In this Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A"), "we", "us", "our", "Shopify" and "the Company" refer to Shopify Inc. and its consolidated subsidiaries, unless the context requires otherwise. In this MD&A, we present Shopify's results of operations and cash flows for the three and six months ended June 30, 2026 and 2025, and our financial position as of June 30, 2026. You should read this MD&A in conjunction with the unaudited condensed consolidated financial statements and the accompanying notes thereto in Part I - Item 1 of this Quarterly Report on Form 10-Q and with our audited consolidated financial statements included in the Company's 2025 Form 10-K. Our unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). All amounts are in U.S. dollars ("USD") except where otherwise indicated. Our MD&A is intended to enable readers to gain an understanding of Shopify's results of operations, cash flows and financial position. To do so, we provide information and analysis comparing our results of operations, cash flows and financial position for the most recently completed period with the same period from the preceding fiscal year. We also provide analysis and commentary that we believe will help investors assess our future prospects. In addition, we provide "forward-looking statements" that are not historical facts, but that are based on our current estimates, beliefs and assumptions and which are subject to known and unknown important risks, uncertainties, assumptions and other factors that could cause actual results to differ materially from current expectations, including those discussed under Part II — Item 1A "Risk Factors" of this Quarterly Report on Form 10-Q and in our 2025 Form 10-K. Forward-looking statements are intended to assist readers in understanding management's expectations as of the date of this Quarterly Report on Form 10-Q, including this MD&A, and may not be suitable for other purposes. See "Forward-looking Statements" in this Quarterly Report on Form 10-Q. In this MD&A, references to our "solutions" means the combination of products and services that we offer to merchants, and references to "our merchants" as of a particular date means the total number of unique shops that are paying for a subscription to our platform. Business Overview We believe we can help merchants of all verticals and sizes, from aspirational entrepreneurs to companies with large-scale, direct-to-consumer or business to business ("B2B") operations, or both, realize their potential at all stages of their business life cycle. In the six months ended June 30, 2026, our platform facilitated gross merchandise volume ("GMV") of $216.3 billion, representing an increase of 33% from the six months ended June 30, 2025. A detailed description of this metric is presented below in the section entitled, "Key Performance Indicators". During the six months ended June 30, 2026, our total revenue was $6.8 billion, an increase of 34% versus the six months ended June 30, 2025. Our business model has two revenue components: a recurring subscription component we call subscription solutions and a merchant success-based component we call merchant solutions. In the six months ended June 30, 2026, subscription solutions revenues accounted for 23% of our total revenues (June 30, 2025 - 25%). We offer a range of plans that increase in price depending on additional features and economic considerations. Shopify Plus is offered at a starting rate that is several times that of our standard Shopify plans. Shopify Plus solves for the complexity of merchants as they grow and scale globally, offering additional functionality and support, including features like Shopify Audiences, B2B features and Launchpad, for ecommerce automation. Aldo, BarkBox, Carrier, Meta, Vuori, SKIMS and Supreme are a few of our notable merchants seeking a reliable, cost-effective and scalable commerce solution. The flexibility of our pricing plans is designed to help our merchants grow in a cost-effective manner and to provide more advanced features and support as their business needs evolve. Revenue from subscription solutions is generated through the sale of subscriptions to our platform, including variable platform fees, as well as through the sale of subscriptions to our POS Pro offering, the sale of apps, the sale of themes and the registration of domain names. Subscription solutions revenues increased from $1.3 billion in the six months ended June 30, 2025 to $1.6 billion in the six months ended 26 Table of Contents June 30, 2026, representing an increase of 22%. Our merchants typically enter into monthly subscription agreements. The revenue from these agreements is recognized over time on a ratable basis over the contractual term and therefore we have deferred revenue on our balance sheet. We do not consider this deferred revenue balance to be a good indicator of future revenue. Instead, we believe Monthly Recurring Revenue ("MRR") is most closely correlated with the long-term value of our merchant relationships. As of June 30, 2026, MRR totaled $221 million, representing an increase of 19% relative to MRR at June 30, 2025. A detailed description of this metric is presented below in the section entitled, "Key Performance Indicators". We offer a variety of merchant solutions that are designed to add value to our merchants by passing on our economies of scale and augmenting our subscription solutions. During the six months ended June 30, 2026, merchant solutions revenues accounted for 77% of total revenues (June 30, 2025 - 75%). We principally generate merchant solutions revenues from payment processing fees and currency conversion fees from Shopify Payments. Shopify Payments is a fully integrated payment solution. In addition to payment processing fees and currency conversion fees from Shopify Payments, we also generate merchant solutions revenue from our lending services and financial products, referral fees from partners, the sale of shipping labels, the sale of POS hardware, advertising on the Shopify App Store and Shop Campaigns, our buyer acquisition offering. The majority