Shopify Inc. (SHOP) EBITDA Margin: 12.97%
Is Shopify Inc.’s EBITDA margin high or low?
Shopify Inc.'s EBITDA margin of 12.97% is 22% below its 5-year average of 16.65%, near the low end of its 5-year range (-10.61%–69.56%).
The EBITDA margin for Shopify Inc. (SHOP) is 12.97% as of Wednesday, June 10, 2026. It is below its 12-month average by 7.49% (14.02%).
SHOP EBITDA Margin Chart
SHOP Average EBITDA Margin Chart
SHOP Current vs Average EBITDA Margin Chart
SHOP EBITDA Margin Metrics
EBITDA MARGIN
12.97%
EBITDA MARGIN AVG TTM
14.02%
EBITDA MARGIN AVG 3Y
4.87%
EBITDA MARGIN AVG 5Y
16.65%
EBITDA MARGIN AVG 10Y
6.83%
EBITDA MARGIN AVG 15Y
3.63%
EBITDA MARGIN AVG 20Y
3.63%
CURRENT VS TTM AVG
-7.49%
CURRENT VS 3Y AVG
+166.46%
CURRENT VS 5Y AVG
-22.12%
CURRENT VS 10Y AVG
+89.85%
CURRENT VS 15Y AVG
+256.95%
CURRENT VS 20Y AVG
+256.95%
SHOP Competitors' EBITDA Margin
| NAME | MARKET CAP | EBITDA MARGIN | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Shopify Inc. (SHOP) | — | 12.97% | 14.02% | 4.87% | 16.65% |
| Salesforce, Inc. (CRM) | $141.00B | 31.67% | 30.54% | 26.38% | 22.59% |
| Uber Technologies, Inc. (UBER) | $139.66B | 13.43% | 12.84% | 2.74% | -6.67% |
| CrowdStrike Holdings, Inc. (CRWD) | $164.89B | 3.79% | 5.63% | 4.76% | 1.54% |
| Western Digital Corporation (WDC) | $167.87B | 20.36% | 12.11% | 11.73% | 12.18% |
| ServiceNow, Inc. (NOW) | $109.38B | 22.59% | 21.43% | 17.81% | 15.60% |
| Cadence Design Systems, Inc. (CDNS) | $105.80B | 35.35% | 35.63% | 35.21% | 33.58% |
| Accenture plc (ACN) | $104.93B | 18.57% | 17.63% | 16.98% | 17.75% |
| Fortinet, Inc. (FTNT) | $101.91B | 36.25% | 36.61% | 31.32% | 28.43% |
| Palo Alto Networks, Inc. (PANW) | $179.39B | 21.05% | 18.48% | 12.82% | 8.66% |
Margin Comparison
Gross Margin
48.0%
EBITDA Margin
13.0%
Operating Margin
13.3%
Net Margin
10.8%
Formula: EBITDA Margin = (EBITDA / Revenue) × 100
Why EBITDA Margin matters:
- Removes effects of depreciation policies (D&A)
- Capital structure neutral (ignores interest)
- Tax neutral (ignores tax differences)
- Good proxy for operating cash generation
Shopify Inc. EBITDA Margin Formula & Definition
EBITDA Margin = EBITDA / Revenue
EBITDA margin measures operating profitability before interest, taxes, depreciation, and amortization as a percentage of revenue.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Shopify Inc. EBITDA Margin FAQ
- What is the EBITDA margin for Shopify Inc. (SHOP)?
- The EBITDA margin for SHOP stock is 12.97%.
- Is Shopify Inc.'s EBITDA margin high or low?
- Shopify Inc.'s EBITDA margin of 12.97% is 22% below its 5-year average of 16.65%, near the low end of its 5-year range (-10.61%–69.56%).
- What is the TTM average EBITDA margin for Shopify Inc. (SHOP)?
- The TTM average EBITDA margin for SHOP stock is 14.02%.
- What is the 3Y average EBITDA margin for Shopify Inc. (SHOP)?
- The 3Y average EBITDA margin for SHOP stock is 4.87%.
- What is the 5Y average EBITDA margin for Shopify Inc. (SHOP)?
- The 5Y average EBITDA margin for SHOP stock is 16.65%.
- What is the 10Y average EBITDA margin for Shopify Inc. (SHOP)?
- The 10Y average EBITDA margin for SHOP stock is 6.83%.
- What is the 15Y average EBITDA margin for Shopify Inc. (SHOP)?
- The 15Y average EBITDA margin for SHOP stock is 3.63%.
- What is the 20Y average EBITDA margin for Shopify Inc. (SHOP)?
- The 20Y average EBITDA margin for SHOP stock is 3.63%.
Shopify Inc. EBITDA Margin History
| DATE | EBITDA MARGIN |
|---|---|
| 2025-12-31 | 12.97% |
| 2024-12-31 | 15.07% |
| 2023-12-31 | 2.04% |
| 2022-12-31 | -10.61% |
| 2021-12-31 | 69.56% |
| 2020-12-31 | 10.89% |
| 2019-12-31 | -3.81% |
| 2018-12-31 | -6.04% |
| 2017-12-31 | -3.83% |
| 2016-12-31 | -5.96% |
| 2015-12-31 | -5.13% |
| 2014-12-31 | -16.13% |
| 2013-12-31 | -5.00% |
| 2012-12-31 | -3.15% |
Related Metrics
About Shopify Inc.
Shopify Inc. functions as a premier commerce technology company, providing an extensive platform and associated services to empower businesses worldwide. Its reach extends across Canada, the United States, Europe, the Middle East, Africa, the Asia Pacific region, and Latin America. The company's robust platform equips merchants to effectively display, organize, market, and sell their merchandise through a multitude of sales avenues. These include digital storefronts accessible via web and mobile, traditional brick-and-mortar stores, temporary pop-up locations, integrated social media channels, proprietary mobile applications, embeddable "buy buttons," and established online marketplaces. Beyond sales, the platform streamlines crucial business operations such as product and inventory management, order and payment processing, fulfillment and shipping logistics, attracting new customers and fostering client relationships, product sourcing, analytical reporting, financial administration encompassing cash, payments, and transactions, and facilitating access to working capital. Additionally, Shopify offers supplementary services like the sale of custom website themes and applications, alongside domain name registration. Its merchant-focused solutions also cover payment acceptance, efficient shipping and order fulfillment, and aid in securing necessary operating funds. Founded in 2004 under the initial name Jaded Pixel Technologies Inc., the company officially rebranded to Shopify Inc. in November 2011. Its global headquarters are located in Ottawa, Canada.
- Sector
- Technology
- Industry
- Software - Application
- CEO
- Tobias Lutke