SHOPIFY INC.
For the period ended Mar 31, 2026. Filed May 5, 2026.
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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.
Mar 31, 2026 · Filed May 5, 2026
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13. Net Loss per Share
- Net Loss per Share
The Company applies the two-class method to calculate its basic and diluted net loss 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 for calculating the effect of dilutive potential common stock from employee stock options and employee RSUs.
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 March 31, | ||
|---|---|---|
| 2026 | 2025 | |
| (in US $ millions, except share and per share amounts) | ||
| Numerator: | ||
| Net loss | (581) | (682) |
| Denominator: | ||
| Basic weighted average number of shares outstanding | 1,303,357,874 | 1,295,377,376 |
| Weighted average effect of dilutive securities: | ||
| Stock options | — | — |
| Restricted share units | — | — |
| Deferred share units | — | — |
| Diluted weighted average number of shares | 1,303,357,874 | 1,295,377,376 |
| Net loss per share: | ||
| Basic | $(0.45) | $(0.53) |
| Diluted | $(0.45) | $(0.53) |
| Common stock equivalents excluded from net loss per diluted share because they are anti-dilutive: | ||
| Stock options | 12,211,409 | 14,767,620 |
| Restricted share units | 4,058,554 | 5,300,232 |
| Convertible senior notes(1) | — | 6,388,480 |
| Deferred share units | 5,657 | 15,488 |
| 16,275,620 | 26,471,820 | |
(1)In the third quarter of 2020, the Company issued $920 million aggregate principal amount of 0.125% convertible senior notes. The convertible senior notes were settled in the fourth quarter of 2025 with no further dilutive effect on securities thereafter.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.