of our merchant solutions revenues are directionally correlated with the level of GMV that our merchants process through our platform. Merchant solutions revenues increased from $3.8 billion in the six months ended June 30, 2025 to $5.2 billion in the six months ended June 30, 2026, representing an increase of 38%. Our business model is driven by our ability to attract new merchants, retain revenue from existing merchants and increase sales to both new and existing merchants. Our merchants represent a wide array of retail verticals, business sizes and geographies, and no single merchant has ever represented more than five percent of our total revenues in a single reporting period. We believe that our future success depends on many factors, including our ability to expand our merchant base; localize features for specific geographies; retain merchants as they grow their businesses on our platform and adopt more features; offer more sales channels that connect merchants with potential customers; develop new solutions to extend our platform’s functionality and catalyze merchants’ sales growth; leverage emerging technologies, including AI; enhance our ecosystem and partner programs; provide a high level of merchant support; hire, retain and motivate qualified personnel; and build with a focus on maximizing long-term value. We have focused on rapidly growing our business and plan to continue making investments to drive future growth. We believe that our investments will increase our revenue base, improve the retention of this base and strengthen our ability to increase sales to our merchants. We also maintain a portfolio of investments with varying time horizons in our cash management program. Key Performance Indicators Our key performance indicators, which we do not consider to be non-GAAP measures, that we use to evaluate our business, measure our performance, identify trends affecting our business, formulate financial projections and make strategic decisions are MRR and GMV. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies. The following table shows MRR and GMV for the three and six months ended June 30, 2026 and 2025: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (in US $ millions) Monthly Recurring Revenue 221 185 221 185 Gross Merchandise Volume 115,567 87,837 216,310 162,587 27 Table of Contents Monthly Recurring Revenue MRR is the aggregate value of all subscription plans, excluding variable platform fees, in effect on the last day of the period, assuming merchants maintain their subscription the following month. Subscription plans to both our platform and our POS Pro offering are included in this calculation. When applicable, MRR relating to subscription plans billed in a merchant's local currency is converted to USD using the respective currency exchange rate as of the period end date. Prospective merchants that have joined the platform through special new merchant trial incentives, including paid trials, are included in MRR at their trial price while merchants on free trials are excluded from the calculation of MRR through the duration of the free trial. MRR allows us to average our various pricing plans and billing periods into a single, consistent number that we can track over time. We also consider the factors that contribute to MRR, specifically the number of paying merchants using our platform, the number of merchants that are on full-price plans or paid trials, the mix of subscription plan types and overall pricing of our subscription plans. In addition, we use MRR to forecast monthly, quarterly and annual subscription plan revenue, which makes up the majority of our subscription solutions revenue. We had $221 million of MRR as of June 30, 2026 compared to $185 million as of June 30, 2025. In the three and six months ended June 30, 2026, the MRR growth rate for the period was higher than the same period in 2025 driven by the prior year impact of extending the length of paid trials. Gross Merchandise Volume GMV is the total dollar value of orders facilitated through our platform including certain apps and channels for which a revenue-sharing arrangement is in place in the period, net of refunds, and inclusive of shipping and handling, duty and value-added taxes. GMV does not represent revenue earned by us. However, the volume of GMV facilitated through our platform is an indicator of the success of our merchants and the strength of our platform. Our merchant solutions revenues are also directionally correlated with the level of GMV facilitated through our platform. For the three and six months ended June 30, 2026 we facilitated GMV of $115.6 billion and $216.3 billion, respectively, (June 30, 2025 - $87.8 billion and $162.6 billion), representing year-over-year growth of 32% on a quarterly basis and 33% on a year-to-date basis (2025 vs 2024 - 31% and 27%). On a constant currency basis, in which GMV in the three and six months ended June 30, 2026 is converted using the comparative period's monthly average exchange rates, year-over-year growth was 30% and 30% (2025 vs 2024 - 29% and 27%). Factors Affecting the Comparability of Our Results Change in Revenue Mix As a result of the continued growth of Shopify Payments, referral fees, other transaction services and other services rendered as part of strategic partnerships and Shopify Capital, our revenues from merchant solutions have increased. Merchant solutions are intended to complement subscription solutions by providing additional value to our merchants and increasing their use of our platform. Gross profit margins on Shopify Payments, the biggest driver of merchant solutions revenue, are typically lower than on subscription solutions due to the associated third-party costs of providing this solution. We view this revenue stream as beneficial to our operating margins, as Shopify Payments requires significantly less sales and marketing and research and development expenses than Shopify’s core subscription business. The lower margins on merchant solutions compared to subscription solutions means that the continued growth of merchant solutions has caused in the past, and may cause in the future, a decline in our overall gross margin percentage. Seasonality Our merchant solutions revenues are directionally correlated with the level of GMV that our merchants facilitated through our platform. Our merchants typically process additional GMV during the fourth quarter holiday season. As a result, we have historically generated higher merchant solutions revenues in our fourth quarter than in other quarters. While we believe that this seasonality has affected and will continue to affect our quarterly results, our continued growth has partially masked seasonal trends to date. As a result of the continued growth of our merchant solutions offerings, we believe that our business may become more seasonal in the future and that historical patterns in our business may not be a reliable indicator of our future performance. 