This Week in Business Lending & Fintech

GoDaddy’s Q2 2025 Earnings: AI, Commerce, and Merchant Cash Advance Growth

GoDaddy’s Q2 2025 earnings reaffirmed its resilience and innovation in the digital commerce space. The company is expected to post earnings of $1.34 per share (up nearly 22% year-over-year) on $1.2 billion in revenue, with its Applications & Commerce segment leading the way at 15% annual growth. The new AI-powered Arrow platform has boosted average revenue per user by 9.2%, helping offset a modest 2.4% dip in customer accounts. The Core Platform (domains and hosting) faced more pressure amid industry commoditization.

While not the centerpiece of GoDaddy's financials, its merchant cash advance product—GoDaddy Capital—was noted in recent management and analyst discussions as an area of building momentum. Merchant cash advances and same-day payouts are cited as contributing positively to growth in commerce solutions, but their overall share remains relatively small. Analysts continue to view ongoing adoption of GoDaddy Capital as a way to enhance customer retention and drive higher order values, though Q2 2025 reporting did not detail any major expansion or revenue impact from MCAs. Instead, the company’s primary narrative remains focused on AI enhancements and commerce tools for small businesses.

Shopify’s Q2 2025 Earnings: Growth Momentum Continues

Shopify delivered another standout quarter, reporting Q2 2025 revenue of $2.68 billion—surpassing consensus estimates and highlighting the continued strength of its platform. Revenue grew 31% year-over-year, and net income reached $906 million, a significant turnaround from prior losses. Merchant Solutions revenue, which encompasses services like payments and capital, climbed to $2.02 billion, while subscription revenue was $656 million. Gross merchandise volume (GMV) hit $87.8 billion, up 16% over the previous quarter. Many merchants were also raising prices, Shopify said, without providing more details on the range of hikes.

Shopify’s management emphasized international expansion, with European GMV rising 42% on a constant currency basis, and projected revenue growth in the mid-to-high twenties percent for Q3. Importantly, there were no references to merchant cash advances in their Q2 2025 earnings discussions, call transcripts, or analyst commentaries.

While Shopify Capital continues to offer business funding options, merchant cash advances were not spotlighted as a current focus or revenue driver in their disclosures; the company kept its attention on broader merchant solutions and platform development.

Louisiana Mandates New Disclosures for Revenue-Based Financing

Effective August 1, 2025, Louisiana’s new law requires detailed disclosures for all revenue-based financing transactions, making the state one of the most proactive in broadening transparency standards for business funding. Under House Bill 470, every financing provider must now outline the total amount funded, repayment amounts, and other key contractual terms in writing—regardless of business size or funding amount.

Unlike many other states, Louisiana’s rules don’t require registration, APR disclosures, or exempt any financial institutions from compliance. The move signals a growing momentum for consumer-style protection in business finance, especially as non-bank and fintech players expand their reach among small businesses.

Bankruptcy Court Ruling Redefines Merchant Cash Advances

A series of recent bankruptcy cases—specifically JPR Mechanical, Williams Land, and Global Energy Services—have caught the attention of fintech lenders and legal observers. As reported by ABL Advisor, bankruptcy judges are increasingly treating merchant cash advances (MCAs)—long marketed as “sales” of future receivables—as disguised loans subject to usury laws and traditional creditor protections. In these cases, New York courts analyzed the structure of MCAs, with the outcomes favoring the stance that such products can be treated as loans, creating new exposures for MCA funders if their agreements violate lending regulations.

This shift poses significant legal and operational challenges for MCA companies, potentially curbing aggressive tactics and leading to more borrower protections or standardized disclosures.

As alternative lending grows, expect further scrutiny and court guidance on what truly constitutes a loan versus a sale—fundamental questions that may shape the next phase of fintech innovation.

BlackRock’s $1 Billion Bet on LendingClub’s Marketplace

BlackRock has made headlines with its commitment to deploy up to $1 billion through LendingClub’s marketplace by 2026, already completing the first $100 million tranche. This partnership enables institutional funds managed by BlackRock to invest directly in loans originated on LendingClub’s digital platform. For LendingClub, the deal brings credibility and deeper funding pools, while BlackRock’s engagement signals growing mainstream acceptance of digital, data-driven lending as a mature, investable asset class.

Such partnerships illustrate how alternative finance and marketplace lending are attracting Wall Street capital in ways that would have seemed unlikely a decade ago. It’s a testament to the growing sophistication of fintech credit models, improved risk analytics, and the competitive advantage of rapid digital origination. If successful, this initiative could spark further institutional flows into fintech lending—reshaping competition for banks and creating new opportunities for both borrowers and investors.

Lenders Remain Bullish on Manufacturing & Construction Equipment

Optimism remains high in the equipment finance market, especially across the manufacturing and construction sectors. Infrastructure spending is projected to climb by 10% in 2025, and new U.S. tax laws allow for immediate deductions on equipment purchases, spurring capital investment. North America’s industrial machinery market is booming, with contractors, manufacturers, and service providers all driving demand for flexible equipment loans and leases.

Lenders cite digital origination technology and dealer relationships as keys to capturing growth in these sectors. Notably, the momentum is benefiting both large firms and smaller contractors, with new funding available for automation and reshoring efforts. Combined with bullish forecasts for material handling and leasing volumes through 2032, the sector provides substantial growth opportunities for lenders attuned to the needs of an evolving U.S. industrial base.