SHOPIFY INC.

9. Related Parties

The Company has a commercial agreement with Flexport, a company in which it has an equity method investment. The Company is entitled to earn a share of revenues for orders processed or otherwise sent through services provided by Shopify, subject to certain financial conditions. In the three months ended March 31, 2026, as certain financial conditions were not met, the Company recognizednil revenue 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, 2026, the Company recognized $3 million of expense in the condensed consolidated statements of operations and comprehensive loss (March 31, 2025 - $2 million) and as of March 31, 2026, $16 million in "Other current assets" and $8 million in "Other long-term assets" in the condensed consolidated balance sheets are related to this agreement.

The Company also has an investment in Flexport in the form of convertible notes with a fair value of $332 million as of March 31, 2026 (December 31, 2025 - $326 million). The Company has elected to account for it using the fair value option for the investment, which is classified within "Equity and other investments" in the condensed consolidated balance sheets. In the three months ended March 31, 2026, the Company has recognized $10 million of interest income related to the convertible notes within "Interest income" (March 31, 2025 - $8 million), and an immaterial amount of unrealized losses in the condensed consolidated statements of operations and comprehensive loss.