SHOPMEDIUM SIGNALFINANCIAL10-K

Shopify delivered strong revenue growth of 30% but saw net income decline 39% despite improved operating income, indicating significant non-operating expenses or one-time charges.

The disconnect between rising operating income (+37%) and falling net income (-39%) suggests substantial below-the-line costs that warrant investigation. However, the strong revenue growth, improved operating leverage, and healthy cash flow generation demonstrate robust underlying business momentum.

Comparing 2026-02-11 vs 2025-02-11View on EDGAR →
FINANCIAL ANALYSIS

Shopify showed strong top-line momentum with 30% revenue growth and improving operational efficiency reflected in 37% operating income growth and 26% operating cash flow increase. However, net income declined 39% despite operational improvements, indicating significant non-operating expenses that offset operational gains. The balance sheet strengthened with reduced current liabilities (-29%) and increased stockholders' equity (+17%), suggesting solid financial health despite the earnings decline.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-39%
$2.0B→$1.2B

Net income declined 39% — review whether driven by operations, interest costs, or non-recurring items.

Capital Expenditure
Cash Flow
+36.8%
$19.0M→$26.0M

Capital expenditure jumped 36.8% — major investment cycle underway; assess returns on deployment.

Operating Income
P&L
+36.6%
$1.1B→$1.5B

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Revenue
P&L
+30.1%
$8.9B→$11.6B

Strong top-line growth of 30.1% — accelerating demand or successful expansion into new markets.

Current Liabilities
Balance Sheet
-28.8%
$2.0B→$1.4B

Current liabilities reduced — improved short-term financial position and working capital health.

Operating Cash Flow
Cash Flow
+25.8%
$1.6B→$2.0B

Operating cash flow grew 25.8% — strong conversion of earnings to cash, healthy business fundamentals.

Gross Profit
P&L
+24.2%
$4.5B→$5.6B

Gross profit expanding — improving pricing power or product mix shift toward higher-margin offerings.

Inventory
Balance Sheet
-19.2%
$26.0M→$21.0M

Inventory reduced 19.2% — lean inventory management or demand outpacing supply.

Stockholders Equity
Balance Sheet
+16.6%
$11.6B→$13.5B

Equity base grew 16.6% — retained earnings accumulation or equity issuance strengthening the balance sheet.

Current Assets
Balance Sheet
+14.4%
$7.3B→$8.3B

Current assets grew 14.4% — improving short-term liquidity or inventory/receivables build.

LANGUAGE CHANGES
NEW — 2026-02-11
PRIOR — 2025-02-11
ADDED
The registrant had 1,226,037,779 Class A Subordinate Voting Shares, 78,073,594 Cla ss B Res tricted Voting Shares and 1 Founder Share issued and outstanding as of February 6, 2026 .
In some cases, you can identify forward-looking statements by terminology such as "enable", "may", "might", "will", "should", "could", "expects", "focused on", "intends", "plans", "anticipates", "believes", "predicts", "potential", "continue", "become", "seek", "strive" or the negative of these terms or other similar words.
Shopify's all-in-one platform makes it easier to start, run and grow a business, powering sales online, in store, and everywhere in between.
Shopify's mission is to make commerce better for everyone with a platform and services that are engineered for speed, customization, reliability and security, while delivering a better shopping experience for consumers everywhere.
As owners and operators, merchants set their course, while Shopify offers them the tools to seamlessly manage, market and sell their products across various sales channels, including online storefronts, physical retail spaces, AI platforms, social media and more.
+7 more — sign up free →
REMOVED
The registrant ha d 1,215,528,049 C lass A Subordinate Vot ing Shares, 79,292,685 Class B Res tricted Voting Shares and 1 Founder Share issued and outstanding as of February 7, 2025.
In some cases, you can id entify forward-looking statements by terminology such as "enable", "may", "might", "will", "should", "could", "expects", "intends", "plans", "anticipates", "believes", "predicts", "potential", "continue", "become", "seek", "strive" or t he negative of these terms or other similar words.
Any f orward-looking statements are based on our management s perception of historic trends, current conditions and expected future developments, as well as other assumptions that management believes are appropriate in the circumstances.
6 Table of C ontents Part I Item 1: Business Overview Shopify is a leading global commerce technology company, offering trusted tools to start, scale, market and run a business of any size.
Shopify's mission is to make commerce better for everyone with a platform and services that are engineered for simplicity and reliability, while delivering a better shopping experience for consumers everywhere.
+7 more — sign up free →
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