Shopify Q2 Profit Soars $906M on European, Global Merchant Growth

Shopify reported a strong second quarter in 2025, surpassing revenue and profit expectations driven by robust growth in European merchant activity and a surge in gross merchandise volume (GMV) to $87.84 billion. The company posted revenue of $2.68 billion, a 31.1% year-over-year increase, with net income rising sharply to $906 million, or 70 cents per share, well above analyst forecasts. Merchant solutions revenue saw a 37% increase, reaching $2.02 billion, while subscription revenue rose by 17% to $656 million. Shopify's management highlighted the expansion of AI-driven functionalities and merchant solutions as key factors in deepening monetization beyond transaction fees. For the third quarter, the company projects mid-to-high twenties percentage revenue growth and expects operating expenses to be 38% to 39% of revenue, with a free cash flow margin in the mid-to-high teens. Investor confidence surged with shares climbing between 10.5% and nearly 22% in different markets, reflecting optimism about Shopify's continued growth and market leadership.