SHOPIFY INC. 10-K

Item 9A: Controls and Procedures All control systems, no matter how well designed, have inherent limitations. Accordingly, even disclosure controls and procedures and internal controls over financial reporting determined to be effective can only provide reasonable assurance of achieving their control objectives with respect to financial statement preparation and presentation. Evaluation of disclosure controls and procedures: Management of the Company, under the supervision of the Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining 66 Table of Contents disclosure controls and procedures (as defined by the SEC in Rule 13a-15(e) under the Exchange Act) for the Company to ensure that material information relating to the Company, including its consolidated subsidiaries, that is required to be made known to the Chief Executive Officer and Chief Financial Officer by others within the Company and disclosed by the Company in reports filed or submitted by it under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms; and (ii) accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure. Management, including the Chief Executive Officer and Chief Financial Officer, have evaluated the effectiveness of the Company's disclosure controls and procedures as of December 31, 2025 and have concluded that the Company's disclosure controls and procedures were effective as of December 31, 2025. Management’s Annual Report on Internal Control over Financial Reporting Management of the Company, under the supervision of the Chief Executive Officer and the Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over the Company's financial reporting. Internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with United States generally accepted accounting principles. Management, including the Chief Executive Officer and Chief Financial Officer, have assessed the effectiveness of the Company's internal control over financial reporting in accordance with Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this assessment, management, including the Chief Executive Officer and Chief Financial Officer, have determined that the Company's internal control over financial reporting was effective as of December 31, 2025. The effectiveness of the Company's internal control over financial reporting as of December 31, 2025 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report which appears in Item 15 of this Annual Report on Form 10-K. Changes in internal control over financial reporting: There were no changes in our internal control over financial reporting (as defined in Exchange Act Rule 13a15(f)) identified in connection with the evaluation required by Exchange Act Rules 13a-15(d) or 15d-15(d) that occurred during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B: Other Information Rule 10b5-1 Trading Plans During the three months ended December 31, 2025, the Company's directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) listed below adopted , modified or terminated trading plans intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. On November 14, 2025 , Harley Finkelstein , the Company's President , entered into a trading plan that provides for the sale of up to 288,265 shares of the Company's Class A subordinate voting shares. The plan will terminate on December 31, 2026 , subject to early termination for certain specific events set forth in the plan. On December 8, 2025 , Tobias Lütke , the Company's Chief Executive Officer , concurrently entered into a trading plan that provides for the sale of the Company's Class A subordinate voting shares that are held directly by Mr. Lütke, and a separate trading plan that provides for the sale of the Company's Class A subordinate voting shares held by Mr. Lütke through two holding entities controlled by Mr. Lütke (each, an "Integrated Plan" and collectively, the "Integrated Plans"). The Integrated Plans provide for the sale of up to 1,987,032 Class A subordinate voting shares in the aggregate across both Integrated Plans and will terminate on December 31, 2026 , subject to early termination for certain specified events as set forth in such plans. 67 Table of Contents Item 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. 68 Table of Contents Part III Item 10: Directors, Executive Officers and Corporate Governance The information required by this Item will be disclosed in our Form 10-K/A, which will be filed no later than 120 days after December 31, 2025. This information will also be disclosed in the management information circular that we prepare in accordance with Canadian corporate and securities law requirements. Code of Ethics, Governance Guidelines and Committee Charters We have adopted a Code of Conduct that applies to all Shopify employees and directors. The Code of Conduct is posted on our website at https://shopifyinvestors.com/Governance/Governance-Documents. We will post any amendments to or waivers of the Code of Conduct at that location. We have also adopted a Board Charter, Audit Committee Charter, Compensation and Talent Management Committee Charter, and Nominating and Corporate Governance Committee Charter for the Board of Directors and for each of its committees. Each of these documents is available on our website at https://shopifyinvestors.com/Governance/Governance-Documents. Insider Trading Policies and Procedures The Company has insider trading policies and procedures (the "Insider Trading Policy") that govern the purchase, sale and other dispositions of its securities by directors, officers, employees and contractors, as well as by the Company itself. We believe these policies and procedures are reasonably designed to promote compliance with insider trading laws, rules and regulations and applicable listing standards. A copy of our Insider Trading Policy is filed as Exhibit 19.1 to this Annual Report on Form 10-K. Item 11: Executive Compensation The information required by this Item will be disclosed in our Form 10-K/A, which will be filed no later than 120 days after December 31, 2025. This information will also be disclosed in the management information circular that we prepare in accordance with Canadian corporate and securities law requirements. Item 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The information required by this Item will be disclosed in our Form 10-K/A, which will be filed no later than 120 days after December 31, 2025. This information will also be disclosed in the management information circular that we prepare in accordance with Canadian corporate and securities law requirements. Item 13: Certain Relationships and Related Transactions, and Director Independence The information required by this Item will be disclosed in our Form 10-K/A, which will be filed no later than 120 days after December 31, 2025. This information will also be disclosed in the management information circular that we prepare in accordance with Canadian corporate and securities law requirements. Item 14: Principal Accountant Fees and Services The information required by this Item will be disclosed in our Form 10-K/A, which will be filed no later than 120 days after December 31, 2025. This information will also be disclosed in the management information circular that we prepare in accordance with Canadian corporate and securities law requirements. 69 Table of Contents Part IV Item 15: Exhibit and Financial Statement Schedules (a) The following documents are filed as part of this report: 1. Consolidated Financial Statements Report of Independent Registered Public Accounting Firm (PCAOB ID 271 ) 71 Consolidated Balance Sheets 74 Consolidated Statements of Operations and Comprehensive Income 75 Consolidated Statements of Changes in Shareholders' Equity 76 Consolidated Statements of Cash Flows 77 Notes to the Consolidated Financial Statements 78 2. Exhibits Required by Item 601 of Regulation S-K The information required by this item is set forth in the Index to Exhibits that precedes the signature page of this Annual Report Index to Exhibits 115 (b) The information required by this item is set forth in the Index to Exhibits that precedes the signature page of this Annual Report. Item 16: Form 10-K Summary None. 70 Report of Independent Registered Public Accounting Firm To the Board of Directors and Shareholders of Shopify Inc. Opinions on the Financial Statements and Internal Control over Financial Reporting We have audited the accompanying consolidated balance sheets of Shopify Inc. and its subsidiaries (the Company) as of December 31, 2025 and 2024, and the related consolidated statements of operations and comprehensive income, of changes in shareholders’ equity and of cash flows for each of the three years in the period ended December 31, 2025, including the related notes (collectively referred to as the consolidated financial statements). We also have audited the Company’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control ‒ Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control ‒ Integrated Framework (2013) issued by the COSO. Basis for Opinions The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Annual Report on Internal Control over Financial Reporting appearing under Item 9A. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects. Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions. Definition and Limitations of Internal Control over Financial Reporting A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for 71 external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Critical Audit Matters The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. Revenue Recognition — Principal versus Agent Considerations As described in Note 3 to the consolidated financial statements, management follows the guidance provided in ASC 606, Revenue from Contracts with Customers, for determining whether the Company is the principal or an agent in arrangements with customers that involve another party that contributes to providing a specified service to a customer. In these instances, management determines whether the Company has promised to provide the service itself (as principal) or to arrange for the specified service to be provided by another party (as an agent). As disclosed by management, this determination is a matter of significant judgment that depends on the facts and circumstances of each arrangement. The Company recognizes revenue from the sale of shipping labels, the sale of apps, the sale of themes, card services and installments services on a net basis as the Company is the agent in the arrangement with customers. All other revenue is reported on a gross basis, as management has determined it is the principal in the respective arrangements. Revenue reported on a gross basis makes up a significant portion of total revenues of $11,556 million. The principal considerations for our determination that performing procedures relating to Revenue Recognition – Principal versus Agent Considerations is a critical audit matter are (i) that there was significant judgment applied by management, in some instances, in assessing whether the Company (a) was primarily responsible for the fulfillment of the specified service, (b) had control of the specified service before it was transferred to the customer, and (c) had full discretion in establishing the price for the specified service; and (ii) a high degree of auditor judgment, subjectivity and effort in performing audit procedures and evaluating the results of those procedures. Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management’s determination as to whether the Company had promised to provide the service as principal or as an agent. These procedures also included, among others, testing the reasonableness of management’s determination as to whether the Company had promised to provide the service as principal or as an agent, which included assessing whether the Company was primarily responsible for the fulfillment of the specified service, had control of the 72 specified service before it was transferred to the customer, and had full discretion in establishing the price for the specified service by considering the contractual terms with customers, on a sample basis, and agreements with service providers, where applicable, and considering whether these conclusions were consistent with evidence obtained in other areas of the audit. /s/ PricewaterhouseCoopers LLP Chartered Professional Accountants, Licensed Public Accountants Ottawa, Canada February 11, 2026 We have served as the Company’s auditor since 2011. 73 Shopify Inc. Consolidated Balance Sheets ( In US $ millions, except share amounts) December 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents 1,545 1,498 Marketable securities 4,233 3,981 Trade and other receivables, net 500 342 Loans and merchant cash advances, net 1,784 1,224 Other current assets 234 209 8,296 7,254 Long-term assets Property and equipment, net 53 47 Operating lease right-of-use assets, net 88 93 Intangible assets, net 30 22 Deferred tax assets 33 37 Other long-term assets 39 21 Long-term investments 975 709 Equity and other investments ($ 3,619 and $ 3,930 , carried at fair value) 4,582 4,647 Equity method investment 602 642 Goodwill 491 452 6,893 6,670 Total assets 15,189 13,924 Liabilities and shareholders’ equity Current liabilities Accounts payable and accrued liabilities 1,075 737 Deferred revenue 300 283 Operating lease liabilities 17 18 Convertible senior notes — 918 1,392 1,956 Long-term liabilities Deferred revenue 98 147 Operating lease liabilities 171 190 Deferred tax liabilities 55 73 324 410 Contingencies (Note 17) Shareholders’ equity Common stock, unlimited Class A subordinate voting shares authorized, 1,225,830,706 and 1,215,229,233 , issued and outstanding; unlimited Class B restricted voting shares authorized, 78,073,594 and 79,350,906 issued and outstanding; 1 Founder share authorized, 1 and 1 issued and outstanding 10,376 9,634 Additional paid-in capital 236 305 Accumulated other comprehensive income (loss) 1 ( 10 ) Accumulated surplus 2,860 1,629 Total shareholders’ equity 13,473 11,558 Total liabilities and shareholders’ equity 15,189 13,924 The accompanying notes are an integral part of these consolidated financial statements. 74 Shopify Inc. Consolidated Statements of Operations and Comprehensive Income (In US $ millions, except share and per share amounts) Years ended December 31, 2025 December 31, 2024 December 31, 2023 Revenues Subscription solutions 2,752 2,350 1,837 Merchant solutions 8,804 6,530 5,223 11,556 8,880 7,060 Cost of revenues Subscription solutions 520 434 354 Merchant solutions 5,481 3,974 3,191 6,001 4,408 3,545 Gross profit 5,555 4,472 3,515 Operating expenses Sales and marketing 1,663 1,393 1,220 Research and development 1,536 1,367 1,730 General and administrative 471 410 491 Transaction and loan losses 417 227 152 Impairment on sales of Shopify's logistics businesses — — 1,340 Total operating expenses 4,087 3,397 4,933 Income (loss) from operations 1,468 1,075 ( 1,418 ) Other income, net Interest income 331 308 241 Net realized gain (loss) on equity and other investments 33 3 ( 5 ) Net unrealized (loss) gain on equity and other investments ( 186 ) 988 1,424 Net loss on equity method investment ( 40 ) ( 138 ) ( 58 ) Realized loss on embedded derivative ( 123 ) — — Foreign exchange gain (loss) 26 ( 8 ) 1 Total other income, net 41 1,153 1,603 Income before income taxes 1,509 2,228 185 Provision for income taxes ( 278 ) ( 209 ) ( 53 ) Net income 1,231 2,019 132 Net income per share attributable to shareholders: Basic $ 0.95 $ 1.57 $ 0.10 Diluted $ 0.94 $ 1.55 $ 0.10 Weighted average shares used to compute net income per share attributable to shareholders: Basic 1,298,955,860 1,289,812,124 1,281,554,559 Diluted 1,304,953,255 1,301,509,980 1,295,511,385 Other comprehensive income (loss) Unrealized gain (loss) on cash flow hedges 15 ( 19 ) 20 Tax effect on unrealized gain (loss) on cash flow hedges ( 4 ) 5 — Total other comprehensive income (loss) 11 ( 14 ) 20 Comprehensive income 1,242 2,005 152 The accompanying notes are an integral part of these consolidated financial statements. 