Shopify Reports Q1 Revenue Growth, Faces Net Loss

Shopify reported Q1 2025 revenue of $2.36 billion, a 27% year-over-year increase, and gross merchandise volume of $74.75 billion, though GMV fell slightly short of analyst forecasts. Despite a strong revenue beat and adjusted net income growth, the company recorded an unexpected net loss because of a large loss on equity investments, causing a 5% decline in its stock price. Free cash flow stayed robust at $363 million, maintaining a 15% margin for the seventh consecutive quarter. Shopify's Q2 guidance for mid-twenties percentage revenue growth met, but did not exceed, analyst expectations. The company faces uncertainty due to new tariffs on Chinese imports, which may affect many of its merchants. Ongoing concerns about macroeconomic conditions and trade policies have contributed to continued downward pressure on Shopify shares.