Shopify revenue jumps 30% on AI and B2B growth
Shopify's 2025 results show a 30% year-over-year revenue increase, propelled by surging B2B sales and the expansion of AI-powered commerce tools. The platform's growth is credited to embedding AI-driven features like product recommendations, dynamic pricing, and logistics optimization directly into merchant workflows.
- Gross Merchandise Volume (GMV) for Q4 2025 reached $124 billion, a 31% year-over-year increase, with full-year 2025 GMV at $378 billion. Merchant Solutions revenue grew by 35%, outpacing the 17% growth in Subscription Solutions revenue for the full year. - The B2B segment has been a significant growth engine, with Gross Merchandise Volume for B2B increasing 132% in the fourth quarter alone. This marks six consecutive quarters of over 100% year-over-year GMV growth in B2B. - Adoption of Shopify's AI assistant, Sidekick, is accelerating, with merchants having nearly 100 million conversations with the tool since its launch. In the third quarter of 2025 alone, over 750,000 merchants used Sidekick for the first time to assist with tasks like analyzing sales fluctuations and creating promotions. - For developers and platform teams, Shopify is expanding its API-first approach, offering a suite of GraphQL APIs to manage complex B2B operations, including multiple contacts, locations, and custom payment terms. The platform's Admin API allows for deep integration and customization of back-office operations. - The company generated $2 billion in free cash flow for the full year of 2025, with a free cash flow margin of 17%. In Q4, the free cash flow was $715 million, representing a 19% margin. - Following the earnings announcement, Shopify's stock initially rose over 9% in pre-market trading. The company also announced a $2 billion share repurchase program, signaling confidence in its long-term value. - Shopify's enterprise-level offering, Shopify Plus, which includes the B2B platform, saw sales grow by 109% year-over-year in the first quarter of 2025. Plus accounts for 34% of the company's Monthly Recurring Revenue (MRR).