28 Table of Contents Foreign Currency Fluctuations While the majority of our revenues, cost of revenues and operating expenses are denominated in USD, a significant portion are denominated in foreign currencies. Due to offering Shopify Payments, Shopify Capital, subscriptions and other billings to select countries in local currency, a significant proportion of revenue transactions are denominated in EUR, GBP and CAD. A significant proportion of operating expenses are also incurred and expected to be included in the aforementioned foreign currencies. To help mitigate the impacts associated with foreign currency fluctuations on future cash flows from operating expenses, we maintain a portfolio of foreign exchange forward contracts and options designated as hedging instruments. As our operations continue to expand internationally, we may be exposed to additional fluctuations in other foreign currencies. Refer to Part I — Item 3 "Quantitative and Qualitative Disclosures About Market Risk" in this Quarterly Report on Form 10-Q for additional information on the effect on reported results of changes in foreign exchange rates. Key Components of Results of Operations See Part II — Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2025 Form 10-K for details on the key components of results of operations. There have been no material changes to our key components of results of operations during the six months ended June 30, 2026, as compared to those described in our 2025 Form 10-K. 29 Table of Contents Quarterly Results of Operations The following table sets forth a summary of our condensed consolidated statements of operations for the three and six months ended June 30, 2026 and 2025: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (in US $ millions, except share and per share amounts) Revenues Subscription solutions 802 656 1,552 1,276 Merchant solutions 2,781 2,024 5,201 3,764 3,583 2,680 6,753 5,040 Cost of revenues(1)(2) Subscription solutions 163 121 311 244 Merchant solutions 1,712 1,257 3,188 2,325 1,875 1,378 3,499 2,569 Gross profit 1,708 1,302 3,254 2,471 Operating expenses Sales and marketing(1) 498 415 994 820 Research and development(1)(2) 445 394 882 771 General and administrative(1) 136 122 251 231 Transaction and loan losses 141 80 257 155 Total operating expenses 1,220 1,011 2,384 1,977 Income from operations 488 291 870 494 Net gain (loss) on equity and equity method investments 1,228 658 146 (386) Other income, net 59 130 125 201 Income before income taxes 1,775 1,079 1,141 309 Provision for income taxes (273) (173) (220) (85) Net income 1,502 906 921 224 Net income per share attributable to shareholders: Basic $ 1.16 $ 0.70 $ 0.71 $ 0.17 Diluted $ 1.16 $ 0.69 $ 0.71 $ 0.17 Weighted average shares used to compute net income per share attributable to shareholders: Basic 1,295,220,307 1,297,746,050 1,299,266,611 1,296,593,342 Diluted 1,297,940,958 1,308,993,838 1,302,627,927 1,308,463,539 (1) Includes stock-based compensation expense and related payroll taxes as follows: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (in US $ millions) Cost of revenues 2 1 3 2 Sales and marketing 9 12 20 25 Research and development 94 85 191 169 General and administrative 28 22 57 47 133 120 271 243 30 Table of Contents (2) Includes amortization of acquired intangibles as follows: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (in US $ millions) Cost of revenues 2 2 4 4 Research and development — 1 1 2 2 3 5 6 Revenues Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change (in US $ millions, except percentages) Revenues Subscription solutions 802 656 22 % 1,552 1,276 22 % Merchant solutions 2,781 2,024 37 % 5,201 3,764 38 % Total revenues 3,583 2,680 34 % 6,753 5,040 34 % Percentage of revenues Subscription solutions 22 % 24 % 23 % 25 % Merchant solutions 78 % 76 % 77 % 75 % Total revenues 100 % 100 % 100 % 100 % Subscription Solutions Subscription solutions revenues increased for the three months ended June 30, 2026 compared to the same period in 2025. The largest component of the period-over-period change was an increase in subscription fees of $129 million driven by an increase in MRR, which was a result of a higher number of merchants using our platform and by a larger percentage of subscriptions coming from higher priced plans, such as Plus. The increase was also driven by higher GMV resulting in an increase in subscription fees from the variable component of certain subscription contracts. Subscription solutions revenues increased for the six months ended June 30, 2026 compared to the same period in 2025. The largest component of the period-over-period change was an increase in subscription fees of $230 million driven by an increase in MRR, which was a result of a higher number of merchants using our platform and by a larger percentage of subscriptions coming from higher priced plans, such as Plus. The increase was also driven by higher GMV resulting in an increase in subscription fees from the variable component of certain subscription contracts. Merchant Solutions Merchant solutions revenues increased for the three months ended June 30, 2026 compared to the same period in 2025. The largest component of the period-over-period change was an increase in Shopify