Shopify (BUE:SHOP) Net Margin %: -18.33% (As of Mar. 2026)


What is Shopify Net Margin %?

Shopify BUE:SHOP 83 Net Margin % is -18.33% as of Mar. 2026. GuruFocus rates BUE:SHOP with a GF Score™ of 83/100. The stock has 2 warning signs investors should review. Among 2,825 Software companies, Shopify ranks better than 77.42% on this metric.

Net margin is calculated as Net Income divided by its Revenue. Shopify's Net Income for the three months ended in Mar. 2026 was ARS-812,380.40 Mil. Shopify's Revenue for the three months ended in Mar. 2026 was ARS4,432,436.94 Mil. Therefore, Shopify's net margin for the quarter that ended in Mar. 2026 was -18.33%.

The historical rank and industry rank for Shopify's Net Margin % or its related term are showing as below:

BUE:SHOP' s Net Margin % Range Over the Past 10 Years
Min: -61.79   Med: -2.04   Max: 63.2
Current: 10.77

BUE:SHOP's Net Margin % is ranked better than
77.42% of 2825 companies
in the Software industry
Industry Median: 2.54 vs BUE:SHOP: 10.77

Shopify  (BUE:SHOP) Net Margin % Explanation

Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.

But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.

Shopify Net Margin % Related Terms

Shopify Net Margin % Historical Data

* Premium members only.

The historical data trend for Shopify's Net Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Shopify Net Margin % Chart

Shopify Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Net Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 63.20 -61.79 1.87 22.74 10.65

Shopify Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Net Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -28.90 33.81 9.28 20.23 -18.33

BUE:SHOP vs CRM, UBER, NOW: Net Margin % Comparison

For the Software - Application subindustry, Shopify's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Shopify Net Margin % vs Software Industry

For the Software industry and Technology sector, Shopify's Net Margin % distribution charts can be found below:

* The bar in red indicates where Shopify's Net Margin % falls into.


Shopify Net Margin % Calculation

Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.

Shopify's Net Margin for the fiscal year that ended in Dec. 2025 is calculated as

Net Margin=Net Income (A: Dec. 2025 )/Revenue (A: Dec. 2025 )
=1786782.944/16773406.748
=10.65 %

Shopify's Net Margin for the quarter that ended in Mar. 2026 is calculated as

Net Margin=Net Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=-812380.398/4432436.937
=-18.33 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Net Margin % →
What does a Net Margin % of -18.33% mean?
Shopify (BUE:SHOP) has a Net Margin % of -18.33% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Shopify and its competitors. According to the industry distribution chart, Shopify ranks #638 out of 2825 companies in the Software industry, placing it in the top 22.6%.
Is Shopify's Net Margin % too high?
Shopify's current Net Margin % is -18.33%. Based on the distribution chart, Shopify ranks #638 out of 2825 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Shopify has a GF Score™ of 83/100, reflecting its overall financial health beyond just this single metric.
How does Shopify's Net Margin % compare to CRM and UBER?
According to the Software industry distribution chart, Shopify ranks #638 out of 2825 companies for Net Margin %. This places Shopify in the top 23% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.54. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net Margin % for a Software company?
The median Net Margin % among Software companies is 2.54, based on 2,825 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Shopify and its competitors. For the Software industry, the median Net Margin % is 2.54 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Shopify's current Net Margin % is -18.33%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Shopify stock overvalued right now?
Shopify (BUE:SHOP) has a current Net Margin % of -18.33%. The current Net Margin % is -18.33%. Shopify's overall GF Score™ is 83/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Shopify (BUE:SHOP), the current Net Margin % is -18.33% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Shopify Business Description

Address 151 O\'Connor Street, Ground Floor, Ottawa, ON, CAN, K2P 2L8
Shopify offers an e-commerce platform primarily to small and medium-size businesses. The firm has two segments. The subscription solutions segment allows Shopify merchants to conduct e-commerce on a variety of platforms, including the company's website, physical stores, pop-up stores, kiosks, social networks (Facebook), and Amazon. The merchant solutions segment offers add-on products for the platform that facilitate e-commerce and include Shopify Payments, Shopify Shipping, and Shopify Capital.