Shopify Inc.

Good morning, and thank you for joining Shopify's fourth 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 these 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 will turn the call over to Harley.

Thanks, Carrie, and thanks to everyone here for joining us. We've got a lot to talk about today. First, we'll talk about 2025. It was another year of durable growth, faster product shipping, and disciplined cash generation. We'll also talk about Q4 in particular, which delivered the highest quarterly revenue in Shopify's history and saw huge names from across all industries join the platform. From General Motors, to Sonos, to L'Oreal, to the Benetton Group, to Keurig Dr. Pepper, to Amer Sports, who owns incredible brands like Wilson, Salomon, and Peak Performance. All moving to Shopify. And we'll talk about where Shopify is heading in 2026. But before we get into the details, I want to start by doing something a little bit differently this time. Because this year is not like any other year. I want to repeat something that Toby said back in May 2015 on the day that Shopify became a publicly traded company. He said this, Shopify will be the only platform needed to build an empire. By the time we're done, we will have created the new normal. Well, don't worry. We are far from done. But this quote perfectly captures both where Shopify is today and what you can expect to see from us next. Let me explain. Toby said Shopify will be the only platform needed to build an empire. Well, we believe that 2025 marked an inflection point in that goal. Empires are now being built every single day on Shopify. Brands like Figs and Gymshark and Skims that were all born on the platform hit over a million orders well inside of a decade. And then there's some like Comfort that have done it in less than five years. That is remarkable. Toby's vision might have sounded bombastic in 2015, but a decade later, it is reality for millions of entrepreneurs. Now, in that same quote, he also said, by the time we're done, we will have created the new normal. Well, 2026 is about to show the world what he meant by that. The AI era has now reached commerce, and you're about to see what that looks like at scale. You're seeing the start of this new normal. And when Toby said we would be the ones creating it, He was not exaggerating. Shopify was built for this moment. No one, and I mean no one, is better positioned to lead in this new era. We've spent decades building the infrastructure that allows every type of merchant to thrive. We have trillions of data points from billions of transactions across millions of merchants. Simply put, we believe we have a more diverse commerce data set than almost anyone else on the internet. And of course, data is what AI is fueled by. This is an enormous advantage, and it's also a real responsibility, and it's not one we take lightly. You may have seen that we just announced the Universal Commerce Protocol, or UCP, that we co-developed with Google. That means that we are literally setting the standard on how the world will shop with AI. We've also added more integrations so our merchants will be able to sell on every major AI platform. And we've launched a product to power AI shopping for brands that aren't even on Shopify yet. As you know, Shopify will always bias towards long-term sustainable growth. And we are not afraid to make big bets where we see opportunity. Well, that's what we did here. And this year is when those bets show up. More on that in a minute, but first, let's get into the results we drove in 2025. I'm going to talk a lot about growth here, because first and most importantly, we are a growth company. And second, growth across all areas of our business in 2025 has been remarkable. But here's the thing. It was not growth at any cost. We grew profitably, just as we said we would, and we scaled with discipline. our free cash flow exceeded $2 billion in 2025, delivering another year of consistent free cash flow margin. This is what building a generational company looks like. Now, here's the headline. In 2025, GMV was up 29%, hitting $378 billion, and revenue topped $11.5 billion, up 30%, accelerating from 2024's growth of 26%. Now, let's pause on that for a moment. Because putting up these kinds of top line growth numbers at our size is incredibly hard and it is not common. And we have been growing at this rate for as long as I can remember. In fact, since we IPO'd in 2015, we've grown our revenue over 20% every single year. That is what durable growth at scale looks like. And that scale is consistently compounding quarter after quarter. Q4 was our first ever quarter of revenue above $3 billion. That's more than all of our revenue in 2020. Let me repeat that. We just did more revenue in a single quarter than the entirety of 2020. Our growth philosophy is simple and