Payments revenue of $624 million, relating to payment processing and currency conversion fees, growing in the three months ended June 30, 2026 compared to the same period in 2025. This increase was a result of an increase in our Shopify Payments penetration rate and an increase in GMV from merchants using our platform. These factors drove $21.4 billion of additional GMV facilitated using Shopify Payments in the three months ended June 30, 2026 compared to the same period in 2025, representing growth of 38%. For the three months ended June 30, 2026, the Shopify Payments penetration rate was 68%, resulting in GMV of $78.1 billion that was facilitated using Shopify Payments. This compares to a penetration rate of 64% resulting in GMV of $56.6 billion that was facilitated using Shopify Payments in the same period in 2025. Merchant solutions revenues increased for the six months ended June 30, 2026 compared to the same period in 2025. The largest component of the period-over-period change was an increase in Shopify Payments revenue of $1.2 billion, relating to payment processing and currency conversion fees, growing 31 Table of Contents in the six months ended June 30, 2026 compared to the same period in 2025. This increase was a result of an increase in our Shopify Payments penetration rate and an increase in GMV from our merchants using our platform. These factors drove $41.0 billion of additional GMV facilitated using Shopify Payments in the six months ended June 30, 2026 compared to the same period in 2025, representing growth of 39%. For the six months ended June 30, 2026, the Shopify Payments penetration rate was 67%, resulting in GMV of $145.1 billion that was facilitated using Shopify Payments. This compares to a penetration rate of 64% resulting in GMV of $104.1 billion that was facilitated using Shopify Payments in the same period in 2025. Cost of Revenues Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change (in US $ millions, except percentages) Cost of revenues: Cost of subscription solutions 163 121 35 % 311 244 27 % Cost of merchant solutions 1,712 1,257 36 % 3,188 2,325 37 % Total cost of revenues 1,875 1,378 36 % 3,499 2,569 36 % Percentage of revenues: Cost of subscription solutions 5 % 5 % 5 % 5 % Cost of merchant solutions 48 % 47 % 47 % 46 % Total cost of revenues 52 % 51 % 52 % 51 % Cost of Subscription Solutions Cost of subscription solutions increased for the three months ended June 30, 2026 compared to the same period in 2025. The increase was driven by a $37 million increase in cloud and infrastructure costs which includes AI-related usage. Cloud and infrastructure costs remains the significant majority of our cost of subscription solutions. Cost of subscription solutions increased for the six months ended June 30, 2026 compared to the same period in 2025. The increase was driven by a $59 million increase in cloud and infrastructure costs which includes AI-related usage. Cloud and infrastructure costs remains the significant majority of our cost of subscription solutions. Cost of Merchant Solutions Cost of merchant solutions increased for the three months ended June 30, 2026 compared to the same period in 2025. The increase was driven by higher payment processing fees resulting from an increase in GMV facilitated through Shopify Payments. Cost of merchant solutions increased for the six months ended June 30, 2026 compared to the same period in 2025. The increase was driven by higher payment processing fees resulting from an increase in GMV facilitated through Shopify Payments. Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change (in US $ millions, except percentages) Gross profit 1,708 1,302 31 % 3,254 2,471 32 % Percentage of total revenues 48 % 49 % 48 % 49 % 32 Table of Contents Operating Expenses Sales and Marketing Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change (in US $ millions, except percentages) Sales and marketing 498 415 20 % 994 820 21 % Percentage of total revenues 14 % 15 % 15 % 16 % Sales and marketing expenses increased for the three months ended June 30, 2026 compared to the same period in 2025, due to increases of $85 million in overall marketing program spend and $10 million in payouts related to our affiliate partner programs, offset by a $16 million decrease in employee-related costs. Sales and marketing expenses increased for the six months ended June 30, 2026 compared to the same period in 2025, due to increases of $147 million in overall marketing program spend and $26 million in payouts related to our affiliate partner programs, offset by a $6 million decrease in employee-related costs. Research and Development Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change (in US $ millions, except percentages) Research and development 445 394 13 % 882 771 14 % Percentage of total revenues 12 % 15 % 13 % 15 % Research and development expenses increased for the three months ended June 30, 2026 compared to the same period in 2025, due to increases of $34 million in computer hardware and software costs, which includes AI-related usage, and $11 million in employee-related costs. Research and development expenses increased for the six months ended June 30, 2026 compared to the same period in 2025, due to increases of $59 million in computer hardware and software costs, which includes AI-related usage, and $47 million in employee-related costs. General and Administrative Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change (in US $ millions, except percentages) General and administrative 136 122 11 % 251 231 9 % Percentage of total revenues 4 % 5 % 4 % 5 % General and administrative expenses increased for the three months ended June 30, 2026 compared to the same period in 2025, due to increases of $17 million in indirect taxes and $6 million in employee-related costs, offset by a $10 million decrease due to prior year impairment related costs associated with right-of-use assets and leasehold improvements. General and administrative expenses increased for the six months ended June 30, 2026 compared to the same period in 2025, due to increases of $23 million in indirect taxes and $10 million in employee-related costs, offset by a $10 million decrease due to prior year impairment related costs associated with right-of-use assets and leasehold improvements. 