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SHOP's Subscriptions Solutions Gain Momentum: A Sign of More Upside?
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Key Takeaways
Shopify's Subscription Solutions revenue rose 16.5% year over year to $656M in Q2 2025.
Growth was driven by higher-priced plans, platform fees, and a three-month paid trial extension.
Monthly Recurring Revenue hit $185M, with Shopify Plus making up 35% of the total in Q2 2025.
Shopify (SHOP - Free Report) is benefiting from its Subscription solutions segment, which continues to drive steady growth and enhance its overall business model. Subscription solutions revenues in the second quarter of 2025 were $656 million and accounted for 24.5% of Shopify’s total revenues.
On a year-over-year basis, Subscription solutions revenues increased 16.5%. Growth was primarily fueled by a larger percentage of subscriptions coming from higher-priced plans and higher variable platform fees.
Another factor contributing to the momentum is Shopify’s decision to extend its paid trial period back to three months for standard plans. This approach gives merchants more time to explore the platform’s full capabilities, increasing the likelihood of launching successful businesses.
Shopify’s platform supports merchants of all sizes, from small businesses to large enterprises, ensuring broad adoption of its Subscription solutions. The company’s success in attracting enterprise merchants, such as Canada Goose and Starbucks, in the second quarter of 2025, further underscores its ability to cater to diverse markets and business sizes.
In the second quarter of 2025, Monthly Recurring Revenue (MRR) was $185 million, which increased 9.5% on a year-over-year basis. Increased Monthly Recurring Revenue was driven by new merchants joining the platform and existing merchants upgrading to higher-tier plans like Shopify Plus. Plus, accounted for 35% of MRR in the second quarter of 2025.
SHOP Faces Stiff Competition
SHOP faces stiff competition in the e-commerce space from companies like Commerce.com (CMRC - Free Report) (formerly known as BigCommerce) and Wix.com (WIX - Free Report) .
Commerce.com, formerly known as BigCommerce, is expanding its footprint in the e-commerce industry, offering solutions like BigCommerce, Feedonomics, and Makeswift to help businesses innovate, scale, and thrive in modern e-commerce. Commerce.com’s Subscription solutions remain a core driver, reflecting the company’s ability to meet the evolving needs of businesses in the e-commerce space. In the second quarter of 2025, Subscription solutions revenue was $63.7 million, up 3% year over year.
Wix.com offers solutions that enable businesses, organizations, professionals, and individuals to develop customized websites and application platforms and grow their online presence. Wix.com’s growth in the number of registered users and premium subscriptions has been a major growth driver. In the second quarter of 2025, Wix.com reported Creative Subscriptions revenue of $345.5 million, which was up 11% year over year.
SHOP’s Share Price Performance, Valuation, and Estimates
Shopify shares have risen 29.1% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 11.8%. The Zacks Internet Services industry has increased 8% in the same time frame.
SHOP Stock's Performance
Image Source: Zacks Investment Research
SHOP stock is trading at a premium, with a forward 12-month Price/Sales of 14.71X compared with the sector's 9.75X. SHOP has a Value Score of F.
Price/Sales (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at 34 cents per share, which has declined by a penny over the past 30 days. This represents a 5.56% year-over-year decrease.
The consensus mark for 2025 earnings is pegged at $1.44 per share, which has increased 2.8% over the past 30 days, suggesting 10.77% year-over-year growth.
Image: Bigstock
SHOP's Subscriptions Solutions Gain Momentum: A Sign of More Upside?
Key Takeaways
Shopify (SHOP - Free Report) is benefiting from its Subscription solutions segment, which continues to drive steady growth and enhance its overall business model. Subscription solutions revenues in the second quarter of 2025 were $656 million and accounted for 24.5% of Shopify’s total revenues.
On a year-over-year basis, Subscription solutions revenues increased 16.5%. Growth was primarily fueled by a larger percentage of subscriptions coming from higher-priced plans and higher variable platform fees.
Another factor contributing to the momentum is Shopify’s decision to extend its paid trial period back to three months for standard plans. This approach gives merchants more time to explore the platform’s full capabilities, increasing the likelihood of launching successful businesses.
Shopify’s platform supports merchants of all sizes, from small businesses to large enterprises, ensuring broad adoption of its Subscription solutions. The company’s success in attracting enterprise merchants, such as Canada Goose and Starbucks, in the second quarter of 2025, further underscores its ability to cater to diverse markets and business sizes.
In the second quarter of 2025, Monthly Recurring Revenue (MRR) was $185 million, which increased 9.5% on a year-over-year basis. Increased Monthly Recurring Revenue was driven by new merchants joining the platform and existing merchants upgrading to higher-tier plans like Shopify Plus. Plus, accounted for 35% of MRR in the second quarter of 2025.
SHOP Faces Stiff Competition
SHOP faces stiff competition in the e-commerce space from companies like Commerce.com (CMRC - Free Report) (formerly known as BigCommerce) and Wix.com (WIX - Free Report) .
Commerce.com, formerly known as BigCommerce, is expanding its footprint in the e-commerce industry, offering solutions like BigCommerce, Feedonomics, and Makeswift to help businesses innovate, scale, and thrive in modern e-commerce. Commerce.com’s Subscription solutions remain a core driver, reflecting the company’s ability to meet the evolving needs of businesses in the e-commerce space. In the second quarter of 2025, Subscription solutions revenue was $63.7 million, up 3% year over year.
Wix.com offers solutions that enable businesses, organizations, professionals, and individuals to develop customized websites and application platforms and grow their online presence. Wix.com’s growth in the number of registered users and premium subscriptions has been a major growth driver. In the second quarter of 2025, Wix.com reported Creative Subscriptions revenue of $345.5 million, which was up 11% year over year.
SHOP’s Share Price Performance, Valuation, and Estimates
Shopify shares have risen 29.1% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 11.8%. The Zacks Internet Services industry has increased 8% in the same time frame.
SHOP Stock's Performance
Image Source: Zacks Investment Research
SHOP stock is trading at a premium, with a forward 12-month Price/Sales of 14.71X compared with the sector's 9.75X. SHOP has a Value Score of F.
Price/Sales (F12M)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for third-quarter 2025 earnings is pegged at 34 cents per share, which has declined by a penny over the past 30 days. This represents a 5.56% year-over-year decrease.
The consensus mark for 2025 earnings is pegged at $1.44 per share, which has increased 2.8% over the past 30 days, suggesting 10.77% year-over-year growth.
Shopify Inc. Price and Consensus
Shopify Inc. price-consensus-chart | Shopify Inc. Quote
SHOP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.