The Company operates in Japan through BlackLine K.K., in which it holds a 53% controlling interest. The non-controlling interests are held by Japanese Cloud Computing, M30 LLC, and Masamune Mimura (the “Investors”). As the Company continues to control a majority stake in BlackLine K.K., the entity has been consolidated.

All of the common stock held by the Investors is callable by the Company or puttable by the Investors upon certain contingent events. Should the call or put option be exercised, the redemption value will be determined based upon a prescribed formula derived from the discrete revenues of BlackLine K.K. and the Company, and may be settled, at the Company’s discretion, with Company stock or cash. As a result of the put right available to the Investors in the future, the redeemable non-controlling interest in BlackLine K.K. is classified outside of permanent equity in the consolidated balance sheets, and the balance is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest's share of earnings, or its estimated redemption value. The resulting changes in the estimated redemption amount, which is reflected as an adjustment to redeemable non-controlling interest in the table below, are recorded within retained earnings or, in the absence of retained earnings, additional paid-in capital.

During the quarter ended March 31, 2026, employees of BlackLine K.K. exercised stock options with a total exercise price of $0.2 million, resulting in the issuance of 0.1 million shares of BlackLine K.K. common stock. The Company subsequently purchased these shares of common stock for an aggregate price of $3.3 million, which increased the majority ownership of BlackLine K.K. from 51% to 53%.


	Quarter Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Balance at beginning of period	$	31,571	$	35,818	$	39,121	$	36,483
Net income attributable to redeemable non-controlling interest (excluding adjustment to non-controlling interest)	937		660		1,331		1,057
Foreign currency translation	(65)		83		(118)		199
Adjustment to redeemable non-controlling interest	(8,150)		(1,561)		(12,779)		(2,739)
Proceeds from stock option exercises – redeemable non-controlling interest	—		—		74		—
Purchase of additional redeemable non-controlling interest	—		—		(3,336)		—
Balance at end of period	$	24,293	$	35,000	$	24,293	$	35,000