75 Shopify Inc. Consolidated Statements of Changes in Shareholders’ Equity (In US $ millions, except share amounts) Common Stock Additional Paid-In Capital Accumulated Other Comprehensive Income (Loss) Accumulated (Deficit) Surplus Total Shares Amount As of December 31, 2022 1,275,128,567 8,747 30 ( 16 ) ( 522 ) 8,239 Exercise of stock options 3,915,216 109 ( 49 ) — — 60 Stock-based compensation — — 615 — — 615 Vesting of restricted share units 7,288,043 335 ( 335 ) — — — Issuance of shares related to business acquisitions 238,468 10 ( 10 ) — — — Net income and comprehensive income for the year — — — 20 132 152 As of December 31, 2023 1,286,570,294 9,201 251 4 ( 390 ) 9,066 Exercise of stock options 2,576,628 89 ( 28 ) — — 61 Stock-based compensation — — 430 — — 430 Vesting of restricted share units 5,433,218 344 ( 348 ) — — ( 4 ) Net income and comprehensive loss for the year — — — ( 14 ) 2,019 2,005 As of December 31, 2024 1,294,580,140 9,634 305 ( 10 ) 1,629 11,558 Exercise of stock options 4,739,441 342 ( 110 ) — — 232 Stock-based compensation — — 449 — — 449 Vesting of restricted share units 4,332,463 376 ( 384 ) — — ( 8 ) Issuance of shares related to business acquisitions 252,257 24 ( 24 ) — — — Net income and comprehensive income for the year — — — 11 1,231 1,242 As of December 31, 2025 1,303,904,301 10,376 236 1 2,860 13,473 The accompanying notes are an integral part of these consolidated financial statements. 76 Shopify Inc. Consolidated Statements of Cash Flows (In US $ millions) Years ended December 31, 2025 December 31, 2024 December 31, 2023 Cash flows from operating activities Net income for the year 1,231 2,019 132 Adjustments to reconcile net income to net cash provided by operating activities: Amortization and depreciation 31 36 70 Stock-based compensation 449 430 615 Impairment of right-of-use assets and leasehold improvements 13 — 38 Provision for transaction and loan losses 230 148 80 Deferred income tax (recovery) expense ( 14 ) 78 ( 1 ) Revenue related to non-cash consideration ( 49 ) ( 94 ) ( 158 ) Impairment on sales of Shopify's logistics businesses — — 1,340 Net loss (gain) on equity and other investments 153 ( 992 ) ( 1,419 ) Net loss on equity method investment 40 138 58 Realized loss on embedded derivative 123 — — Unrealized foreign exchange (gain) loss ( 57 ) 19 ( 6 ) Changes in operating assets and liabilities Trade and other receivables ( 219 ) ( 148 ) ( 98 ) Merchant cash advances and related receivables, net ( 141 ) ( 82 ) 214 Other current and long-term assets ( 38 ) ( 72 ) ( 50 ) Accounts payable and accrued liabilities 262 110 69 Deferred revenue 19 26 60 Net cash provided by operating activities 2,033 1,616 944 Cash flows from investing activities Purchases of property and equipment ( 26 ) ( 19 ) ( 39 ) Purchases of marketable securities ( 7,040 ) ( 8,396 ) ( 5,841 ) Maturities of marketable securities 6,552 7,457 5,590 Purchases and originations of loans ( 4,014 ) ( 3,006 ) ( 1,861 ) Repayments and sales of loans 3,435 2,542 1,338 Purchases of equity and other investments ( 99 ) ( 137 ) ( 364 ) Acquisition of businesses, net of cash acquired ( 56 ) ( 30 ) ( 31 ) Other 58 3 ( 36 ) Net cash used in investing activities ( 1,190 ) ( 1,586 ) ( 1,244 ) Cash flows from financing activities Proceeds from the exercise of stock options 232 61 60 Maturities of convertible senior notes ( 1,043 ) — — Net cash (used in) provided by financing activities ( 811 ) 61 60 Effect of foreign exchange on cash, cash equivalents and restricted cash 15 ( 6 ) 4 Net increase (decrease) in cash, cash equivalents and restricted cash 47 85 ( 236 ) Cash, cash equivalents and restricted cash – beginning of year 1,498 1,413 1,649 Cash, cash equivalents and restricted cash – end of year 1,545 1,498 1,413 Supplemental cash flow information: Cash paid for income taxes, net 194 116 50 Cash paid for interest 1 1 1 The accompanying notes are an integral part of these consolidated financial statements. 77 Table of Contents Notes to the Consolidated Financial Statements 1. Nature of Business Shopify Inc. ("Shopify" or the "Company") was incorporated on September 28, 2004. Shopify provides essential internet infrastructure for commerce. Shopify's all-in-one platform makes it easier to start, run and grow a business, powering sales online, in store, and everywhere in between. Shopify's mission is to make commerce better for everyone with a platform and services that are engineered for speed, customization, reliability and security, while delivering a better shopping experience for consumers everywhere. The Company's platform enables merchants to manage, market and sell their products across various sales channels, including online storefronts, physical retail spaces, AI platforms, social media and more. Shopify provides merchants with an integrated back-end system to streamline operations, from managing inventory and transaction management to building relationships with buyers. With a robust and continuously updated infrastructure, Shopify's goal is to provide merchants with cutting-edge technology to thrive in a competitive market. 2. Basis of Presentation and Consolidation These consolidated financial statements include the accounts of the Company and its directly and indirectly held wholly owned subsidiaries including, but not limited to: Shopify LLC and Shopify Holdings (USA) 2 Inc., both incorporated in the state of Delaware in the United States; Shopify International Limited, incorporated in Ireland; Shopify Commerce Singapore Pte. Ltd., incorporated in Singapore. All intercompany accounts and transactions have been eliminated upon consolidation. These consolidated financial statements of the Company have been presented in United States dollars ("USD") and have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), including the applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding financial reporting. 3. Significant Accounting Policies Use of Estimates The preparation of consolidated financial statements, in accordance with U.S. GAAP, requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting year. Actual results may differ from the estimates made by management. Significant estimates, judgments and assumptions in these consolidated financial statements include: key judgments related to revenue recognition in determining whether the Company is the principal or an agent to the arrangements with merchants; estimates and judgments involved in applying the measurement alternative associated with equity and other investments in private companies, including revenue growth rates and revenue multiples based on market comparables; estimates involved in our equity method investment; probabilities of achieving performance milestones associated with non-cash revenue consideration from strategic partnerships; the probability and amount of loss contingencies; and judgments involved in uncertain tax positions. Revenue Recognition The Company's sources of revenue consist of subscription solutions and merchant solutions. Sales taxes collected from merchants and remitted to government authorities are excluded from revenue. The Company's arrangements with customers can include multiple performance obligations, which may consist of some or all of the Company's subscription solutions. The total transaction price is determined at the inception of the contract and allocated to each performance obligation based on their relative standalone selling prices. In the case of merchant solutions, the transaction price for each performance obligation is based on the observable standalone selling price for each performance obligation. The transaction price for multiple merchant solutions is never a bundled price, therefore a relative allocation is not required. 78 Table of Contents The Company generally receives payment from its merchants at the time of invoicing. In all other cases, payment terms and conditions vary by contract type, although terms generally include a requirement for payment within 30 days of the invoice date. Subscription Solutions For services where the performance obligation is to provide merchants with access to the Shopify platform, such as Online Subscriptions and Point-of-Sale ("POS") Pro subscriptions, revenue is recognized over time on a ratable basis over the contractual term of the subscriptions. Certain subscription contracts have a transaction price that includes a variable component that is based on the merchants' volume of sales. In such cases, the Company recognizes revenue when the merchant's sale occurs, the variable price becomes known and it has a right to invoice. Payments received in advance of services being rendered are recorded as deferred revenue and recognized ratably over time, over the requisite service period. Revenue from the sale of separately priced apps and themes is recognized at a point in time, when the arrangement between the merchant and partner is established. Revenue from the sale of rights to use a domain name that is sold separately is recognized ratably over time, over the contractual term, which is generally an annual term. Merchant Solutions The Company offers a variety of merchant solutions, which are primarily transaction based, to augment those provided through a subscription and to address the broad array of functionality merchants commonly require. For services where the performance obligation is to process payments for the Company’s merchants, from such services as Shopify Payments, Transaction Fees and Shop Pay Installments, revenues are recognized at a point in time, at the time of the transaction. The Company earns referral fees from partners to whom it directs business pursuant to agreements with such partners. Related revenues can be recurring or non-recurring and are recognized once the arrangement between the partner and customer has been made or over the expected term of the contract. In connection with certain referral revenue contracts with partners, the Company receives a component of the transaction price in non-cash consideration in the form of equity in the partner at the outset of the contract. When the transaction price includes non-cash consideration, the non-cash consideration is measured as the fair value at the inception of the contract. Other revenue generating services and products to merchants include, but are not limited to, the sale of shipping labels, the sale of POS hardware, advertising on the Shopify App Store and Shop Campaigns, the Company’s buyer acquisition offering. Revenue is recognized when services are performed, or as ownership passes to the merchant. Principal versus Agent For revenue streams that involve another party that contributes to providing a specified service to a customer, the Company determines whether it is the principal or an agent. In these instances, the Company determines whether it has promised to provide the specified service itself (as principal) or to arrange for the specified service to be provided by another party (as an agent). This determination depends on the facts and circumstances of each arrangement and, in some instances, involves significant judgment. The Company recognizes revenue from certain services, such as the sale of shipping labels, the sale of apps, the sale of themes, card services and installments services, on a net basis as the Company is the agent in the arrangement with customers. All other revenue is reported on a gross basis, as the Company has determined it is the principal in the respective arrangements. 79 Table of Contents Lending Services For lending services, including loans and merchant cash advances ("MCAs"), the performance obligations associated with these services is to arrange and provide funding to merchants. Certain loans and MCAs are facilitated by the Company and originated by bank partners, from whom the Company then purchases the loans and MCAs, obtaining all rights, title and interest or discount for a fixed fee or calculated as a percentage of the MCA's or loan's principal. Revenues are presented as merchant solutions revenue net of any deferred origination fees, which are amortized over the contractual or expected term of the loan or MCA. Interest and fees earned on the loan portfolio are recognized as merchant solutions revenue based on the effective interest method. For certain loans where the borrowing fee is fixed, the Company uses the expected repayment date and volume to calculate an effective interest rate. For loans, using the merchant's contractual or expected repayment date, the Company calculates an effective interest rate based on the merchant's expected future payment volume to determine how much of a merchant's repayment to recognize as revenue and how much to apply against the merchant's receivable balance. For some loans, the Company may sell its full rights, title and interest to third-party investors. We account for the asset transfer as a sale and derecognize the full amount the Company paid to its bank partner to originate the loan and record a gain on sale of the loans sold to the third-party investor as merchant solutions revenue upon transfer of title. For MCA's, the Company applies a percentage of the remittances collected against the merchant's receivable balance, and a percentage, which is related to the discount, as merchant solutions revenue. Logistics Services Logistics related revenue was recognized up until the second quarter of 2023, at which point the Company sold its logistics businesses, as further described in Note 4. Prior to the sale of these businesses, revenue was generated from the respective fulfillment solutions, which included picking, packing and preparing orders for shipment, and outbound shipping, as well as additional revenues from inbound shipping, storage, returns processing and other fulfillment-related services as needed by merchants. Revenue related to these fulfillment solutions were recognized over time as the Company fulfilled, up to completion of delivery. Revenues related to the inbound, storage and return processing offerings were recognized over time, and revenues related to other fulfillment-related services were recognized at a point in time, once the services had been rendered. The Company also earned revenues from providing cloud-based software on collaborative warehouse fulfillment solutions which were recognized over time, over the contractual term, which could have been up to five years. Payments received in advance of services being rendered were recorded as deferred revenue and recognized ratably over time, over the requisite service period. Rewards Program Our merchants' customers (or "buyers") in North America can participate in our rewards program ("Shop Cash") and earn Shop Cash rewards on certain eligible purchases made from merchants or through other incentive programs. Buyers can then redeem Shop Cash against purchases through the Shop app, which we track on their behalf. Shop Cash cannot be redeemed for cash. Rewards issued to buyers, to whom we have no performance obligation, are generally expensed as a cost of revenues, however depending on the program policy the rewards were earned under, they may be expensed as sales and marketing. The rewards are expensed when they are made available to the buyer at an estimated value based on the redemption value, less an estimate of Shop Cash rewards that are not expected to be redeemed ("breakage"). Breakage is based on historical breakage trends and supportable forecasted information. Software Development Costs Research and development costs are generally expensed as incurred. The Company may capitalize certain development costs incurred in connection with its internal use software. The Company expenses costs in the preliminary stages of development and may capitalize direct and incremental costs through technological feasibility, in which capitalization ceases once the additional features and functionality are put into service. 