effective. We win more merchants to sell for, we build more services for them to sell on, and we attract more buyers for them to sell to. And here's how that played out in 2025. Revenue in our largest market, North America, was up 28%. And we now power more than 14% of the U.S. e-commerce market. We welcomed huge names like Estee Lauder Companies, Starbucks, Coach, Michael Kors, Burton Snowboards, Elf Cosmetics, Toys R Us, and Goop. And new merchants continued to come from all corners of commerce, from Follett Education, who manages campus bookstores across America, to the iconic snack brand Welsh's, and even the sports betting company FanDuel. That is a seriously diversified mix of brands. And our international merchant base grew even faster. Revenue was up 36% year over year, and nearly half our merchant base is now located outside of North America. We welcome huge global brand names like Caring Beauty, which is the beauty division of Alexander McQueen, Valencia Aga, and Creed, Karl Lagerfeld, Mila, JW Anderson, Stoka, and UGG Australia, plus new signings from names like L'Oreal and Topshop in Q4 alone. Our offline channel revenue grew 27% to $748 million, with iconic brands like Tom Ford, David's Bridal, and Aldo choosing Shopify to power their physical retail locations. 2025 also saw serious traction in the B2B space. GMV from B2B merchants was up 84% in Q4 and 96% in 2025. We signed B2B giants like century-old industrial manufacturer Sunin, and we grew our existing merchants like Olay, who brought their B2B side of the business over to join the D2C side, now all powered by a single platform, Shopify. And we're not just seeing growth from new merchants joining the platform. We're also helping our existing merchants continue to sell more. In 2025, GMV grew 29% year over year. And that's not just being driven by a few top performers. We saw huge traction across the entire merchant base. So that's the story of 2025. Bigger, faster, more global, and more durable than ever. Now let's move into 2026. You'll hear me talk more about the future than I usually do on earnings calls. And that's because we have been quietly building for this moment for years. Last year, we talked about helping merchants to sell everywhere and to operate smarter. Now, that is still our focus in 2026, but it is now being supercharged by AI. Let's start with selling everywhere. As I said earlier, when we think about selling, we think about three things. More services to sell on, more buyers to sell to, and more merchants to sell for. Well, as you know, 2026 is unlocking a huge new service area, AI Shopping. What I hope you've come to understand about Shopify is that we think in decades, not in quarters. Well, we've been building for this new era of AI shopping for a long time, and it's now here. In fact, since January 2025, orders coming to Shopify stores from AI search are up 15x. Now, that's on a small base, but that's still a really big jump in 12 months. And this matters. For our merchants, it matters because it powers the long tail of commerce, surfacing smaller merchants to the right buyers who might otherwise have never discovered them. This is merit-based discovery at scale. For buyers, it matters because it's like having a personal shopper in your pocket, someone who really understands them, their taste, their preference, their size. This used to be a luxury, but now it's available to everyone 24-7. And for Shopify, it matters because we believe it can bend the curve of e-commerce penetration by stripping out friction, pulling late adopters in, and moving more everyday purchases online. That's the tide we're building for, and we're ready to turn that macro tailwind into share gains for our merchants. But here's the thing. Commerce is complex, it's dynamic, and it's also easy to get wrong. It's so much more than just a transaction. It's a leather goods brand like Parker Clay offering monogramming. It's a furniture brand like Burrow offering white glove delivery, or a nutrition brand like ButcherBox offering subscriptions. it is critical that shopping in an AI conversation is at least as good as shopping at the merchant's online store. And no one, and I mean no one, understands this like Shopify, because we've spent two decades mastering this complexity. So, this is a lot more of this new surface area for us. This is a transitional moment in Shopify's history. We are now designing the new normal, just like Toby predicted a decade ago. And it will fundamentally change our position in the world. Now, remember last quarter when I said on this call that we were laying the rails for agenda commerce? Well, here they are. First, Shopify Agenda Storefronts syndicates billions of products through our catalog to all major AI platforms. Google AI Mode and Gemini, ChatGBT, Microsoft Copilot. one click and our merchants get instant