At June 30, 2026, redeemable noncontrolling interests ("RNCI") consist of interests in consolidated subsidiaries for which the Company has entered into separate option contracts by which the Company has the right to purchase the remaining non-controlling interests through a call option and the non-controlling interest holder has the right to sell the non-controlling interest to the Company through a put option.

Percentage of redeemable noncontrolling interest

Earliest exercise date

Formula of redemption value

Lote45 Participacoes S.A.

43.68%

January 1, 2027

Variable multiple of net sales dependent upon EBITDA margin attained plus net debt minus BRL$10.0 million times percentage of ownership

Tecnobank Tecnologia Bancária S.A.

25.00%

April 30, 2029

Variable multiple of net sales dependent upon EBITDA margin less net debt at the payment date times percentage of ownership

Given certain provisions within the option contracts, the Company has classified the RNCI as mezzanine equity on the Company's unaudited condensed consolidated balance sheets. RNCI are adjusted quarterly, if necessary, to their estimated redemption value. Adjustments to the redemption value impact stockholders' equity. The following table presents changes in RNCI for the six months ended June 30, 2026 and the twelve months ended December 31, 2025:


(In thousands)	Redeemable noncontrolling interests
	June 30, 2026		December 31, 2025
Beginning balance	$	89,155	$	43,460
Fair value of redeemable non-controlling interest at acquisition date	—		53,569
Net income attributable non-controlling interests	2,520		3,177
Acquisition of shares from non-controlling interest	(22,379)		(7,276)
Adjustment of redeemable non-controlling interests to redemption value	7,289		1,180
Dividends declared on redeemable non-controlling interests	(2,421)		(4,976)

Foreign currency translation adjustments	7		21
Ending balance	$	74,171	$	89,155

During the six month period ended June 30, 2026, certain non-controlling interest holders exercised their Lote45 Participacoes S.A put options, and accordingly the Company acquired an additional 4.32% ownership interest in Lote45 Participacoes S.A. This transaction did not result in a change in control and was accounted for as an equity transaction, with a $0.7 million decrease to accumulated earnings reflected on the Company's condensed consolidated balance sheet for the difference between the carrying value of the redeemable noncontrolling interest at the date of purchase and the consideration paid. The payment of approximately $2.4 million for the acquisition of the redeemable noncontrolling interest is classified as a financing activity within the condensed consolidated statements of cash flows.

During the same period, the Company also acquired the remaining 49% ownership interest in Rosk Software S.A. and the remaining 40% ownership interest in Compliasset Software e Soluções Digitais Ltda. As none of these transactions resulted in a change of control, they were accounted for as equity transactions in accordance with ASC 810. In connection with the acquisitions of Rosk Software S.A. and Compliasset Software e Soluções Digitais Ltda, the carrying value of the redeemable noncontrolling interest at the dates of purchase approximated the consideration paid. Cash payments of approximately $17.8 million and $2.9 million, respectively, related to these acquisitions are classified as financing activities in the Company's condensed consolidated statements of cash flows.