80 Table of Contents Advertising Costs Advertising costs are expensed as incurred. Advertising costs included in sales and marketing expenses during the years ended December 31, 2025, 2024 and 2023 were $ 753 million, $ 546 million and $ 497 million, respectively. Stock-Based Compensation The accounting for stock-based awards is based on the fair value of the award measured at the grant date. Accordingly, stock-based compensation cost is recognized as an operating expense over the requisite service period. The fair value of stock options is determined using the Black-Scholes option-pricing model, single option approach. An estimate of forfeitures is applied when determining compensation expense. The Company determines the fair value of stock option awards on the date of grant using assumptions regarding expected term, share price volatility over the expected term of the awards, risk-free interest rate and dividend rate. All Class A subordinate voting shares issued in connection with options under the Company's Third Amended and Restated Stock Option Plan ("SOP") are from the Company's treasury pool. The fair value of restricted share units ("RSUs") is measured using the fair value of the Company's shares as if the RSUs were issued and vested on the grant date. An estimate of forfeitures is applied when determining compensation expense. All Class A subordinate voting shares issued in connection with awards under the Company's Third Amended and Restated Long Term Incentive Plan ("LTIP") are from the Company's treasury pool. Income Taxes Income tax expense includes domestic and foreign income taxes. Deferred tax assets and liabilities are determined based on the difference between the financial statement carrying amounts and the tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts that are more likely than not to be realized. The Company considers many factors when assessing the likelihood of future realization of our deferred tax assets, including its recent cumulative loss experience and expectations of future earnings, capital gains and investment in the applicable jurisdiction, the carry-forward periods available to it for tax reporting purposes and other relevant factors. The Company evaluates tax positions taken or expected to be taken in the course of preparing tax returns to determine whether the tax positions have met a “more-likely-than-not” threshold of being sustained by the applicable tax authority. Tax benefits related to tax positions not deemed to meet the “more-likely-than-not” threshold are not permitted to be recognized in the consolidated financial statements. The Company's accounting policy is to recognize interest and penalties related to uncertain tax positions as a component of income tax expense. Foreign Currency Translation and Transactions The functional and reporting currency of the Company and its subsidiaries is USD. Monetary assets and liabilities denominated in foreign currencies are re-measured to USD using the exchange rates prevailing at the consolidated balance sheet dates. Non-monetary assets and liabilities denominated in foreign currencies are measured in USD using historical exchange rates. Revenues and expenses are measured using the actual exchange rates prevailing on the dates of the transactions. Gains and losses resulting from re-measurement are recorded in the Company’s consolidated statements of operations and comprehensive income as "Foreign exchange gain (loss)", with the exception of foreign exchange forward contracts and options used for hedging which are re-measured in "Accumulated other comprehensive income (loss)" and the income (loss) is then reclassified into earnings to either cost of 81 Table of Contents revenue or operating expenses in the same period, or periods, during which the hedged transaction affects earnings. Cash and Cash Equivalents The Company considers all short-term highly liquid investments that are readily convertible into known amounts of cash, with original maturities at their acquisition date of three months or less to be cash equivalents. We consider cash to be restricted when withdrawal or general use is legally restricted. Marketable Securities The Company’s marketable debt securities consist of federal bonds and agency securities, U.S. term deposits and corporate bonds and commercial paper, and mature within 36 months from the date of purchase. Marketable debt securities are classified as held-to-maturity at the time of purchase and this classification is re-evaluated as of each consolidated balance sheet date. Held-to-maturity debt securities represent those securities that the Company has both the positive intent and ability to hold to maturity and are carried at amortized cost. Interest on these debt securities, as well as amortization/accretion of premiums/discounts, are included in interest income. Marketable debt securities are assessed as to whether any unrealized loss positions are other than temporarily impaired. Impairments are considered other than temporary if they are related to deterioration in credit risk or if it is likely the Company would be required to sell the securities before the recovery of their remaining amortized cost basis. Realized gains and losses determined to be other than temporary are determined based on the specific identification method and are reported in "Other income, net" in the consolidated statements of operations and comprehensive income. Marketable debt securities with contractual maturity greater than one year are classified as "Long-term investments" in the consolidated balance sheets. Fair Value Measurements The carrying amounts for cash and cash equivalents, marketable securities, trade and other receivables, merchant cash advances receivable, loans, trade accounts payable and accruals and employee-related accruals approximate fair value due to the short-term nature of these balances. The Company measures certain financial assets and liabilities at fair value based on applicable accounting guidance, using a fair value hierarchy. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Fair Value Option The guidance in ASC 815, Derivatives and Hedging, provides a fair value option election that allows entities to make an irrevocable election to not separate embedded derivatives from their host contract and to fair value the hybrid instrument upon initial recognition and subsequent measurement dates for certain eligible financial assets and liabilities. Unrealized gains and losses on items for which the fair value option has been elected are reported in earnings. The decision to elect the fair value option is determined on an instrument by instrument basis and must be applied to an entire instrument and is irrevocable once elected. The Company has elected to apply the fair value option to its investments in convertible notes in private companies. The fair value elections were made in order to maintain consistency in presentation across equity and other investments. Equity and Other Investments Strategic investments are a part of the Company's strategy and use of capital, expanding its expertise and building strong partnerships around strategic initiatives. The Company evaluates each investment to determine if the investment is a variable interest entity and, if so, whether the Company is the primary beneficiary of the variable interest entity. As of December 31, 2025 and 2024, there were no variable interest entities required to be consolidated in the Company’s consolidated financial statements. The Company classifies each equity investment into one of three categories: (i) equity and other investments with readily determinable fair values, (ii) equity and other investments without readily determinable fair values and (iii) equity and other investments under the equity method of accounting. 82 Table of Contents Equity and other investments in publicly traded companies with readily determinable fair values are carried at fair value at each balance sheet date and any movements in the fair value are classified as "Other income, net" in the consolidated statements of operations and comprehensive income. Equity and other investments in private companies without readily determinable fair values are carried at cost less impairments, with subsequent adjustments for observable changes (referred to as the measurement alternative). Estimates and judgments are involved in applying the measurement alternative associated with equity and other investments without readily determinable fair values by developing certain key assumptions, including revenue growth rates and revenue multiples based on market comparables. The Company also holds investments in convertible notes of private companies which are classified as available-for-sale debt securities, for which the Company has elected to account for under the fair value option. The investments are carried at fair value at each balance sheet date and any movements in the fair values are classified as "Other income, net" in the consolidated statements of operations and comprehensive income. The Company evaluates each investment to determine if the investment should be accounted for as an equity method investment based upon equity ownership, significant influence and ongoing involvement in the investee, including factors such as representation on the investee's board of directors. Investments that qualify for the equity method of accounting treatment are carried at the Company’s investment amounts and adjusted each period for the Company’s share of the investee’s income or loss plus the amortization of the basis difference, which is the difference between the fair value of our investment in the company and the underlying equity in the net assets of the investee. The Company determined that the investment in Flexport, Inc. ("Flexport") is an equity method investment. The Company's share of income or loss in the investee, combined with the amortization of the basis difference, is presented as "Net loss on equity method investment" in the consolidated statements of operations and comprehensive income. Investment options to purchase additional shares of equity and other investments are classified as a derivative instrument at fair value using the Black-Scholes model. These derivative instruments are not designated as hedges and presented within "Equity and other investments" in the consolidated balance sheets. The Company assesses its equity and other investments in private companies and equity method investment for impairment through analyzing market conditions, business results and other qualitative measures that indicate that the carrying amount of the investment may be impaired, and the decline in value below the carrying amount is determined to be other than temporary. Derivatives and Hedging The majority of the Company's derivative products are foreign exchange forward contracts and options, which are designated as cash flow hedges of foreign currency forecasted expenses. By their nature, derivative financial instruments involve risk, including the credit risk of non-performance by counterparties. The Company may hold foreign exchange forward contracts and options to mitigate the risk of future foreign exchange rate volatility related to future Canadian dollar ("CAD"), British Pound Sterling ("GBP"), Euros ("EUR") and Australian dollar ("AUD") denominated costs and current and future obligations. The Company's foreign currency forward contracts and options generally have maturities of 12 months or less. The critical terms match method is used when the key terms of the hedging instrument and that of the hedged item are aligned; therefore, the changes in fair value of the forward contracts and options are recorded in "Accumulated other comprehensive income (loss)" ("AOCI"). The effective portion of the gain or loss on each forward contract and option is reported as a component of AOCI and reclassified into earnings to either cost of revenue or operating expense in the same period, or periods, during which the hedged transaction affects earnings. The ineffective portion of the gains or losses, if any, is recorded immediately in "Other income, net" in the consolidated statements of operations and comprehensive income. 83 Table of Contents For hedges that do not qualify for the critical terms match method of accounting, a formal assessment is performed to verify that derivatives used in hedging transactions continue to be highly effective in offsetting the changes in fair value or cash flows of the hedged item. Hedge accounting is discontinued if a derivative ceases to be highly effective, matures, is terminated or sold, if a hedged forecasted transaction is no longer probable of occurring, or if the Company removes the derivative's hedge designation. For discontinued cash flow hedges, the accumulated gain or loss on the derivative remains in AOCI and is reclassified into earnings in the period in which the previously hedged forecasted transaction impacts earnings or is no longer probable of occurring. In addition, the Company has a master netting agreement with each of the Company's counterparties, which permits net settlement of multiple, separate derivative contracts with a single payment. The Company presents its derivative instruments on a net basis in the consolidated financial statements. Provision for Credit Losses Related to Loans and Merchant Cash Advances Loans and merchant cash advance receivables represent the aggregate amount of Shopify Capital related receivables owed by merchants as of the balance sheet date, net of an allowance for expected credit losses. The Company estimates the loss provision based on an assessment of various factors, including historical trends, merchants' gross merchandise volume ("GMV"), supportable forecasted information and other factors, including macroeconomic factors, that may affect the merchants' ability to make future payments on the receivables. Increases to the provision are reflected in current operating results, while charges against the provision are made when losses are incurred. Recoveries are reflected as a reduction in the allowance for credit losses related to loans and merchant cash advances when the recovery occurs. These additions, charges and recoveries are classified within "Transaction and loan losses" in the consolidated statements of operations and comprehensive income. Provision for Transaction Losses Related to Shopify Payments, Shop Pay Installments and Shopify Balance Transaction losses arise from unrecovered merchant transactions due to returns and disputes. The Company may also incur losses when a merchant account experiences unauthorized transactions where funds cannot be recovered or reversed. The Company estimates the provision for transaction losses based on an assessment of various factors, including historical trends, GMV (facilitated using Shopify Payments and Shop Pay Installments including those managed using Shopify Balance), supportable forecasted information and other factors that may increase the volume of losses. Additions to the provision are reflected in current operating results, while charges against the provision are made when losses are incurred. These additions are classified within "Transaction and loan losses" on the consolidated statements of operations and comprehensive income. Loss Contingencies The Company records accruals for loss contingencies when losses are probable and reasonably estimable. The Company evaluates developments in legal matters that could affect the amount of liability that has been previously accrued and makes adjustments as appropriate. Significant judgment is required to determine both probability and the estimated amount of a loss or potential loss. The Company may be unable to reasonably estimate the reasonably possible loss or range of loss for a particular legal contingency for various reasons, including, among others, because: (i) the damages sought are indeterminate; (ii) the proceedings are in the relatively early stages; (iii) there is uncertainty as to the outcome of pending proceedings (including motions and appeals); (iv) there is uncertainty as to the likelihood of settlement and the outcome of any negotiations with respect thereto; (v) there remain significant factual issues to be determined or resolved; (vi) the relevant law is unsettled; or (vii) the proceedings involve novel or untested legal theories. In such instances, there may be considerable uncertainty regarding the ultimate resolution of such matters, including the likelihood or magnitude of a possible eventual loss, if any. Operating Leases The Company accounts for operating leases by first determining if an arrangement is a lease, or contains a lease, at inception. The operating lease right-of-use assets and operating lease liabilities are recognized at the commencement date based on the present value of lease payments over the lease 84 Table of Contents term. The Company's leases do not provide an implicit rate, therefore, the incremental borrowing rate based on the information available at commencement date was used to determine the present value of lease payments. The right-of-use assets exclude lease incentives, which are accounted for as a reduction of lease liabilities if they have not yet been received. The Company's lease terms may include options to extend or terminate the lease. Lease expense related to lease components is recognized on a straight-line basis over the lease term. The carrying values of right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. The determination of whether any impairment exists includes a comparison of estimated undiscounted future cash flows anticipated to be generated over the remaining life of an asset or asset group to their net carrying value. If the estimated undiscounted future cash flows associated with the asset or asset group are less than the carrying value, an impairment loss will be recorded based on the estimated fair value. For right-of-use assets that are impaired, the remaining carrying value of the right-of-use assets are amortized on a straight line basis over the remaining term of the lease. The Company's lease agreements include lease and non-lease components, which are accounted for separately under Topic 842, Leases. Variable lease components and non-lease components are excluded from the lease payments used to calculate the right-of-use assets and lease liabilities, and are recorded in the period in which the obligation for the payment is incurred. The Company subleases certain leased office space and recognizes sublease income on a straight-line basis over the sublease term. Sublease payments received for variable lease costs will be recorded as income, as earned. The Company recognizes sublease income as an offset to lease expense in the consolidated statements of operations and comprehensive income. Property and Equipment Property and equipment is stated at cost, less accumulated depreciation and impairment. Depreciation is calculated using the straight-line method over the estimated useful lives of the related assets. Computer equipment is depreciated over the lesser of three years and their estimated useful lives while furniture and equipment are depreciated over four years . Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of their associated leases, which range from one to fifteen-years . Fulfillment robots and fulfillment equipment, which were depreciated over the lesser of three years and its useful life and ranged from three to ten-years , respectively, were depreciated up until the second quarter of 2023, at which point the Company sold its logistics businesses, as further described in Note 4. Intangible Assets Intangible assets are stated at cost, less accumulated amortization and impairment. Amortization is calculated using the straight-line method over the estimated useful lives of the related assets. Acquired technology is amortized over a one to six-year period, acquired customer relationships are amortized over a one to two-year period, capitalized software development costs are amortized over a two to four-year period and other intangible assets are amortized over a three to ten-year period or may have an indefinite useful life and not amortized. Amortization is recorded into cost of revenues and operating expenses, depending on the nature of the asset. Impairment of Long-lived Assets The carrying values of long-lived assets (including leases, property and equipment and intangible assets) are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. The determination of whether any impairment exists includes a comparison of estimated undiscounted future cash flows anticipated to be generated over the remaining life of the asset or asset group to their net carrying value. If the estimated undiscounted future cash flows associated with the asset or asset group are less than the carrying value, an impairment loss will be recorded based on the estimated fair value. 85 Table of Contents Goodwill Goodwill represents the excess of the purchase price over the estimated fair value of net assets of a business acquired in a business combination. Goodwill is not amortized, but instead tested for impairment at least annually. Should certain events or indicators of impairment occur between annual impairment tests, the Company will perform the impairment test as those events or indicators occur for our reporting unit. Goodwill is tested for impairment at the reporting unit level by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value. The qualitative assessment considers the following factors: macroeconomic conditions, industry and market considerations, cost factors, overall company financial performance, events affecting the reporting unit and changes in the Company’s fair value. If the reporting unit does not pass the qualitative assessment, the Company carries out a quantitative test for impairment of goodwill. This is done by comparing the fair value of the reporting unit with the carrying value of the reporting unit that includes goodwill. If the fair value of the reporting unit is greater than its carrying value, including goodwill, no impairment results. If the fair value of the reporting unit is less than its carrying value, including goodwill, an impairment loss would be recognized in the consolidated statements of operations and comprehensive income in an amount equal to that difference, limited to the total amount of goodwill allocated to that reporting unit. The Company has an unconditional option to bypass the qualitative assessment for our reporting unit in any period and proceed directly to performing the quantitative goodwill impairment test. The Company may resume performing the qualitative assessment in any subsequent period. Business Combinations The Company follows the acquisition method to account for business combinations in accordance with ASC 805, Business Combinations. The acquisition method of accounting requires that assets acquired and liabilities assumed be recorded at their estimated fair values on the date of a business acquisition. The excess of the purchase price over the estimated fair value is recorded as goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments would be recorded in the consolidated statements of operations and comprehensive income. Segment Information The Company’s chief operating decision maker ("CODM") is the Chief Executive Officer. The CODM is the highest level of management responsible for assessing Shopify’s overall performance, and making operational decisions such as resource allocations related to operations, product prioritization and delegations of authority. The CODM has determined that the Company operates in one single operating and reportable segment and manages segment profit (loss) based upon consolidated net income (loss). The measure of segment assets is reported on the consolidated balance sheet as total consolidated assets. Concentration of Credit Risk The Company’s cash and cash equivalents, marketable securities, trade and other receivables, loans, merchant cash advances and foreign exchange derivative instruments subject the Company to concentrations of credit risk. Management mitigates this risk associated with cash and cash equivalents by making deposits and entering into foreign exchange derivative products only with large banks and financial institutions that are considered to be highly creditworthy. We limit the amount of credit exposure with any one financial institution and conduct timely evaluations of the credit worthiness of these financial institutions. Management mitigates the risks associated with marketable securities by adhering to its investment policy, which stipulates minimum rating requirements, maximum investment exposures and maximum maturities. Due to the Company’s diversified merchant base, there is no particular concentration of credit risk related to the Company’s trade and other receivables, loans receivable and merchant cash advances. Trade and other receivables, loans receivable and merchant cash advances are monitored on an ongoing basis to ensure timely collection of amounts. There are no receivables from individual merchants accounting for 10% or more of revenues or receivables. 86 Table of Contents Equity and Other Investments Risk The Company holds equity and other investments that are subject to a wide variety of market-related risks that could substantially reduce or increase the fair value of our holdings. The Company's equity and other investments in public companies are recorded at fair value, which is subject to market price volatility. The Company also holds an investment option to purchase Series B common shares in Klaviyo, Inc. which is accounted for as a derivative instrument and valued using the Black-Scholes model, and is subject to market price volatility as well as a discount for lack of marketability. The Company's equity investments in private companies are recorded using the measurement alternative and are assessed each reporting period for observable price changes and impairments, which may involve estimates and judgments given the lack of readily available market data. Certain equity investments in private companies are in the early stages of development and are inherently risky due to their lack of operational history. Furthermore, for the equity method investment, Shopify's share of income and loss from these investments may cause volatility to Shopify's earnings. The Company's debt investments in convertible notes of private companies are recorded at fair value, which are impacted by the underlying entities' valuations and interest rates. The Company has a high concentration of risk associated with a small number of equity and other investments that are impacted by fluctuations in their fair values or by observable changes or impairments. Interest Rate Risk A portion of the Company’s cash, cash equivalents and marketable securities and loans and debt securities earn interest. The Company’s trade and other receivables, accounts payable and accrued liabilities and lease liabilities do not bear interest. The Company is not exposed to material interest rate risk. Foreign Exchange Risk The Company's results of operations and foreign currency assets and liabilities are exposed to foreign currency fluctuations. While the majority of the Company's revenues, cost of revenues and operating expenses are denominated in USD, a significant portion are denominated in foreign currencies. Due to offering Shopify Payments, Shopify Capital, subscriptions and other billings to select countries in local currency, a significant proportion of revenue transactions are denominated in EUR, GBP and CAD. Furthermore, a significant proportion of operating expenses are also incurred in the aforementioned foreign currencies. Although foreign currency fluctuations associated with revenues and costs may partially offset one another in earnings, the Company uses foreign exchange derivative products to mitigate a portion of the remaining exposure of foreign currency fluctuations as discussed in Note 6. By their nature, derivative financial instruments involve risk, including the credit risk of non-performance by counterparties. Accounting Pronouncements Adopted in the Year In December 2023, the FASB issued ASU 2023-09 on Improvements to Income Tax Disclosures that require greater disaggregation of income tax disclosures, including the income rate tax rate reconciliation and income taxes paid by jurisdiction. The Company adopted this ASU for the year ending December 31, 2025, on a retrospective basis, see Note 21. Recent Accounting Pronouncements Not Yet Adopted In November 2024, the FASB issued ASU 2024-03 on Disaggregation of Income Statement Expenses that enhances disclosure of certain costs and expenses to provide enhanced transparency into the expenses presented in the income statement. The ASU is effective for annual periods beginning after December 15, 2026. The Company will adopt and apply the guidance in fiscal year 2027. The Company is still assessing the impact of this disclosure ASU. In September 2025, the FASB issued ASU 2025-06 on Improvements to the Accounting for Internal-Use Software, which clarifies and modernizes certain aspects of the accounting for and disclosure of 87 Table of Contents internal-use software costs. The ASU does not change what types of costs are capitalized or when internal-use software cost capitalization ceases. This guidance will be effective for the Company for the year ending December 31, 2028. The Company is evaluating the impact of the guidance on the consolidated financial statements. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements. 4. Business Combinations and Sales of Businesses Business Combinations Vantage Discovery Inc. In March 2025, the Company completed the acquisition of Vantage Discovery Inc. (“Vantage”), a company based in Austin, Texas, that provides AI-powered search and content discovery services. By integrating Vantage’s hybrid search engine architecture that combines traditional search engines with vector databases and large language models, the development of AI-powered, multi-vector search across Search APIs, Shop and Storefront search offerings will be accelerated. The Company acquired 100 percent of the outstanding shares of Vantage in exchange for cash consideration of $ 59 million. In connection with the transaction, $ 24 million in restricted shares were granted and $ 6 million in cash are being accounted for as compensation as these amounts are related to post-combination services. The following table summarizes the purchase price allocation of the Vantage assets acquired and liabilities assumed at the acquisition date in US $ millions: Amount Net assets — Intangible assets - acquired technology 20 Goodwill 39 Net deferred tax liability — Total purchase price 59 The acquired technology has an estimated fair value of $ 20 million using a cost approach and is being amortized over three years . Goodwill from the Vantage acquisition is attributable to the expected synergies that will result from integrating Vantage's technology with Shopify's Search offering, and the acquisition of the assembled workforce. None of the goodwill recognized is deductible for income tax purposes. There is no net deferred tax liability related to taxable temporary difference on acquired intangible assets due to offsetting deferred tax assets related to losses from the pre-acquisition period. 88 Table of Contents Sale of Businesses In the second quarter of 2023 the Company sold its logistics businesses (the "divested businesses"). The majority of the logistics business was sold to Flexport, a leading tech-driven global logistics platform. The Company received non-cash consideration in the form of a 13 % equity interest on a fully-diluted basis inclusive of warrants and options. The net assets of the divested businesses had an aggregate carrying amount above their estimated fair value and accordingly, an impairment loss was recorded in operating expenses as "Impairment on sales of Shopify's logistics businesses" in the consolidated statements of operations and comprehensive income, for the year ended December 31, 2023. The components of the sale were as follows in US $ millions: Amount Goodwill ( 1,438 ) Intangible assets ( 337 ) Net assets and transaction costs ( 93 ) Non-cash consideration received (1) 528 Impairment on sales of Shopify's logistics businesses ( 1,340 ) (1) The value of non-cash consideration received is an estimate and was independently estimated by Shopify by using unobservable inputs, including the investee's revenue growth rates and revenue multiples based on market comparables. The non-cash consideration was in addition to the Company's existing equity interest in Flexport. The investment in Flexport is accounted for under the equity method investment (see Note 6). 5. Cash and Cash Equivalents As of December 31, 2025 and 2024, the Company’s cash and cash equivalents balance was $ 1,545 million and $ 1,498 million, respectively. These balances include $ 546 million and $ 806 million, respectively, of money market funds, corporate bonds and commercial paper. As of December 31, 2025, $ 11 million of the Company's cash and cash equivalents balance is considered restricted cash (December 31, 2024 - $ 9 million). 