As a result of the Reverse Stock Split, on October 16, 2024, the Company amended and restated the A&R Plan, to reflect, pursuant to the provisions of Sections 4(e) and 17(a) thereof, the proportionate adjustment of the number of shares of Company’s Class A common stock authorized and available for issuance under the A&R Plan to 10,034,656 shares using the same one-for-twenty ratio used to consummate the Reverse Stock Split (the “Second A&R Plan”). Additionally, the maximum number of shares of Class A common stock that remained available for issuance pursuant to Incentive Stock Options (“ISO”) under the A&R Plan as of the effective time of the Reverse Stock Split was proportionally adjusted.

In connection with such amendment, pursuant to Section 4(e) of the A&R Plan, the Company’s Board of Directors proportionally adjusted the number of shares of Class A common stock subject to outstanding awards granted pursuant to the A&R Plan and the exercise price per share of Class A common stock of each such award to reflect the impact of the Reverse Stock Split. The impact of the Reverse Stock Split has been applied retroactively to all disclosures.

Pursuant to the Second A&R Plan, the aggregate number of shares of Class A common stock that may be issued or transferred under the Second A&R Plan shall be increased on an annual basis by a number equal to (x) 5.0% of the aggregate number of shares of Class A common stock and Class B common stock, taken together, outstanding as of the last day of the immediately preceding calendar year or (y) such lesser number of shares of Class A common stock as may be determined by the Compensation Committee of the Company’s Board of Directors. Under the Second A&R Plan, options (including non-statutory options and ISO), stock appreciation rights, restricted stock, RSUs, and other stock-based awards may be granted to employees, non-employee directors and certain consultants and advisors of the Company and its subsidiaries. Options have a contractual life of up to ten years. The exercise price of a stock option shall not be less than 100% of the estimated fair value of the shares on the date of grant, as determined by the Board of Directors. For ISO as defined in the Internal Revenue Code of 1986, as amended (the “Code”), the exercise price of an ISO granted to a 10% stockholder shall not be less than 110% of the estimated fair value of the underlying stock on the date of grant as determined by the Board of Directors. The Company’s options generally vest over three to four years. Under the Second A&R Plan, stock option awards entitle the holder to receive one share of Class A common stock for every option exercised.

Time-based RSUs granted pursuant to the Second A&R Plan generally vest ratably over a period ranging from one to four years and are subject to the participant’s continuing service to the Company over that period. RSUs issued pursuant to the 23andMe Second Amended and Restated Annual Incentive Plan (the “AIP”) upon the achievement of certain pre-determined annual performance metrics, as discussed below, vest immediately upon issuance. Until vested, RSUs do not have the voting and dividend participation rights of Class A common stock and the shares of Class A common stock underlying the awards are not considered issued and outstanding.

In February 2022, the Compensation Committee of the Company’s Board of Directors adopted a RSU conversion and deferral program for non-employee directors. The purpose of the program is to provide non-employee directors with the option to convert all or a portion of their cash compensation into a RSU award under the Second A&R Plan and the opportunity to defer settlement of all or a portion of their RSU awards. In connection with the Resignations, the Company released all prior deferred RSU awards for the two non-employee directors who elected to defer settlement of their RSU awards. As of March 31, 2025, no non-employee directors were participating in the program.

On June 9, 2022, the Compensation Committee of the Company’s Board of Directors adopted the AIP, pursuant to which, beginning in fiscal 2023, employees and certain service providers of 23andMe, Inc. and its affiliates were eligible to receive annual incentive bonuses in the form of cash or RSUs issued by the Company under the Second A&R Plan, based upon the Company’s achievement of certain pre-established financial, operational, and/or strategic performance metrics. On June 3, 2024, the Company paid annual incentive bonuses in the form of RSUs based upon the Company’s achievement of certain pre-established performance metrics during the one-year performance period ended March 31, 2024 and as determined by the Compensation Committee of the Company’s Board of Directors. The number of RSUs granted was determined by dividing the dollar amount of the AIP annual incentive bonuses by the trailing average closing price of the Company’s Class A common stock for the 20 trading days preceding the date of payment resulting in the grant of 607,222 shares underlying fully-vested RSUs on June 5, 2024. For the one-year performance period ended March 31, 2025, based upon the Company’s achievement of certain pre-established performance metrics and as determined by the Compensation Committee of the Company’s Board of Directors, the Company expects to settle AIP annual incentive bonuses of approximately $5.3 million in cash in fiscal 2026.

