SHOPIFY INC.

10. 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 and nine months ended September 30, 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 and nine months ended September 30, 2026, the Company recognized $3 million and $9 million of expense in the condensed consolidated statements of operations and comprehensive income (September 30, 2025 - $2 million and $6 million), respectively, and as of September 30, 2026, $9 million in "Other current assets" and $9 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 $351 million as of September 30, 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 and nine months ended September 30, 2026, the Company has recognized $10 million and $29 million of interest income related to the convertible notes within "Interest income" (September 30, 2025 - $9 million and $26 million), and an immaterial amount of unrealized gains in the condensed consolidated statements of operations and comprehensive income.