access to millions of potential buyers who are actively looking for their products. We've already seen huge brands like Viore, Glossier, Steve Madden, and Spanx sign up and start selling. Plus, through the catalog, our partners get the most accurate, up-to-date data for billions of products from millions of the best brands on the planet. And this is really important because when they tap into our catalog, they're not just ingesting another feed. They're plugging into the best commerce source of truth. And that source of truth means cleaner matching and fresher data, which translates directly into faster and more trustworthy experiences. The new agentic plan means that any brand not already using Shopify will soon be able to sell through the same AI platforms as our merchants, as well as on the shop app. Why? Because frankly, when commerce flows freely across agents, everybody wins. And here's the one that matters most. I just said that commerce is easy to get wrong. We care that the world gets this right, Shopify merchant or not, partner or not. So we built the Universal Commerce Protocol, or UCP. UCP is infrastructure. It's not a product. It's the common rails agentic commerce runs on. Shopify co-developed this with Google because we know commerce better than anyone. It's an open standard for any agent to connect with any brand on the internet. UCP is built to flex to the many ways commerce happens. It's payment agnostic by design. It keeps the merchant's essential checkout logic intact without forcing them to rebuild their customizations over and over again to fit our system. UCP is the only protocol that covers the full commerce journey, end to end, from search to cart, then checkout to post order. And it's already being used by the world's leading retailers. Put simply, Shopify is foundational in powering the commerce layer of the AI era. And we're just getting started. If the rails were being laid in 2025, what now? Well, now we scale what runs on them. More merchants selling in AI conversations that run on Shopify infrastructure. In fact, if commerce has a sound barrier, these rails have what it takes to help merchants break through it. More velocity, less drag, and what could be a faster path to scale than was ever thought possible? Just like Toby said, this is the new normal, and we are creating it. Now, beyond the world of AI shopping, another service area that we will continue to grow in 2026 is offline retail. This year, we'll continue to lean hard into speed and simplicity, staying focused on our strength, which is software. like bringing a subscription product to in-store, helping to drive recurring orders, or our partnership with Verifone, making our software available on their industry-leading payment hardware. And this all rolls up to our unified commerce philosophy. One platform, one catalog, one customer record, personalized everywhere a buyer taps or clicks. Here's the bigger picture. We make it fast, easy, and intuitive for a merchant to reach buyers everywhere, whether that's online, in AI chats, or in person. Okay, we've talked a lot about new service areas for a merchant to sell on, but we're also expanding their reach to more buyers. In short, we help merchants drive demand, and then we help them convert it. This is where shop, our consumer-facing side of the business, comes into play, and where in 2026, you'll see the shop flywheel really start to turn. first demand in 2026 shopify will power multiple ways for buyers to discover our merchants from the shop app to shop campaigns to the new shopify product network let's talk about the shop app first with the shop app we are completely reimagining how the discovery process works instead of having to seek out products which normally looks like sifting through hundreds of search results shops home feed delivers tailored content Think curated drops, exclusive offers, and interactive experiences from our network of brands, all matched to the shopper's interest. It meets consumers wherever they are, whether they're actively browsing or casually scrolling, making shop the definitive destination for discovery. Next, let's talk about shop campaigns, our advertising product which is really starting to gain traction. In 2025, shop campaigns revenue doubled and merchant adoption tripled, metrics we will look to build on in 2026. Shop Campaigns is a merchant-first, high-intent, network-native approach. We're giving merchants big platform reach without the risk. They only pay when a customer converts. No sales, no spend. And we've now added X, Snapchat, Bing to join Google, Instagram, and Facebook so our merchants can advertise with zero risk across eight channels, including the Shop app and Shopify storefronts. And finally, the Shopify product network. The product network is an opt-in app that uses Shopify's data network to automatically surface relevant, clearly branded products from other Shopify stores on a merchant site, widening selection with an extra inventory or operations. Merchants can choose where recommendations show up, whether that's collection pages, product detail pages, search results, cart, or the post-purchase page. And if the shopper buys the product, the host merchant earns a commission while connecting another merchant with a new customer. It gives buyers more choice, it helps merchants grow, and ultimately, that fuels a very powerful ecosystem. So all that creates demand. And as I said, we also help merchants convert that demand with trust. Enter ShopPay, which is fast, trusted, and increasingly everywhere. 