33 Table of Contents Transaction and Loan Losses Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change (in US $ millions, except percentages) Transaction and loan losses 141 80 76 % 257 155 66 % Percentage of total revenues 4 % 3 % 4 % 3 % Transaction and loan losses increased for the three months ended June 30, 2026 compared to the same period in 2025, due to increases of $41 million in losses related to lending services driven by an expansion of our offerings and programs relative to the same period in 2025 and $19 million in losses related to Shopify Payments driven by higher GMV processed through Shopify Payments relative to the same period in 2025. Transaction and loan losses increased for the six months ended June 30, 2026 compared to the same period in 2025, due to increases of $69 million in losses related to lending services driven by an expansion of our offerings and programs relative to the same period in 2025 and $29 million in losses related to Shopify Payments driven by higher GMV processed through Shopify Payments relative to the same period in 2025. Net Gain (Loss) on Equity and Equity Method Investments Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change (in US $ millions, except percentages) Net gain (loss) on equity and equity method investments 1,228 658 87% 146 (386) (138)% *Not a meaningful comparison In the three months ended June 30, 2026, we had a net gain on equity and other investments of $1.2 billion, which included a $731 million unrealized gain in investments with readily determinable fair values which was the result of the change in share prices from March 31, 2026 to June 30, 2026, $522 million in gross unrealized gains driven by an observable price change of a private investment and $11 million unrealized loss in an investment option. Additionally, the Company had a net loss of $22 million on our equity method investment. In the three months ended June 30, 2025, we had a net gain on equity and other investments of $681 million, which included a $502 million unrealized gain in investments with readily determinable fair values which was the result of the change in share prices from March 31, 2025 to June 30, 2025, $165 million unrealized gain on investments without readily determinable fair values which was the result of an observable price change and a $14 million unrealized gain in an investment option. Additionally, we had a net loss of $24 million on our equity method investment. In the six months ended June 30, 2026, we had a net gain on equity and other investments of $185 million which included $524 million in gross unrealized gains driven by an observable price change of a private investment, offset by a $278 million unrealized loss in investments with readily determinable fair values which was the result of the net change in share prices from December 31, 2025 to June 30, 2026, and a $65 million unrealized loss in an investment option. Additionally, we had a net loss of $43 million on our equity method investment. In the six months ended June 30, 2025, we had a net loss on equity and other investments of $340 million, which included a $428 million unrealized loss in investments with readily determinable fair values which was the result of the change in share prices from December 31, 2024 to June 30, 2025 and a $72 million unrealized loss in an investment option, offset by $165 million unrealized gain on investments without readily determinable fair values which was the result of an observable price change. Additionally, we had a net loss of $47 million on our equity method investment. 34 Table of Contents Other Income, Net Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change (in US $ millions, except percentages) Other income, net 59 130 (55)% 125 201 (38)% In the three months ended June 30, 2026, other income, net was driven by interest income of $66 million recognized on marketable securities compared to interest income of $106 million recognized on marketable securities for the same period in 2025 and net loss on foreign exchange of $7 million compared to $24 million net gain on foreign exchange for the same period in 2025. In the six months ended June 30, 2026, other income, net was driven by interest income of $141 million recognized on marketable securities compared to interest income of $171 million recognized on marketable securities for the same period in 2025 and net loss on foreign exchange of $16 million compared to $30 million net gain on foreign exchange for the same period in 2025. Provision for Income Taxes Three months ended June 30, Six months ended June 30, 2026 2025 % Change 2026 2025 % Change (in US $ millions, except percentages) Provision for income taxes (273) (173) 58% (220) (85) 159% We had a provision for income taxes of $273 million in the three months ended June 30, 2026, compared to provision for income taxes of $173 million in the same period in 2025, as a result of earnings in various jurisdictions and unrealized gain on equity and other investments. We had a provision for income taxes of $220 million in the six months ended June 30, 2026 as a result of earnings in various jurisdictions and unrealized gain on equity and other investments. We had a provision for income taxes of $85 million in the six months ended June 30, 2025, as a result of earnings in various jurisdictions, partially offset by unrealized loss on equity and other investments. 