Shopify catapults past RBC to become Canada’s most valuable company

August 12, 2025

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Shopify continued its strong run on the markets this week after the software firm reclaimed its spot as the most valuable publicly traded company in Canada. Shopify shares were up $1.27 to $204.65 Tuesday afternoon on the Toronto Stock Exchange. Its stock price has jumped nearly 17 per cent in the past week after Shopify reported double-digit revenue growth in its latest quarter, giving the tech giant a market capitalization of $265.8 billion – good for the No. 1 position over the country’s previous leader, Royal Bank of Canada. Indeed, tariffs don't appear to be weighing on Shopify. The Ottawa-based purveyor of e-commerce software reported a profit of US$906 million in the second quarter as its revenue grew by 31 per cent. The numbers belie the ongoing trade dispute, which poses a threat to businesses Shopify counts on for cash and stands to inflict much more damage if U.S. President Donald Trump continues to ramp up his levies or Canada retaliates. But for now, chief financial officer Jeff Hoffmeister says Shopify's merchants have "remained resilient" and thus, so has his company. "The business remains in very good shape," he said last week on a call with analysts. Following last Wednesday's earnings report, Shopify's shares finished the day up 22 per cent on the Toronto Stock Exchange. The rise suggested the market was pleased with Shopify's second-quarter profit, which compared with US$171 million a year ago. The firm, which keeps its books in U.S. dollars, said the profit amounted to 69 cents US per diluted share attributable to shareholders compared with 13 cents US per diluted share a year earlier. Its net income excluding the impact of its equity investments for the quarter ended June 30 amounted to US$338 million, up from US$291 million a year ago. Revenue totalled US$2.68 billion for the quarter, up from US$2.05 billion in the same quarter last year. The figures cover a period when trade relations between the U.S. and many of its allies, including Canada, continued to suffer as Trump threatened and often imposed new tariffs. The tariffs increased operating costs for many businesses that produce and ship products across global borders. Yet Hoffmeister said Shopify hadn't seen "any meaningful changes" in cross-border activity or buyer behaviour. Customers didn't even move up purchases to take advantage of lower pricing before tariff increases. Merchants, however, decided to prepare for trouble ahead anyway and many raised prices, he said. The hikes could help combat the end of the de minimis exemption, which allows global businesses to ship packages valued at less than $800 to the U.S. without having to pay duties. The U.S. previously removed the exemption for China but recently expanded it to every other country. Hoffmeister said only four per cent of Shopify's global gross merchandise volume — the value of all products sold through its software — is currently shipped under de minimis exemptions. "We've not seen any significant changes in our GMV levels related to merchants that shipped products under the de minimis exemptions for China, since those rules were changed back in May," he said. "We'll continue monitoring these trends closely, staying focused on supporting our merchants in an evolving environment." Shopify has added some high-profile merchants even in the face of tariffs. It added key customers like café chain Starbucks, snowboard retailer Burton and luxury parka maker Canada Goose in the last quarter. "I've been in talks with the CEO Dani (Reiss) for a long time," Shopify president Harley Finkelstein said on the same call as Hoffmeister about his discussions with Canada Goose. "Incredibly, the deal actually closed on Canada Day this year, which made it feel extra special." – With additional reporting from OBJ staff