Good morning, and thank you for joining Shopify's Third Quarter 2025 Conference Call. I am Carrie Gillard, Director of Investor Relations. And joining us today are Harley Finkelstein, Shopify's President; and Jeff Hoffmeister, our CFO. After their prepared remarks, we will open it up for your questions. We will make forward-looking statements on our call today that are based on assumptions and, therefore, subject to risks and uncertainties that could cause actual results to differ materially from those projected. Undue reliance should not be placed on those forward-looking statements. We undertake no obligation to update or revise these statements, except as required by law. You can read about these assumptions, risks and uncertainties in our press release this morning as well as in our filings with the U.S. and Canadian regulators. We'll also speak to adjusted financial measures, which are non-GAAP and not a substitute for GAAP financial measures. Reconciliations between the two are provided in our press release. And finally, we report in U.S. dollars, so all amounts discussed today are in U.S. dollars unless otherwise indicated. With that, I'll turn the call over to Harley.

Thanks, Carrie, and good morning, everyone. It's been another strong quarter for Shopify. I'll take you through the numbers and what we've built and shipped in Q3 shortly. But first, I want to zoom out as I always do. There's a real shift happening in the world of technology right now. And I know you're all going to ask about AI and there's a lot to cover, from enabling agentic commerce with some of the biggest global leaders in conversational AI, to our AI assistant Sidekick supercharging merchants' businesses, to how we are using AI reflexively across the entire business and company to tighten our product loops and to ship world-class solutions more efficiently than ever. But here's the thing. There's a bigger story behind the updates, and it's a story of the evolution of commerce. Now evolution teaches us to adapt or die, and Shopify is built for this pace of change. It's in our DNA. So while you'll certainly see it in how we're leveraging AI, you will also see it in our international expansion. You'll see it in the development of our offline B2B channels. And you'll see it in how we've dramatically lowered the barrier to entry. Every 26 seconds, a new entrepreneur makes their first sale on Shopify. I'm going to say that again. Every 26 seconds, a new entrepreneur makes their first sale on Shopify. In fact, it's happened at least three times since I started talking here. That is TAM expansion at its best. And any of those merchants could easily become one of the world's biggest brands in a decade or less. As I said before, that's what we mean when we say we're not just growing our piece of the pie; we are growing the pie itself. That is our superpower. Commerce never stands still and neither do we. We are always building for what's next. And now as we're entering what is likely to be a whole new era of agentic commerce, our scale and agility mean that Shopify is perfectly positioned to lead the way and empower more businesses using AI. AI is an incredible tool for us in what has always been our goal to enable more entrepreneurs in the world. More on that in just a moment. First, back to the numbers. While we're continuously evolving, the story of our results remains incredibly consistent. Normally, I hate repeating myself, but this is one place I'm very happy to do just that. For quite some time now, we've demonstrated that we can balance both growth and profitability. Well, here it is again. Q3 delivered 32% GMV growth, 32% revenue growth and an 18% free cash flow margin. And this is not just a one-off. Revenue grew 27% in Q1 this year, 31% in Q2 and 32% in Q3. At the same time, free cash flow margin has held steady at 15% in Q1 to 16% in Q2 and 18% again in Q3. Consistent, strong, executing just as we said we would. We are really proud of these results. Delivering these numbers quarter after quarter at our scale is a huge achievement. And this consistency is not an accident. It's incredibly intentional. It's a direct outcome of how we operate. We build what merchants need, we ship relentlessly and we grow consistently. This is the right balance for a growth company: invest to capture opportunity, keep margins at a profitable level and deliver durable results quarter after quarter. It's how we operate, powered by a model built to accelerate merchant growth, a team built for execution and millions of businesses pushing from their first sale to full scale. And that's why you continue to see consumers' favorite brands come to Shopify to power their businesses. More on that later. Now let me walk you through what we've built and shipped in Q3 and how it's fueling our growth. I touched on AI at the start of the call. That's because, simply put, we all recognize this could be the biggest shift in technology since the Internet, and Shopify is preparing to be at the center of it. The products we're talking about today could very well become a quintessential piece of technology that will be used by everyone, every day. That's how big this could be. And we believe Shopify is perfectly primed to help lead the way. Think of it this way. If AI is fueled by data, then Shopify has a clear advantage. We power millions of merchants and billions of transactions. That gives us access to a world of data across a spectrum of commerce. And we're using that data to create better shopping experiences for both merchants and shoppers. This is the strength of our platform: massive scale paired with unmatched velocity. We think about the evolution of AI in three ways: how AI will help our merchants sell everywhere, how AI will help our merchants operate smarter, and how we, as a company, will use AI to build better. Sell everywhere, operate smarter and build better. Let me take each in turn. Let's start with how AI is helping our merchants sell everywhere, what's known as agentic commerce. Put simply, AI is able to fundamentally change how we shop, moving from search to conversation, helping all consumers purchase more efficiently. And that's why we built the Commerce for Agents tools that we introduced on our last call, Catalog, Universal Cart and Checkout Kit. These tools make it easier for agents to shop across merchant stores on a buyer's behalf. But here's the thing. Agentic commerce is so much more than just the last click. Think about it in three layers: product discovery, purchasing experience and the post-purchase journey. Now if you're only looking at the payment or checkout layer, you're missing the bigger picture of what we're building: a seamless and intuitive shopping experience end to end. First, let's talk discovery. We've structured data across billions of products so our partners can surface the most relevant items in seconds. It's clear where this is going. Shopping is becoming more conversational, more personalized and much more efficient. And that's why the leading AI partners are already using Catalog to power product discovery inside their experiences. I'm sure you all saw the announcement about our partnership with ChatGPT, which is a strategic play that we're really excited about. But let me be clear, we're also partnered with other leaders in conversational AI like Perplexity, and our goal is to power product discovery for all agents, making us the standard across the Internet. Up next, on the purchasing experience. Once a shopper finds what they want, Universal Cart and Checkout Kit make adding to cart and checkout seamless inside the conversation. ChatGPT, along with Microsoft Copilot, have already partnered with us here to make in-chat shopping flows possible. And finally, post-purchase. We're investing in tools that help agents keep customers engaged