Shopify 1Q Loss Widens, Revenue Rises

Published: 2025-05-08 07:45:07 ET SHOP

Published on 05/08/2025 at 07:45

By Adriano Marchese

Shopify's loss widened in the first quarter despite a rise in revenue and more dollars processed through its platform.

The e-commerce platform posted a widened net loss on Thursday of $682 million, compared with a loss of $273 million in the comparable quarter a year ago.

Revenues rose to $2.36 billion from $1.86 billion, in line with analyst expectations for the quarter.

Merchant solutions, the company's largest segment, saw revenue climb to $1.74 billion from $1.35 billion, while subscription solutions rose to $620 million from $511 million.

Gross merchandise volume, the total dollar value of all orders processed through its platform, rose to $74.75 billion from $60.86 billion.

Looking to the next quarter, Shopify expects revenue to grow in mid-twenties percentage rate. According to FactSet, analysts peg revenue to grow to $2.53 billion from $2.05 billion a year earlier, a 23.4% increase.

Gross profit dollars are projected to grow at a high-teens percentage rate, Shopify said.

For operating expenses, this is expected to be between 39% and 40% of revenue, with stock-based compensation of about $120 million.

Free cash flow margin is expected to be similar to the first quarter, in the mid-teens range.

Write to Adriano Marchese at [email protected]

(END) Dow Jones Newswires

05-08-25 0744ET