6. Financial Instruments The Company measures financial instruments based on quoted prices in active markets (Level 1), inputs from similar instruments such as quoted prices or other observable market data (Level 2) or where little or no market activity exists, using unobservable inputs that require judgment or estimation (Level 3). Debt Securities The Company holds certain debt securities that are classified as held-to-maturity at the time of purchase as the Company has both the positive intent and ability to hold to maturity. The fair value of corporate bonds are based upon Level 2 inputs, which include period-end mid-market quotations for each underlying contract as calculated by the financial institution with which the Company has transacted. The quotations are based on bid/ask quotations and represent the discounted future settlement amounts based on current market rates. The Company also holds debt securities in the form of convertible notes in private companies classified as available-for-sale for which the Company has elected to apply the fair value option. The investments are carried at fair value at each balance sheet date and any movements in the fair values are classified as "Other income, net" in the consolidated statements of operations and comprehensive income . 89 Table of Contents The following tables summarize debt securities by balance sheet classification and level within the fair value hierarchy: December 31, 2025 Carrying Value Cash Equivalents Marketable Securities Long-term Investments Equity and Other Investments Fair Value (in US $ millions) Level 1: U.S. term deposits — 520 — — 531 U.S. federal bonds and agency securities 1 1,923 527 — 2,453 1 2,443 527 — 2,984 Level 2: Corporate bonds and commercial paper — 1,790 448 — 2,240 Level 3: Convertible notes in private companies — — — 558 558 1 4,233 975 558 5,782 The fair values of marketable securities above include accrued interest of $ 39 million, which is excluded from the carrying amounts. The accrued interest is included in "Trade and other receivables, net" in the consolidated balance sheets. Additional accrued interest of $ 105 million recognized on the convertible notes in private companies is included in the carrying amount and fair value above. December 31, 2024 Carrying Value Cash Equivalents Marketable Securities Long-term Investments Equity and Other Investments Fair Value (in US $ millions) Level 1: U.S. term deposits — 470 — — 481 U.S. federal bonds and agency securities 20 1,696 537 — 2,252 Corporate bonds and commercial paper 139 — — — 139 159 2,166 537 — 2,872 Level 2: Corporate bonds and commercial paper — 1,815 172 — 1,988 Level 3: Convertible notes in private companies — — — 543 543 159 3,981 709 543 5,403 The fair values above include accrued interest of $ 19 million, which is excluded from the carrying amounts. The accrued interest is included in "Trade and other receivables, net" in the consolidated balance sheets. Additional accrued interest of $ 62 million recognized on the convertible notes in private companies is included in the carrying amount and fair value above. 90 Table of Contents The following table outlines estimated fair values of our debt securities by date of contractual maturity as of December 31, 2025: Fair Value (in US $ millions) Due within one year 4,248 Due after one year to three years 976 5,224 Equity Securities The Company holds equity investments in public and private companies that were obtained through a combination of direct investment and strategic partnerships. Equity investments with readily determinable fair values are comprised of: December 31, 2025 December 31, 2024 Level 1 Level 3 Total Level 1 Level 3 Total (in US $ millions) Affirm Holdings, Inc. 1,511 — 1,511 1,236 — 1,236 Global-E Online Ltd. 868 — 868 1,205 — 1,205 Klaviyo, Inc. (1) 529 70 599 615 127 742 Other 8 — 8 — — — 2,916 70 2,986 3,056 127 3,183 (1) In the year ended December 31, 2025, $ 42 million was transferred from Level 3 to Level 1, respectively, due to the vesting of warrants (December 31, 2024 - $ 37 million). The equity investments categorized as Level 3 in the fair value hierarchy represent unvested warrants that require the application of a discount for lack of marketability which was 11 % at December 31, 2025 (December 31, 2024 - 18 %). Adjustments related to equity and other investments with readily determinable fair values for the years ended December 31, 2025 and 2024 were as follows: December 31, 2025 December 31, 2024 (in US $ millions) Balance, beginning of the year 3,183 2,360 Adjustments related to equity and other investments with readily determinable fair values: Investments received as part of sale of equity and other investments 8 — Net unrealized (losses) gains ( 205 ) 823 Balance, end of the year 2,986 3,183 91 Table of Contents Equity Investments without Readily Determinable Fair Values The carrying value of equity investments in private companies without readily determinable fair values are: December 31, 2025 December 31, 2024 (in US $ millions) Total initial value 1,068 957 Cumulative gross unrealized gains 310 144 Cumulative gross unrealized losses and impairment ( 415 ) ( 384 ) Total carrying value of equity and other investments without readily determinable fair values 963 717 Adjustments related to equity and other investments without readily determinable fair values for the years ended December 31, 2025 and 2024 were as follows: December 31, 2025 December 31, 2024 (in US $ millions) Balance, beginning of the year 717 505 Adjustments related to equity and other investments without readily determinable fair values: Purchases of equity and other investments 99 137 Gross unrealized gains (1) 171 89 Gross unrealized losses and impairments (2) ( 38 ) ( 14 ) Sales of equity and other investments (3) ( 33 ) — Transfers from measurement alternative (4) 47 — Balance, end of the year 963 717 (1) During the year ended December 31, 2025, the Company identified an observable price change resulting in the remeasurement of a private investment at fair value on a non-recurring basis. The resulting unrealized gains of $ 163 million (December 31, 2024 - $ 78 million) were presented as "Net unrealized (loss) gain on equity and other investments" in the consolidated statements of operations and comprehensive income. (2) During the years ended December 31, 2025 and 2024, the Company identified an observable price change resulting in the remeasurement of private investments at fair value on a non-recurring basis. The resulting unrealized losses were presented as "Net unrealized (loss) gain on equity and other investments" in the consolidated statements of operations and comprehensive income. (3) During the year ended December 31, 2025, the Company held private investments which were acquired, resulting in the deemed sale of equity and other investments. The resulting realized gains or losses were presented as “Net realized gain (loss) on equity and other investments” in the consolidated statements of operations and comprehensive income. (4) During the year ended December 31, 2025, convertible notes in private companies with a fair value of $ 45 million and accrued interest of $ 2 million were converted and transferred from debt securities to equity investments without readily determinable fair values. As of December 31, 2025, included in the total $ 963 million of equity and other investments without readily determinable fair values, $ 800 million was remeasured at fair value and was classified within Level 3 of the fair value measurement hierarchy on a non-recurring basis. Equity Method Investment The Company holds an equity method investment in Flexport of $ 602 million which is presented within "Equity method investment" in the consolidated balance sheets and is carried at the amount of Shopify’s original investment, as adjusted each period for Shopify’s share of the investee’s income or loss and the basis difference amortization, which is the difference between the fair value of our investment in the company and the underlying equity in the net assets of the investee (December 31, 2024 - $ 642 million). Results are reported with a one-quarter delay due to the timing of financial information availability from the investee. For the year ended December 31, 2025, our share of the loss in the investee was $ 40 million 92 Table of Contents (December 31, 2024 - $ 138 million), and is presented within "Net loss on equity method investment" in the consolidated statements of operations and comprehensive income. Derivative Instruments and Hedging As of December 31, 2025, the Company held foreign exchange forward contracts and options for USD, GBP, AUD, EUR and CAD with a total notional value of $ 702 million (December 31, 2024 - $ 454 million), to fund a portion of its operations. The fair value of foreign exchange forward contracts and options was based upon Level 2 inputs, which included year-end mid-market quotations for each underlying contract as calculated by the financial institution with which the Company has transacted. The quotations are based on bid/ask quotations and represent the discounted future settlement amounts based on current market rates. Derivative Instruments Designated as Hedges The Company has a hedging program to mitigate the impact of foreign currency fluctuations on future cash flows and earnings. Under this program, the Company has entered into foreign exchange forward contracts and options with certain financial institutions and designated those hedges as cash flow hedges. The Company is hedging cash flows associated with payroll costs. The fair values of outstanding derivative instruments were as follows: December 31, 2025 December 31, 2024 (in US $ millions) Level 2: Foreign exchange forward contracts and options assets (classified in other current assets) 4 — Foreign exchange forward contract liabilities (classified in accounts payable and accrued liabilities) 1 13 Unrealized gains and losses related to changes in the fair value of foreign exchange forward contracts and options designated as cash flow hedges were as follows: December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Unrealized gains 3 — 6 Unrealized losses ( 1 ) ( 13 ) — Total net unrealized (losses) gains 2 ( 13 ) 6 These unrealized gains and losses were included in "Accumulated other comprehensive income (loss)", "Other current assets" and "Accounts payable and accrued liabilities" in the consolidated balance sheets. These amounts are expected to be reclassified into earnings over the next twelve months. Realized losses related to the maturity of foreign exchange forward contracts and options designated as cash flow hedges were as follows: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Realized losses in operating expenses ( 6 ) ( 8 ) ( 13 ) ( 6 ) ( 8 ) ( 13 ) 93 Table of Contents Derivative Instruments Not Designated as Hedges The Company holds an investment option to purchase 15,743,174 of Series B common shares of Klaviyo, Inc. at an exercise price of $ 88.93 with an expiration date of July 28, 2030. The options are fair valued quarterly under Level 3 of the fair value hierarchy as certain unobservable inputs are used within the Black-Scholes model as well as a discount for lack of marketability. The fair value of the options as of December 31, 2025, utilizing a discount for lack of marketability of 21 %, was $ 75 million (December 31, 2024 - 29 % and $ 204 million) and is presented within "Equity and other investments" in the consolidated balance sheets. The Company recognized an unrealized loss of $ 129 million for the year ended December 31, 2025 (December 31, 2024 - unrealized gain of $ 82 million) and is presented as a component of "Net unrealized (loss) gain on equity and other investments" in the consolidated statements of operations and comprehensive income. The Company held an embedded derivative to settle its Notes in cash during the year ended December 31, 2025. The embedded derivative was fair valued quarterly under Level 2 of the fair value hierarchy as observable prices in the over-the-counter market are available. The embedded derivative was settled on November 3, 2025. The Company recognized a realized loss of $ 123 million for the year ended December 31, 2025 and is presented as "Realized loss on embedded derivative" in the consolidated statements of operations and comprehensive income . 7. Trade and Other Receivables Trade receivables and unbilled revenues, net of allowance for credit losses, were as follows: December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Unbilled revenues, net 229 175 132 Indirect taxes receivable 109 49 46 Trade receivables, net 98 77 62 Accrued interest 39 19 15 Other receivables 25 22 27 500 342 282 Unbilled revenues represent amounts not yet billed related to partner referral fees, subscription fees for Plus merchants, shipping charges and transaction fees as of the consolidated balance sheets dates. The allowance for credit losses reflects the Company's best estimate of probable losses inherent in the unbilled revenues and trade receivables accounts. The Company determined the provision based on known troubled accounts, historical experience, supportable forecasts of collectibility and other currently available evidence. Activity in the allowance for credit losses was as follows: December 31, 2025 December 31, 2024 (in US $ millions) Balance, beginning of the year 16 13 Provision for credit losses related to uncollectible receivables 28 15 Write-offs ( 27 ) ( 12 ) Balance, end of the year 17 16 94 Table of Contents 8. Loans and Merchant Cash Advances December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Loans receivable, gross (1) 1,621 1,131 732 Allowance for credit losses related to uncollectible loans receivable ( 160 ) ( 110 ) ( 60 ) Merchant cash advances receivable, gross 358 234 180 Allowance for credit losses related to uncollectible merchant cash advances receivable ( 35 ) ( 31 ) ( 36 ) Loans and merchant cash advances, net 1,784 1,224 816 (1) Included in the loans receivable gross balance as of December 31, 2025 is $ 24 million of interest receivable (December 31, 2024 - $ 15 million, December 31, 2023- $ 10 million). Certain loans and merchant cash advances are facilitated by the Company and originated by a bank partner, from whom the Company then purchases the loans and merchant cash advances obtaining all rights, title and interest or discount. In the year ended December 31, 2025, the Company purchased $ 4.2 billion of merchant cash advances and loans to Shopify merchants (December 31, 2024 - $ 3.0 billion). For some loans, the Company sells its full rights, title and interest to third-party investors. We account for the asset transfer as a sale and derecognize the full amount the Company paid to its bank partner to originate the loan and record a gain on sale of the loans sold to the third-party investor as revenue upon transfer of title. In the year ended December 31, 2025, the Company did not sell loans to third-party investors (December 31, 2024 - $ 212 million). In the year ended December 31, 2025, the Company recognized revenue of $ 258 million related to interest and fees earned on the Company's lending services, which do not represent revenues recognized in the scope of ASC 606, Revenue from Contracts with Customers (December 31, 2024 - $ 205 million). Loans The following table summarizes the activities of the Company’s allowance for credit losses related to uncollectible loans receivable: December 31, 2025 December 31, 2024 (in US $ millions) Allowance, beginning of the year 110 60 Provision for credit losses related to uncollectible loans receivable 153 108 Loans receivable charged off, net of recoveries ( 103 ) ( 58 ) Allowance, end of the year 160 110 95 Table of Contents The following table presents the delinquency status of the gross amount of merchant loans by year of origination. The delinquency status is determined based on the number of days past the contractual or expected repayment date for which the Company anticipates to receive the amounts outstanding. The "current" category represents balances that are anticipated to be repaid within 29 days of