---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/40422610.md"
description: "Shopify 1Q26 First Take: Purely on results, Shopify delivered a solid quarter, broadly sustaining its strong growth trend. Versus expectations, the print topped Bloomberg consensus but was roughly in line with the buyside. After several quarters of instant major beats, this one felt subdued. The issue lies in the 2Q guide: while broadly in line with Bloomberg consensus, the trajectory points to a meaningful slowdown after several quarters of strong growth. 2Q growth will ultimately come back to earth, with a notable deceleration. In detail. See below. 1) Core KPI: GMV grew 35% YoY, in line with buyside expectations of 34–35%. The acceleration vs. last quarter was largely FX tailwind. Ex-FX, underlying growth was ~30%, roughly unchanged. 2) Driven by strong GMV, revenue grew 34% this quarter; ex-FX, 32%. Merchant solutions (payments) led at +39%, while subscription was softer at +21%. The strength reflects rising payments penetration, up from 63.5% a year ago to 66% this quarter. 3) GPM: mix shift toward lower-margin merchant solutions continued to pressure the overall GPM, which fell 120bps YoY this quarter, though the decline was milder than expected. Ex-mix, both subscription and merchant solutions saw margin expansion. 4) Profitability: FCF was about $480 mn, with a 15% margin, slightly below 15.4% a year ago and in line with prior guidance. This is the third straight quarter of YoY decline in FCF margin, pointing to higher cash investment as AI moves into the agent era. 5) Guidance: management sees revenue growth in the high-20s for next quarter, a notable slowdown from 34% this quarter, partly as FX tailwinds fade intra-2Q. Gross profit is guided to grow mid-20s YoY, in line with Bloomberg consensus but below the buyside's 26–28%. FCF margin is guided to mid-teens, roughly flat vs. last year's 15.7%, possibly a touch lower, broadly consistent with market expectations. Trend-wise, most metrics are set to decelerate vs. this quarter. Margins should continue to drift lower on mix. $Shopify (SHOP.US)"
datetime: "2026-05-05T12:46:24.000Z"
locales:
  - [en](https://longbridge.com/en/topics/40422610.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/40422610.md)
  - [zh-HK](https://longbridge.com/zh-HK/topics/40422610.md)
author: "[Dolphin Research](https://longbridge.com/en/news/dolphin.md)"
---

# Shopify 1Q26 First Take: Purely on results, Shopif…


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