2025 saw ShopPay become even more of a trusted marker for buyers on the internet. In Q4 alone, it processed $43 billion of GMV and powered over 50% of Shopify's US GPV. Think about that. More than half of our US payment volume in Q4 flowed through ShopPay. That is serious adoption. In 2026, expect to see ShopPay on more services across the internet, delivering better checkout conversion rates and a great post-purchase experience, as well as driving repeat purchase through the Shop app. That's the shop flywheel. Our discovery levers create intent, our trust markers convert it, then the ecosystem sends buyers back to the Shop app, which drives even more discovery. Okay, so we've talked about new surface areas to sell on. We've talked about more buyers to sell to. We're also unlocking more merchants to sell for. Our goal is that any merchant on the planet can sell to any customer on the planet with no friction. To make that possible, we will continue to focus on building products that are global from day one. Heading into 2026, we now have Shopify payments in 60 new countries. a host of additional payment methods from Shopify installments in the UK and Canada to expansion of local payment methods in Europe. USDC Stablecoin is now live as the first built-in cryptocurrency option for Shopify payments. We have Shopify Capital now in eight countries, Shop Tracking in more than 20 countries, and AI Power Translations in eight additional languages. And just recently, we launched Managed Markets 2.0, which is fully integrated into Shopify payments, enabling the same payout speed as domestic payments, along with more payment methods, faster payouts, and more product compliance checks so that selling globally feels like selling at home. Global mindset, global design, global traction, and increasingly more ways to give our merchants the tools they need to succeed in any market. Okay, we've now talked a lot about selling everywhere, but what gets a lot less attention than it should is how AI is helping merchants operate smarter. With AI, operating smarter is about leverage, making every task from mundane to the highly specialized, faster, lower friction, so teams spend less time on busy work and more on what matters, product, storytelling, and their customers. And because AI is a resource multiplier, we're going beyond what was thought possible just a few years ago. Put simply, the rules of what's possible are being rewritten in real time. Let me share just a few highlights from the last edition to show what I mean. Our on-platform AI assistant, Sidekiq, has come a long way in a year. Sidekiq is effectively a co-founder for our merchants. It uses everything it knows about your business, and it proactively tells you which tasks to prioritize. And it will even help you execute those tasks. Because Shopify powers the store, checkout data, and apps, Sidekiq can see the entire picture and do the work in one place. That is entrepreneurship leverage. And in just three weeks after our latest edition dropped, Sidekiq generated almost 4,000 custom apps, created over 29,000 automations with Shopify Flow, built almost 355,000 task lists, and edited over 1.2 million photos. So it's clear that Sidekick is doing real heavy lifting for our merchants. And we're kicking this into high gear this year. Sidekick Pulse is our new feature that proactively helps merchants grow their business. It works in the background to surface tailored advice that's grounded in each merchant's business, powered by over two decades of data. Let me give you one quick example. Last week, Sidekick Pulse made a recommendation to one of our jewelry brands. It suggested bundling four separate products and selling them together as a stack. Why? Because it knew that those four products were already best sellers, and it also knew that bundles tend to convert better and drive up cart value. Personalized data analysis paired with intelligence gained from hundreds of millions of other transactions. This is where our AI assistant really becomes the AI co-founder. It's bespoke, it's intuitive, and it's unmistakably Shopify. Here's another example. Our new