Q: What is Shopify(SHOP) 2025Q3 Earnings Summary?

**Bullish Points:**

1. Total revenue for the fiscal year ended December 31, 2025, increased by 30% to $11.6 billion compared to $8.88 billion in the previous year, showcasing strong growth.

2. Subscription solutions revenue grew by 17% to $2.75 billion, driven by higher Monthly Recurring Revenue (MRR) and a shift towards higher-priced plans, indicating improved customer monetization.

3. Merchant solutions revenue surged by 35% to $8.8 billion, primarily due to higher Shopify Payments revenue, increased Gross Merchandise Volume (GMV), and higher Shopify Payments penetration rate.

4. Gross profit increased by 24% to $5.55 billion, reflecting improved profitability despite higher operating expenses.

5. Cash, cash equivalents, and marketable securities rose to $5.78 billion, indicating strong liquidity and financial stability.

**Bearish Points:**

1. Net profit decreased significantly to $1,231 million from $2,019 million in the previous year, signaling a decline in overall profitability.

2. Operating expenses increased to $4.09 billion, driven by higher marketing spend, employee-related costs, and transaction and loan losses, which could pressure margins.

3. Transaction and loan losses rose by 84% to $417 million, primarily due to higher losses related to Shopify Payments and lending services, raising concerns about risk management.

4. Net loss on equity and equity method investments amounted to $316 million, including a $123 million realized loss on the embedded derivative held to settle the Notes, which negatively impacted financial results.

5. The Company settled its convertible senior notes for $1.0 billion in cash, resulting in a realized loss of $123 million, which could affect future cash flow.

**Summary:**

Shopify (SHOP) demonstrated strong revenue growth across subscription and merchant solutions, along with improved gross profit and liquidity. However, the decline in net profit, increased operating expenses, higher transaction and loan losses, and realized losses on investments and convertible notes settlement highlight challenges in managing costs and risks. Investors should weigh the company's robust revenue growth and financial stability against the pressures on profitability and risk exposure.

For more information, you can read the original text of Shopify's financial report.