As of June 30, 2026 and December 31, 2025, the non-controlling Adtran Networks stockholders’ equity ownership percentage in Adtran Networks was approximately 28.1% and 29.2%, respectively.

The following table summarizes the redeemable non-controlling interest activity for the six months ended June 30, 2026 and for the year ended December 31, 2025:


	Six Months Ended			For the Year Ended
(In thousands)	June 30, 2026			December 31, 2025
Balance at beginning of period	$	373,328		$	422,943
Redemption of redeemable non-controlling interest		(14,168	)		(49,615	)
Net income attributable to redeemable non-controlling interests		4,452			9,413
Annual recurring compensation earned		(4,452	)		(9,413	)
Balance at end of period	$	359,160		$	373,328

Annual Recurring Compensation payable on untendered outstanding shares under the DPLTA must be recognized as it is accrued. For the three and six months ended June 30, 2026, we have accrued $2.1 million and $4.3 million, respectively, and for the year ended December 31, 2025, the Company accrued $9.3 million, representing the portion of the annual recurring cash compensation to the non-controlling shareholders during such periods. The 2025 Annual Recurring Compensation accrual was paid after the ordinary general shareholders' meeting of Adtran Networks in June 2026. The 2026 Annual Recurring Compensation accrual will be paid after the ordinary general shareholders' meeting of Adtran Networks in 2027.