5 unchanged sentences
While the majority of our revenues, cost of revenues and operating expenses are denominated in USD, a significant portion are denominated in foreign currencies.
−Removed: Due to offering Shopify Payments, Shopify Capital, subscriptions and other billing to select countries in local currency, a significant proportion of revenue transactions are denominated in EUR, GBP and CAD.
+Added: Due to offering Shopify Payments, Shopify Capital, subscriptions and other billings to select countries in local currency, a significant proportion of revenue transactions are denominated in EUR, GBP and CAD.
A significant proportion of operating expenses are also incurred in the aforementioned foreign currencies.
1 unchanged sentence
To help mitigate the impacts associated with foreign currency fluctuations on future cash flows from operating expenses, we maintain a portfolio of foreign exchange derivative products designated as hedging instruments.
−Removed: Table of C ontents
Effect of Foreign Exchange Rates
8 unchanged sentences
Operating expenses (4,087) (7) (4,094) (3,397)
−Removed: Income (loss) from operations 1,075 (22) 1,053 (1,418)
−Removed: (1) Represents the outcome that would have resulted if the comparative prior year period's effective foreign exchange rates are applied to the current reporting period.
−Removed: (2) Represents the increase or decrease in GAAP amounts reported resulting from using the comparative prior year period's effective foreign exchange rates.
−Removed: The exchange rate effect is primarily driven by fluctuations in CAD, GBP, JPY and EUR foreign exchange rates.
+Added: Income from operations 1,468 (36) 1,432 1,075
+Added: (1) Represents the increase or decrease in GAAP amounts reported resulting from using the comparative year's effective foreign exchange rates.
+Added: The exchange rate effect is primarily driven by fluctuations in EUR, CAD, GBP and AUD foreign exchange rates.
+Added: (2) Represents the outcome that would have resulted if the comparative prior year's effective foreign exchange rates are applied to the current reporting period.
This effect of foreign exchange rates on our consolidated statements of operations disclosure is a supplement to our consolidated financial statements, which are prepared and presented in accordance with U.S.
3 unchanged sentences
Such non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with U.S.
−Removed: The following table summarizes the effects on revenues, cost of revenues, operating expenses and income (loss) from operations of a 10% strengthening of all foreign currencies the Company transacts in versus the USD without considering the impact of the Company's hedging activities and factoring in any potential changes in demand for the Company's solutions as a result of fluctuations in exchange rates:
+Added: The following table summarizes the effects on revenues, cost of revenues, operating expenses and income from operations of a 10% strengthening of all foreign currencies the Company transacts in versus the USD without considering the impact of the Company's hedging activities and factoring in any potential changes in demand for the Company's solutions as a result of fluctuations in exchange rates:
Years ended December 31,
7 unchanged sentences
Operating expenses (4,087) (113) (4,200) (3,397) (104) (3,501)
−Removed: Income (loss) from operations 1,075 — 1,075 (1,418) (56) (1,474)
+Added: Income from operations 1,468 33 1,501 1,075 — 1,075
(1) A 10% weakening of the foreign currencies versus the USD would have an equal and opposite impact on the Company's revenues, cost of revenues, operating expenses and income (loss) from operations as presented in the table.
1 unchanged sentence
(3) Represents the outcome that would have resulted had the foreign exchange rates relative to the USD in those periods been 10% stronger than they actually were, excluding the impact of our hedging program and without factoring in any potential changes in demand for the Company's solutions as a result of changes in exchange rates.
−Removed: Table of C ontents
Equity and Other Investments Risk
5 unchanged sentences
Our equity method investment in Flexport, representing $602 million of our investments as of December 31, 2025, is subject to market-related risks based on our share of income or loss, including amortization of the basis difference, from this investment which may cause volatility to our earnings.
−Removed: Our debt investments in convertible notes of private companies are recorded at fair value represented $543 million of our investments as of December 31, 2024, which are impacted by the underlying entities' valuations and interest rates.
+Added: Our debt investments in convertible notes of private companies are recorded at fair value representing $558 million of our investments as of December 31, 2025, which are impacted by the underlying entities' valuations and interest rates.
Our investment option derivative to purchase Series B common shares in Klaviyo, representing $75 million of our investments as of December 31, 2025, is impacted by market price volatility and interest rates.
7 unchanged sentences
Our cash equivalents and our portfolio of marketable securities are subject to market risk due to changes in interest rates.
−Removed: Fixed rate securities may have their market value adversely affected due to a rise in interest rates.
+Added: Fixed rate securities may have their market value adversely affected due to a rise in interest rates and macroeconmic conditions.
Our future investment income may fall short of our expectations due to changes in interest rates or we may suffer losses in principal if we are forced to sell securities that decline in market value due to changes in interest rates.
However, because we classify our debt securities as "held to maturity", no gains or losses are recognized due to changes in interest rates unless such securities are sold prior to maturity or declines in fair value are determined to be other than temporary.
−Removed: In September 2020, we issued $920 million aggregate principal amount of Notes.
−Removed: The Notes have a fixed annual interest rate of 0.125%;
−Removed: accordingly, we do not have economic interest rate exposure on the Notes.
−Removed: However, the fair market value of the Notes is exposed to interest rate risk.
−Removed: Generally, the fair market value of our fixed interest rate Notes will increase as interest rates fall and decrease as interest rates rise.
−Removed: In addition, the fair market value of the Notes will generally fluctuate as the price of our Class A subordinate voting shares fluctuates.
−Removed: We carry the Notes at face value less debt offering costs, plus any amortization of offering costs, and we present the fair value for required disclosure purposes only.
The Company holds convertible notes in private companies.
These investments are classified as available-for-sale debt securities, for which we have elected to account for under the fair value option.
−Removed: These investments are carried at fair value at each balance sheet date and any movements in the fair value are recognized in "Net income (loss)" in the consolidated statement of operations and comprehensive income (loss).
+Added: These investments are carried at fair value at each balance sheet date and any movements in the fair value are recognized in "Net income" in the consolidated statements of operations and comprehensive income.
The underlying entity's valuation includes inputs such as interest rates which impact the market value of the investment.
−Removed: Table of C ontents
Concentration of Credit Risk
5 unchanged sentences
Trade and other receivables, loans receivable and merchant cash advances are monitored on an ongoing basis to ensure timely collection of amounts.
−Removed: The Company has mitigated some of the risks associated with Shopify Capital by holding insurance policies with an AAA rated provider as of December 31, 2024.
−Removed: The Company pays a monthly premium based on total eligible dollars advanced, and records this as "General and administrative" expense in the consolidated statements of operations and comprehensive income (loss).
−Removed: All policies include a deductible set at either a specified dollar loss threshold or calculated as a percentage of eligible advances issued.
−Removed: After considering the Company’s deductible and the insurer's maximum liability under the policies, the majority of the Company's gross outstanding balance of loans and merchant cash advances as of December 31, 2024 is covered.
−Removed: The receivable related to insurance recoveries, if any, is included in "Loans and merchant cash advances, net" in the consolidated balance sheets.
There are no receivables from individual merchants accounting for 10% or more of revenues or receivables.
6 unchanged sentences
Financial Statements and Supplementary Data
−Removed: The consolidated financial statements and accompanying notes listed in Part IV, Item 15(a)(1) of this Annual Report on Form 10-K are included elsewhere in this Annual Report on Form 10-K.
+Added: The consolidated financial statements and accompanying notes listed in Part IV, Item 15(a)(1) of this Annual Report on Form 10-K are incorporated by reference herein.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.