v3.26.1
Trade and Other Receivables
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Trade and Other Receivables Trade and Other Receivables
Trade receivables and unbilled revenues, net of allowance for credit losses, were as follows:
 March 31, 2026December 31, 2025
(in US $ millions)
Unbilled revenues, net219 229 
Trade receivables, net99 98 
Indirect taxes receivable71 109 
Accrued interest34 39 
Other receivables26 25 
449 500 
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 months ended:
Three months ended March 31,
20262025
(in US $ millions)
Balance, beginning of the period17 

16 
Provision for credit losses related to uncollectible receivables6 

7 
Write-offs(4)

(7)
Balance, end of the period19 

16 
Loans and Merchant Cash Advances
March 31, 2026December 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, gross422 358 
Allowance for credit losses related to uncollectible merchant cash advances receivable(38)(35)
Loans and merchant cash advances, net2,097 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, 2026March 31, 2025
(in US $ millions)
Allowance, beginning of the period160110
Provision for credit losses related to uncollectible loans receivable6340
Loans receivable charged off, net of recoveries(41)(21)
Allowance, end of the period182129
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
202620252024TotalPercent
(in US $ millions)
Current1,022 708 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 %
Total1,022 840 33 1,895 100.0 %
December 31, 2025
Year of origination
20252024TotalPercent
(in US $ millions)
Current1,473 17 1,490 91.9 %
30-89 Days14 5 19 1.2 %
90-179 Days14 6 20 1.2 %
180+ Days63 29 92 5.7 %
Total1,564 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, 2026March 31, 2025
(in US $ millions)
Allowance, beginning of the period3531
Provision for credit losses related to uncollectible merchant cash advances receivable106
Merchant cash advances receivable charged off, net of recoveries(7)(4)
Allowance, end of the period3833