Shareholders' Equity

9 Months Ended

Sep. 30, 2025

Shareholders’ Equity

Stock-Based Compensation

As of September 30, 2025, there were 473,149,839 shares reserved for issuance under the Company's Third Amended and Restated Stock Option Plan ("SOP") and the Third Amended and Restated Long Term Incentive Plan ("LTIP").

The following table summarizes the stock option and Restricted Share Unit ("RSU") award activities under the Company's share-based compensation plans for the nine months ended September 30, 2025:


	Shares Subject to Options Outstanding					Outstanding RSUs
	Number of Options(1)	Weighted Average Exercise Price	Remaining Contractual Term (in years)	Aggregate Intrinsic Value(2)	Weighted Average Grant Date Fair Value	Outstanding RSUs	Weighted Average Grant Date Fair Value
	(in US $ millions, except share and share price amounts)
December 31, 2024	14,636,992	64.49	7.68	623	—	5,121,069	74.90
Stock options granted	1,622,585	122.59	—	—	63.66	—	—
Stock options exercised	(3,029,467)	41.77	—	—	—	—	—
Stock options forfeited	(1,306,389)	78.53	—	—	—	—	—
RSUs granted	—	—	—	—	—	3,000,370	115.21
RSUs settled	—	—	—	—	—	(3,419,188)	82.36
RSUs forfeited	—	—	—	—	—	(817,552)	77.37
September 30, 2025	11,923,721	76.63	7.03	826	—	3,884,699	98.95

Stock options exercisable as of September 30, 2025	6,072,409	68.29	5.52	479

(1) As of September 30, 2025, 11,886,690 of the outstanding stock options were granted under the Company's SOP and are exercisable for Class A subordinate voting shares and 37,031 of the outstanding stock options were granted under the Deliverr 2017 Stock Option and Grant Plan and are exercisable for Class A subordinate voting shares.

(2) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing market price of the Company's Class A subordinate voting shares as of September 30, 2025 and December 31, 2024.

As of September 30, 2025, the Company had issued 4,363 deferred share units ("DSUs") under its LTIP.

In connection with the acquisition of Vantage Discovery Inc., 252,257 Class A subordinate voting shares were issued with trading restrictions. The restrictions on these shares are lifted over time and are being accounted for as stock-based compensation as the vesting is contingent on continued employment and therefore related to post-combination services. As of September 30, 2025, 252,257 of the Class A subordinate voting shares remained restricted.

The following table illustrates the classification of stock-based compensation expense in the condensed consolidated statements of operations and comprehensive income, which includes both stock-based compensation and restricted stock-compensation expense:


	Three months ended September 30,		Nine months ended September 30,
	2025	2024	2025	2024
	(in US $ millions)
Cost of revenues	1	—	3	4
Sales and marketing	12	14	35	35
Research and development	73	74	232	212
General and administrative	21	22	64	70
	107	110	334	321

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 815
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+ Details

SHOPIFY INC. 10-Q