Q3 MRR was $141 million, up 32% year-over-year. We saw strong year-over-year growth in MRR across each of Standard, Plus and point-of-sale. The year-over-year strength stemmed from increases in the number of merchants across all three of these categories combined with, for Standard, the pricing plan that we implemented earlier this year; for point-of-sale, which was up 34%, our new retail plan combined with improvements in our go-to-market strategy; and for Plus, continued growth in new merchants and upgrades with Plus growing to 31% of MRR for Q3 of this year. Moving on to gross profit. Gross profit was $901 million for the quarter, up 36% year-over-year. Gross margin for Subscription Solutions was 81.9% compared to 78.1% in Q3 of 2022. The increase was driven primarily by a full quarter of the pricing changes as well as support efficiencies.
Gross margin for Merchant Solutions was 41.0% compared to 37.2% in Q3 of 2022. Our Merchant Solutions gross margin improvement was primarily due to the lack of the dilutive margin impact of our logistics business in the prior year. When excluding the impact of logistics, our Merchant Solutions gross margin was down 1 point year-over-year. It’s the same factor as we experienced in the second quarter, including growth of our lower margin Shopify Payments business, was partially offset by growth in other higher margin Merchant Solutions, including capital, installments and markets. This brings our overall Q3 gross margin to 52.6%, compared to 48.5% in the prior year. Excluding the dilutive impact of the logistics business in Q3 of 2022, gross margin in Q3 was essentially flat year-over-year, driven by growth in our higher margin Subscription Solutions business, primarily due to the pricing changes offset by continued growth in our lower margin payments business within Merchant Solutions.
Operating expenses were $779 million for the quarter, down 23% compared to Q3 of 2022. The decline year-over-year was primarily driven by lower headcount, the sale of the logistics business and the $127 million in onetime charges, primarily pertaining to legal accruals incurred in the prior year. Compared to our second quarter operating expense of $818 million, excluding the charges from the sale of our logistics business, its related SBC and severance, our Q3 operating expenses were lower quarter-over-quarter, largely from lower compensation expense driven by a full quarter of lower headcount, partially offset by real estate charge for the disposal of the last lease we have related to our logistics business and a reduced footprint in one of our ongoing offices as a result of lower headcount.
Relative to our outlook, three items drove our lower third quarter operating expenses, headcount, marketing and back office. On headcount, we are selectively hiring in key areas, but we decided to restart that process at a slower pace, so compensation expense was lower than planned. Marketing came in lower as we continue to remain disciplined in our spend. And lastly, back office spend came in even better than expected in areas such as travel, events, legal and recruiting. Bringing this to the bottom-line, operating income was $122 million in the quarter. Stock-based compensation for Q3 was one $102 million, compared to $150 million for the same period a year ago, driven primarily by lower headcount. Capital expenditures were $2 million for the quarter.
Q3 free cash flow was $276 million or 16% of revenue. We have mentioned in our past few calls our focus on operating discipline, and you are seeing it play out in our free cash flow margins. We have delivered four consecutive quarters of free cash flow, generated more free cash flow in Q3 than the prior three quarters combined and have grown both, free cash flow dollars and free cash flow margin sequentially each quarter this year. Again, all of this in line with the work that we’ve been doing to drive strong free cash flow margins. Turning to our balance sheet, our cash and marketable securities balance was $4.9 billion as of September 30th, and we had a net cash position of $4.0 billion after consideration of the outstanding convertible notes.
Before turning to outlook, I want to highlight the Flexport commercial agreement that has now been signed. We are excited to continue to partner with Ryan and the Flexport team to bring our merchants affordable and reliable logistics offerings. It is still very early days and we do not expect this agreement to have a material impact on our results for the rest of the year. Let’s now turn to outlook. Our expectations for the rest of the year are as follows, first on revenue. We expect revenue for the full year to grow to mid-20s percentage rate on a year-over-year basis, driven by fourth quarter revenue growth in the high-teens on a GAAP basis, which translates into a year-over-year growth rate in the low- to mid-20s, when excluding the 400 to 500 basis points impact from the sale of our logistics business.
