Shopify Posts 32% Q3 Revenue Jump as AI Tool Traffic Boosts Growth
- ByStartupStory | November 5, 2025
Shopify Posts 32% Q3 Revenue Jump as AI Tool Traffic Boosts Growth
Shopify Inc. reported a strong third quarter for 2025, with revenue rising 32% year-over-year to $2.84 billion, surpassing analyst expectations of $2.76 billion. This robust growth was accompanied by an 18% free cash flow margin, marking the company’s ninth consecutive quarter of double-digit free cash flow margins.
Much of the revenue increase was driven by the Merchant Solutions segment, which surged 38% to $2.14 billion, comprising about 75% of total revenue. Subscription Solutions, which includes recurring SaaS revenue, also grew 15% to $699 million. Overall gross profit climbed 24% to $1.39 billion, and operating income rose 21% to $343 million.
Shopify’s gross merchandise volume (GMV)—the total value of goods sold through its platform—increased 30% year-over-year to $92 billion. International GMV saw significant expansion, growing 41% and now representing 21% of total revenue. The payments segment reached a penetration rate of 65% of GMV, further emphasizing the company’s strong foothold in payment processing.
CEO Harley Finkelstein highlighted the role of AI-powered tools in driving merchant success, mentioning Shopify’s AI assistant “Sidekick” has been adopted by a growing number of merchants to help with tasks such as setting discounts and generating sales reports, reducing operational friction for businesses. This AI integration contributed to higher platform traffic and improved user experiences, translating to increased sales and merchant growth.
Despite the strong financial performance, Shopify’s net income for the quarter was $264 million, down from $828 million in the previous year, largely due to an increase in operating expenses by 25.5% attributed to aggressive investments in AI development and marketing initiatives.
Looking forward, Shopify anticipates mid-to-high-twenties percentage revenue growth in Q4 2025, driven by the holiday shopping season and continued adoption of AI-driven features and international expansion.
In summary, Shopify’s Q3 2025 results reflect the company’s successful leverage of AI innovations to boost merchant engagement and sales, contributing to strong revenue growth and positioning the company well for the critical upcoming holiday quarter.
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