📊 SHOP Key Takeaways
Is Shopify Inc.. (SHOP) a Good Investment?
Shopify demonstrates strong revenue growth (30.1% YoY) and robust free cash flow generation ($476M, 15% margin) with a fortress balance sheet (zero debt), but is severely hampered by net losses (-18.3% margin) that are deteriorating faster than revenue growth. The substantial $963M gap between positive operating income and negative net income indicates significant non-operating charges that require clarification before repositioning positively.
Why Buy Shopify Inc.. Stock? SHOP Key Strengths
- Strong revenue growth momentum at 30.1% YoY with healthy gross margins of 48.8%
- Excellent free cash flow generation of $476M demonstrating core business cash generation capability
- Fortress balance sheet with zero debt, $1.8B cash, and 6.2x current ratio providing financial flexibility
SHOP Stock Risks: Shopify Inc.. Investment Risks
- Unprofitable on net income basis (-$581M, -18.3% margin) with deteriorating profitability trend (-39% YoY decline)
- Significant unexplained gap between positive operating income ($382M) and negative net income suggests material non-operating charges that may be structural
- Negative returns on equity (-4.6%) and assets (-4.1%) indicate shareholder value is being destroyed despite revenue growth
Key Metrics to Watch
- Net income path to profitability and closure of operating income to net income gap
- Source and sustainability of non-operating charges impacting bottom line
- Free cash flow maintenance relative to revenue growth to confirm business model quality
Shopify Inc.. (SHOP) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 6.20x current ratio provides a solid financial cushion.
SHOP Profit Margin, ROE & Profitability Analysis
SHOP vs Technology Sector: How Shopify Inc.. Compares
How Shopify Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Shopify Inc.. Stock Overvalued? SHOP Valuation Analysis 2026
Based on fundamental analysis, Shopify Inc.. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Shopify Inc.. Balance Sheet: SHOP Debt, Cash & Liquidity
SHOP Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Shopify Inc..'s revenue has grown significantly by 30% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.10 reflects profitable operations.
SHOP Revenue Growth, EPS Growth & YoY Performance
SHOP Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $2.4B | -$581.0M | $-0.45 |
| Q3 2025 | $2.2B | $264.0M | $0.20 |
| Q2 2025 | $2.0B | -$102.0M | $-0.08 |
| Q1 2025 | $1.9B | -$273.0M | $-0.21 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Shopify Inc.. Dividends, Buybacks & Capital Allocation
SHOP SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Shopify Inc.. (CIK: 0001594805)
📋 Recent SEC Filings
❓ Frequently Asked Questions about SHOP
What is the AI rating for SHOP?
Shopify Inc.. (SHOP) has an AI rating of HOLD with 75% confidence, based on fundamental analysis of SEC EDGAR filings.
What are SHOP's key strengths?
Claude: Strong revenue growth momentum at 30.1% YoY with healthy gross margins of 48.8%. Excellent free cash flow generation of $476M demonstrating core business cash generation capability.
What are the risks of investing in SHOP?
Claude: Unprofitable on net income basis (-$581M, -18.3% margin) with deteriorating profitability trend (-39% YoY decline). Significant unexplained gap between positive operating income ($382M) and negative net income suggests material non-operating charges that may be structural.
What is SHOP's revenue and growth?
Shopify Inc.. reported revenue of $3.2B.
Does SHOP pay dividends?
Shopify Inc.. does not currently pay dividends.
Where can I find SHOP SEC filings?
Official SEC filings for Shopify Inc.. (CIK: 0001594805) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is SHOP's EPS?
Shopify Inc.. has a diluted EPS of $-0.45.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is SHOP a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Shopify Inc.. has a HOLD rating with 75% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is SHOP stock overvalued or undervalued?
Valuation metrics for SHOP: ROE of -4.6% (sector avg: 22%), net margin of -18.3% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy SHOP stock in 2026?
Our dual AI analysis gives Shopify Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is SHOP's free cash flow?
Shopify Inc..'s operating cash flow is $481.0M, with capital expenditures of $5.0M. FCF margin is 15.0%.
How does SHOP compare to other Technology stocks?
Vs Technology sector averages: Net margin -18.3% (avg: 18%), ROE -4.6% (avg: 22%), current ratio 6.20 (avg: 2.5).