The Company accounts for the RSUs issued under the AIP (the “AIP RSUs”) as liability awards, and adjusts the liability and corresponding expenses at the end of each quarter until the date of settlement, considering the probability that the performance conditions will be satisfied. The Company recorded stock-based compensation expense from continuing operations of $5.2 million, $5.2 million and $14.9 million related to the AIP RSUs for the fiscal years ended March 31, 2025, 2024 and 2023, respectively. The Company recorded stock-based compensation expense from discontinued operations of $0.1 million, $0.7 million and $4.1 million related to the AIP RSUs for the fiscal years ended March 31, 2025, 2024 and 2023, respectively. As of March 31, 2025 and 2024, the liability of the AIP RSUs from continuing operations was $5.3 million and $5.8 million, respectively, which was included in other current liabilities on the consolidated balance sheet, and from discontinued operations was zero and $0.7 million, respectively, which was included in current liabilities from discontinued operations on the consolidated balance sheets.


	Options Outstanding
	Outstanding Stock Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
	(in thousands, except share, years, and per share data)
Balance as of March 31, 2024	3,537,668	$	73.62	5.1	$	306
Granted	200,990	$	6.03
Exercised	(6,889)	$	8.46
Canceled/forfeited/expired	(875,384)	$	82.73
Balance as of March 31, 2025	2,856,385	$	66.23	4.6	$	—
Vested and exercisable as of March 31, 2025	2,242,451	$	76.21	3.5	$	—

The weighted average grant date fair value per share of options granted for the fiscal years ended March 31, 2025, 2024 and 2023 was $4.09, $17.40 and $48.49, respectively. The total intrinsic value of vested options exercised for the fiscal years ended March 31, 2025, 2024 and 2023 was immaterial, $1.4 million and $4.6 million, respectively. As of March 31, 2025, unrecognized stock-based compensation expense from continuing operations related to unvested stock options was $11.7 million, which is expected to be recognized over a weighted-average period of 2.0 years. Due to a valuation allowance on deferred tax assets, the Company did not recognize any tax benefit from stock option exercises for the fiscal years ended March 31, 2025, 2024 and 2023. The Company estimated the fair value of options granted using the Black-Scholes option-pricing model. The fair value of stock options is being amortized on a straight-line basis over the requisite service period of the awards.


	Year Ended March 31,
	2025				2024				2023
	Min		Max		Min		Max		Min		Max
Expected term (years)	6.0		6.0		5.8		6.0		6.0		6.8
Expected volatility range	75	%	75	%	78	%	79	%	76	%	81	%
Expected weighted-average volatility	75%				79%				79%
Risk-free interest rate	3.5	%	3.9	%	3.6	%	4.4	%	2.8	%	4.2	%
Expected dividend yield	—		—		—		—		—		—

In November 2021, in connection with the Lemonaid Acquisition, the Company granted 187,352 shares of Class A common stock with an aggregate grant date fair value of $43.9 million to two recipients, each of whom was a former stockholder and officer of Lemonaid Health (each, a “Former Lemonaid Officer”) and each of whom, following the closing of the Lemonaid Acquisition, joined the Company’s management team. The shares were scheduled to vest over a four-year period in quarterly installments beginning on February 1, 2022, subject to the respective recipient’s continued employment with the Company. In connection with the Lemonaid Acquisition, each of these recipients entered into a relinquishment agreement that provides that during the four-year period that commenced on November 1, 2021 (the “Protection Period”), the Company will not (i) terminate the recipient’s employment without cause, (ii) materially reduce the recipient’s base salary or the benefits to which similarly-situated executive employees of the Company or the Company’s subsidiaries are entitled, other than a broad-based reduction to the same extent that applies to such similarly-situated executive employees, or (iii) relocate the recipient’s principal place of employment to a location outside of a 50-mile radius of their current principal place of employment. If any such event occurs during the Protection Period or in the event of recipient’s death or disability, then the unvested portion(s) of these awards will immediately vest.