app, SimGym, simulates real buyer behavior to give you feedback on changes to your store before you even ship them. And within our online store editor, more than half a million merchants have used AI to create 6.5 million custom elements. Now anyone can design without code. This is really Shopify at its best. Massive complexity transformed into a tool for anyone with imagination, no technical skills required. And all of this is in service of one simple goal. Get more of our merchants from first sale to full scale. Their empires built their way at their speed. Okay, I know that was a lot. But before I turn the call over to Jeff, let me just leave you with this. Remember when I said earlier that our merchants are about to break the commerce sound barrier? Well, here's what that looks like. In 2026, a solo entrepreneur on Shopify who might be launching a business from their mom's kitchen table can access two things. Uncapped reach through our identity commerce rails and uncapped resources through our AI tools. Reach and resources. Those have been the limiting factors for new entrepreneurs. Those formed the commerce barrier. And now they have the tools to break straight through it. And when you combine that with the human ambition that I get to see every single day, here's what I believe to be true. We are about to see more billion-dollar brands born in the next decade than we did in the last century. And our focus is on making sure that we will be the ones powering them. And with that, I'll turn the call over to Jeff.

Thanks, Harley. We've kicked off 2026 with such a burst of product releases that it's easy to overlook some of the remarkable product and financial achievements of 2025. This is an incredibly exciting time, and our role in commerce makes us uniquely positioned to seize this opportunity. In 2025, our merchants faced daunting challenges. Tariffs, the removal of de minimis exemptions, trade wars, and the ever-changing geopolitical landscape have forced merchants to adapt faster than they ever thought possible. We worked hard to help them make those necessary pivots. We offered new products targeting customs and duties. We made available to all of our merchants products that were previously plan-gated. And we expanded many of our products internationally, making it easier than ever for merchants all around the world to sell all around the world. Our financial strength throughout 2025 is a testament to our merchants, with us working to arm them with all the tools they could need to be successful. When your mission is to make the complex seem simple, the magnitude and intensity of that hard stuff can get lost along the way. Shopify powers entire businesses, not just websites, delivering reliable operations across checkout, payments, taxes, shipping, identity, fraud prevention, and more. Our single platform spans online, point of sale, social, marketplaces, B2B, cross-border, and now AI-driven interfaces, unified by one inventory and customer record. This reduces complexity and expands selling opportunities for merchants. As AI advances, Shopify becomes even more essential. AI transforms interfaces and accelerates the pace of change, But it doesn't alter the underlying architecture of commerce. Commerce will always require speed, reliability, and trust at a global scale. When I say scale, consider the billions of transactions that we facilitate. But it's not just about the volume. It's the comprehensive commerce experience we support. When an AI agent surfaces a product in any interface, merchants still need a reliable, secure, and compliant path to purchase and post-purchase. They still need our ecosystem of buyers, developers, and partners. We help merchants beat everything, everywhere, all at once. Representing over 14% of U.S. e-commerce today and rapidly growing percentages in many geographies across the globe, we have an unparalleled view of commerce. Simply, we are the experts at commerce. AI will be a force multiplier. It will help us achieve our goals of democratizing entrepreneurship, inspiring more merchants, driving more transactions, and creating more commerce channels. We remain committed to investing in speed, quality, and simplification. All the hard stuff that has compounded our success to date. Now let's take a look closer at our GMV from various perspectives. Unless otherwise specified, all growth rates are presented on a year-over-year basis. Q4 GMV was $124 billion, marking our first quarter with GMV over $100 billion, representing growth of 31% or 29% on a constant currency basis. First, let's look at our cohorts. In Q4, our growth was led by the 2024 and 2025 cohorts, which have proven to be larger and more productive than prior cohorts, outperforming older cohorts in GMV and revenue after similar periods of time on the platform. While these newer cohorts are strong, they are