Shopify

Shopify (NASDAQ/TSX: SHOP) rents merchants the store, then earns most of its money on the checkout. The subscription ($29–$299 a month self-serve, Plus from $2,300) is the on-ramp: $2.75B in FY2025, 24% of revenue at roughly 81% gross margin (INFERENCE). The money is in merchant solutions — above all Shopify Payments (card rates from 2.9% + 30¢ down to 2.25% + 30¢), plus lending, shipping, POS hardware and ads — $8.80B or 76% of revenue but only ~38% gross margin (INFERENCE) because card-network fees pass through, so it is ~60% of gross profit. It scales with merchants' sales: GMV $378.4B (+29%), 65.6% of it through Shopify Payments (68% in Q2 2026), revenue $11.6B (+30%), operating income $1.47B and free cash flow $2.0B. The price of being the finance layer is $417M of transaction and loan losses (+84%) and a gross margin that slid from 50% to 48%. The new surface is AI: Agentic Storefronts and the open Universal Commerce Protocol put merchants' catalogs inside ChatGPT, Copilot, Google and Meta. Q2 2026: GMV $115.6B (+32%), revenue $3.58B (+34%), operating income $488M, FCF margin 18%.

Click any of the 9 blocks below for a plain-language story of how that part of the model works for Shopify — and how it connects to the others.