Shopify Inc.

Good morning, and thank you for joining Shopify's third quarter 2025 conference call. I am Keri 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 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, Kerry, 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 the 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 agenda 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 a result 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 the 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 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 that 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 the 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 agenda 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 about 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 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 ChatGBT, 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 this the standard across the internet. Up next on purchasing experience. Once a shopper finds what they want, Universal Cart and Checkout Kit make add to cart and checkout seamless inside the conversation. ChatGBT along with Microsoft Co-Pilot 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 agent-to-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 agenda 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, conversation 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 merchant's business and commerce at large. This is what building a purpose-built agent and deeply integrating 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 affectionately 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 emerged 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 psychic 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. ShopPay 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 feel. 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 built. 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 GlobalEase 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 UK 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 of 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 ShopApp 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, ShopPay 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 Multi-Channel Fulfillment, Big Blue, DHL Fulfillment Network, GoBolt, 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, Bobby 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 out-care everybody else. Sometimes that means me spending the weekend on calls with both potential and existing merchants. And sometimes it's Toby 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've signed an incredible mix of brands that shows just how versatile and scalable Shopify is. Affordable billion dollar beauty giant Elf Cosmetics, Italian luxury label Twinset, iconic American snack brand and household staple Welsh's, 3D printing company Formlabs, the sport bedding company FanDuel, and the 170 year old French retailer Ladurée. And in the growing baby category, we just welcomed Stoka. 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 for the 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, Majuri, and Dooney & Burke, 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, makes Shopify more resilient, expands our addressable market, and 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 Garcons 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 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 & 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 head 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. Jeff, over to you.

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 GMB 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 year's 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 continued 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 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 were 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 price 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 multi-year trend line of 80%. Gross profit for 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 flattened 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 2nd. If you pro-form our September 30th 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 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 some 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 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 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 Kerry.