and informed, order status, return, support, reorder prompts, so the experience stays smooth and merchants build durable relationships with their customers. Of course, different permutations will emerge as agentic commerce evolves, and we are preparing our merchants to be well-positioned for whatever path wins. What all this should tell you is that our merchants are primed for success in the new world of agentic commerce, just as they will continue to be armed with the tools for their online store, physical retail stores, B2B channels or wherever commerce goes next. This is the advantage of being on Shopify, we are everywhere commerce is happening and we always aim to get there first. Okay. Let's now talk about how merchants are using AI to operate smarter. We set an extremely high bar for every AI feature we build and ship. We're not just here to keep pace with change; we're here to set the standard for what's possible in commerce technology. Sidekick, our on-platform intelligent assistant, is a prime example of that commitment. And frankly, the rate of adoption speaks for itself. In Q3 alone, over 750,000 shops used Sidekick for the first time. And to date, Sidekick has had almost 100 million conversations with merchants, with 8 million in October alone. And it's quickly becoming the default way merchants get things done. Hundreds of thousands of merchants are running core parts of their business using Sidekick. In fact, conversations can go from 50 to 100 turns deep, covering everything from analytics and building new customer segments, to automating better SEO and so much more. Five years ago, none of this would have been possible. And today, it's a reflexive daily habit for many of them. At this scale, Sidekick will only get smarter and more powerful. We've been betting on this from day one, and that bet was correct and it's already paying off. Sidekick is central to how so many merchants operate their businesses. Let me be clear, this is not just about automation. This is also about autonomy. This is exactly what we had hoped for when we started out on this journey. It's also something we knew we were uniquely positioned to build given everything we know about the merchants' business and commerce at large. This is what building a purpose-built agent and deeply integrated into the platform looks like, and we are just getting started. The last thing I'll touch on with AI is how we're using it to build better products. For years, we've been honing our internal capabilities in the same way we've been empowering our merchants: shipping fast, measuring what matters and scaling what works using AI. Shopify's founder mode mentality really comes into play here. We're turning vast amounts of raw signal into shipped products and features quickly and relentlessly. This is what building with AI looks like at Shopify, using our scale to gain insights, our culture to move really fast and shipping more of what truly matters so merchants win sooner. Let me share one quick example to illustrate this. We have a tool effectively known as Scout. Now Scout is an internal voice of the customer system that indexes hundreds of millions of merchant feedback items, making them searchable within our tools. Any PM, designer, engineer or, frankly, anyone at the company, including myself and Jeff, can ask a question and get grounded answers in seconds. That used to take weeks. Patterns emerge by market, vertical and merchant size, allowing us to write clear specs, prioritize better and ship with confidence. And Scout is just one of many tools we're developing to turn our own signals, whether it's support tickets, usage data, reviews, social interactions or even Sidekick prompts into fast informed decisions. If you take away one thing from this call, let it be this: AI is not just a feature at Shopify. It is central to our engine that powers everything we build. Okay, that's a lot about AI, which should give you some idea about how much is happening behind the scenes over here. But now let's shift our focus to other key products and growth areas that are driving our results. Starting with Shopify Payments. Payments continues to lead the way for driving growth, hitting 65% penetration of GMV in Q3. Shop Pay has seen significant growth as well, up 67% year-over-year to $29 billion this quarter. Now I want to underline what I just said because it's important to understand what we're building here. If there was ever one company that could own the checkout, we believe it can be Shopify. And that's no small feat. If we've made it look easy, then that means we're doing our job. But in reality, the checkout is an incredibly complex system. It's the engine room of commerce. That one simple buy button is a contract between merchant and customer that has to cover a whole world of optionality, from taxes, shipping and inventory, to pricing and payments in any currency, to bundles and upsells and subscriptions, our checkout scales in terms of volume and functionality, all while ensuring compliance with various regulations. Think of it like a really well-made watch. The watch face or the buy button is just the tip of the iceberg. What's underneath is an intricately built network of complications that handles a world of nuance all designed to make the experience beautifully simple. And it doesn't end there. Once the sale is complete, we handle refunds, exchanges, store credits, partial captures and loyalty programs, all seamlessly allowing merchants to focus on growth instead of paperwork and building trust with their customers. So why does this matter? Because it demonstrates that we execute incredibly well at scale. No one else can handle this complexity as seamlessly and with such a focus on the merchant as Shopify can. And for our partners, we keep it simple as well. Platforms like Microsoft Copilot can easily plug in to activate commerce quickly embedding checkout and maintaining a native field. And the result, we simplify online stores and checkout at scale, empowering our merchants and our partners to thrive wherever commerce happens today and wherever it goes next. So we've talked about AI, we've talked about the checkout, but you'll see this laser focus in everything we build. In Q3, every upgrade we shipped, cut friction simplified selling and put merchants within reach of new markets. I'll give you a few examples related to our payments business. Merchants, using Global-e's managed markets products can now offer Shop Pay as a payment method. Our Klarna partnership now includes local currency displays and streamlined payouts, and Shop Pay installments launched in the U.K. following Canada that rolled out earlier this year. So why am I talking about these specific rollouts? Because it shows how each integration makes it easier for merchants to convert wherever they do business. And we're not close to being done. There's significant runway ahead, especially internationally where our adoption rates are increasing but still remain lower than our core market in North America. We see that momentum continuing. In Europe, penetration gains for Shopify Payments in Q3 were more than 50% higher than the gains in the same quarter a year ago. This is how we continue to capture growth and drive greater payment penetration, by making the hard things simple and putting merchants at the center of every transaction. Let's stay on international because, frankly, the results speak for themselves. International GMV grew 41% in Q3, on top of 42% in Q2 and 31% in Q1. The momentum is real, and we're still only scratching the surface. Europe's market share continues to make gains, while revenue from the region now accounts for 21% of our overall revenue in Q3, up from less than 18% two years ago. On top of the payment product enhancements I already mentioned, Q3 was packed with solutions