How does Shopify (SHOP) make money?

Shopify (SHOP) generates revenue primarily from Service, which accounted for 76.7% of total revenue in TTM through Q1 2026. The company reported $12.4B in revenue and converted 10.8% of it into net profit, equivalent to roughly $1.33B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Shopify (SHOP)?

Shopify (SHOP) reported a gross profit margin of 48% in TTM through Q1 2026, equivalent to $5.93B in gross profit on $12.4B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Shopify (SHOP)?

Shopify (SHOP) reported an operating profit margin of 13.3% in TTM through Q1 2026, equivalent to $1.65B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Shopify (SHOP)?

Shopify (SHOP) reported a net profit margin of 10.8% in TTM through Q1 2026, equivalent to $1.33B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Shopify (SHOP) profitable?

Yes. Shopify (SHOP) reported $1.33B in net income for TTM through Q1 2026, with a net profit margin of 10.8%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Shopify (SHOP) invest in research and development?

Shopify (SHOP) invested $1.6B in research and development during TTM through Q1 2026, roughly 12.9% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Shopify (SHOP) spend on capital expenditures?

Shopify (SHOP) spent $27.1M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.2% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Shopify (SHOP) generate?

Shopify (SHOP) generated $2.13B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 17.2%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Shopify (SHOP)?

Shopify (SHOP) had an effective tax rate of 19% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Shopify (SHOP)?

Shopify (SHOP) reports revenue across 2 reportable product segments, led by Service at 76.7% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Shopify Makes Money: 2026 Visual Revenue Map

Shopify (SHOP) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 5, 2026).

Shopify discloses geographic revenue only in annual filings. to view the full breakdown.

Shopify (SHOP) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Shopify (SHOP), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Service	$9.48B	76.7%
Subscription and Circulation	$2.88B	23.3%
Total	$12.4B	100%

Service$9.48B
Subscription and Circulation$2.88B
Total$12.4B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Shopify (SHOP) reports revenue across 2 reportable product segments; the largest segment was Service at 76.7%, followed by Subscription and Circulation (23.3%).

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