Aureus
AExcellent

Shopify Inc.(SHOP)

A

Financial data as of Dec 31, 2025Improving · Technology

FCF Margin13.5%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+19.5%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 (13.5%, 0.1x)
→
+1Strong YoY FCF growth (19.5% YoY)
→
+1Net cash position with strong FCF margin
→
+1Very low debt-to-FCF ratio (0.1x)
→
+0.5Strong revenue growth (30.6% YoY) offsets compressed FCF margin
→
FinalA

Analysis Summary

Strengths

  • Healthy FCF margin (13.5%)
  • Excellent cash conversion (165%)
  • Net cash position ($1.3B)
  • Very low debt relative to cash flow (0.1x)
  • Strong liquidity (current ratio: 5.96)
  • Strong revenue growth (30.6% YoY)
  • FCF trend is improving
SBC-adjusted FCF used — $0.4B stock-based compensation (22% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin13.5%
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

+19.5% YoYImproving (+19.5%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

View all →

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 Margin13.5%
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+19.5%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateDec 31, 2025
GradeA
Data SourceYahoo Finance