SHOPIFY INC

12. Related Parties

The Company has a commercial agreement with Flexport, a company in which it has an equity method investment. The Company earns a share of revenues for orders processed or otherwise sent through services provided by Shopify. The Company recognizednil revenue in the three months ended March 31, 2025, related to this agreement. The Company has a separate agreement with Flexport to provide co-marketing services for the coordinated marketing of fulfillment-related products and services to current and prospective merchants. In the three months ended March 31, 2025, the Company recognized $2 million of expense in the condensed consolidated statements of operations and comprehensive income (loss), and as of March 31, 2025, $14 million in "Other current assets" in the condensed consolidated balance sheets is related to this agreement.

The Company also has an investment in Flexport in the form of convertible notes with a a fair value of $298 million as of March 31, 2025 (December 31, 2024 - $291 million). The Company has selected to account for it using the fair value option for the investment, which is classified within "Equity and other investments". The Company has recognized $8 million of interest income related to the convertible note within "Interest income" and an immaterial amount of unrealized losses in the condensed consolidated statements of operations and comprehensive income (loss) during the three months ended March 31, 2025 (March 31, 2024 - $8 million and immaterial).