Aureus
AExcellent

Shopify Inc.(SHOP)

A

Financial data as of Dec 31, 2025Improving · Technology

FCF Margin17.4%Free Cash Flow / Revenue
Cash Conversion165.2%Operating CF / Net Income
Free Cash Flow$2.0B
Revenue$11.6B
Net Cash$1.3BCash exceeds debt
Debt / FCF0.1xManageable debt load
Current Ratio5.96Adequate short-term liquidity
YoY FCF Growth+17.0%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
+0.5Healthy FCF margin with manageable debt (17.4%, 0.1x)
→
+1Strong YoY FCF growth (17.0% YoY)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.1x)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Strong FCF margin (17.4%)
  • Excellent cash conversion (165%)
  • Net cash position ($1.3B)
  • Very low debt relative to cash flow (0.1x)
  • Strong liquidity (current ratio: 5.96)
  • Highly consistent quarterly FCF
  • FCF trend is improving

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin17.4%
Net Margin10.7%
Operating CF Margin17.6%
CapEx Ratio0.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash$1.3BCash exceeds debt
Debt / FCF0.1xManageable debt load
Current Ratio5.96Strong liquidity
Debt / Equity0.01Low leverage

Quarterly FCF Trend

+17.0% YoYImproving (+17.0%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameShopify Inc.
SectorTechnology
Free Cash Flow$2.0B
Revenue$11.6B
Net Income$1.2B
Operating Cash Flow$2.0B
Capital Expenditure$26.0M
FCF Margin17.4%
Cash Conversion Rate165.2%
Net Margin10.7%
Total Debt$188.0M
Total Cash$1.5B
Net Cash$1.3B
Current Ratio5.96
Debt / Equity0.01
Debt / FCF0.1x
YoY FCF Growth+17.0%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance