Shopify Q4 Revenue Jumps 31% to $3.67B, EPS $0.57 Beats Estimates
Shopify delivered Q4 FY2025 revenue of $3.67 billion, up 31% year-over-year, and EPS of $0.57, both beating consensus estimates. The company sustained a 19% free cash flow margin for the tenth consecutive quarter while investing in AI commerce tools like Catalog and Sidekick.
1. Q4 Financial Performance
Shopify reported Q4 FY2025 revenue of $3.67 billion, representing 31% year-over-year growth, topping the $3.59 billion consensus. Earnings per share came in at $0.57, exceeding the $0.51 analysts’ estimate.
2. Free Cash Flow and Profitability
The company maintained a 19% free cash flow margin for the tenth straight quarter, underscoring efficient operations and strong profitability among major SaaS peers.
3. AI Commerce Investments
Management highlighted investments in new AI-driven commerce solutions, including Catalog, Sidekick and Universal Commerce Protocol, aimed at driving future revenue and merchant engagement.
4. Analyst Upgrade and Outlook
MoffettNathanson upgraded Shopify from Neutral to Buy and raised its price target from $122 to $150, citing an attractive entry point and Shopify’s positioning as a leader in AI-enabled commerce.