Shopify forecasts Q3 revenue above estimates on AI-backed platform upgrades

Q2 Performance Surpasses Expectations

Shopify delivered exceptional financial results in the second quarter of 2025, reporting a 31% year-over-year revenue increase to $2.68 billion[1]. The company maintained a free cash flow margin of 16% for the eighth consecutive quarter, demonstrating robust cash generation[1]. Gross merchandise volume (GMV) reached $87.8 billion, with particularly strong growth recorded in Europe (42% year-over-year on a constant currency basis)[1].

AI-Powered Innovations Drive Platform Growth

Shopify attributes its momentum in part to recent upgrades powered by artificial intelligence (AI). The company continues to integrate advanced tools into its platform, helping merchants streamline operations and personalize customer experiences. These enhancements reinforce Shopify’s position as a leading ecommerce solution for businesses of all sizes. Merchants can leverage cutting-edge AI features (including renowned platforms like ChatGPT) to automate customer service, generate product descriptions, and optimize marketing campaigns. Shopify’s investment in AI is designed to improve efficiency and empower its global merchant base to adapt quickly to changing consumer trends.

Q3 2025 Outlook: Revenue and Profit Growth Anticipated

For the third quarter of 2025, Shopify projects mid-to-high twenties percent year-over-year revenue growth, which translates to Q3 revenue guidance of $2.76 billion at the midpoint—above the analyst consensus estimate of $2.63 billion[2].
  • Revenue expected to increase by approximately 25% to 30%, according to London Stock Exchange Group data[4].
  • Gross profit growth anticipated in the low-twenties percent.
  • Operating expenses projected to account for 38-39% of revenue in Q3 2025[1].
  • Stock-based compensation expenses are forecasted at $130 million.
  • The company targets a free cash flow margin in the mid-to-high teens percentage range.

Strong Demand and AI-Focused Roadmap

The positive outlook is fueled by sustained ecommerce demand and Shopify’s persistent efforts to enhance its platform with advanced AI tools. The company positions itself as a pivotal enabler for online merchants looking to scale efficiently and innovate rapidly in a competitive landscape. For further information on Shopify’s financial performance and strategic initiatives, please visit the official Shopify website.

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