only part of the story. That is what differentiates Shopify, the strength of the continuous growth of our cohorts over time. Any given quarter's results are a stacking of the successes of our prior cohorts and momentum for future success. Moving to regions, North America continued to deliver strong GMV growth in the quarter, surpassing our expectations, driven primarily by our plus merchants. In Q4, nearly half of incremental GMV dollars came from outside North America. Our European merchants in particular topped off an exceptional year, with Q4 GMV up 45% or 35% in constant currency. Growth was fairly balanced between new acquisitions and growth from existing merchants, a consistent trend across multiple quarters in all regions. We've achieved a scale and global reach that brings us where we now build to be global by default with so much international opportunity still to capture. In terms of channels, Q4 offline GMV increased 29% and B2B GMV increased 84%. These channels continue to be important growth areas for Shopify, expanding access points into our ecosystem and broadening our addressable market to include more businesses and industries. The opportunities in both of these areas remain significant. Finally, verticals. Similar to previous quarters, apparel and accessories, health and beauty, home and garden, and food and beverage continue to deliver strong growth. Our platform is uniquely scalable for businesses of all sizes and industries, from auto parts to luggage, to pet supplies and kids' furniture, covering every commerce surface. Q4 revenue was up 31% or 29% on a constant currency basis. Full year 2025 revenue was up 30% to $11.6 billion, marking the highest annual growth rate that we've achieved since the COVID-driven results of 2021. The strong GMV trends I mentioned drove this revenue growth, with these results coming in ahead of expectations, largely from outperformance in North America. Europe continued its strength. Within the Asia-Pacific region, our merchants also delivered above expectations, with Australia and New Zealand being notable standouts. Looking at the two components of revenue, Q4 merchant solutions revenue grew 35%, driven by the strength in GMV and increased penetration of Shopify payments. $84 billion of GMV was processed on Shopify payments in Q4. That's 38% higher than the prior year and 68% of GMV, four points higher than Q4 of 2024. As a reminder, Q4 is a quarter which traditionally sees the highest percentage of revenue from payments. Subscription solutions revenue grew 17%, driven by a larger percentage of subscriptions coming from higher price plans and higher variable platform fees. Q4 MRR grew 15% year-over-year, with continued growth in each of standard, plus, and offline. As a reminder, our year-over-year growth rate in MRR will continue to have comparability headwinds until Q2 of this year, as our rollout of three-month trials, particularly in our largest markets, did not incur until Q1 2025. With respect to plus MRR, Plus represented 34% of MRR for the quarter, up from 33% a year ago. We continue to add more merchants to Plus from both upgrades of existing merchants and new merchants joining the platform. Plus MRR being relatively consistent as a percentage of MRR is a function of Plus continuing to grow, but our other plans are also growing comparatively well. We've seen the average GMB per merchant in plus increase, a good proof point that we are both scaling our existing merchants and adding larger new merchants. Q4 gross profit grew 25%, coming in slightly ahead of our expectations, driven by the outperformance in revenue. For the year, gross profit was up 24%. Gross profit for subscription solutions grew 18%, with subscription solutions gross margin coming in at 81%. The increase in gross margin was mainly due to a reduction in support costs as we continue to operate more efficiently as we scale. Merchant Solutions' gross profit grew 30%, with gross margin coming in at 36.8%. The year-over-year decrease in gross margin was primarily driven with roughly equal impact from the mixed shift towards payments revenue, decreases in third-party referral and transaction fees, which indicate that more revenue is flowing through our payments rails directly, and the year-over-year impact PayPal had to our gross margin comparability, recognizing that moving forward, we have now normalized for the PayPal impact. With Q4 now behind us, we have largely moved past the more temporary year-over-year comparability headwinds in our gross profit, like the changes in paid trials. Operating expenses were $1 billion for the fourth quarter, or 29% of revenue, and for the full year, they were 35% of revenue, both of these being three-point improvements over 2024 levels. Throughout 2025, we achieved operating leverage in each of R&D, sales and marketing, and G&A, largely