across our business that further break down barriers and open new markets for merchants everywhere. I'm going to drill into the details here because it's important to understand the velocity of progress we are making internationally to add more products in more markets. In point of sale, we launched Shopify Payments for POS to three additional countries and rolled out Tap to Pay in seven more countries. Shopify Capital has now doubled its footprint from where we started the year, with Ireland and Spain launching in Q3. And Shop App expanded Track with Shop and Translations in six new markets, making it a top destination for local buyers around the world. On the cross-border front, as I mentioned earlier, Shop Pay is now available for merchants using our managed markets product. Let's talk about shipping and fulfillment next because we made big strides here this quarter. We expanded merchant optionality across the stack for both international and local. This quarter alone, we partnered with Amazon for multichannel fulfillment, Big Blue, DHL Fulfillment Network, Go Bolt and Maple all to give merchants more fulfillment flexibility. We partnered with Australia Post, Royal Mail and DHL Express Canada to give more carrier diversity. And we launched DHL Express DDP, DHL e-commerce DDP and enabled Canada Post DDP, so merchants can collect duties at checkout. With a single integration, we've empowered merchants to eliminate the customs delays that kill international sales. But this is not just about adding integrations. It's about giving merchants the optionality to choose the best solution for their business, whether that's the lowest cost, fastest delivery or best cross-border experience, all managed from a single platform. As regulations shift and merchants' needs evolve, this depth of choice gives our merchants even more ways to be successful, while continuing to build an ecosystem that is truly world-class. And while we're scaling horizontally across geographies, we're also growing vertically across merchant types and channels. As you know, we've built multiple on-ramps into Shopify: online, offline, B2B and enterprise, so brands can start and scale on their terms. And that is why the biggest brands and retailers are choosing Shopify. Just last week, the Estee Lauder companies announced they're coming to Shopify. This is a global beauty Empire with 80 years of heritage and more than 20 iconic brands under one roof, Clinique, MAC, La Mer, Bobbi Brown and more. And now they're trusting us to power their next chapter. So why are industry legends like Estee Lauder, Mattel, Aldo, Hunter Douglas all moving to Shopify? Because our technology wins: on speed, on scale, on agility. And our price-to-value ratio is unmatched. But it's more than just tech. Estee Lauder is still a family-led company at heart. For them, this isn't just business, and it isn't for us either. We simply outcare everybody else. Sometimes that means me spending the weekend on calls with both potential and existing merchants. And sometimes, it's Tobi jumping in to explain a new feature to a merchant. But all the time, it's the roughly 8,100 people at Shopify who are relentlessly merchant-obsessed showing up every day to help them win. And that mix of world-class technology and true partnership, that's what sets Shopify apart and that's what's driving us forward. And you can expect to see that continue to set us apart as we scale. Every day we are seeing some of the world's biggest brands with complex, high-volume operations choose Shopify to unify its channels, to cut complexity and to move faster. This quarter alone, we have signed an incredible mix of brands that shows just how versatile and scalable Shopify is. Affordable billion-dollar beauty giant e.l.f Cosmetics, Italian luxury label TWINSET, iconic American snack brand and household staple Welch's, 3D printing company Formlabs, the sports betting company FanDuel and the 170-year-old French retailer Ladurée. And in the growing baby category, we just welcomed Stokke. Anyone who has small children at home will know this company. Their signature high chair has sold over 16 million times. And just like Estee Lauder, they have an incredible heritage, a 90-year-old company, and they're bringing Shopify in to supercharge their next chapter. And I hear stories like this every day. It's one of the things I love most about what we're building, partnering with generational businesses and setting them up for future generations to come. Meanwhile, some of our other recent signings are now ramping up on Shopify. Since we last spoke, brands like Michael Kors, David's Bridal, Goop, Mejuri and Dooney & Bourke, they're all live on Shopify. That's a serious list of companies I just mentioned, on top of the incredibly diverse brands we mentioned last quarter, which included everything from coffee to luxury outerwear to mining equipment. What's most exciting is that we're increasingly welcoming more brands from all corners of commerce. And this growing merchant diversity, both in the U.S. and all over the world, make Shopify more resilient, expands our addressable market and it fuels our growth. No matter how the market shifts, Shopify is built to thrive. We're widening our reach, we're deepening our offerings and we're laying the groundwork for long-term success, from entrepreneur all the way to enterprise. Now I want to quickly touch on offline as it's one of our long-term growth drivers that is continuing to power forward. Offline GMV in Q3 was up 31%, and we welcomed a host of incredible brands to Shopify. These are retail-first brands led by in-person experiences that are expanding to more channels and looking for a unified commerce solution. Iconic names like UGG Australia, Comme des Garçons are choosing Shopify to power their stores, expand their reach and deliver seamless experiences online and offline. These are not small wins. Our progress with the retail-anchored brands is another strong signal that Shopify is becoming the platform for all brands selling everywhere: in-store, online and across countries, channels and markets. Finally, a quick note on B2B. Our momentum remains strong and steady. Following two years of consistent growth over 100%, we nearly doubled B2B GMV again in Q3, up 98% year-over-year. This isn't just one cohort or one region; we're seeing broad GMV growth across both new and established merchant cohorts. For example, in Canada, Q3 B2B GMV was up over 155% year-over-year. From a vertical perspective, B2B continues to deliver strong results across the board, with home and garden standing out at 150% year-over-year GMV growth in Q3. Shopify's platform is delivering for merchants no matter the size, vertical or market. Now before I hand it over to Jeff, I want to close out where I started. Shopify is evolving at a pace that is entirely unmatched while maintaining consistent durable growth. We're three quarters into 2025 and we've delivered exactly what we said we would: relentless growth, consistent margins and unwavering execution. We build, we ship, we grow. We're also about to kick off what will be my 16th holiday season or, as we call it, BFCM here at Shopify. This moment has evolved too. It used to be a few peak sales days, but now it stretches across the whole quarter. And it's more global than ever. And more than ever before, AI will play a significant role in how shoppers discover and buy. And we are ready for it. Our merchants are primed to win. They've got AI tools that didn't exist a year ago. They're shipping internationally with options that didn't exist a year ago. And they're doing it all on infrastructure designed to handle peak demand at global scale. This is Shopify at full speed. And with that, I'll turn the call over to Jeff for a deeper dive in the numbers and trends we are seeing.

