Shopify Inc. (NASDAQ: SHOP) shares fell more than 12% intra-day on Wednesday, even after the e-commerce platform reported fourth-quarter earnings that topped analyst estimates, issued strong first-quarter revenue guidance, and announced a $2 billion share repurchase program.
For the quarter ended December 31, 2025, Shopify posted adjusted earnings per share of $0.57, beating analyst expectations of $0.51. Revenue increased 31% year over year to $3.67 billion, exceeding the consensus forecast of $3.59 billion. The company marked its eleventh consecutive quarter of 25% or higher revenue growth, excluding logistics.
Free cash flow reached $715 million during the quarter, translating to a 19% free cash flow margin. Gross merchandise volume (GMV) grew 31% to $123.84 billion.
Chief Financial Officer Jeff Hoffmeister said the company closed the fourth quarter with strong revenue growth and disciplined cash generation, citing 31% year-over-year revenue growth and a 19% free cash flow margin.
For the first quarter of 2026, Shopify expects revenue growth in the low-thirties percentage range year over year, consistent with the fourth quarter and above analyst expectations of 25.2% growth. The company also anticipates a free cash flow margin in the low-to-mid teens, slightly below the level recorded in the same period of 2025.
