Shopify Inc. (SHOP  ) stock dropped after the company reported fiscal first-quarter results on Thursday. The company's quarterly revenue growth of 26.8% year over year to $2.36 billion beat the analyst consensus estimate of $2.33 billion.

Revenue growth marked its eighth consecutive quarter with greater than 25% revenue growth, excluding logistics.

The e-commerce platform company reported adjusted EPS of $0.25, up 25% year-over-year, but missed the analyst consensus estimate of $0.26. The adjusted net income was $335 million compared to $256 million a year ago.

Gross merchandise volume increased 22.8% Y/Y to $74.75 billion. Merchant solutions revenue increased 28.9% Y/Y to $1.74 billion.

"Our Q1 results confirm two clear facts. First, we are delivering both growth and profitability at scale. Second, businesses perform better on Shopify, regardless of market conditions," said Harley Finkelstein, President of Shopify. "

The quarter's adjusted gross margin was 49.5%, compared to 51.4% a year ago. The adjusted gross profit grew by 22.2% Y/Y to $1.17 billion.

Shopify generated $367 million in operating cash flow and $363 million in free cash flow for the quarter. The free cash flow margin increased to 15% from 12% a year ago.

Q2 2025 Outlook: Shopify expects revenue growth to be at a mid-twenties percentage rate on a Y/Y basis versus an analyst consensus estimate of $2.50 billion. It projects a free cash flow margin of the mid-teens, similar to the first quarter of 2025.

SHOP Price Action: Shopify stock is down 4.88% at $89.89 at the last check on Thursday.