During the fiscal year ended March 31, 2024, the employment of two of the Former Lemonaid Officers terminated, which resulted in $25.1 million of stock-based compensation expense related to these awards recognized within general and administrative expenses within the consolidated statement of operations and comprehensive loss. The Company recognized total stock-based compensation expense related to these awards of $28.4 million and $11.0 million for the fiscal years ended March 31, 2024 and 2023, respectively, within general and administrative expenses. As of March 31, 2024, there was no remaining unamortized stock-based compensation expense associated with these awards.

On June 10, 2021, the shareholders of VGAC approved the Company’s ESPP. As a result of the Reverse Stock Split, on October 16, 2024, the Company amended and restated the ESPP, to reflect, pursuant to the provisions of Sections III.C and X thereof, the proportionate adjustment of the number of shares of Company’s Class A common stock authorized and available for issuance under the ESPP to 580,456 shares using the same one-for-twenty ratio used to consummate the Reverse Stock Split (the “A&R ESPP”). Additionally, Section III.B of the ESPP, which provides for the automatic annual increase in the number of shares available for issuance under the ESPP, was revised to make proportionate adjustments to reflect the Reverse Stock Split. Accordingly, the number of shares of the Company’s Class A common stock reserved for issuance will automatically increase on January 1 of each calendar year, beginning on January 1, 2025, by the lesser of (i) an amount equal to one percent 1% of the total number of shares of Class A and Class B common stock outstanding as of the last day of the immediately preceding December 31st, (ii) 250,000 shares, or (iii) a lesser number of shares as determined by the Board of Directors in its discretion. No other material modifications or amendments were made to the ESPP.

In connection with such amendment, pursuant to Section III.C of the ESPP, the Company’s Board of Directors also proportionally adjusted the maximum number of shares of Class A common stock purchasable per ESPP participant during any offering period and on any one purchase date during that offering period, the number of shares in effect under each outstanding purchase right, the number of shares issued and to be issued under the ESPP, and the price per share in effect under each outstanding purchase right to reflect the impact of the Reverse Stock Split.

The A&R ESPP provides for concurrent 12-month offerings with successive six-month purchase intervals commencing on March 1 and September 1 of each year and purchase dates occurring on the last day of each such purchase interval (i.e., August 31 and February 28). The A&R ESPP contains a rollover provision whereby if the price of the Company’s Class A common stock on the first day of a new offering period is less than the price on the first day of any preceding offering period, all participants in a preceding offering period with a higher first day price will be automatically withdrawn from such preceding offering period and re-enrolled in the new offering period. The rollover feature, when triggered, will be accounted for as a modification to the preceding offering period, resulting in incremental expense to be recognized over the new offering period.

The Company estimated the fair value of the shares issued pursuant to the A&R ESPP using the Black-Scholes option-pricing model. The fair value is amortized on a straight-line basis over the requisite service period, which is the withholding period. During the fiscal years ended March 31, 2025, 2024 and 2023, 212,862, 266,473 and 132,141 shares of


	Year Ended March 31,
	2025				2024				2023
	Min		Max		Min		Max		Min		Max
Expected term (years)	0.5		1.0		0.5		1.0		0.5		1.0
Expected volatility range	76	%	77	%	67	%	99	%	78	%	109	%
Expected weighted-average volatility	76%				70%				96%
Risk-free interest rate	4.4	%	4.8	%	4.9	%	5.5	%	3.3	%	5.2	%
Expected dividend yield	—		—		—		—		—		—


	Year Ended March 31,
	2025		2024		2023
	(in thousands)
Cost of service revenue	$	2,820	$	4,908	$	9,513
Cost of product revenue	1,424		1,683		1,917
Research and development	24,804		26,007		31,377
Sales and marketing	6,502		6,853		8,976
General and administrative (1)	21,622		68,416		48,198
Restructuring and other charges (2)	2,113		631		—
Total stock-based compensation expense	$	59,285	$	108,498	$	99,981

(2) In connection with the November 2024 Reduction in Force, the Company approved the modification of equity awards with regard to the acceleration of certain non-vested awards as part of the termination of employment for approximately 206 effected employees. The Company accounted for the award modifications under ASC Topic 718, Compensation – Stock Compensation, and recorded $2.1 million of stock-based compensation modification expense from continuing operations related to the November 2024 Reduction in Force during the fiscal year ended March 31, 2025.