Shopify is a commerce platform that gives merchants the software and infrastructure to run retail businesses online, in physical stores, on social media, and across marketplaces.
Key figures
Data as of Jun 2026 · Pills compare vs Mar 2026Revenue, margins & ratios from SEC filings; market cap & ARR multiple from market data. Market cap & ARR multiple use the close of 13 Oct 2026; their pills compare vs the Jun 2026 quarter-end (10.3x).
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Calculated valuation
FRAMEWORK EST.Strategy recommendations
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Company overview
Shopify is a commerce platform that gives merchants the software and infrastructure to run retail businesses online, in physical stores, on social media, and across marketplaces. Tobias Lutke, Daniel Weinand, and Scott Lake founded it in 2006 in Ottawa, Canada. The origin story is simple: they tried to build an online snowboard store, hated the existing e-commerce tools, and built their own.
The core platform lets merchants create branded online stores, manage products and inventory, process payments, handle shipping, and analyze sales. Subscriptions are tiered. Basic, Shopify, and Advanced serve small to mid-market merchants. Shopify Plus handles high-volume enterprise merchants processing millions in gross merchandise volume. The hosted infrastructure takes care of traffic spikes, security, and PCI compliance so merchants don't have to.
The product ecosystem extends well beyond basic e-commerce. Shopify Payments processes credit card transactions directly. Shopify Capital provides cash advances and loans based on sales data. Shopify POS connects online and offline retail. Shopify Markets simplifies selling internationally with localized pricing and currency conversion. Shopify Audiences uses aggregated merchant data to improve ad targeting.
Revenue comes from two streams: subscription fees and merchant solutions like payment processing, transaction fees, capital lending, and shipping services. Merchant solutions now generate the majority of revenue, showing how well the company monetizes the broader commerce ecosystem. Annual revenue is roughly $13.3 billion.
Millions of merchants in about 175 countries use the platform, processing hundreds of billions in gross merchandise volume annually. The developer ecosystem includes thousands of third-party apps and custom themes. Partners build integrations for shipping, marketing, accounting, and virtually every other commerce function.
Shopify Magic provides AI-generated product descriptions, image editing, FAQ generation, and email content. Sidekick is an AI commerce assistant that helps merchants manage their stores through conversation.
After divesting its logistics business in 2023, Shopify improved gross margins and turned operating profitability positive. Gross margins sit around 48%, reflecting the lower margins on payment processing. The mission is to make commerce better for everyone, and Shopify has become the leading independent commerce infrastructure provider and a critical enabler for entrepreneurs worldwide.
Entity information
SaaS KPIs
Reported in at least 3 quartersFree Cash Flow
Free Cash Flow Margin
Gross Merchandise Volume (GMV)
Monthly Recurring Revenue (MRR)
Guidance
Q2 FY2026 earnings report →Management outlook
Quarterly financials
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