due to disciplined headcount management. By leveraging AI, automation, and our proprietary project management and talent management systems, we've been able to accelerate our product development capabilities without growing the size of the team. On marketing, our approach remains unchanged, results-driven, within guardrails, and focused on performance marketing. In 2025, we did increase the percentage of marketing spend devoted to our international efforts, with roughly 40% of our marketing spend targeting markets outside of North America. We feel good about the effectiveness of the marketing work that we are doing based on the size of the merchant cohorts that we are adding. Transaction loans and losses, the smallest of our four operating expense categories, returned in Q4 to our more consistent historical trend of equating to approximately 3% of revenue. As a reminder, the dollar amounts here tend to scale with volumes in our payments, capital, and credit products, with the goal, of course, being to lower loss rates while we scale those products. On last year's Q4 results call, I called out some significant milestones regarding both our operating expenses and our operating margin for both Q4 and the full year 2024, and noted that all four of those metrics were the strongest that we had achieved since going public over 10 years ago. We sit here a year later, and we have surpassed each of those milestones again. Importantly, we accomplished all of this while accelerating our revenue growth. We increased our revenue growth by four points in 2025 and decreased our operating expenses as a percentage of revenue by three points. We have delivered significant leverage to this business. Q4 free cash flow was $715 million, or 19% of revenue. For the year, free cash flow was $2 billion, a 26% increase, achieving a free cash flow margin of 17%. The annual free cash flow margin in the high teens that we achieved for both 2025 and 2024 provides a financial foundation necessary to support our long-term vision and continue to drive the next generation of commerce. Whether it's laying the groundwork for agenda commerce, enhancing sidekick with deeper data insights and models, investing in marketing to drive merchant acquisition, or expanding products internationally, all while ensuring core platform reliability that merchants trust. As a growth company, we choose to invest in these areas rather than pursue higher free cash flow margins in the near term. Our strength in free cash flow margins brings me to the next topic. As you saw in our press release, our board has approved a share repurchase program of up to $2 billion. This program builds on our decision last quarter to settle our convertible notes almost entirely in cash rather than using shares. Both of these decisions reflect our confidence in our long-term value, given the ongoing momentum of this business and the financial results that we can drive. We sit here today with a strong balance sheet and no debt, and a proven track record of delivering free cash flow. We have delivered 10 consecutive quarters of double-digit free cash flow margin, and as you can see by today's results, the business is performing very well. With that, let's move to our Q1 outlook. We expect Q1 revenue growth in the low 30s year over year, similar to our Q4 2025 growth rate. This growth is expected to be driven by the same factors that we saw in 2025. Robust growth in payments led by shop pay, continued success of the merchants already on our platform, acquisition of more merchants of all sizes across all channels, strong international growth, especially in Europe, and continued expansion of more of our products into more geographies. Turning to gross profit, we expect our gross profit dollars to grow in the high 20s. The year-over-year gross margin impact versus Q1 of 2025 is driven by the continued mid-shift between the growth rates of merchant solutions and subscription solutions, which is expected to narrow compared to 2025, and the continued strength of payments. We expect that our Q1 operating expenses will be 37% to 38% of revenues, reflecting a continued improvement of a couple of points from Q1 2025, which was itself down nearly six points from Q1 of 2024. The same factors that help us manage expenses well in Q4 should continue into Q1. Finally, free cash flow margin. For Q1, we expect a free cash flow margin in the low to mid-teens, slightly below our Q1 2025 free cash flow margin. Q1 is typically our lowest GMB quarter, affecting both revenue and cash flow, and this year we expect a slightly higher effective tax rate versus what we have seen in prior years. This tax effect will have some slight inter-quarter impacts to free cash flow, but we expect these will be mitigated on an annual basis. With that, I'll now turn the call back over to Carrie for your questions.