profitability: “We closed Q4 with strong top-line growth and disciplined cash generation with revenue up 31% year-over-year and a 19% free cash flow margin.”
Looking ahead to the first quarter of 2026, Shopify expects revenue growth in the low-30% range year over year, roughly in line with Q4’s pace and above analyst projections for a 25.2% increase, according to LSEG data. The company forecasts a free cash flow margin in the low-to-mid teens for Q1, slightly below the level recorded in the same period last year.