Shares of Shopify Inc. (NASDAQ: SHOP) rose over 2% on Wednesday. The stock has gained 55% year-to-date. The company witnessed strong growth in revenue and gross merchandise volume (GMV) in the third quarter of 2025, but its profits saw a dip versus the previous year. SHOP continues to see robust traction across its business and it is investing significantly in AI to drive growth.
Q3 results
Shopify generated revenues of $2.84 billion in the third quarter of 2025, up 32% from the year-ago period. The top line was fueled by strong growth in GMV. Earnings, on an adjusted basis, fell over 5% year-over-year to $0.34 per share.
GMV, Payments and AI
Shopify is seeing strong trends in GMV. In Q3, GMV reached $92 billion, reflecting a growth of 32% YoY, driven by strong performance in North America. International GMV grew 41%, with Europe seeing a growth of 49%. The company witnessed stronger growth from existing merchants versus new acquisitions across all regions.
The majority of Shopify’s GMV came from merchants with annual GMV below $25 million, and despite being the smallest of all merchant sizes, merchants with GMV above $25 million saw faster growth in the third quarter.
The company also saw revenue growth across both its segments. In the third quarter, revenues from the Merchant Solutions segment increased 38% to $2.14 billion, fueled by growth in GMV. Revenues from Subscription Solutions grew 15% to $699 million, driven by a larger percentage of subscriptions coming from higher-priced plans, as well as higher variable platform fees.
Shopify continues to see growth across its business, led by Shopify Payments, which hit 65% penetration of GMV in Q3. Shop Pay is also performing well, growing 67% YoY to $29 billion in Q3. The company continues to add features that help simplify the selling process by making checkouts easier and improving flexibility for fulfillment. These measures are helping in attracting a diverse range of brands across all sectors on to its platform. This diversity is expected to help expand SHOP’s addressable market and fuel growth.
Shopify sees vast opportunity in AI. With its access to a large amount of data on commerce, the company sees meaningful potential to improve the shopping experience for merchants and consumers. It is investing in AI tools that will help in product discovery through personalized catalogs, as well as simplify the processes of checkout, order tracking, returns and reorders.
Outlook
For the fourth quarter of 2025, Shopify expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
