We recognize expense for stock-based compensation within Operating expenses in the Condensed Consolidated Statement of Operations. Expense for stock-based awards granted to employees is based upon fair value on the grant date. Consistent with the requirements of ASC 718, Compensation-Stock Compensation, we recognize expense for all awards held by Atleos employees, including converted option and restricted stock unit awards in Voyix common stock.

Stock-based compensation expense for the three and six months ended June 30, 2026 and 2025 was as follows:


In millions	Three months ended June 30,				Six months ended June 30,
	2026		2025		2026		2025
Restricted stock units	$	10	$	8	$	17	$	17



Tax benefit	(1)		(1)		(2)		(1)
Stock-based compensation expense (net of tax)	$	9	$	7	$	15	$	16

On March 10, 2026, the Company granted time-based restricted stock units under the 2023 Stock Incentive Plan to its executive officers and certain eligible employees. These restricted stock units have a weighted-average grant date fair value of $44.56 and vest 25% on February 16, 2027, 25% on February 16, 2028, and 50% on February 16, 2029, subject to continuous employment with the Company through and until the vesting date. We recognize expense for these awards over the requisite service period.

The time-based restricted stock units granted to executive officers are subject to a mandatory two-year post-vesting holding period. A discount for lack of marketability of 13.26% was calculated using the Finnerty put-option model and applied to the awards subject to post-vesting restrictions. The resulting fair value of the awards subject to post-vesting restrictions was $38.65.

The Finnerty model uses the price of a put option to estimate the cost of insuring the value of the award against downside risk during the holding period. We calculated expected volatility of 42.16% for these restricted stock units using the historical volatility of our stock over a period of approximately two years. The expected dividend yield was assumed to be zero, as we have not announced plans to pay dividends on our common stock.

As of June 30, 2026, the total unrecognized compensation cost related to unvested restricted stock grants was $64 million, which we expect to recognize over a weighted average period of approximately 2.1 years.