35 Table of Contents Summary of Quarterly Results The following table sets forth selected quarterly results of operations data for each of the eight quarters ended June 30, 2026. The information for each of these quarters has been derived from unaudited condensed consolidated financial statements that were prepared on the same basis as the audited annual financial statements and, in the opinion of management, reflects all adjustments, which include only normal recurring adjustments, necessary for the fair statement of the results of operations for these periods in accordance with U.S. GAAP. This data should be read in conjunction with our unaudited condensed consolidated financial statements and audited consolidated financial statements and related notes for the relevant period. These quarterly operating results are not necessarily indicative of our operating results for a full year or any future periods. Three months ended Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 (in US $ millions, except per share amounts) Revenues Subscription solutions 802 750 777 699 656 620 666 610 Merchant solutions 2,781 2,420 2,895 2,145 2,024 1,740 2,146 1,552 3,583 3,170 3,672 2,844 2,680 2,360 2,812 2,162 Cost of revenues(1)(2) Subscription solutions 163 148 148 128 121 123 134 108 Merchant solutions 1,712 1,476 1,831 1,325 1,257 1,068 1,326 936 1,875 1,624 1,979 1,453 1,378 1,191 1,460 1,044 Gross profit 1,708 1,546 1,693 1,391 1,302 1,169 1,352 1,118 Operating expenses Sales and marketing(1)(2) 498 496 433 410 415 405 348 331 Research and development(1)(2) 445 437 390 375 394 377 351 332 General and administrative(1)(3) 136 115 125 115 122 109 112 114 Transaction and loan losses 141 116 114 148 80 75 76 58 Total operating expenses 1,220 1,164 1,062 1,048 1,011 966 887 835 Income from operations 488 382 631 343 291 203 465 283 Net gain (loss) on equity and equity method investments(4) 1,228 (1,082) 182 (112) 658 (1,044) 906 484 Other income, net 59 66 79 77 130 71 50 93 Income (loss) before income taxes 1,775 (634) 892 308 1,079 (770) 1,421 860 (Provision for) recovery of income taxes (273) 53 (149) (44) (173) 88 (128) (32) Net income (loss) 1,502 (581) 743 264 906 (682) 1,293 828 Net income (loss) per share attributable to shareholders: Basic $ 1.16 $ (0.45) $ 0.57 $ 0.20 $ 0.70 $ (0.53) $ 1.00 $ 0.64 Diluted $ 1.16 $ (0.45) $ 0.57 $ 0.20 $ 0.69 $ (0.53) $ 0.99 $ 0.64 36 Table of Contents In addition to disclosing financial results in accordance with GAAP, the table below provides supplementary non-GAAP financial measures for Non-GAAP net income and diluted net income per share to consider in evaluating operating performance. These non-GAAP measures should not be viewed as a substitute for reported results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP measures that may be presented by other companies. Three Months Ended Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 GAAP net income (loss) 1,502 (581) 743 264 906 (682) 1,293 828 Non-GAAP adjustments to net income (loss): Non-GAAP operating income adjustments(1)(2)(3) 135 141 129 122 133 126 120 119 Net (gain) loss on equity and other investments (1,250) 1,061 (248) 62 (682) 1,021 (928) (512) Net loss (gain) on equity method investment 22 21 (28) 21 24 23 22 28 Loss on embedded derivative(4) — — 94 29 — — — — Income tax effects and adjustments 140 (171) (57) (57) 74 (153) 68 (4) Non-GAAP net income 549 471 633 441 455 335 575 459 Diluted net income (loss) per share attributable to shareholders*: GAAP $ 1.16 $ (0.45) $ 0.57 $ 0.20 $ 0.69 $ (0.53) $ 0.99 $ 0.64 Non-GAAP $ 0.42 $ 0.36 $ 0.48 $ 0.34 $ 0.35 $ 0.25 $ 0.44 $ 0.36 *may include rounding (1) Includes stock-based compensation expense and related payroll taxes as follows: Three months ended Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 (in US $ millions) Cost of revenues 2 1 1 1 1 1 — — Sales and marketing 9 11 10 13 12 13 13 15 Research and development 94 97 87 78 85 84 81 77 General and administrative 28 29 27 24 22 25 24 23 133 138 125 116 120 123 118 115 (2) Includes amortization of acquired intangibles as follows: 37 Table of Contents Three months ended Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 (in US $ millions) Cost of revenues 2 2 3 2 2 2 1 3 Sales and marketing — — — — — — 1 — Research and development — 1 1 1 1 1 — 1 2 3 4 3 3 3 2 4 (3) Includes impairment related costs associated with right-of-use assets and leasehold improvements of $3 million in the third quarter of 2025 and $10 million in the second quarter of 2025. (4) Includes loss on embedded derivative held to settle the Notes, initially with a $29 million unrealized loss during the third quarter of 2025, which then resulted in a $123 million realized loss during the fourth quarter of 2025. We believe that period-over-period comparisons are more meaningful than our sequential results due to seasonality in our business. While we believe that this seasonality has affected and will continue to affect our quarterly results, our rapid growth has partially masked seasonal trends to date. Our merchant solutions revenues are directionally correlated with our merchants' GMV. Our merchants' GMV typically increases during the fourth-quarter holiday season. As a result, we have historically generated higher merchant solutions revenues in our fourth quarter than in other quarters. As a result of the growth of our merchant solutions offerings, we believe that our business may become more seasonal in the future, and that historical patterns in our business may not be a reliable indicator of our future performance. Quarterly Revenue and Gross Margin Trends Historically, revenues experienced a seasonal decrease in our first quarter as consumers typically reduce their spending following the holiday season resulting in a seasonal decrease in GMV per merchant, which was not completely offset by Shopify Payments penetration and MRR growth. Subsequently, revenues have increased in each of the next three quarters as a result of merchant, MRR and overall GMV growth. Our merchants have processed additional GMV during the fourth-quarter holiday seasons, and as a result, we have generated higher subscription solutions and merchant solutions revenues in our fourth quarters compared to other quarters. Due to the continued growth of our merchant solutions offerings, we believe that our business may become more seasonal in the future. Our gross margin is generally driven by the mix between our higher margin subscription solutions revenue and lower margin merchant solutions revenue. While our total revenues have increased in recent periods, the mix has shifted towards merchant