Shopify marked its 20th anniversary by reporting its fastest growth in over four years, with Q1 revenue reaching $3.17 billion, a 34% increase year over year. The company also processed more than $100 billion in merchant sales in a single quarter for the first time, hitting $100.7 billion in gross merchandise volume (GMV), up 35%. Shopify’s free cash flow margin remained steady at 15%, underscoring strong financial health, according to saastr.com.
Founded in 2006 by Tobi Lütke, Shopify evolved from a snowboard shop called Snowdevil into a leading e-commerce platform. The company’s accelerated growth in its 20th year defies typical scaling trends, as it increased revenue growth from 27% a year earlier to 34% in Q1 2026. This growth was broad-based across geographies, merchant sizes, and sales channels, with nearly 90% of Q1 revenue generated from merchants active on the platform for over a year, saastr.com reported.
Shopify’s revenue composition has shifted significantly, with payments and merchant solutions now accounting for 76% of total revenue, while subscription plans contribute 24%. This diversification highlights Shopify’s expanding role beyond subscription services to include payment processing and other merchant solutions. The company’s ability to sustain high growth at a $13 billion-plus annual run rate places it among the top performers in the SaaS sector, demonstrating resilience and adaptability in a competitive market, according to saastr.com.
Shopify’s milestone of crossing $100 billion in GMV in a single quarter and maintaining a 15% free cash flow margin reflects its robust business model. The company publicly celebrated its 20th anniversary on June 2, 2026, signaling continued momentum as it scales its platform and merchant services globally, saastr.com noted.