Thank you, Harley. Q3 was another exceptional quarter for Shopify, continuing the strength of what has been an impressive year. Before I dive into the numbers on a line-by-line basis, I want to examine our GMV from a few different angles in order to give you a holistic view of what we are seeing in our business. Let's examine GMV by merchant size, cohorts, geographies and channels. Note that all growth rates mentioned are year-over-year unless specifically stated otherwise. First, regarding merchant size. We saw strong growth across all merchant sizes. In Q3, merchants with annual GMV below $25 million generated the significant majority of our GMV. And we saw a relatively equal balance between GMV from merchants in the $2 million and below band and merchants in the $2 million to $25 million band. Two trends that have been relatively consistent for a while. Merchants with GMV greater than $25 million grew at a faster pace in Q3, but admittedly, that is the smallest segment of the three bands I discussed. Next, looking at our cohorts. Q3 was another strong quarter where our growth was fueled by both recent quarterly cohorts and the strength and durability of previous cohorts. In fact, one of the elements of our business that I believe is frequently underestimated is the stickiness and continued growth of cohorts from two, three or more years ago. Year-over-year growth in GMV was primarily driven by the strong performance of our 2024 and 2025 cohorts. But our earlier cohorts also continue to perform well. Notably, the 2025 cohort is currently outpacing and generating more GMV than previous years' cohorts at the same age. Moving to regions. Europe continued to be a standout driving significant growth with GMV up 49% or 42% in constant currency. Approximately half of our GMV dollar growth in Q3 on a constant currency basis came from markets outside North America. We experienced stronger growth from existing merchants compared to new acquisitions in Q3 across all regions. In terms of channels, offline GMV increased 31% as we attract more retail-first brands globally. Our B2B GMV was up 98%, fueled by existing merchants embracing our offerings and our go-to-market initiatives targeting more B2B specific verticals and merchants. Finally, verticals. We saw strong performance in apparel and accessories, health and beauty, home and garden, and food and beverage. We also continue to experience rapid growth in emerging verticals like pet supplies, which grew over 50%, and arts and entertainment, which was up 45%. Our merchants have consistently delivered over 20% GMV growth for nine consecutive quarters, with Q3 GMV growth rate of 32%, representing the highest growth rate quarter that we've had since the COVID-impacted growth rates of 2021. In short, our merchants are performing well across size, cohorts, geography, vertical and channel. Let's now turn to our Q3 results. In Q3, we reached $92 billion in GMV, marking a 32% increase or a 30% increase on a constant currency basis. This strength was driven largely by North America, which outperformed our expectations, driven by an acceleration in growth rate fueled by stronger contributions from both Standard and Plus merchants. Revenue for the third quarter was up 32% or 31% on a constant currency basis. The strong GMV trends I mentioned drove this revenue growth with these results coming in ahead of expectations, largely on the backs of outperformance in North America. Looking at the two components of revenue. Merchant Solutions revenue increased 38%, with the strength in GMV driving the significant majority of the growth. To a lesser extent, we also saw increased penetration of Shopify Payments, which reached 65% for the quarter. This quarter's higher GPV penetration was driven by continued adoption of Payments by more merchants around the world and the strong performance of those merchants, and the expanded partnerships with PayPal and Klarna. These dynamics are partially offset by our continued growth in Europe, which accounted for a larger share of GMV but which has lower payments volume penetration compared to North America. Over time, we expect that this will become less of an impact for Payments penetration as we continue launching Payments in more countries. Subscription Solutions revenue grew 15%, primarily driven by a larger percentage of subscriptions coming from higher-priced plans and, to a lesser extent, higher variable platform fees. Q3 MRR was up 10% year-over-year, led by growth in our Plus plans, which represented 35% of MRR for the quarter. We had two headwinds impacting our year-over-year growth rates in MRR. MRR for Q3 last year benefited from the one-month paid trial, which drove MRR higher and made for a tougher comparison this year. Second, we are also lapping the Plus pricing changes, which went into effect in Q2 of 2024. We will have some year-over-year comparability headwinds on MRR until Q2 of next year as our rollout of the three-month trials happened in Q4 of last year and Q1 of this year. We now have had a full quarter where all of our regions are back on three-month trials, which clears up a lot of the noise and comparability of our recent merchant acquisition efforts. We're seeing the results of these efforts settle generally in line with historical trends and are pleased with this part of our business. Gross profit grew 24%, coming in slightly ahead of our expectations, driven by the outperformance in revenue, primarily due to stronger growth of Payments. Gross profit for Subscription Solutions grew 14%, slightly less than the 15% revenue growth for Subscription Solutions, with gross margin coming in at 81.7%. Gross margin was down slightly year-over-year as a result of higher hosting costs needed to support higher merchant transaction volumes and our continued geographic expansion as well as higher AI usage. This downward pressure was partially offset by lower support costs. Gross margin for Subscription Solutions was almost exactly the same as last quarter and healthily