the contractual repayment dates, or are anticipated to be repaid within 29 days of the expected repayment date. December 31, 2025 Year of origination 2025 2024 Total Percent (in US $ millions) Current 1,473 17 1,490 91.9 % 30-89 Days 14 5 19 1.2 % 90-179 Days 14 6 20 1.2 % 180+ Days 63 29 92 5.7 % Total 1,564 57 1,621 100.0 % December 31, 2024 Year of origination 2024 2023 Total Percent (in US $ millions) Current 1,051 8 1,059 93.7 % 30-89 Days 9 3 12 1.0 % 90-179 Days 7 3 10 0.9 % 180+ Days 34 16 50 4.4 % Total 1,101 30 1,131 100.0 % The Company maintains an internal monitoring list related to its outstanding loans. A merchant's ability and willingness to repay the financing receivables outstanding under the program is analyzed for a variety of factors that include, but are not limited to current or expected age of the financing, merchant subscription or financing status, merchant GMV trends and other changes to merchant credit profiles. Merchant Cash Advances The following table summarizes the activities of the Company’s allowance for credit losses related to uncollectible merchant cash advances receivable: December 31, 2025 December 31, 2024 (in US $ millions) Allowance, beginning of the year 31 36 Provision for credit losses related to uncollectible merchant cash advances receivable 32 13 Merchant cash advances receivable charged off, net of recoveries ( 28 ) ( 18 ) Allowance, end of the year 35 31 96 Table of Contents 9. Other Current Assets December 31, 2025 December 31, 2024 (in US $ millions) Deposits 69 35 Prepaid expenses 55 59 Capitalized contract costs 52 57 Income taxes receivable 34 32 Inventory 21 26 Foreign exchange contracts 3 — 234 209 10. Property and Equipment December 31, 2025 Cost Accumulated depreciation and impairment Net book value (in US $ millions) Leasehold improvements (1) 159 118 41 Computer equipment 38 30 8 Furniture and equipment 31 27 4 228 175 53 December 31, 2024 Cost Accumulated depreciation and impairment Net book value (in US $ millions) Leasehold improvements 149 115 34 Computer equipment 40 29 11 Furniture and equipment 28 26 2 217 170 47 (1) $ 5 million of leasehold improvements were impaired and disposed of in the year ended December 31, 2025 (December 31, 2023 - $ 12 million). See Note 11 for details. During the year ended December 31, 2025, the Company disposed of and retired computer equipment with an original cost of $ 8 million (December 31, 2024 - $ 8 million). There was no material gain or loss recognized in the consolidated statements of operations and comprehensive income as a result of the retirement and disposal of these assets. The following table illustrates the classification of depreciation in the consolidated statements of operations and comprehensive income: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Cost of revenues — — 3 Sales and marketing 5 7 7 Research and development 9 11 13 General and administrative 4 4 5 18 22 28 97 Table of Contents 11. Leases The Company has office and commercial leases in North America, Europe and Asia. These leases have remaining lease terms of 1 to 11 years, some of which have an option to extend the lease for up to 5 years. All of the Company's leases are operating leases. The components of lease expense were as follows: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Operating lease expense 23 16 31 Variable lease expense, including non-lease components 15 25 17 Total lease expense 38 41 48 As of December 31, 2025, the weighted average remaining lease term is 9 years and the weighted average discount rate is 3.6 % (December 31, 2024 - 9 years and 3.4 %). Net sublease income for the year ended December 31, 2025 was $ 7 million (December 31, 2024 - $ 6 million, December 31, 2023 - $ 4 million), which is recorded as an offset within the total lease expense disclosed above. During the years ended December 31, 2025 and December 31, 2023, the Company terminated office spaces for which it has ceased use. This resulted in impairment charges to its operating lease right-of-use assets, leasehold improvements and operating lease liabilities of $ 13 million (December 31, 2023 - $ 38 million). These impairment charges were their carrying values as of the impairment measurement date, as required under ASC 360, Property, Plant and Equipment. These charges were recorded within "General and administrative" in the consolidated statements of operations and comprehensive income. During the year ended December 31, 2023, as part of the sales of Shopify's logistics businesses, the Company's warehouse leases were assigned in connection with the divested businesses and are no longer recognized on the Company's consolidated balance sheets. However, the Company retained the guarantee of certain leases and entered into an indemnification agreement, governing the liability obligations in connection with these guarantees. Maturities of lease liabilities as of December 31, 2025 were as follows: Fiscal Year Operating Leases (in US $ millions) 2026 29 2027 50 2028 49 2029 39 2030 36 Thereafter 166 Total future minimum payments 369 Minimum payments related to variable lease payments, including non-lease components ( 151 ) Imputed interest ( 30 ) Total operating lease liabilities 188 Operating lease maturity amounts included in the table above do not include sublease proceeds expected to be received under our various sublease agreements with third parties. Under the agreements initiated with third parties, the Company expects to receive sublease proceeds of $ 7 million in 2026 and $ 145 million in the years 2027, 2028, 2029 and thereafter. 98 Table of Contents During the year ended December 31, 2025, the Company recognized $ 1 million of operating lease liabilities arising from obtaining operating lease right-of-use assets (December 31, 2024 - $ 7 million). The Company paid $ 34 million for amounts included in the measurement of operating lease liabilities included in cash flow from operating activities (December 31, 2024 - $ 35 million). 12. Intangible Assets December 31, 2025 Cost Accumulated amortization Net book value (in US $ millions) Acquired technology 93 64 29 Other intangible assets 5 4 1 Software development costs 14 14 — 112 82 30 December 31, 2024 Cost Accumulated amortization Net book value (in US $ millions) Acquired technology 72 51 21 Other intangible assets 5 4 1 Software development costs 14 14 — 91 69 22 During the year ended December 31, 2025, the Company completed the acquisition of Vantage Discovery Inc. (see Note 4). During the year December 31, 2023, the Company recognized an impairment of $ 307 million of acquired technology, $ 27 million of acquired customer relationships and $ 3 million of other intangible assets as a result of the sales of Shopify's logistics businesses (see Note 4). During the year ended December 31, 2023, the Company disposed of and retired software development costs, acquired technology and purchased software with a combined original cost of $ 440 million, primarily due to the sales of our logistics businesses. Other than the impairment charges noted above, there was no additional gain or loss recognized in the consolidated statement of operations and comprehensive income (loss) as a result of the retirement or disposal of these assets. The following table illustrates the classification of amortization expense related to intangible assets in the consolidated statements of operations and comprehensive income: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Cost of revenues 9 12 35 Research and development 4 1 — Sales and marketing — 1 3 13 14 38 99 Table of Contents Estimated future amortization expense related to intangible assets, as of December 31, 2025 is as follows: Fiscal Year Amount (in US $ millions) 2026 9 2027 8 2028 2 Total 19 13. Goodwill The Company's goodwill relates to acquisitions of various companies. No goodwill impairment was recognized in the years ended December 31, 2025 and 2024. The Company recognized goodwill impairment of $ 1,438 million in the year ended December 31, 2023 due to the sales of Shopify's logistics businesses in the second quarter of 2023. Goodwill is tested for impairment as part of the Company's annual impairment test as of September 30, 2025. The Company exercised its option to bypass the qualitative assessment pursuant to ASC 350, Intangibles - Goodwill and Other, and performed a quantitative analysis. The Company determined that the consolidated business is represented by a single reporting unit and concluded the estimated fair value of the reporting unit, determined using market capitalization, was greater than its carrying amount. The gross changes in the carrying amount of goodwill during the year ended December 31, 2025 and year ended December 31, 2024 are as follows: December 31, 2025 December 31, 2024 (in US $ millions) Balance, beginning of the year 452 427 Acquisitions (1) 39 25 Balance, end of the year 491 452 (1) During the year ended December 31, 2025, the Company completed the acquisition of Vantage Discovery Inc. (see Note 4). During the year ended December 31, 2024, the Company completed individually immaterial acquisitions that resulted in goodwill being recognized. 14. Accounts Payable and Accrued Liabilities December 31, 2025 December 31, 2024 (in US $ millions) Trade accounts payable and trade accruals 570 360 Indirect taxes payable 161 121 Income taxes payable 156 58 Employee related accruals 102 99 Transaction loss provisions 66 48 Other payables and accruals 19 38 Foreign exchange forward contracts 1 13 1,075 737 100 Table of Contents 15. Deferred Revenue December 31, 2025 December 31, 2024 (in US $ millions) Balance, beginning of the year 430 498 Deferral of revenue (1) 224 207 Recognition of deferred revenue from beginning balance ( 256 ) ( 275 ) Balance, end of the year 398 430 (1) Deferral of revenue includes only the portion of collections from merchant billings throughout the year, primarily related to subscription fees, for which the services have not yet been provided. The amounts primarily exclude subscription revenue that has both been deferred and recognized within the period presented. December 31, 2025 December 31, 2024 (in US $ millions) Current portion 300 283 Long-term portion 98 147 398 430 The opening balances of current and long-term deferred revenue were $ 302 million and $ 196 million, respectively, as of January 1, 2024. As of December 31, 2025, the long-term deferred revenue, excluding non-cash consideration received, will be recognized ratably over the remaining terms of the contracts with the customers, which range from two years to three years . The Company has received non-cash consideration in the form of equity investments in exchange for services to be rendered as part of strategic partnerships. As the Company is required to provide referral services and other services to support the partners' merchant offerings over the period of the performance obligations, revenue is deferred and recognized over time on a ratable basis over the expected terms of the contracts. The table below summarizes the gross changes in deferred revenue associated with this non-cash consideration received for the years ended December 31, 2025 and 2024: December 31, 2025 December 31, 2024 (in US $ millions) Balance, beginning of the year 190 284 Revenue recognized related to non-cash consideration ( 49 ) ( 94 ) Balance, end of the year 141 190 Current portion 48 50 Long term portion 93 140 141 190 The Company will recognize this revenue ratably over the remaining terms of the respective strategic partnership service agreements, which range from two years to four years . 16. Convertible Senior Notes In September 2020, the Company issued $ 920 million aggregate principal amount of 0.125 % convertible senior notes due 2025. The net proceeds from the issuance of the Notes were $ 908 million after deducting underwriting fees and offering costs. The interest on the Notes was payable semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2021. The Notes matured on November 1, 2025. The Notes had a conversion rate of 6.9440 Class A subordinate voting shares per one 101 Table of Contents thousand dollars of principal amount of Notes, adjusted to give effect to the share split effected in June 2022, which is equivalent to a conversion price of approximately $ 144.01 per share. On November 3, 2025, the Company settled the Notes and the embedded derivative for $ 1.0 billion in cash and a nominal amount of Class A subordinate voting shares. The Company recognized a realized loss of $ 123 million in the year ended December 31, 2025 to reflect the value settled over the conversion price of $ 144.01 . After the Company settled the Notes, the net carrying amount as of December 31, 2025 is nil (December 31, 2024 - $ 918 million), net of unamortized offering costs, classified as current "Convertible senior notes" in the consolidated balance sheets . The following table sets forth the interest expense recognized related to the Notes: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Contractual interest expense 1 1 1 Amortization of offering costs 2 2 3 Total interest expense related to the Notes 3 3 4 17. Commitments and Contingencies Unconditional Purchase Obligations During the year ended December 31, 2024, the Company has entered into agreements where it commits to usage levels related to third-party services with an annual minimum fixed unconditional purchase obligation of $ 200 million. The amount of the minimum fixed and determinable portion of the unconditional purchase obligations over the next two years, as of December 31, 2025, was $ 251 million. Litigation and Loss Contingencies From time to time, the Company may become a party to litigation and subject to claims incidental to the ordinary course of business, including intellectual property claims, labor and employment claims and threatened claims, breach of contract claims, tax and other matters. The Company records accruals for loss contingencies when losses are probable and reasonably estimable. The Company currently has no material pending litigation or claims. The Company is not aware of any litigation matters or loss contingencies that would be expected to have a material adverse effect on the business, consolidated financial position, results of operations or cash flows. During the year ended December 31, 2024, the Company reversed the previously recorded liability of $ 55 million within "General and administrative" in the consolidated statement of operations and comprehensive income, as a loss contingency was no longer considered probable. The initial recognition of the liability in 2022 related to a jury in the U.S. District Court for the District of Delaware returning a verdict finding that the Company infringed three web technology patents owned by Express Mobile, Inc.. The Company filed a post-trial motion for judgment as a matter of law. In the year ended December 31, 2024, the court granted that motion, vacating the jury verdict in its entirety and mooting the plaintiff's motion for pre- and post-judgment interest. In 2025, the U.S. Court of Appeals dismissed Express Mobile's appeal and affirmed there was no infringement by the Company. 18. 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. In the year ended December 31, 2025, the Company recognized nil 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 year ended December 31, 2025, the Company recognized $ 9 million of 102 Table of Contents expense in the consolidated statements of operations and comprehensive income (December 31, 2024 - $ 4 million) and as of December 31, 2025, $ 15 million in "Other current assets" and $ 12 million in "Other long-term assets" in the 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 $ 326 million as of December 31, 2025 (December 31, 2024 - $ 291 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 consolidated balance sheets. In the year ended December 31, 2025, the Company has recognized $ 35 million of interest income related to the convertible notes within "Interest income" (December 31, 2024 - $ 32 million), and an immaterial amount of unrealized losses in the consolidated statements of operations and comprehensive income. 