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
How to read this metric
An increase relative to revenue may indicate rising component costs or manufacturing inefficiencies, whereas a decrease suggests better economies of scale.
Detailed definition
The direct costs attributable to the production of the goods sold and the delivery of services. This typically encompass...
Peer comparison
In the consumer electronics industry, this is often compared against revenue to determine the efficiency of the supply chain.
total_cost_of_revenueHistorical 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 | 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% |
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 cost of making the products or providing the services that a company sells.