above the multiyear trend line of 80%. Gross profit from Merchant Solutions grew 33%, with gross margin coming in at 38.2% compared to 39.7% in Q3 of 2024. The decrease was primarily driven by the same factors we have seen throughout the year, including the impact from the expanded partnership with PayPal, which will become less of a headwind in Q4 and beyond as we will have now lapped the initial expansion of the partnership, and lower non-cash revenues from certain partnerships, which carry a high gross margin. This brings our overall Q3 gross margin to 48.9%, compared to 51.7% in the prior year. This year-over-year change in gross margins is driven by the mix shift from Subscription Solutions to Merchant Solutions this year that I have mentioned above and on prior calls, coupled with the continued strength of Payments overall. Increase in Payments penetration will generally drive lower margins initially, but Payments is often the on-ramp for merchants to adopt other Merchant Solutions products. So that is a trade-off as many of you think through modeling how our business trends over time based on your assumptions regarding Payments penetration levels. Operating expenses were $1 billion for the quarter or 37% of revenue. To put this leverage into context and focusing on how Q3 has trended the past three years, we've reduced our operating expenses from 45% in 2023 to 39% last year and further down to 37% this year. Our discipline on headcount has been the key force behind our increased operating leverage. For over two years, total headcount has consistently been flat to down, both sequentially and year-over-year, as we redeploy talent to the highest-impact work. Our team's productivity is rising through automation, better tooling and the reflexive use of AI, so we can build, ship and deliver more for our merchants. In Q3, transaction and loan losses represented 5% of our revenue, an uptick above our historical trend line. This increase stems mostly from higher losses in our Payments business, resulting primarily from some testing and experimentation with merchant onboarding. Our Payments loss rate is already turning back towards historical levels as some recent changes have already had an impact in lowering these loss rates. We also saw an increase in capital losses driven primarily by the continued volume growth of our capital business, but with a slight increase in the loss rate for the quarter, and with Q4 trending below Q3 and year-to-date. Operating income for the quarter was $343 million or 12% of revenue. Stock-based compensation for Q3 was $116 million and capital expenditures were $6 million for the quarter. Q3 free cash flow was $507 million or 18% of revenue, coming in slightly ahead of our outlook. For the first nine months of the year, free cash flow margin is at the same 16% as last year at this point, delivering on the consistency of free cash flow margins that I've highlighted in past calls. Moreover, we have done this all while accelerating our year-to-date revenue growth rate in 2025 versus 2024. Note that subsequent to the end of the quarter, our convert became due and settled on November 2. If you pro forma our September 30 cash balance for the settlement of the convert, we sit at $6 billion of cash and marketable securities and no debt. Before we move to our outlook, an update on some of the items that I've discussed in the past two quarters regarding tariffs and where we are or are not seeing an impact on our merchants' businesses. In short, the trends that we are seeing remain very similar to what we have called out on our two preceding calls. Two items to highlight briefly. Cross-border GMV was 15% of GMV in Q3, consistent with prior quarters. The U.S. inbound and outbound demand within that, which, as a reminder, is roughly half of the 15%, has remained relatively steady. We still see that our merchants have in the aggregate raised their prices since the April tariff announcements in the U.S., but the level of pricing increases is, in fact, slightly lower than the trends that we were seeing last quarter. Turning to our outlook for the fourth quarter. We expect Q4 revenue growth to be in the mid to high 20s year-over-year. A few items for appropriate context. We were up against a high benchmark from Q4 last year, which was the highest-growth quarter in 2024. Also, as a reminder, we will lap the expanded partnership with PayPal, which benefited last year's Q4 revenue growth rate. Finally, we have factored into Q4 guidance FX tailwinds that are expected to be slightly higher than what we experienced in Q3. We expect Q4 gross profit dollars to grow in the low to mid-20s. We expect Q4 gross profit to be impacted by essentially the same dynamics that I discussed earlier in the call regarding our Q3 gross profit. We anticipate that our Q4 operating expenses will be 30% to 31% of revenue. Q4 stock-based compensation is expected to be $130 million. Finally, on free cash flow. We expect Q4 free cash flow margin to be slightly above Q3. Two items will affect Q4 margin by a couple of hundred basis points in the aggregate. One, the higher payments losses that I mentioned earlier, which are already trending back towards historical levels but which we expect will remain elevated in Q4, and some tax receivables, the timing of which are outside of our control and which we expect to negatively impact Q4 net working capital. Even with these two factors and based on the Q4 outlook that I have provided, we are on track to achieve a free cash flow margin for 2025 similar to 2024. As I've mentioned consistently, we believe that these free cash flow margins strike the right balance between profitability, discipline and investment in future growth. Let me end where it matters most, merchants. We build, we ship, we grow, we execute. Our performance metrics are aligned with merchant outcomes. Our strategy remains unchanged: deliver results, elevate merchant value and foster long-term growth. With that, I will turn the call back over to Carrie.

