SHOPIFY INC.
For the period ended Mar 31, 2026. Filed May 5, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 5, 2026
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6. Loans and Merchant Cash Advances
- Loans and Merchant Cash Advances
| March 31, 2026 | December 31, 2025 | |
|---|---|---|
| (in US $ millions) | ||
| Loans receivable, gross(1) | 1,895 | 1,621 |
| Allowance for credit losses related to uncollectible loans receivable | (182) | (160) |
| Merchant cash advances receivable, gross | 422 | 358 |
| Allowance for credit losses related to uncollectible merchant cash advances receivable | (38) | (35) |
| Loans and merchant cash advances, net | 2,097 | 1,784 |
(1)Included in the loans receivable gross balance as of March 31, 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 months ended March 31, 2026, the Company purchased $1.4 billion of loans and merchant cash advances to Shopify merchants (March 31, 2025 - $821 million).
In the three months ended March 31, 2026, the Company recognized revenue of $84 million 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 (March 31, 2025 - $57 million).
Loans
The following table summarizes the activities of the Company’s allowance for credit losses related to uncollectible loans receivable for the three months ended March 31, 2026 and 2025:
| Three months ended | ||
|---|---|---|
| March 31, 2026 | March 31, 2025 | |
| (in US $ millions) | ||
| Allowance, beginning of the period | 160 | 110 |
| Provision for credit losses related to uncollectible loans receivable | 63 | 40 |
| Loans receivable charged off, net of recoveries | (41) | (21) |
| Allowance, end of the period | 182 | 129 |
The following table presents the delinquency status of the gross amount of merchant loans 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.
| March 31, 2026 | |||||
|---|---|---|---|---|---|
| Year of origination | |||||
| 2026 | 2025 | 2024 | Total | Percent | |
| (in US $ millions) | |||||
| Current | 1,022 | 708 | 5 | 1,735 | 91.6% |
| 30-89 Days | — | 20 | 2 | 22 | 1.2% |
| 90-179 Days | — | 21 | 4 | 25 | 1.3% |
| 180+ Days | — | 91 | 22 | 113 | 5.9% |
| Total | 1,022 | 840 | 33 | 1,895 | 100.0% |
| December 31, 2025 | ||||
|---|---|---|---|---|
| Year of origination | ||||
| 2025 | 2024 | Total | Percent | |
| (in US $ millions) | ||||
| Current | 1,473 | 17 | 1,490 | 91.9% |
| 30-89 Days | 14 | 5 | 19 | 1.2% |
| 90-179 Days | 14 | 6 | 20 | 1.2% |
| 180+ Days | 63 | 29 | 92 | 5.7% |
| Total | 1,564 | 57 | 1,621 | 100.0% |
The Company maintains an internal monitoring list related to its outstanding loans. A merchant's ability and willingness to repay the financing receivables 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.
Merchant Cash Advances
The following table summarizes the activities of the Company's allowance for credit losses related to uncollectible merchant cash advances receivable for the three months ended March 31, 2026 and 2025:
| Three months ended | ||
|---|---|---|
| March 31, 2026 | March 31, 2025 | |
| (in US $ millions) | ||
| Allowance, beginning of the period | 35 | 31 |
| Provision for credit losses related to uncollectible merchant cash advances receivable | 10 | 6 |
| Merchant cash advances receivable charged off, net of recoveries | (7) | (4) |
| Allowance, end of the period | 38 | 33 |
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