solutions revenue, most notably in the fourth quarter due to higher order volumes facilitated during the holiday season and the resulting Shopify Payments revenue during this period. We expect this overall trend to continue over time. In connection with expanding our operations internationally, we anticipate a growing proportion of our revenues and cost of sales transactions to be incurred in foreign currencies as compared to USD due to increased Shopify Payments, Shopify Capital, subscriptions and other billings in select countries in local currency. Fluctuations in foreign currencies relative to the USD may impact identified quarterly and yearly trends. Quarterly Operating Expenses Trends Excluding the items outlined in the tables above, operating expenses have increased in connection with revenue and operations growth. We note a significant portion of our operating expenses are incurred in foreign currencies which may impact the comparability of our quarterly and yearly trends. Quarterly Gain (Loss) on Equity and Equity Method Investments and Other Income Trends Historically, there have been no consistent trends associated with gain (loss) on equity and equity method investments and other income as changes are impacted by fluctuations in the fair value of our equity investments in public companies with readily determinable fair values, observable changes or impairments associated with our equity investments in private companies without readily determinable fair values, changes in our equity method investment based on our share of income and loss, including 38 Table of Contents amortization of the basis difference, changes in the fair value of our investments in convertible notes of private companies, changes in the fair value of the embedded derivative held to settle the Notes, foreign exchange rates and interest rates. The results from these changes may fluctuate from period to period and may cause volatility to our earnings as well as impact comparability of our results from period to period. Liquidity and Capital Resources We generate liquidity through operating cash flows and the proceeds from the exercise of stock options. Shopify maintains a short-form base shelf prospectus with the securities commissions in each of the provinces and territories of Canada, except Quebec, and a corresponding shelf registration statement on Form F-10 with the U.S. SEC. This allows us to offer Class A subordinate voting shares, preferred shares, debt securities, warrants, subscription receipts, units, or any combination thereof, from time to time during the 25-month period that the shelf prospectus is effective. The type of securities and the specific terms thereof will be determined at the time of any offering and will be described in the applicable prospectus supplement to be filed separately with Canadian securities regulators and the SEC. Our principal cash requirements are for working capital and ongoing operations. Excluding current deferred revenue, working capital as of June 30, 2026 was $6.7 billion. Given the ongoing cash generated from operations and our existing cash and cash equivalents, we believe there is sufficient liquidity to meet our current and planned financial obligations over the next 12 months and into the foreseeable future. Our future cash requirements will depend on many factors, including but not limited to our growth rate, subscription renewal activity, the timing and extent of spending to support development of our platform, the expansion of sales and marketing activities, the macroeconomic conditions and overall levels of consumer spending on goods and potential strategic investments and acquisitions activity. Although we currently are not a party to any material undisclosed agreement and do not have any understanding with any third parties with respect to potential material investments in, or material acquisitions of, businesses or technologies, we may enter into these types of arrangements in the future, which could also require us to seek additional equity or debt financing. Additional funds may not be available on terms favorable to us or at all. In the first quarter of 2026, the Company's Board of Directors authorized a share repurchase program of up to $2 billion of the Company’s outstanding Class A subordinate voting shares. The share repurchase program went into effect on February 17, 2026, has no fixed expiration date, and may be amended, suspended, or discontinued at any time, subject to applicable laws. In the second quarter of 2026, the Company's Board of Directors authorized an additional $3 billion of the Company's outstanding Class A subordinate voting shares, in addition to the $2 billion previously authorized, bringing its aggregate share repurchase authorization to $5 billion. Repurchases may be made through open-market purchases on the Nasdaq, privately negotiated transactions including block trades, or other means, in each case in compliance with applicable securities laws. The timing, number, and value of any Class A subordinate voting shares repurchased will depend on a variety of factors, including price, general business and market conditions, applicable legal requirements, and alternative investment opportunities. In accordance with applicable securities laws, the maximum number of Class A subordinate voting shares repurchased will not exceed 5% of Shopify’s issued and outstanding Class A subordinate voting shares. During the three months ended June 30, 2026, we repurchased $1.4 billion of our Class A subordinate voting shares under our share repurchase program. As of June 30, 2026, a total of $3.1 billion remained available for future repurchases of our Class A subordinate voting shares. See "Note 10 - Shareholders' Equity" to the condensed consolidated financial statements included in this report for more information about our share repurchase program. 