v3.25.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock Options
The following table summarizes stock option activity during the three months ended March 31, 2025 (in thousands, except share and per share data):
 
Number of
Awards
Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Life
(in Years)
Aggregate
Intrinsic
Value
Outstanding as of December 31, 2024 10,031,486$18.12 6.5$233,161 
Granted1,416,911$47.76  
Exercised(555,867)$11.44  
Canceled and forfeited(55,494)$23.93  
Outstanding as of March 31, 2025 10,837,036$22.31 6.8$250,484 
Vested and exercisable as of March 31, 2025 6,772,788$15.46 5.5$200,429 
The weighted-average grant date fair value per share of stock options granted during the three months ended March 31, 2025 and 2024 was $31.97 and $19.01 per share, respectively. The total intrinsic value of options exercised during the three months ended March 31, 2025 and 2024 was $20.0 million and $0.7 million, respectively. Intrinsic value is calculated as the difference between the exercise price of the underlying options and the fair value of the common stock for the options that had exercise prices that were lower than the per share fair value of the common stock on the date of exercise. As of March 31, 2025, the total unrecognized stock-based compensation related to unvested stock option awards granted was $88.9 million, which the Company expects to recognize over a weighted-average period of approximately 3.1 years.
The fair value of each employee and non-employee stock option grant is estimated on the date of grant using the Black-Scholes option-pricing model. Due to the Company’s limited operating history and a lack of company specific historical and implied volatility data, the expected stock price volatility was based upon the weighting of the Company’s historical volatility and the historical volatility of a peer group of publicly traded companies. The historical volatility data was computed using the daily closing prices for the Company’s and its peer companies’ shares during the equivalent period of the calculated expected term of the stock-based awards. Due to the lack of historical exercise history, the expected term of the Company’s stock options for employees has been determined utilizing the “simplified” method for awards. The risk-free interest rate is determined by reference to the U.S. Treasury yield curve in effect at the time of grant of the award for time periods approximately equal to the expected term of the award. Expected dividend yield is zero based on the fact that the Company has never paid cash dividends and does not expect to pay any cash dividends in the foreseeable future.
The following assumptions were used to estimate the fair value of stock option awards granted during the following periods:
 Three Months Ended March 31,
 20252024
Expected term (in years)
6.08
6.08
Expected volatility
70.70%-71.31%
78.21%-80.36%
Risk-free interest rate
4.05%-4.65%
3.82%-4.16%
Expected dividend yield——
Restricted Stock Units
The following table summarizes the activity under the Company’s restricted stock units for the three months ended March 31, 2025:
 Number of
Awards		Weighted-Average Grant Date
Fair Value per Award
Unvested and outstanding as of December 31, 2024 1,392,562$26.63 
Granted557,255$47.69 
Vested(409,397)$23.17 
Cancelled/Forfeited(18,291)$27.10 
Unvested and outstanding as of March 31, 2025 1,522,129$35.27 
The fair value of restricted stock unit awards granted to employees and nonemployees is equal to the closing market price of the Company’s common stock on the grant date.
As of March 31, 2025, the total unrecognized stock-based compensation related to restricted stock unit awards granted was $45.9 million, which the Company expects to recognize over a weighted-average period of approximately 2.4 years.
Performance Stock Units
The fair value of performance stock units (“PSUs”) granted to employees is equal to the closing market price of the Company’s common stock on the grant date. PSUs are subject to vest only if certain specified sales-based criteria are achieved and the employees’ continued service with the Company. As of March 31, 2025, certain specified sales-based criteria were deemed probable of achievement or already achieved. Stock-based compensation for PSUs is recognized over the service period beginning in the period the Company determines it is probable that the performance criteria will be achieved. PSUs generally vest over a three-year service period. The number of shares earned is adjusted based on the specified sales-based criteria achievement.
The following table summarizes the activity under the Company’s performance stock units for the three months ended March 31, 2025:
 Number of
Awards		Weighted-Average Grant Date
Fair Value per Award
Unvested and outstanding as of December 31, 2024 284,955$25.15 
Granted217,547$40.18 
Vested(147,675)$23.92 
Cancelled/Forfeited(1,084)$25.39 
Unvested and outstanding as of March 31, 2025 353,743$34.91 
As of March 31, 2025, the total unrecognized stock compensation related to performance stock units granted was $10.8 million, which the Company expects to recognize over a weighted-average period of approximately 1.9 years.
Compensation Expense
Total stock-based compensation is reflected in the accompanying unaudited condensed consolidated statements of operations as follows (in thousands):
 Three Months Ended March 31,
 20252024
Selling, general and administrative$10,243 $7,589 
Research and development5,229 3,861 
Cost of sales331 — 
Total$15,803 $11,450 
Stock-based compensation capitalized into inventory was $0.2 million for each of the three months ended March 31, 2025 and 2024.