Thanks, Jeff. We will now take your questions before handing the call back to Harley for some final remarks. Our first question comes from Colin Sebastian at Baird.

Great. Good morning, and I appreciate the opportunity here. We see that the integration with OpenAI has already begun. I'm curious about any initial observations from those transactions. How quickly do you expect incremental contributions compared to other channels? Also, your expectations for how volumes will originate through AI platforms would be helpful.

Colin, I’ll take that first question. If you look at the numbers beyond just OpenAI, in general, we’ve seen AI-driven traffic to Shopify stores increase by around 7 times since January. Additionally, orders linked to AI searches have risen by approximately 11 times in that same period. This data indicates significant growth. We recently conducted a survey to better understand consumer trends for Black Friday and Cyber Monday, and about 64% of shoppers indicated they are likely to utilize AI in their purchasing process. We have been developing and investing in our infrastructure to seamlessly incorporate shopping into every AI conversation. Our collaboration with industry leaders reflects our commitment to ensuring Shopify merchants are better equipped than those who are not using our platform. While we acknowledge that this is still in the early stages, we are focused on laying the groundwork for what we refer to as agentic commerce. Regarding Shopify's impact, our business model aligns perfectly with merchant success—when our merchants make more money, we earn more as well. We view the agentic channel similarly to other channels, such as marketplaces or social commerce; as our merchants generate more revenue and acquire more customers, we benefit through Gross Merchandise Volume and Payments. Specifically, this partnership with OpenAI related to conversational commerce is very promising and adds yet another avenue for Shopify merchants to reach and serve their customers.

Our next question comes from Craig Maurer at Financial Technology Partners.

I wanted to follow up on the prior question. One debate we've been having with investors is how, in an instant checkout flow, accelerated checkout solutions might get prioritized in terms of presentment. So I was curious your view on how over time when you have tons of instant checkout solutions available in the market, how those might be prioritized or presented to consumers? And at the same time, how you're positioning as the merchants platform might advantage, say, Shop Pay in that type of scenario.

The value of Shopify lies in its relationships. We are prominently featured alongside companies like OpenAI, Microsoft, and Perplexity because our platform hosts the best brands. In the third quarter, Shop Pay processed nearly $29 billion in gross merchandise volume, a 67% increase year-over-year, totaling over $280 billion. As the leading accelerated checkout option on Shopify, it has gained significant popularity among consumers who are selective about the brands they support, all of which are available on our platform. Our mission is to ensure that merchants and Shopify are optimally positioned. We facilitate partnerships by providing a straightforward means for these innovative products to connect with the brands consumers seek, while also simplifying the technology involved. This concept of creating an agentic kit allows partners to seamlessly integrate checkout and our catalog, making collaboration with Shopify an easy choice. As more users adopt Shop Pay, which is experiencing remarkable growth, we will gain a competitive edge. While we are in the early stages of this agentic approach—having planned for it over the years—we are optimistic about Shopify's positioning and that of our merchants moving forward.

Our next question comes from Andrew Boone at JMP Securities.

I wanted to go back to the marketing investments and given the fact that MRR is just a little bit complicated at this moment. Can you just help us understand the guardrails and what you're seeing in terms of the efficiency of that spend? And then how should we think about that as we think about next year?

Sure. I'll begin by discussing our marketing efforts, and then Jeff can address the MRR aspect. We have consistently emphasized that Shopify is a growth company, dedicated to driving merchant growth, which in turn supports our own expansion. When we identify opportunities to accelerate growth in critical areas, we will pursue those. Marketing is a domain where we enjoy considerable flexibility. I want to emphasize that we believe in our current strategy. Our marketing investments are proving effective, leading to increased merchant adoption across various sectors and regions. This is particularly evident in Europe at the moment. For the fourth quarter, we do not anticipate any changes in the environment, so we will continue to invest smartly. However, we maintain strict guidelines to ensure that our marketing spending yields appropriate returns. We have previously mentioned that when we recognize a chance to increase our investment in a specific area or sector, we do so and often see a quick return on that investment. We'll continue to pursue this approach. Marketing is a significant area for us, and we will act on any opportunities that arise as a growth-focused company. Now, I will turn it over to Jeff to discuss the MRR side.

I would add two points. First, as we consider our overall merchant acquisition engine, we are very pleased with its performance. I understand the concerns regarding MRR comparability. I noted the percentage of MRR from Plus compared to Standard and point of sale. Regarding the Standard segment, this quarter marked our first sequential growth, up 4%. The previous quarters were flat, mainly due to the paid trials, as Q3 was the first quarter with a clear sequential comparison. Q1 was when we were finishing the migration back to three-month trials, so comparing Q2 to Q1 was not straightforward. In contrast, when looking at Q3 versus Q2, we see a 4% increase. Year over year, we will face some challenges until Q1 of next year due to the timing of the paid trials. Nevertheless, with the continued efforts of our merchant acquisition engine, as Harley mentioned, and no changes in our marketing strategy, we are optimistic about achieving our merchant addition goals.

Our next question comes from Siti Panigrahi at Mizuho Securities.

I just want to dig into the enterprise business. Could you talk about the success there in changes to the go-to-market and pipeline there? And then specifically, as you're expanding in the enterprise segment, displacing some of the incumbents, how should we think about the take rate from that segment?