39 Table of Contents Cash, Cash Equivalents and Marketable Securities Cash, cash equivalents and marketable securities decreased by $831 million to $4.9 billion as of June 30, 2026 from $5.8 billion as of December 31, 2025, as a result of cash used in repurchases of Class A subordinate voting shares and the purchase and origination of loans and merchant cash advances, net of repayments, offset by cash provided by our operations and maturities of marketable securities, net of purchases. Cash equivalents and marketable securities include money market funds, term deposits, U.S. federal bonds and agency securities and corporate bonds and commercial paper, all maturing within 12 months from June 30, 2026. The following table summarizes our total cash, cash equivalents and marketable securities as well as our operating, investing and financing activities for the six months ended June 30, 2026 and 2025: Six months ended June 30, 2026 2025 (in US $ millions) Cash, cash equivalents and marketable securities (end of period) 4,947 5,820 Net cash provided by (used in): Operating activities(1) 1,139 795 Investing activities(1) 881 (871) Financing activities (1,902) 103 Effect of foreign exchange on cash and cash equivalents (7) 17 Net increase (decrease) in cash and cash equivalents 111 44 (Decrease) increase in marketable securities(2) (942) 297 Net (decrease) increase in cash, cash equivalents and marketable securities (831) 341 (1) Starting in April 2026, the cash flows associated with merchant cash advances are presented within investing cash flows on a basis consistent with loans, given the similar nature of the underlying lending activities. (2) Excludes $525 million and $831 million of marketable securities classified in "Long-term Investments" as of June 30, 2026 and 2025, respectively. Changes in Merchant Cash Advances In 2025, Canada amended regulations that impacted merchant cash advance products. As a result, we transitioned our Shopify Capital product in Canada, from merchant cash advances to loans which are accounted for under ASC 310, starting in April 2026. Prompted by this transition, and concurrent with this product change for Canada, the cash flows associated with merchant cash advances are presented within investing cash flows on a basis consistent with loans, given the similar nature of the underlying lending activities. For the three months ended June 30, 2026, the changes described above resulted in a net cash use of $37 million presented in Investing activities after consideration of repayments and purchases and originations. Cash Flows From Operating Activities Our largest source of operating cash is from merchant solutions. Within merchant solutions, the largest source of cash flows are Shopify Payments processing fee arrangements, which are received on a daily basis as transactions are processed. We also generate cash flows from our subscription solutions with subscription revenues. These payments are typically paid to us at the beginning of the applicable subscription period, except for our Shopify Plus merchants who typically pay us at the end of their monthly billing cycle. Our primary uses of cash from operating activities are for third-party payment processing fees, employee-related expenditures, marketing programs and outsourced hosting costs. For the six months ended June 30, 2026, net cash provided by operating activities was primarily the result of operating income, once adjusted for non-cash items, slightly offset by changes in working capital resulting in a use of cash. 40 Table of Contents Cash Flows From Investing Activities Net cash provided by investing activities in the six months ended June 30, 2026 was driven by $1.4 billion in maturities of marketable securities, net of purchases, partially offset by $473 million used for purchases and originations of loans and merchant cash advances, net of repayments and sales, $56 million used to purchase equity and other investments and $9 million used to purchase property and equipment. Cash Flows From Financing Activities Net cash used in financing activities in the six months ended June 30, 2026 was driven by $1.9 billion used for repurchases of Class A subordinate voting shares, offset by $9 million proceeds from the issuance of Class A subordinate voting shares and Class B restricted voting shares as a result of stock options exercises. Contractual Obligations Our principal commitments consist of our unconditional purchase obligations and obligations under our operating leases for office space. There have been no significant changes to our principal commitments, as compared to the principal commitments described in our 2025 Form 10-K. Off-Balance Sheet Arrangements We retain a guarantee with respect to certain assigned leases. We have also entered into an indemnification agreement that governs the liability obligations of the purchaser in connection with these guarantees. These arrangements, and our obligations arising from such arrangements, are not expected to have a material impact on the current or future financial performance or financial condition of the Company. Litigation and Loss Contingencies We are not aware of any litigation matters or loss contingencies that would be expected to have a material adverse effect on the business, condensed consolidated financial position, results of operations or cash flows. Critical Accounting Policies and Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions. Predicting future events is inherently an imprecise activity and, as such, requires the use of significant judgment. Actual results may vary from our estimates in amounts that may be material to the financial statements. An accounting policy is deemed to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different, applies estimates that reasonably could have been used or changes in the accounting estimates that are reasonably likely to occur periodically, which could materially impact our condensed consolidated financial statements. Our critical accounting policies, estimates, and judgments are discussed in Part II — Item 7 "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our 2025 Form 10-K as well as "Note 3 - Significant Accounting Policies" in the notes to the condensed consolidated financial statements included in Part I — Item 1 of this Quarterly Report on Form 10-Q.