19. Shareholders’ Equity Founder Share On June 7, 2022, the Company's shareholders approved an update to the Company's governance structure pursuant to a plan of arrangement (the "Arrangement"). Under the terms of the Arrangement, on June 9, 2022 the Company created a new class of share, designated as the Founder share, and issued such Founder share to Tobias Lütke. The Founder share provides Mr. Lütke with a variable number of votes that, when combined with the Class B multiple voting shares (which are now described as Class B restricted voting shares as a result of the Company's updated governance structure) beneficially owned by him, his immediate family and his affiliates, represents 40 % of the aggregate voting power attached to all of the Company's outstanding shares. Stock Authorized The Company is authorized to issue an unlimited number of Class A subordinate voting shares, an unlimited number of Class B restricted voting shares and one Founder share. The Class A subordinate voting shares have one vote per share, the Class B restricted voting shares have 10 votes per share and the Founder share has a variable number of votes per share. The Class B restricted voting shares are convertible into Class A subordinate voting shares on a one -for-one basis at the option of the holder. Class B restricted voting shares will also automatically convert into Class A subordinate voting shares in certain other circumstances. The Founder share cannot convert into either Class A subordinate voting shares or Class B restricted voting shares. Preferred Shares Authorized The Company is authorized to issue an unlimited number of preferred shares issuable in series. Each series of preferred shares shall consist of such number of shares and having such rights, privileges, restrictions and conditions as may be determined by the Company’s Board of Directors prior to the issuance thereof. Holders of preferred shares, except as otherwise provided in the terms specific to a series of preferred shares or as required by law, will not be entitled to vote at meetings of holders of shares. Stock-Based Compensation The Company’s Board of Directors and shareholders approved a stock option plan ("SOP"), as well as a long term incentive plan ("LTIP"), each of which became effective upon the closing of the Company's IPO on May 27, 2015. On May 30, 2018, May 26, 2021 and June 4, 2024 these plans were amended following approval from the Company’s Board of Directors and shareholders. On July 8, 2022, the Company approved the issuance of rollover options, from the Company's treasury pool, under the Deliverr, Inc. 2017 Stock Option and Grant Plan, adopted on the closing of the acquisition of Deliverr. The SOP allows for the grant of options to the Company’s officers, directors, employees and consultants. All options granted under the SOP will have an exercise price determined and approved by the Company’s Compensation and Talent Management Committee of the Board of Directors at the time of grant, which shall not be less than the market price of the Class A subordinate voting shares at such 103 Table of Contents time. For purposes of the SOP, the market price of the Class A subordinate voting shares shall be the volume weighted average trading price of the Class A subordinate voting shares on the NASDAQ for the five trading days ending on the last trading day before the day on which the option is granted. Options granted under the SOP are exercisable for Class A subordinate voting shares. Both the vesting period and term of the options in the SOP are determined by the Compensation and Talent Management Committee of the Board of Directors at the time of grant. The LTIP provides for the grant of share units, or LTIP Units, consisting of RSUs, performance share units ("PSUs") and deferred share units ("DSUs"). Each LTIP Unit represents the right to receive one Class A subordinate voting share in accordance with the terms of the LTIP. RSUs are granted quarterly and generally vest on a monthly basis over the period of three months or if allocated to the long-term equity component, generally vest over a three year period. A PSU participant’s grant agreement will describe the performance criteria established by the Company’s "Compensation and Talent Management Committee" of the Board of Directors that must be achieved for PSUs to vest to the PSU participant, provided the participant is continuously employed by or in the Company’s service or the service or employment of any of the Company’s affiliates from the date of grant until such PSU vesting date. As of December 31, 2025, there have been no PSUs granted. DSUs are granted solely to non-employee directors of the Company, at their option, in lieu of their Board retainer fees. DSUs will vest upon a director ceasing to act as a director. The maximum number of Class A subordinate voting shares reserved for issuance, in the aggregate, under the Company's SOP and the LTIP was initially equal to 37,436,920 Class A subordinate voting shares, adjusted to give effect to Share Split. The number of Class A subordinate voting shares available for issuance, in the aggregate, under the SOP and the LTIP was automatically increased on January 1st of each year, beginning on January 1, 2016 and ending on January 1, 2026, in an amount equal to 5 % of the aggregate number of outstanding Class A subordinate voting shares and Class B restricted voting shares on December 31st of the preceding calendar year. As of January 1, 2026, there were 537,878,638 shares available for issuance under the Company's SOP and LTIP. 104 Table of Contents The following table summarizes the stock option and RSU award activities under the Company's share-based compensation plans for the years ended December 31, 2025 and 2024: Shares Subject to Options Outstanding Outstanding RSUs Number of Options (1) Weighted Average Exercise Price Remaining Contractual Term (in years) Aggregate Intrinsic Value (2) Weighted Average Grant Date Fair Value Outstanding RSUs Weighted Average Grant Date Fair Value (in US $ millions , except share and share price amounts ) December 31, 2023 11,462,631 49.88 7.09 406 — 4,078,478 58.50 Stock options granted 6,065,237 75.75 — — 39.74 — — Stock options exercised ( 2,576,628 ) 23.83 — — — — — Stock options forfeited ( 314,248 ) 82.40 — — — — — RSUs granted — — — — — 7,025,895 74.91 RSUs settled — — — — — ( 5,433,218 ) 63.95 RSUs forfeited — — — — — ( 550,086 ) 61.51 December 31, 2024 14,636,992 64.49 7.68 623 — 5,121,069 74.90 Stock options granted 1,746,047 125.35 — — 64.68 — — Stock options exercised ( 4,739,441 ) 48.85 — — — — — Stock options forfeited ( 1,442,920 ) 79.66 — — — — — RSUs granted — — — — — 3,755,264 124.55 RSUs settled — — — — — ( 4,298,862 ) 87.92 RSUs forfeited — — — — — ( 1,090,585 ) 81.80 December 31, 2025 10,200,678 80.03 7.22 826 — 3,486,886 110.16 Stock options exercisable as of December 31, 2025 4,770,274 71.13 5.78 429 (1) As of December 31, 2025, 10,163,647 of the outstanding stock options were granted under the Company's SOP and are exercisable for Class A subordinate voting shares and 37,031 of the outstanding stock options were granted under the Deliverr 2017 Stock Option and Grant Plan and are exercisable for Class A subordinate voting shares. (2) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying stock option awards and the closing market price of the Company's Class A subordinate voting shares as of December 31, 2025 and December 31, 2024. As of December 31, 2025 the Company had issued 4,943 DSUs under its LTIP. The total intrinsic value of stock options exercised and RSUs settled during the years ended December 31, 2025 and 2024 was $ 956 million and $ 609 million, respectively. The aggregate intrinsic value of options exercised is calculated as the difference between the exercise price of the underlying stock option awards and the market value on the date of exercise. As of December 31, 2025 and 2024, there was $ 486 million and $ 487 million, respectively, of remaining unamortized compensation cost related to unvested stock options and RSUs granted to the Company’s employees. This cost will be recognized over an estimated weighted-average remaining period of 1.9 years. Total unamortized compensation cost will be adjusted for future changes in estimated forfeitures. In connection with the acquisition of Vantage Discovery Inc., 252,257 Class A subordinate voting shares were issued with trading restrictions. The restrictions on these shares are lifted over time and are being accounted for as stock-based compensation as the vesting is contingent on continued employment and therefore related to post-combination services. As of December 31, 2025, 252,257 of the Class A subordinate voting shares remained restricted. Stock-Based Compensation Expense All share-based awards are measured based on the grant date fair value of the awards and recognized in the consolidated statements of operations and comprehensive income over the period during which the 105 Table of Contents employee is required to perform services in exchange for the award (generally the vesting period of the award). The Company estimates the fair value of stock options granted using the Black-Scholes option valuation model, which requires assumptions, including the fair value of the Company's underlying common stock, expected term, expected volatility, risk-free interest rate and dividend yield of the Company's Class A subordinate voting shares. These estimates involve inherent uncertainties and the application of management’s judgment. If factors change and different assumptions are used, share-based compensation expense could be materially different in the future. These assumptions are estimated as follows: • Fair Value of Common Stock. The Company uses the five-day volume weighted average price for its Class A subordinate voting shares as reported on the New York Stock Exchange. • Expected Term. The Company determines the expected term based on the average period the stock options are expected to remain outstanding. The Company bases the expected term assumptions on its historical behavior combined with estimates of the post-vesting holding period. • Expected Volatility. The Company determines the price volatility factor based on the Company's historical volatility over the expected term of the stock options. • Risk-Free Interest Rate. The Company bases the risk-free interest rate used in the Black-Scholes valuation model on the yield available on U.S. Treasury zero-coupon issues with an equivalent remaining term of the stock options for each stock option group. • Expected Dividend. The Company has not paid and does not anticipate paying any cash dividends in the foreseeable future and, therefore, uses an expected dividend yield of zero in the option pricing model. The grant weighted average assumptions used to estimate the fair value of stock options granted to employees were as follows: Years ended December 31, 2025 December 31, 2024 Expected volatility 64.5 % 65.6 % Risk-free interest rate 4.17 % 4.17 % Dividend yield Nil Nil Average expected term 3.9 3.9 In addition to the assumptions used in the Black-Scholes option valuation model, the Company also estimates a forfeiture rate to calculate the share-based compensation expense for our awards. The Company's forfeiture rate is based on an analysis of its actual forfeitures. The Company will continue to evaluate the appropriateness of the forfeiture rate based on actual forfeiture experience, analysis of employee turnover, and other factors. Changes in the estimated forfeiture rate can have a significant impact on share-based compensation expense as the cumulative effect of adjusting the rate is recognized in the period the forfeiture estimate is changed. If a revised forfeiture rate is higher/lower than the previously estimated forfeiture rate, an adjustment is made that will result in an increase/decrease to the share-based compensation expense recognized in the consolidated financial statements. 106 Table of Contents The following table illustrates the classification of stock-based compensation in the consolidated statements of operations and comprehensive income, which includes both stock-based compensation and restricted share-based compensation expense: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Cost of revenues 4 4 4 Sales and marketing (1) 44 47 56 Research and development (1) 313 287 481 General and administrative 88 92 74 449 430 615 (1) Includes accelerated stock-based compensation of $ 5 million and $ 164 million in sales and marketing and research and development, respectively, during the year ended December 31, 2023 . In February 2026, the Company's Board of Directors authorized a share repurchase program permitting the repurchase of up to $ 2 billion of the Company's Class A subordinate shares, provided that the number of Class A subordinate voting shares repurchased does not exceed 5% of the Company's issued and outstanding Class A subordinate voting shares. The share repurchase program has no fixed expiration and the actual timing, number and value of Class A subordinate voting shares repurchased will depend on a variety of factors, including price, business and market conditions, applicable legal requirements and alternative investment opportunities. 20. Changes in Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in accumulated other comprehensive income (loss), which is reported as a component of shareholders’ equity: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Balance, beginning of the year ( 10 ) 4 ( 16 ) Other comprehensive income (loss) before reclassifications 9 ( 27 ) 7 Gain on cash flow hedges reclassified from accumulated other comprehensive income (loss) to earnings: Sales and marketing 1 2 3 Research and development 4 5 9 General and administrative 1 1 1 Tax effect on unrealized gain (loss) on cash flow hedges ( 4 ) 5 — Other comprehensive income (loss), net of tax 11 ( 14 ) 20 Balance, end of the year 1 ( 10 ) 4 107 Table of Contents 21. Income Taxes The domestic and foreign components of income before income taxes and provision for income taxes were as follows: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Income before income taxes Domestic 450 537 599 Foreign 1,059 1,691 ( 414 ) 1,509 2,228 185 Current income tax (expense) Federal ( 35 ) ( 14 ) 1 Provincial ( 64 ) ( 18 ) — Foreign ( 193 ) ( 99 ) ( 55 ) ( 292 ) ( 131 ) ( 54 ) Deferred income tax recovery (expense) Federal 1 ( 41 ) ( 1 ) Provincial 17 ( 31 ) ( 1 ) Foreign ( 4 ) ( 6 ) 3 14 ( 78 ) 1 Provision for income taxes ( 278 ) ( 209 ) ( 53 ) 108 Table of Contents The reconciliation of the expected income tax expense calculated using the statutory tax rate to the actual provision for income taxes reported in the consolidated statements of operations and comprehensive income for the years ended December 31, 2025, 2024 and 2023 is as follows: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions, except percentages) Income before income taxes 1,509 2,228 185 Expected income tax expense at Canadian Federal statutory income tax rate of 15.0% (1) ( 226 ) 15.0 % ( 334 ) 15.0 % ( 28 ) 15.0 % Provincial tax (2) ( 47 ) 3.1 % ( 46 ) 2.1 % ( 1 ) 0.5 % Other jurisdiction tax effects United States Foreign tax rate differential 4 ( 0.3 ) % ( 8 ) 0.4 % ( 39 ) 21.1 % U.S. State taxes ( 18 ) 1.2 % ( 242 ) 10.9 % 119 ( 64.3 ) % Change in valuation allowance ( 13 ) 0.9 % 361 ( 16.2 ) % ( 543 ) 293.5 % Income not subject to tax in U.S. (3) 36 ( 2.4 ) % 33 ( 1.5 ) % 43 ( 23.2 ) % Unrealized investment (loss) gain not subject to tax in U.S. (3) ( 3 ) 0.2 % 49 ( 2.2 ) % 29 ( 15.7 ) % Stock-based compensation 30 ( 2.0 ) % 15 ( 0.7 ) % ( 47 ) 25.4 % Sales of businesses — — % — — % 196 ( 105.9 ) % Effect in changes in tax rates on unrealized investment gain — — % ( 132 ) 5.9 % — — % Other ( 17 ) 1.1 % 13 ( 0.6 ) % 3 ( 1.6 ) % Singapore Foreign tax rate differential ( 5 ) 0.3 % ( 3 ) 0.1 % ( 1 ) 0.5 % Singapore benefit of tax holiday 20 ( 1.3 ) % 21 ( 0.9 ) % 9 ( 4.9 ) % Pillar Two tax ( 10 ) 0.7 % — — % — — % Other ( 5 ) 0.3 % ( 4 ) 0.2 % 3 ( 1.6 ) % Ireland Foreign tax rate differential 12 ( 0.8 ) % 20 ( 0.9 ) % 16 ( 8.6 ) % Unrealized investment (loss) gain not subject to tax in Ireland (3) ( 46 ) 3.0 % 44 ( 2.0 ) % 53 ( 28.6 ) % Pillar Two tax ( 16 ) 1.1 % ( 5 ) 0.2 % — — % Other ( 13 ) 0.9 % ( 14 ) 0.6 % 5 ( 2.7 ) % Other foreign jurisdictions 1 ( 0.1 ) % 8 ( 0.4 ) % ( 12 ) 6.5 % Effect of cross-border tax laws Domestic taxes on foreign earnings (3) ( 66 ) 4.4 % ( 60 ) 2.7 % ( 58 ) 31.4 % Domestic taxes on unrealized investment gains (3) 46 ( 3.0 ) % ( 62 ) 2.8 % ( 45 ) 24.3 % Other — — % ( 13 ) 0.6 % — — % Tax credits 30 ( 2.0 ) % 13 ( 0.6 ) % 18 ( 9.7 ) % Change in valuation allowance — — % 115 ( 5.2 ) % 71 ( 38.4 ) % Nontaxable or nondeductible items Net unrealized gain on equity and other investments 34 ( 2.3 ) % 29 ( 1.3 ) % 128 ( 69.2 ) % Sales of businesses — — % — — % 45 ( 24.3 ) % Stock-based compensation 12 ( 0.8 ) % — — % ( 15 ) 8.1 % Non-deductible loss on embedded derivative ( 19 ) 1.3 % — — % — — % Other permanent differences 1 ( 0.1 ) % ( 3 ) 0.1 % ( 1 ) 0.5 % Other adjustments — — % ( 4 ) 0.2 % ( 1 ) 0.5 % Provision for income taxes ( 278 ) 18.4 % ( 209 ) 9.4 % ( 53 ) 28.6 % 109 Table of Contents (1) This represents the Canadian federal statutory income tax rate, which is 15% after a 13% general tax reduction and 10% federal abatement are applied to the 38% basic rate. (2) Provincial taxes in Ontario made up the majority of the tax effect in this category. (3) Foreign income is subject to tax in Canada. Historical net operating losses and tax credits were utilized to offset tax liabilities which has reduced the amount of Federal and Provincial cash paid for income taxes. As of December 31, 2025, 2024 and 2023 the Company had Canadian unused non-capital tax losses and undeducted research and development expense balances of $ 5 million, $ 5 million and $ 343 million, respectively. In addition, as of December 31, 2025, 2024 and 2023, the Company had unused tax credits of nil , $ 26 million and $ 94 million, respectively. The below table illustrates the total cash paid for income taxes paid (net of refunds received) for the years ended December 31, 2025, 2024 and 2023: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Federal 1 4 3 Provincial 43 2 1 Aggregated Other Jurisdictions 16 14 10 Disaggregated Other Jurisdictions Ireland 116 60 27 Singapore 10 5 — U.S. 8 31 9 Total cash paid for income taxes, net 194 116 50 The significant components of the Company’s deferred income tax assets and liabilities as of December 31, 2025 and 2024 were as follows: December 31, 2025 December 31, 2024 (in US $ millions) Deferred tax assets Tax loss carryforwards 578 608 Accruals and reserves 124 107 Lease liabilities 51 57 Capital and intangible assets 39 48 Stock-based compensation expense 33 37 Research and development expenditures 11 23 Tax credits — 15 Other deferred tax assets 1 — Total deferred tax assets, before valuation allowance 837 895 Valuation allowance ( 489 ) ( 482 ) Total deferred tax assets 348 413 Deferred tax liabilities Equity and other investments ( 255 ) ( 294 ) Outside basis difference of foreign subsidiaries ( 80 ) ( 125 ) Lease assets ( 23 ) ( 25 ) Intangible assets ( 4 ) — Other deferred tax liabilities ( 8 ) ( 5 ) Total deferred tax liabilities ( 370 ) ( 449 ) Total deferred tax (liabilities) assets, net ( 22 ) ( 36 ) 110 Table of Contents During the year ended December 31, 2025, the Company assessed whether a valuation allowance should be established or maintained against its deferred tax assets, based on consideration of all available positive and negative evidence, using a "more-likely-than-not" standard. The factors the Company uses to assess the likelihood of realization are its recent operating results, historical losses and the cumulative losses, forecasts of future pre-tax income and tax planning strategies that could be implemented to realize the deferred tax assets. The Company had a provision for income taxes of $ 278 million in the year ended December 31, 2025, as a result of earnings, offset by unrealized losses on the company's equity and other investments. The Company had a provision for income taxes of $ 209 million in the year ended December 31, 2024, as a result of earnings and unrealized gains on the company's equity and other investments, net of an offset to the reversal of valuation allowance. During the year ended December 31, 2024, there were significant unrealized gains on the Company's equity and other investments resulting in a deferred tax expense. As a result, a portion of the valuation allowance was reversed which partially offset the deferred tax expense in the current year. During the year ended December 31, 2024, the Company performed a U.S. state tax sourcing analysis that resulted in a change to our U.S. state tax apportionment. This also resulted in a reduction in deferred tax assets, including unused non-capital tax losses, that were fully offset by a valuation allowance. During the year ended December 31, 2023, the Company had a provision for income taxes of $ 53 million, primarily as a result of earnings in jurisdictions outside of North America. We are subject to review and audit by tax authorities around the world, which may lead to adjustments to our tax liabilities. We received a proposed assessment from the Canada Revenue Agency ("CRA") in the fourth quarter related to transfer pricing for tax year 2020. We disagree with the proposed assessment and intend to defend our position. While we believe that our tax provision is adequate, the final determination and timing of resolution of any tax audits or litigation cannot be predicted with certainty. We continue to monitor the progress of tax audits with tax authorities. Adjustments arising from tax audits or litigation will be recorded in the period in which such matters are resolved. The gross unrecognized tax benefits related to uncertain tax positions were as follows: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions) Balance at the beginning of the year 15 10 9 Additions for tax positions of prior years 5 — — Additions based on tax positions related to the current year 5 5 1 Balance at the end of the year 25 15 10 In the years ended December 31, 2025, 2024, 2023, the Company accrued interest of $ 1 million, nil , and nil , respectively, related to uncertain tax positions. The Company remains subject to audit by the relevant tax authorities for the years ended 2018 through 2025. Investment tax credits, which are earned as a result of qualifying research and development expenditures, are recognized and applied to reduce income tax expense in the year in which the expenditures are made and their realization is reasonably assured. As of December 31, 2025, the Company had U.S. federal unused non-capital tax losses of approximately $ 287 million, of which $ 253 million has no expiry and $ 34 million will begin to expire starting in 2031. In 111 Table of Contents addition, the Company had unused non-capital tax losses in various U.S. states of approximately $ 348 million, of which $ 5 million has no expiry and $ 343 million will begin to expire in 2031. As of December 31, 2024, the Company had U.S. federal unused non-capital tax losses of approximately $ 306 million, of which $ 272 million has no expiry and $ 34 million will begin to expire starting in 2031. In addition, the Company had unused non-capital tax losses in various U.S. states of approximately $ 339 million, of which $ 6 million has no expiry and $ 333 million will begin to expire in 2031. As of December 31, 2025, the Company also has $ 760 million of capital losses in Canada that do not expire as well as $ 1.6 billion of capital losses in the U.S. that expires in 2028. As of December 31, 2024, the Company has $ 761 million of capital losses in Canada that do not expire as well as $ 1.7 billion of capital losses in the U.S. that expires in 2028. 112 Table of Contents 22. Net Income per Share The Company applies the two-class method to calculate its basic and diluted net loss per share as Class A subordinate voting shares and Class B restricted voting shares are participating securities with equal participation rights and are entitled to receive dividends on a share for share basis. The Company uses the treasury stock method and if-converted method for calculating the effect of dilutive potential common stock from employee stock options and employee RSUs and from its Notes, respectively. The following table summarizes the reconciliation of the basic weighted average number of shares outstanding and the diluted weighted average number of shares outstanding: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions, except share and share price amounts) Numerator: Net income 1,231 2,019 132 Denominator: Basic weighted average number of shares outstanding 1,298,955,860 1,289,812,124 1,281,554,559 Weighted average effect of dilutive securities: Stock options 4,192,190 3,988,316 4,586,659 Restricted share units 1,798,098 1,307,610 2,974,367 Convertible senior notes — 6,388,480 6,388,480 Deferred share units 7,107 13,450 7,320 Diluted weighted average number of shares 1,304,953,255 1,301,509,980 1,295,511,385 Net income per share: Basic $ 0.95 $ 1.57 $ 0.10 Diluted $ 0.94 $ 1.55 $ 0.10 Common stock equivalents excluded from net income per diluted share because they are anti-dilutive: Stock options 61,010 858,528 150,558 Restricted share units 254,300 459,136 1,058,628 Deferred share units 392 125 — 315,702 1,317,789 1,209,186 113 Table of Contents 23. Segment and Geographical Information The Company's CODM is its Chief Executive Officer. The CODM has determined that the Company operates in one single operating and reportable segment and manages segment performance and resource allocation based upon consolidated net income (loss). The CODM uses consolidated net income (loss) in deciding whether to reinvest profits into opportunities for the business, invest in business combinations or equity investments or return a portion of such profits to shareholders. The measure of segment assets is reported on the consolidated balance sheets as total consolidated assets. Significant expenses reviewed by the CODM include those that are presented in the consolidated statements of operations and comprehensive income. The following table presents total external revenues by geographic location, based on the location of the Company’s merchants: Years ended December 31, 2025 December 31, 2024 December 31, 2023 (in US $ millions, except percentages) North America United States 7,331 63 % 5,708 64 % 4,649 66 % Canada 567 5 % 483 6 % 388 5 % EMEA 2,426 21 % 1,707 19 % 1,255 18 % APAC 1,128 10 % 885 10 % 699 10 % Latin America 104 1 % 97 1 % 69 1 % Total Revenue 11,556 100 % 8,880 100 % 7,060 100 % 24. Reduction in Workforce In May 2023, the Company reduced headcount by approximately 23 % of employees across the Company ("2023 Reduction in Workforce"). The Company incurred and paid $ 148 million in total severance related costs in the year ended December 31, 2023. The 2023 Reduction in Workforce costs recorded for severance related costs in the year ended December 31, 2023 were as follows in US $ millions: Amount Sales and marketing 28 Research and development 102 General and administrative 18 148 114 Table of Contents Index to Exhibits Incorporated by Reference No. Exhibit Description Filed or Furnished with this 10-K Form File No. Exhibit Date Filed 3.1 Restated Articles of Incorporation 6-K 001-37400 1 May 29, 2015 3.2 By-laws 6-K 001-37400 2 May 29, 2015 3.3 Certificate and Articles of Arrangement 6-K 001-37400 99.2 June 10, 2022 3.4 Certificate and Articles of Amendment 6-K 001-37400 99.1 June 28, 2022 4.1 Description of Securities Registered under Section 12(b) of the Securities Exchange Act, as amended 10-K 001-37400 4.1 February 11, 2025 4.2 Specimen Class A Subordinate Voting Share Certificate F-1/A 333-203401 4.1 May 6, 2015 4.3 Specimen Class B Multiple Voting Share Certificate F-1/A 333-203401 4.2 May 6, 2015 4.4 Coattail Agreement , dated May 27, 2015, in connection with the Company's Class B restricted voting shares 6-K 001-37400 2 June 1, 2015 4.5 Third Amended and Restated Investors' Rights Agreement dated May 27, 2015 6-K 001-37400 1 June 1, 2015 4.6 Founder Agreement , dated June 9, 2022, in connection with the Founder Share 6-K 001-37400 99.3 June 10, 2022 10. 1 † Third Amended and Restated Stock Option Plan dated June 4, 2024 6-K 001-37400 99.1 June 5, 2024 10 .2 † Third Amended and Restated Long Term Incentive Plan dated June 4, 2024 6-K 001-37400 99.2 June 5, 2024 10 .3 † Form of Director and Officer Indemnity Agreement 10-K 001-37400 10.4 February 11, 2025 10 .4 † Employment Agreement, dated October 15, 2010 , between Tobias Lütke and the Company F-1 001-37400 10.2 April 14, 2015 10. 5 † Employment Agreement, dated February 24, 2020, between Harley Finkelstein and the Company 10-K 001-37400 10.6 February 11, 2025 10. 6 † Employment Agreement Amending Agreement, dated October 17, 2023, between Harley Finkelstein and the Company 10-K 001-37400 10.7 February 11, 2025 10. 7 † Employment Agreement , dated March 23, 2022, between Jessica Hertz and the Company 10-K 001-37400 10.8 February 11, 2025 10. 8 † Employment Agreement , dated September 15, 2022, between Jeff Hoffmeister and the Company 10-K 001-37400 10.9 February 11, 2025 10. 9 † Employment Agreement , dated May 1, 2025, between Jean Niehaus and the Company X 19.1 Insider Trading Policy 10-K 001-37400 19.1 February 11, 2025 21.1 List of Subsidiaries X 23.1 Consent of PricewaterhouseCoopers LLP X 24 Power of Attorney (see signature page) X 31.1* Certification of the Chief Executive Officer and the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 X 32.1* Certification of the Chief Executive Officer and the Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 X 97.1† Clawback Policy 40-F 001-37400 97 February 13, 2024 115 Table of Contents 101 The following financial statements from the Company's Annual Report on Form 10-K for the year ended December 31, 2025, formatted in Inline XBRL: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations and Comprehensive Income (Loss), (iii) Consolidated Statements of Changes in Shareholders' Equity, (iv) Consolidated Statements of Cash Flows and (v) Notes to Consolidated Financial Statements, tagged as blocks of text and including detailed tags X 104 The cover page from the Company's Annual Report on Form 10-K for the year ended December 31, 2025, formatted in Inline XBRL X * These certifications are not deemed filed by the SEC and are not to be incorporated by reference in any filing we make under the Securities Act of 1933 or the Securities Exchange Act of 1934, irrespective of any general incorporation language in any filings. † Indicates a management contract or compensatory plan SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. February 11, 2026 Shopify Inc. /S/ Jeff Hoffmeister Jeff Hoffmeister Chief Financial Officer (principal financial officer) 116 Table of Contents POWER OF ATTORNEY KNOW ALL PERSONS BY THESE PRESENTS, that each officer or director of Shopify Inc. whose signature appears below constitutes and appoints Tobias Lütke, Jeff Hoffmeister, Jean Niehaus and Michael L. Johnson, and each of them, with full power to act without the other, his or her true and lawful attorneys-in-fact and agents, with full and several power of substitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully to all intents and purposes as they or he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents or his or her or their substitute or substitutes, may lawfully do or cause to be done by virtue hereof. Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. Signature Title Date /S/ Tobias Lütke Chief Executive Officer and Chairman of the Board of Directors (principal executive officer) February 11, 2026 Tobias Lütke /S/ Jeff Hoffmeister Chief Financial Officer (principal financial officer) February 11, 2026 Jeff Hoffmeister /S/ Darryl Arvai Vice President, Corporate Controller (principal accounting officer) February 11, 2026 Darryl Arvai /S/ Joe Natale Director February 11, 2026 Joe Natale /S/ Gail Goodman Director February 11, 2026 Gail Goodman /S/ David Heinemeier Hansson Director February 11, 2026 David Heinemeier Hansson /S/ Jeremy Levine Director February 11, 2026 Jeremy Levine /S/ Prashanth Mahendra-Rajah Director February 11, 2026 Prashanth Mahendra-Rajah /S/ Lulu Cheng Meservey Director February 11, 2026 Lulu Cheng Meservey /S/ Kevin Scott Director February 11, 2026 Kevin Scott /S/ Toby Shannan Director February 11, 2026 Toby Shannan /S/ Fidji Simo Director February 11, 2026 Fidji Simo 117