Cost of Revenue
Total Cost of Revenue
Shopify Total Cost of Revenue decreased by 17.9% to $1.62B in Q1 2026 compared to the prior quarter. Year-over-year, this metric grew by 36.4%, from $1.19B to $1.62B. Over 3 years (FY 2022 to FY 2025), Total Cost of Revenue shows an upward trend with a 28.2% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
StatementIncome Statement
SectionCost of Revenue
CategoryProfitability
SignalLower is better
VolatilityStable
First reportedQ1 2022
Last reportedQ1 2026May 5, 2026
How to read this metric
An increase relative to revenue suggests rising production costs or margin compression, while a decrease suggests improved operational efficiency.
Detailed definition
Total cost of revenue includes the direct costs attributable to the production of goods or the delivery of services sold...
Peer comparison
Varies by industry; for medical device manufacturers, this includes significant manufacturing and supply chain costs.
Metric ID:
total_cost_of_revenueHistorical Data
17 periods
| 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 | Q1 '26 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $711.50M | $711.50M | $711.50M | $711.50M | $886.25M | $886.25M | $886.25M | $886.25M | $904.00M | $1.00B | $1.04B | $1.46B | $1.19B | $1.38B | $1.45B | $1.98B | $1.62B |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +24.6% | +0.0% | +0.0% | +0.0% | +2.0% | +10.6% | +4.4% | +39.8% | -18.4% | +15.7% | +5.4% | +36.2% | -17.9% |
| YoY Change | — | — | — | — | +24.6% | +24.6% | +24.6% | +24.6% | +2.0% | +12.8% | +17.8% | +64.7% | +31.7% | +37.8% | +39.2% | +35.5% | +36.4% |
Range$711.50M – $1.98B
CAGR+22.9%
Avg YoY Growth+28.9%
Median YoY Growth+24.6%
Product Breakdown
| Segment | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 |
|---|---|---|---|---|---|
| Merchant solutions | $1.07B | $1.26B | $1.33B | $1.83B | $1.48B |
| Subscription solutions | $123.00M | $121.00M | $128.00M | $148.00M | $148.00M |
| Total | $1.19B | $1.38B | $1.45B | $1.98B | $1.62B |
Total Cost of Revenue at Other Companies
Frequently Asked Questions
- What is Shopify's total cost of revenue?
- Shopify (SHOP) reported total cost of revenue of $1.62B in Q1 2026.
- How has Shopify's total cost of revenue changed year-over-year?
- Shopify's total cost of revenue increased by 36.4% year-over-year, from $1.19B to $1.62B.
- What is the long-term trend for Shopify's total cost of revenue?
- Over 3 years (2022 to 2025), Shopify's total cost of revenue has grown at a 28.2% compound annual growth rate (CAGR), from $2.85B to $6.00B.
- What does total cost of revenue mean?
- The direct costs incurred to produce the goods or services that a company sold during a specific period.