Thank you, Siti. I'll address that question. The enterprise is transitioning to Shopify. As I mentioned last quarter, some of the largest companies in their industries are joining us. The addition of brands like e.l.f. Cosmetics and Estee Lauder indicates that our pipeline is quite remarkable. Brands we've previously discussed, such as Michael Kors, David's Bridal, Goop, and Mejuri, are now fully launching on our platform as well. This suggests that our success in the enterprise spans multiple verticals, which ultimately strengthens our platform. We are also targeting more international merchants with our go-to-market strategies, particularly in Europe. Our core markets of North America, Australia, New Zealand, and Canada continue to perform very well. However, it's important to note that despite these significant names, we're still in the early stages of our enterprise journey. We believe we are well-positioned to attract new merchants while also enhancing the efficiency of our existing ones. We're noticing an increase in partner-led deals, especially successful ventures in Europe and Japan right now. Many large enterprises, particularly those that have existed for decades, are discussing in their boardrooms how to choose a future-proof platform to embrace the future of commerce, and they are increasingly looking to Shopify. We are succeeding in sectors like food, manufacturing, education, and automotive, where we previously hadn't focused, and we are winning against both custom-built solutions and larger existing enterprise platforms. The quality and value of Shopify's enterprise product are unparalleled. We will continue to secure these large deals. I am closely involved in this segment of our business and frequently have conversations with the CEOs of these companies. They are seeking to future-proof their businesses and consider this their final migration, and Shopify is the partner they choose. Thus, you can expect to see more renowned, consumer-focused brands continue to transition to Shopify.

Yes. And Siti, the only point I'd add, because you referenced the attach rate, one of the things that you see in our enterprise business, of course, is all these brands that Harley talked about, is we have more and more success bringing more and more of these large GMV brands on the platform. That obviously gives encouragement to even more brands to follow behind and continue to adopt all the great solutions we have. And so I think we're at the front end of the funnel in terms of a lot of these larger enterprises maybe starting with just Payments. But when you look at what we're seeing over time, compare that funnel to how many are also taking point of sale or taking other elements of our business, whether installments, some of the cross-border things we're doing. And so this, in a good way, is a multiyear step in the right direction as we continue to have merchants take on, especially the larger merchants, take on more and more products from us. So we feel good about while there's short-term headwinds with attach rate, what that means long term for our business is a positive.

It is also quite interesting to watch some of these merchants, these very large enterprises, first come to us for a very specific commerce component. So they'll come to us really just talk about Shop Pay, or just to talk about checkout. I mean our checkout, obviously, we think, is the best in the world. And frankly, checkout is so complicated. And we've really nailed checkout on a global scale and for scale for these massive merchants. But it's so interesting to see them first come to talk to us about exploring, "Hey, we just want to talk about checkout." And then within a couple of weeks, it's a full stack. It's, "Hey, we want all of Shopify now." That sort of land-and-expand strategy that we've been implementing for the last couple of years, maybe the last two or three years or so, it's really starting to work out. And it's really cool to see these brands moving from just one thing to saying, "Yes, just give us all of Shopify."

Moving on to the next question comes from Michael Morton at MoffettNathanson.

Harley, today, you've talked about product search. Tobi talked about it, changing on the cheeky pint. And I would love to know, I know Shopify has a model you will always be where commerce occurs. But as you see product search changing in conversational commerce, what do you envision happening for the product discovery funnel? Does that compress? And then in your world over the next several years, how do you see the winners and losers of the e-commerce landscape evolving? Is it more merit-focused on brands, as Tobi referred to in the past? Anything on how you see the world playing out, not your product roadmap, but what you see commerce looking like several years from now, I think, would be really beneficial to investors.

Yes, that's a great question. We think about this a lot. I believe there will be various ways in which agentic and conversational commerce will develop, and it's really exciting for us. Shopify, particularly Tobi, has a clear vision for our product and understands how commerce and retail are changing. No matter how it plays out, we need to be ready for any path that emerges. This was similar when social commerce gained traction or when we started to discuss commerce as a concept that encompasses both online and physical spaces. One of Shopify's advantages is that we are present wherever commerce is taking place, and we strive to be the first to reach these opportunities. Currently, we are working on creating strong connections to AI agents for product discovery. When a shopper inquires, a Shopify merchant appears, supported by our Catalog. This Catalog allows buyers to ask about products, and the agent searches through millions of items, displaying interactive product cards in real time, with accurate inventory and localized pricing. This is what we are introducing in our agentic tools. Regarding the question of who will succeed among brands and retailers, it’s clear that consumers are increasingly choosing to buy from brands they truly love. Shopify has always been the platform where consumers find things they want and connect with. More brands that people adore are joining Shopify, and I am excited to talk about this during earnings calls because it’s very personal for us. It fills us with pride that leading companies are choosing Shopify, and I want to emphasize that consumers’ favorite brands are available on our platform. These consumers have a stronger connection to these brands than they might have had in the past. Ultimately, brands that offer outstanding products and create strong connections with consumers will be the ones that triumph, and we are fortunate that these brands are within the Shopify ecosystem.

Our next question comes from Todd Coupland at CIBC.

I'm wondering if you can talk about your view of the state of the consumer by geography and post tariffs now that we've seen a little bit of data there.

