Shopify Inc.SHOP
NasdaqGS•Technology•Software - Application
Shopify Inc., a commerce technology company, provides tools to start, scale, market, and run a business of various sizes in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The Company offers Shopify platform that enables merchants to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics, and reporting and access financing for running their business across all of their sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. It also provides Shopify Payments, a fully integrated payment processing service that allows merchants to accept and process payment cards online and offline. In addition, the company engages in the sale of themes and apps; shipping labels through Shopify Shipping; point-of-sale hardware; advertising on the Shopify App Store; and Shop Campaigns for buyer acquisitions, as well as registration of domain names. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is based in Ottawa, Canada.
Shopify Inc. (SHOP) reported trailing twelve months revenue of $12.37B as of March 2026, a Infinity% increase year-over-year. Quarterly revenue reached $3.17B, reflecting continued top-line momentum.
Shopify Inc. generated $1.33B in TTM net income, with quarterly EBITDA of $389.00M. The operating margin expanded from 8.6% to 12.1%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (12.1%) and net margin (-18.3%) indicates significant non-operating expenses or interest burden. Net margin has improved from -28.9% a year ago, signaling stronger bottom-line efficiency.
SHOP trades at a P/E of 109.4x (a premium multiple) and a P/S of 11.8x. The price-to-book ratio of 11.7x indicates a significant premium over book value.
The company generated $476.00M in free cash flow over the trailing twelve months, a 31.1% increase year-over-year, indicating cash generation ability. The balance sheet shows $14.12B in total assets with no in long-term debt against $12.50B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 6 quarters of fundamental data
Operating margins are expanding at ~12.1%, suggesting durable pricing power and cost discipline.
ROE is positive at ~13.3% on average, adequate but below the threshold typically associated with wide moats.
6 of the last 6 quarters generated positive FCF. The company generally funds itself but has occasional cash consumption quarters.
Revenue has been flat or declining over recent quarters, which may indicate eroding demand or competitive pressure.
Data-driven red flags and warnings across 6 quarters
Margins are stable or improving at ~13.0% — no sign of cost or pricing stress.
FCF/Net Income has dropped below 0.7x in 3 quarters — monitor for earnings quality deterioration.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation