DROPBOX, INC.

ITEM 1. LEGAL PROCEEDINGS

Legal Proceedings

We are currently involved in, and may in the future be involved in, legal proceedings, claims, inquiries, and government investigations in the ordinary course of business, including legal proceedings with third parties asserting infringement of their intellectual property rights, regulatory matters and commercial disputes.

In December 2022, Entangled Media, LLC filed a patent infringement suit asserting two U.S. patents against Dropbox. The case is currently pending in the Northern District of California (San Jose Division). In August 2025, the court granted-in-part Dropbox’s Motion for Summary Judgment, finding that Dropbox does not infringe one of the asserted patents. On August 24, 2026, the court issued a ruling in Dropbox’s favor precluding Entangled Media from pursuing its remaining infringement theory and vacated the trial which was scheduled for September 8, 2026. Entangled Media filed a motion for reconsideration and a hearing was held on November 2, 2026. A decision is pending. Any final judgment in the district court may be appealed by either party to the Federal Circuit.

While we remain confident in the Company’s defenses to the asserted allegations in this case, it is not possible to determine the ultimate outcome at this time. However, based on the information currently available, the Company does not believe this matter is reasonably likely to have a material adverse effect on its financial position or results of operations.

Future litigation may be necessary, among other things, to defend ourselves or our users by determining the scope, enforceability, and validity of third-party proprietary rights or to establish our proprietary rights. The results of any current or future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on us because of defense and settlement costs, diversion of management resources, and other factors.