Shopify Inc. (SHOP) stock analysis
Company overview and business model
Source fact: Shopify Inc., a commerce technology company, provides tools to start, scale, market, and run a business of various sizes in Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific, and Latin America. The Company offers Shopify platform that enables merchants to manage products and inventory, process orders and payments, fulfill and ship orders, build customer relationships, source products, leverage analytics, and reporting and access financing for running their business across all of their sales channels, including web and mobile storefronts, physical retail locations, social media storefronts, and marketplaces. It also provides Shopify Payments, a fully integrated payment processing service that allows merchants to accept and process payment cards online and offline. In addition, the company engages in the sale of themes and apps; shipping labels through Shopify Shipping; point-of-sale hardware; advertising on the Shopify App Store; and Shop Campaigns for buyer acquisitions, as well as registration of domain names. The company was formerly known as Jaded Pixel Technologies Inc. and changed its name to Shopify Inc. in November 2011. Shopify Inc. was incorporated in 2004 and is based in Ottawa, Canada.
Classification: NASDAQ · Technology · Software - Application
Revenue and growth
Source fact: Revenue was USD 11.56 billion for the period ending 2025-12-31.
Caverian calculation: Revenue changed +30.1% (periods ending 2025-12-31 vs 2024-12-31).
Profitability
Source fact: Net income was USD 1.23 billion in the latest reported period.
Source metric: Reported net margin was 10.7%.
Balance sheet and liquidity
Source fact: Cash and equivalents were USD 1.53 billion.
Source fact: Total debt was USD 188.00 million.
Source metric: Current ratio was 5.96x.
Cash-flow analysis
Source fact: Operating cash flow was USD 2.03 billion.
Source fact: Free cash flow was USD 2.01 billion.
Valuation
Source metrics: Trailing P/E 111.52x; Forward P/E 48.78x; Price to book 11.84x; Price to sales 11.94x; EV/EBITDA 66.13x.
Competitive position
Classification: Peer context: Software - Application within Technology.
Data sources and freshness
Freshness: This report uses a stored upstream snapshot; statement periods are shown alongside the figures.
Methodology and limitations
Facts reproduce stored upstream fields. Calculations derive only from the displayed stored statements. Model outputs are Caverian interpretations, not investment advice or a buy/sell recommendation.
How Caverian approaches valuation · Sources and product principles