The Ottawa-based e-commerce giant said revenue was US$2.6-billion for the quarter ended June 30, 2025, up 31 per cent from the same period last year. Gross profit was US$1.3-billion, up 24 per cent.Sean Kilpatrick/The Canadian Press
Shopify Inc. SHOP-T regained its position as the most valuable company in Canada after reporting double-digit revenue growth and profit for the second quarter, and it projected continued growth in the coming months.
Shopify’s shares on the Toronto Stock Exchange closed up 22 per cent, giving the company a market capitalization of $275.7-billion as it replaced the former top stock, Royal Bank of Canada RY-T.
The results topped analyst expectations, despite previous concerns about the impacts of rising consumer costs, new fees and global trade frictions.
Analysts had feared that U.S. President Donald Trump’s tariffs and his suspension of de minimis exemptions that allowed products worth less than US$800 to enter the United States tariff-free could affect Shopify’s growth by slowing shipments, especially from merchants that ship goods directly from foreign manufacturers to North American consumers.
Last week, Mr. Trump expanded the de minimis suspension from China to every other country in the world. Meanwhile, the cost of consumer goods in the U.S. is being dragged up by inflation, and revised totals from the Bureau of Labor Statistics show a weak job market.
However, on an analyst call Wednesday morning, Shopify chief financial officer Jeff Hoffmeister said the company had not seen “any drops in U.S. demand – inbound, outbound or local,” and that, in fact, sales in the country accelerated during the quarter.
While some analysts had suggested Shopify’s consistent results could be the result of companies pulling shipping ahead to avoid further trade uncertainty, Mr. Hoffmeister said there was no evidence that this was happening. But he did say merchants were increasing their prices.
Mr. Hoffmeister said Shopify has not yet seen any effects on its gross merchandise value (GMV) – total sales through its platform – of the previous suspension of China’s de minimis exemption.
Companies importing previously-exempted goods to the U.S. will now need to pay tariffs to do so, which could result in higher prices for consumers.
Only 4 per cent of Shopify’s GMV is related to imports that were subject to the exemption, Mr. Hoffmeister said.
Shopify management provided revenue-growth guidance for the current quarter at a percentage rate in the mid-20s – higher than what the company had expected for its second quarter.
Overall, the company’s earnings exceeded analyst expectations.
“Management has not seen tariff headwinds, which is reflected in less conservatism relative to three months ago,” said Oppenheimer & Co. Inc. analyst Ken Wong, projecting “increased investor optimism” for the company’s third quarter.
“Shopify flew through any tariff/macro related uncertainties with a robust Q2 performance,” said Citigroup Global Markets Inc. analyst Tyler Radke.
The Ottawa-based company, which provides tools for businesses to run their stores online, said its revenue was US$2.6-billion for the quarter ended June 30, up 31 per cent from the same period last year. Gross profit was US$1.3-billion, up 24 per cent.
GMV increased 31 per cent to US$87.8-billion for the quarter, well above analyst expectations of US$81-billion, despite fears that economic uncertainty would slow consumer spending. GMV from Europe was up 42 per cent, as the company accelerated its push into international markets.
Shopify reported net income of US$906-million, compared with US$171-million a year earlier. Sixty-two per cent of this income was the result of the company’s equity investments.
Monthly recurring revenue, which Shopify earns from e-commerce subscriptions, was US$185-million, up nearly 10 per cent from last year.
The company also grew its business across its premium enterprise-level subscriptions, point-of-sale offering and business-to-business products.
“Bottom line, we think it’s still early days for many of those growth opportunities, which is why the name remains one of our top picks,” said National Bank Financial Markets analyst Richard Tse in a note to investors Wednesday.
During the second quarter, Shopify announced a number of partnerships, including a shopping integration with generative artificial intelligence platform OpenAI and a stablecoin payments option with Coinbase.
And in June, the Federal Court dismissed the Canada Revenue Agency’s request for information about Shopify’s Canadian merchants, blocking the CRA’s efforts to crack down on undeclared income earned online.