SHOPIFY INC. (SHOP)

Shopify provides commerce infrastructure through an all-in-one, cloud-based platform that helps merchants start, run and grow a business. The platform supports sales online, in physical stores, on social media, on AI platforms and across other channels, and includes an integrated back-end for inventory management, transaction management and buyer relationships. Its mission is to make commerce better for everyone. Shopify also builds AI-enabled features, including Sidekick, an AI commerce assistant, and Agentic Storefronts, which enables agent-assisted product discovery and checkout across AI platforms.

The business has two revenue components. Subscription solutions revenue comes mainly from platform subscriptions (including variable platform fees), Point of Sale Pro subscriptions, apps, domain registrations and themes. Plans include Basic, Grow, Advanced, Shopify Plus and enterprise offerings, typically with one-month terms and optional annual or multi-year commitments. Merchant solutions revenue comes mainly from payment processing and currency conversion fees on Shopify Payments, and also from lending services, partner referral fees, shipping labels, POS hardware, advertising on the Shopify App Store and Shop Campaigns, a buyer acquisition offering. More than 21,000 apps were available in the Shopify App Store as of December 31, 2025.

Shopify serves merchants of all sizes and verticals, from new entrepreneurs to large direct-to-consumer and B2B companies. As of December 31, 2025, millions of merchants in more than 175 countries used the platform: 44% in the United States, 31% in Europe, the Middle East and Africa, 16% in Asia Pacific, Australia and China, 5% in Canada and 5% in Latin America. No single merchant has ever exceeded five percent of revenue in a reporting period. Most merchants use the Basic and Grow plans, while most gross merchandise volume comes from Shopify Plus and enterprise merchants. A partner ecosystem of app developers, theme designers, service professionals, marketers, photographers and affiliates extends the platform. Results are seasonal, with higher GMV and revenue in the fourth quarter.

The platform is a multi-tenant, cloud-based, "single branch" system, so all merchants run the latest version. It is built heavily on open source, including Ruby on Rails, and uses Google Cloud for most platform operations. Shopify had about 7,600 employees at December 31, 2025 and operates remote-first. It holds a company-wide summit in Toronto, Canada. It describes its market as competitive and highly fragmented, with competition from ecommerce software vendors, content management systems, payment processors, point of sale providers, domain registrars, shipping label and fulfillment providers, alternative lenders and financial and cross-border services providers. Shopify protects its intellectual property through copyrights, trademarks, patents, trade secrets and contractual agreements in Canada, Ireland, Singapore, the United States and elsewhere. It is subject to financial services, privacy, cybersecurity, sanctions and online-liability regulation. It is a foreign private issuer that voluntarily files on U.S. domestic forms such as the Form 10-K.