SHOPIFY INC.
For the period ended Sep 30, 2025. Filed Nov 4, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 4, 2025
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16. Net Income per Share
- Net Income per Share
The Company applies the two-class method to calculate its basic and diluted net income per share as Class A subordinate voting shares and Class B restricted voting shares are participating securities with equal participation rights and are entitled to receive dividends on a share for share basis. The Company uses the treasury stock method and if-converted method for calculating the effect of dilutive potential common stock from employee stock options and employee RSUs and from its Notes, respectively.
The following table summarizes the reconciliation of the basic weighted average number of shares outstanding and the diluted weighted average number of shares outstanding:
| Three months ended September 30, | Nine months ended September 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| (in US $ millions, except share and per share amounts) | ||||
| Numerator: | ||||
| Net income | 264 | 828 | 488 | 726 |
| Denominator: | ||||
| Basic weighted average number of shares outstanding | 1,300,069,685 | 1,290,585,426 | 1,297,764,857 | 1,288,960,063 |
| Weighted average effect of dilutive securities: | ||||
| Stock options | 4,369,596 | 3,461,584 | 3,972,952 | 3,857,467 |
| Restricted share units | 2,043,057 | 1,151,004 | 1,893,677 | 1,197,706 |
| Convertible senior notes | 6,388,480 | 6,388,480 | 6,388,480 | 6,388,480 |
| Deferred share units | 1,891 | 14,162 | 8,941 | 13,613 |
| Diluted weighted average number of shares | 1,312,872,709 | 1,301,600,656 | 1,310,028,907 | 1,300,417,329 |
| Net income per share: | ||||
| Basic | $0.20 | $0.64 | $0.38 | $0.56 |
| Diluted | $0.20 | $0.64 | $0.37 | $0.56 |
| Common stock equivalents excluded from net income per diluted share because they are anti-dilutive: | ||||
| Stock options | 512,241 | 429,021 | 125,584 | 267,353 |
| Restricted share units | 15,859 | 244,816 | 210,797 | 492,926 |
| Deferred share units | — | — | 365 | — |
| 528,100 | 673,837 | 336,746 | 760,279 | |
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