When acquiring less than 100% ownership of an entity, the Company may enter into agreements that give the Company an option to purchase, or require the Company to purchase, the incremental ownership interests under certain circumstances. Where the option to purchase incremental ownership is within the Company’s control, the amounts are recorded as Noncontrolling interests within Shareholders’ Equity in the Unaudited Consolidated Balance Sheets. Where the incremental purchase may be required of the Company, the amounts are recorded as Redeemable noncontrolling interests in mezzanine equity in the Unaudited Consolidated Balance Sheets at their estimated acquisition date redemption value and adjusted at each reporting period for changes to their estimated redemption value through Retained earnings (but not less than their initial redemption value), except for foreign currency translation adjustments.

The following table presents Net income (loss) attributable to noncontrolling and redeemable noncontrolling interests between Class C shareholders and other equity interest holders for the three and six months ended June 30, 2026 and 2025:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(dollars in thousands)
Net loss attributable to Class C shareholders (1)	$	—	$	—	$	—	$	(6,637)
Net income attributable to other equity interest holders	718		624		338		626
Net income (loss) attributable to noncontrolling interests	$	718	$	624	$	338	$	(6,011)
Net income (loss) attributable to redeemable noncontrolling interests	(1,303)		3		(1,897)		4,230
Net income (loss) attributable to noncontrolling and redeemable noncontrolling interests	$	(585)	$	627	$	(1,559)	$	(1,781)

(1) On April 4, 2025, Stagwell Media LP (“Stagwell Media”) exercised in full its right to exchange all of its 151,648,741 shares of Class C Common Stock for an equal number of newly issued shares of Class A Common Stock (the “Class C Exchange”). Following the Class C Exchange, the Company no longer has any Noncontrolling interest of Class C shareholders as of June 30, 2026.


	June 30, 2026		December 31, 2025
	(dollars in thousands)
Beginning balance	$	24,968	$	8,412

Additions	—		2,048
Distributions	(1,806)		(2,489)
Changes in redemption value (1)	(1,479)		9,657
Net income (loss) attributable to redeemable noncontrolling interests (2)	(1,897)		7,246
Currency translation adjustment	527		94
Ending balance	$	20,313	$	24,968

(1) Changes in redemption value are the fair value changes from the acquisition date redemption value based on the options held by the minority interest holders, adjusted through Retained earnings.

The noncontrolling shareholders’ ability to exercise any such option right is subject to the satisfaction of certain conditions, including conditions requiring notice in advance of exercise and specific employment termination conditions. In addition, these rights cannot be exercised prior to specified staggered exercise dates. The exercise of these rights at their earliest contractual date would result in obligations of the Company to fund the related amounts between 2026 and 2031. It is not determinable, at this time, if or when the owners of these rights will exercise all or a portion of these rights.

These adjustments will not impact the calculation of earnings per share if the redemption values are less than the estimated fair values. As such, there is no related impact on the Company’s earnings per share calculations for the three and six months ended June 30, 2026 and 2025.