Operating Expenses
Provision for Credit Losses
Shopify Provision for Credit Losses decreased by 59.8% to $41.00M in Q4 2025 compared to the prior quarter. Year-over-year, this metric declined by 21.2%, from $52.00M to $41.00M. Over 3 years (FY 2022 to FY 2025), Provision for Credit Losses shows an upward trend with a 45.9% CAGR. This increase may warrant attention — for this metric, lower values are generally preferred.
Analysis
StatementIncome Statement
SectionOperating Expenses
CategoryRisk
SignalLower is better
VolatilityVolatile
First reportedQ1 2017
Last reportedQ4 2025
How to read this metric
An increase suggests deteriorating credit quality or portfolio growth, while a decrease may indicate improved borrower health or more conservative lending.
Detailed definition
This is an expense set aside to cover expected future losses on loans and credit card receivables. It reflects managemen...
Peer comparison
Standard for all lenders and credit card issuers.
Metric ID:
is_provision_for_credit_lossesHistorical Data
16 periods
| Q1 '22 | Q2 '22 | Q3 '22 | Q4 '22 | Q1 '23 | Q2 '23 | Q3 '23 | Q4 '23 | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Value | $18.50M | $18.50M | $18.50M | $18.50M | $20.00M | $20.00M | $20.00M | $20.00M | $28.00M | $26.00M | $42.00M | $52.00M | $43.00M | $44.00M | $102.00M | $41.00M |
| QoQ Change | — | +0.0% | +0.0% | +0.0% | +8.1% | +0.0% | +0.0% | +0.0% | +40.0% | -7.1% | +61.5% | +23.8% | -17.3% | +2.3% | +131.8% | -59.8% |
| YoY Change | — | — | — | — | +8.1% | +8.1% | +8.1% | +8.1% | +40.0% | +30.0% | +110.0% | +160.0% | +53.6% | +69.2% | +142.9% | -21.2% |
Range$18.50M – $102.00M
CAGR+23.6%
Avg YoY Growth+51.4%
Median YoY Growth+35.0%
Provision for Credit Losses at Other Companies
Frequently Asked Questions
- What is Shopify's provision for credit losses?
- Shopify (SHOP) reported provision for credit losses of $41.00M in Q4 2025.
- How has Shopify's provision for credit losses changed year-over-year?
- Shopify's provision for credit losses decreased by 21.2% year-over-year, from $52.00M to $41.00M.
- What is the long-term trend for Shopify's provision for credit losses?
- Over 3 years (2022 to 2025), Shopify's provision for credit losses has grown at a 45.9% compound annual growth rate (CAGR), from $74.00M to $230.00M.
- What does provision for credit losses mean?
- The amount of money set aside to cover potential losses from unpaid loans.