v3.26.3
Loans and Merchant Cash Advances
 9 Months Ended
Sep. 30, 2026
Receivables [Abstract]  
Loans and Merchant Cash Advances Trade and Other Receivables
Trade receivables and unbilled revenues, net of allowance for credit losses, were as follows:
September 30, 2026December 31, 2025
(in US $ millions)
Unbilled revenues, net270 229 
Trade receivables, net108 98 
Indirect taxes receivable48 109 
Accrued interest25 39 
Other receivables32 25 
483 500 
Unbilled revenues represent amounts not yet billed related to partner referral fees, subscription fees for Plus merchants, shipping charges and transaction fees as of the condensed consolidated balance sheet dates.
The allowance for credit losses reflects the Company's best estimate of probable losses inherent in the unbilled revenues and trade receivables accounts. The Company determined the provision based on known troubled accounts, historical experience, supportable forecasts of collectibility and other currently available evidence.
Activity in the allowance for credit losses was as follows for the three and nine months ended:
Three months ended September 30,Nine months ended September 30,
2026202520262025
(in US $ millions)
Balance, beginning of the period21 

16 17 16 
Provision for credit losses related to uncollectible receivables13 

7 26 21 
Write-offs(6)

(6)(15)(20)
Balance, end of the period28 

17 28 17 
Loans and Merchant Cash Advances
September 30, 2026December 31, 2025
(in US $ millions)
Loans receivable, gross(1)
2,226 1,621 
Merchant cash advances receivable, gross370 358 
Allowance for credit losses related to uncollectible loans and merchant cash advances receivable
(246)(195)
Loans and merchant cash advances, net2,350 1,784 
(1) Included in the loans receivable gross balance as of September 30, 2026 is $35 million of interest receivable (December 31, 2025 - $24 million).
Certain loans and merchant cash advances are facilitated by the Company and originated by a bank partner, from whom the Company then purchases the loans and merchant cash advances obtaining all rights, title and interest or discount. In the three and nine months ended September 30, 2026, the Company purchased $1.5 billion and $4.3 billion, respectively, of loans and merchant cash advances to Shopify merchants (September 30, 2025 - $1.0 billion and $2.8 billion).
In the three and nine months ended September 30, 2026, the Company recognized revenue of $96 million and $271 million, respectively, related to interest and fees earned on the Company's loans, which
do not represent revenues recognized in the scope of ASC 606, Revenue from Contracts with Customers (September 30, 2025 - $66 million and $185 million).
The following table summarizes the activities of the Company’s allowance for credit losses related to uncollectible loans and merchant cash advances receivable for the three and nine months ended September 30, 2026 and 2025:
Three months ended September 30,Nine months ended September 30,
2026202520262025
(in US $ millions)
Allowance, beginning of the period242169195141
Provision for credit losses related to uncollectible loans and merchant cash advances receivable6349217137
Loans and merchant cash advances receivable charged off, net of recoveries(59)(41)(166)(101)
Allowance, end of the period246177246177
The following table presents the delinquency status of the gross amount of loans and merchant cash advances by year of origination. The delinquency status is determined based on the number of days past the contractual or expected repayment date for which the Company anticipates to receive the amounts outstanding. The "current" category represents balances that are anticipated to be repaid within 29 days of the contractual repayment dates, or are anticipated to be repaid within 29 days of the expected repayment date.
September 30, 2026
Year of origination
202620252024TotalPercent
(in US $ millions)
Current2,251 113 — 2,364 91.1 %
30-89 Days26 12 — 38 1.5 %
90-179 Days19 17 1 37 1.4 %
180+ Days80 68 9 157 6.0 %
Total2,376 210 10 2,596 100.0 %
December 31, 2025
Year of origination
20252024TotalPercent
(in US $ millions)
Current1,803 19 1,822 92.0 %
30-89 Days16 6 22 1.1 %
90-179 Days16 7 23 1.2 %
180+ Days77 35 112 5.7 %
Total1,912 67 1,979 100.0 %
The Company maintains an internal monitoring list related to its outstanding loans. A merchant's ability and willingness to repay the loan and merchant cash advances outstanding under the program is analyzed for a variety of factors that include, but are not limited to current or expected age of the financing, merchant subscription or financing status, merchant gross merchandise volume trends and other changes to merchant credit profiles.