Shopify reports US$581M Q1 loss, revenue up 34 per cent from year earlier
The e-commerce company beat earnings estimates, but investors focused on a forecast for slower revenue and gross-profit growth next quarter.
- Shopify shares fell 12.6% by midday Tuesday despite reporting strong first-quarter revenue of $3.17 billion, up 34% year-over-year. Investors reacted negatively to the e-commerce company's second-quarter guidance signaling slowing growth.
- The company forecasts second-quarter revenue growth in the high-20s percentage range and gross profit growth in the mid-20s. This represents a significant pullback from low-30s guidance provided three months ago.
- Merchant solutions revenue jumped to $2.42 billion from $1.74 billion, while subscription solutions grew to $750 million from $620 million. Shopify recorded a $581 million net loss, largely due to equity investment write-downs.
- Chief Financial Officer Jeff Hoffmeister cited "broad-based growth across geographies, merchant sizes and channels." Bank of Nova Scotia analyst Kevin Krishnaratne called the guidance "appropriately set, but likely conservative."
- Amid investor anxiety over artificial intelligence disruption, Shopify shares have tumbled more than 20% in 2026. The company co-developed the Universal Commerce Protocol with Google LLC to position itself as an AI leader in e-commerce.
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Why Shopify Stock Is Down Today
Key PointsShopify’s Q1 results released this morning were better than anticipated.Guidance for the quarter currently underway, however, disappointed investors.Today’s sell-off following the stock’s pullback from its January peak is more of a buying opportunity than a warning.10 stocks we like better than Shopify › Already down for the year, the budding rebound effort Shopify (NASDAQ: SHOP) shares have been working on since the latter half of las…
Shopify suffered a net loss of US$581 million in the first quarter, compared to a loss of US$682 million in the same period last year.
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