Merchant solutions — Cost of revenues
Shopify Merchant solutions — Cost of revenues increased by 38.2% to $1.83B in Q4 2025 compared to the prior quarter. Year-over-year, this metric grew by 38.1%, from $1.33B to $1.83B. Over 3 years (FY 2022 to FY 2025), Merchant solutions — Cost of revenues shows an upward trend with a 29.7% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
How to read this metric
An increase relative to revenue may signal pressure on gross margins due to changes in payment processing costs or shifts in product mix.
Detailed definition
This metric captures the direct costs associated with providing merchant-focused services, including payment processing...
Peer comparison
Comparable to cost of goods sold or direct operating expenses for transaction processing and logistics services at peer e-commerce and payment companies.
shop_segment_merchant_solutions_cost_of_revenuesHistorical Data
| Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $628.75M | $628.75M | $628.75M | $628.75M | $797.75M | $797.75M | $797.75M | $797.75M | $809.00M | $903.00M | $936.00M | $1.33B | $1.07B | $1.26B | $1.33B | $1.83B |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +26.9% | +0.0% | +0.0% | +0.0% | +1.4% | +11.6% | +3.7% | +41.7% | -19.5% | +17.7% | +5.4% | +38.2% |
| YoY Change | — | — | — | — | +26.9% | +26.9% | +26.9% | +26.9% | +1.4% | +13.2% | +17.3% | +66.2% | +32.0% | +39.2% | +41.6% | +38.1% |
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Frequently Asked Questions
- What is Shopify's merchant solutions — cost of revenues?
- Shopify (SHOP) reported merchant solutions — cost of revenues of $1.83B in Q4 2025.
- How has Shopify's merchant solutions — cost of revenues changed year-over-year?
- Shopify's merchant solutions — cost of revenues increased by 38.1% year-over-year, from $1.33B to $1.83B.
- What is the long-term trend for Shopify's merchant solutions — cost of revenues?
- Over 3 years (2022 to 2025), Shopify's merchant solutions — cost of revenues has grown at a 29.7% compound annual growth rate (CAGR), from $2.52B to $5.48B.
- What does merchant solutions — cost of revenues mean?
- The direct costs incurred to deliver transaction-based services and merchant add-on products.