For some of our subsidiaries, we own a controlling equity stake, and a third party or key members of the business management team own a minority portion of the equity. These noncontrolling interests span multiple businesses and reportable segments.

During the third quarter of 2026, we completed the sale of an 8.75% aggregate equity interest in each of the businesses within our PrintBrothers reportable segment to certain members of the management team in exchange for cash proceeds of €21,000 ($24,814 based on the exchange rate in effect on the date we received the proceeds). The management team member minority interest holders are subject to a 10-year lock-up period and noncompete restrictions and hold the right, starting in 2036, to sell their interests to us at a price that considers specified market inputs. We recognized the redeemable noncontrolling interest at the estimated fair value of €53,000 ($61,498 based on the exchange rate in effect on the date we completed the sale).

We concluded that the arrangement includes elements that are recognized in accordance with ASC 718, Stock Compensation, since the counterparties to the agreement are current members of the respective management teams. Consequently, we recognized an asset of $36,684 for the difference between the estimated fair value of the redeemable noncontrolling interest and the cash consideration received. This asset will be recognized as share-based compensation expense over the noncompete period, which extends two years beyond the lock-up period, or over a 12 year period. As of June 30, 2026, $2,657 of this asset is recognized within prepaid expenses and other current assets, and $30,996 is recognized within other assets in our consolidated balance sheets.

The following table presents the reconciliation of changes in our noncontrolling interests:


	Redeemable Noncontrolling Interest		Noncontrolling Interest
Balance as of June 30, 2024	$	22,998	$	634
Acquisition of noncontrolling interest (1)	866		—
Accretion to redemption value recognized in retained earnings	1,562		—
Purchase of noncontrolling interests (2)	(4,579)		—
Net income (loss) attributable to noncontrolling interests	(2,364)		264
Foreign currency translation	574		89
Balance as of June 30, 2025	$	19,057	$	987
Proceeds from sale of noncontrolling interests	24,814		—
Fair value adjustment from sale of noncontrolling interests	36,684		—
Acquisition of noncontrolling interests (1)	2,224		20,000

Accretion to redemption value recognized in retained earnings	2,127		—

Adjustment to purchase price recognized in additional paid in capital	—		1,084

Purchase of noncontrolling interests (3)	(11,909)		(1,792)

Net income (loss) attributable to noncontrolling interests	1,320		(78)
Foreign currency translation	1,250		(60)
Balance as of June 30, 2026	$	75,567	$	20,141

(1) During fiscal years 2026 and 2025, we completed acquisitions of immaterial businesses that are part of our PrintBrothers and The Print Group reportable segments. This represents the estimated fair value of the respective noncontrolling interests upon acquisition. Refer to Note 7 for additional details.

(2) During fiscal year 2025, we purchased 49% of the remaining equity interest in one of the smaller businesses previously acquired and included in our PrintBrothers reportable segment for a total purchase price of $4,579, which consisted of $4,058 of cash paid at closing, and $521 of a deferred payment that is payable in fiscal year 2029.