E-commerce enthusiasm during the global pandemic helped Shopify (TSX:SHOP) unseat the Royal Bank of Canada as the TSX’s most valuable company in 2020. Canada’s tech darling repeated the feat on August 7, 2025. Record earnings, robust revenue growth projections, and an optimistic outlook propelled SHOP to the top this time, not a government-mandated lockdown.
However, the reign was brief as the banking giant regained the crown. As of September 5, 2025, RBC leads again, with a market capitalization of $282.4 billion, ahead of Shopify’s $264.3 billion. Nonetheless, Shopify’s recent surge reinforces its position as a tech powerhouse in Canada’s equities market.
Strategic advantage to all businesses
RBC remains the undisputed king, although Shopify has been the better performer year-to-date (+32.9% versus +18.6%) and over the last 12 months (+114.3% versus +25.6%). SHOP trades at $203.34 per share if you invest today. Brian Belski, the chief investment strategist at BMO Capital Markets, believes Shopify is massively positioned for the next secular tech growth.
Harley Finkelstein, President of Shopify, explained that what people are seeing from the e-commerce platform is how generational companies are built. “Agility and ease of use are now prerequisites for any modern commerce company, and that’s why we’ve become a strategic advantage to all businesses in today’s unpredictable market,” he said.
New frontier in commerce
Shopify delivered impressive numbers in Q2 2025, including 31% revenue growth to US$2.7 billion compared to Q2 2024, and 16% free cash flow (FCF) margin. The e-commerce champion also recorded eight consecutive quarters of double-digit FCF margins. FCF during the quarter reached US$433 million, representing a 26.7% increase over the same period in the prior year.
In the three months ending June 30, 2025, net income climbed 429.8% year-over-year to US$906 million. Finkelstein stated during the earnings call, “The investments we’re making now will fuel our next chapter. At Shopify, innovation never stops. No matter how good the numbers look, there’s always a new frontier in commerce—and we’ll continue to lead the way.”
According to Jeff Hoffmeister, Chief Financial Officer of Shopify, merchants have remained resilient. Also, U.S. tariffs don’t appear to be weighing on the e-commerce platform. In Europe, Shopify has established a competitive edge and strong foothold. Its business grew four to five times more than the local e-commerce markets.
Shopify removed a critical barrier. European merchants welcomed the introduction of multi-currency payouts, which allow them to receive payments in local currencies. Finkelstein is likewise ecstatic about winning larger merchants and iconic global brands. Starbucks, Canada Goose, and Burton Snowboards have migrated to Shopify.
Outsized influence
Management is aware of the risks and challenges, including supply chain disruptions and increasing competition in the e-commerce and AI sectors. For Q3 2025, the e-commerce platform forecasts mid-to-high 20s year-over-year revenue growth, as it continues to focus on international expansion and performance marketing.
Shopify’s ultimate goal is to sustain momentum and unlock more growth opportunities in the years to come. RBC has maintained market leadership for years, although Canada’s tech superstar has built an outsized influence on the market. SHOP could dethrone the dominant force for a third time.
