v3.25.2
Annual Incentive Plan and Stock-Based Compensation
3 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Annual Incentive Plan and Stock-Based Compensation Annual Incentive Plan and Stock-Based Compensation
Annual Incentive Plan (AIP)
On June 9, 2022, the Compensation Committee of the Company’s Board of Directors adopted the AIP, pursuant to which employees and certain service providers of 23andMe, Inc. and its affiliates were eligible to receive annual incentive bonuses in the form of cash or restricted stock units (“RSUs”) issued by the Company under the 23andMe Holding Co. Second Amended and Restated 2021 Incentive Equity Plan, based upon the Company’s achievement of certain pre-established financial, operational, and/or strategic performance metrics. The Company accounts for the RSUs issued under the AIP 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 $(1.7) million and $3.6 million related to the AIP for the three months ended June 30, 2025 and 2024, respectively. The Company recorded stock-based compensation expense from discontinued operations of nil and $0.5 million related to the AIP for the three months ended June 30, 2025 and 2024, respectively. As of June 30, 2025 and March 31, 2025, the liability of the AIP from continuing operations was $3.6 million and $5.3 million, respectively, which was included in other current liabilities on the condensed consolidated balance sheet. There was no liability related to the AIP from discontinued operations as of June 30, 2025 and March 31, 2025. Payouts
under the AIP were settled in cash for fiscal 2025 and in RSUs for fiscal 2024. See Note 17, “Subsequent Events,” for additional updates.
Stock-Based Compensation
Total stock-based compensation expense, including stock-based compensation expense related to awards classified as liabilities, was $5.7 million and $19.5 million from continuing operations and nil and $2.1 million from discontinued operations for the three months ended June 30, 2025 and 2024, respectively.