Maybe I'll start with the consumer, and then, Jeff, you can talk a bit about tariffs. Look, consumer confidence for us is measured at checkout. That's the truth. That's what we look at. And on Shopify, shoppers keep buying, they keep returning and demand remains really resilient across channels and categories. So I can only comment on what we see at Shopify, but whether it's the GMV, but like I said earlier, consumers are more selective right now and they're buying from brands they love and those brands are on Shopify. And I think even our Q4 outlook suggests that. But we're not complacent. I mean this is not a place where we rest on laurels ever. We always monitor these macro factors, whether it's consumer spending, it's household savings, tariffs, frankly, even FX trends and supply chains with a lot of our partners. But the strength of our merchant cohorts are pretty clear. I think quarter after quarter, they're growing faster than the broader market. In terms of geo, I mean, obviously, Europe is definitely gaining traction for us. I mentioned that in my prepared remarks, which we expect to continue. But again, if you look at consumer confidence measured at checkout, you saw it through the GMV this quarter, $92 billion. We see that the consumers that care about brands that are buying from brands they love, they're buying them from Shopify stores.

Yes. Todd, regarding some of the tariff issues, I mentioned during my prepared remarks that there hasn't been much change this quarter compared to previous quarters. We did notice a slight decrease in activity among merchants and in how they are adjusting their prices. We've been monitoring this since April when several tariff adjustments occurred in the U.S., and it has dipped a bit from what we observed earlier. Everything else has remained consistent compared to last quarter. When we review trade routes, the percentage of inbound versus outbound shipments in the U.S., and the situation with de minimis, we haven't identified any significant effects on our merchants from the data we have. We rely heavily on our proprietary data, though we don't have complete visibility into the profit and loss statements of our merchants. We can see their pricing strategies, and some merchants are opting to pass on costs to consumers, while others are deciding against it, which is affecting their own profitability. This is reflected in our GMV, and our merchant base continues to be robust and responsive. We are doing everything we can to assist them with cross-border operations. From our perspective, things have remained relatively stable regarding tariffs since the announcements in April and the removal of de minimis.

Our next question comes from Trevor Young at Barclays.

Great. Can you expand upon Shopify campaigns? How do merchants get ramped onto campaigns? How do the economics work? And what do you foresee as the revenue opportunity from that initiative over the next few years?

Yes, customer acquisition remains one of the toughest challenges for merchants. We have been focusing on this issue for a while, approaching it in two major ways. The first is through shop campaigns, which I will explain shortly. The second involves enhancing discovery and merchandising, where the Shop app plays a significant part in increasing traffic and customer lifetime value, along with Shopify Collective. Regarding campaigns specifically, our goal is to run commerce-native performance ads across high-intent services. Our strategy has been to reinvest any profits from the ads business back into growth, ensuring continuous expansion of our advertising inventory and scale. The results have been very encouraging, with a ninefold increase in budget commitments from merchants for campaigns this quarter compared to last year. From Q3 2024 to Q3 2025, we observed a fourfold year-on-year growth in merchant participation in campaigns. On the product development side, we keep improving; for instance, we launched Gross Sales, a new default high-reach objective for campaigns, and implemented an AI-driven ranking enhancement that is showing promising early performance. Overall, we aim to create a scalable, ROI-positive advertising engine that brings more buyers to merchants and helps increase brand visibility for new consumers. We are committed to addressing merchant pain points, particularly in customer acquisition, which we are making good progress on.

And our last question will come from Mark Zgutowicz at Benchmark.

Harley, during the last quarter's call, you mentioned there would be more information on advertising opportunities. Considering your merchants spend about 20% of their GMV on advertising, do you have a long-term strategy in mind regarding a share of that? Additionally, I am interested in any potential ad revenue sharing opportunities related to ChatGPT, particularly concerning promoted or sponsored listings in the future.

Yes. I won't discuss the specifics of any particular deal. However, I can say that we have always been able to capitalize on our merchants' success. When our merchants sell more, Shopify benefits more, and we generate revenue through gross merchandise volume and Shopify Payments. This will continue to hold true across any new channels. We do not disclose additional economics related to specific individual deals. Regarding ads, as I mentioned previously, it's still one of the biggest challenges merchants face, and we believe we can improve this area. We have a wealth of data and scale to enhance our advertising efforts. Our goal is to drive greater scale in this opportunity by testing, measuring, and reinvesting to achieve great outcomes for merchants in the future. I still believe we're in the early stages. If you're interested in ads, I encourage you to tune into our next Shopify edition where we will discuss this topic further. We are focusing on both advertising campaigns and enhancing discovery and merchandising through the Shop App and Collective, and we're laying the groundwork to show that we can add significant value here. It’s important that our relationship with the millions of stores using Shopify goes beyond just being a software vendor; we see ourselves as their partner in commerce. As commerce evolves and becomes more complex, they can continue to depend on us. This is why major brands choose us and choose to stay with us. To conclude, I want to emphasize that we are consistently delivering on our commitments. We developed AI agent tools last year and are now collaborating with key partners. We created Sidekick two years ago, ahead of the current trends. In Q3, 750,000 shops used it for the first time, and in October alone, there were eight million conversations. We have been building enterprise pathways into Shopify for almost five years, with companies like Estee Lauder, David's Bridal, Aldo, and Michael Kors selecting us. We are not anticipating the future of commerce; we are actively shaping it. I am proud that we are balancing three crucial elements simultaneously: investing aggressively in opportunities, maintaining profitable margins to showcase our discipline, and delivering consistent results quarter after quarter. This demonstrates our strong execution, and I don't believe many companies can accomplish all three at this scale, but we are. Thank you for joining the call, and on behalf of Jeff, Carrie, and the entire Shopify team, we're committed to building for our merchants. Thank you very much for being here.

And that concludes our third quarter 2025 conference call.