Stockholders' Equity and Stock-Based Compensation (Tables)
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12 Months Ended |
Dec. 31, 2025 |
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| Stockholders Equity And Stock Based Compensation [Abstract] |
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| Summary of Number of Shares of Common Stock Reserved |
The number of shares of common stock reserved for the vesting of RSUs, PSUs, and exercise of common stock options are as follows (in thousands):
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December 31, 2025 |
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|
December 31, 2024 |
|
RSUs |
|
|
1,396 |
|
|
|
1,475 |
|
PSUs |
|
|
75 |
|
|
|
71 |
|
Options |
|
|
174 |
|
|
|
302 |
|
|
|
|
1,645 |
|
|
|
1,848 |
|
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| Schedule of Stock Compensation Expense by Award Type |
The following two tables show stock compensation expense by award type and where the stock compensation expense is recorded in the Company’s consolidated statements of operations:
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Year Ended December 31, |
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2025 |
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2024 |
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|
2023 |
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|
|
( in thousands) |
|
Options |
|
$ |
4,272 |
|
|
$ |
7,801 |
|
|
$ |
11,555 |
|
RSUs |
|
|
484,449 |
|
|
|
458,027 |
|
|
|
391,810 |
|
PSUs |
|
|
24,356 |
|
|
|
24,129 |
|
|
|
13,502 |
|
ESPP |
|
|
15,076 |
|
|
|
14,813 |
|
|
|
15,404 |
|
Total stock-based compensation |
|
$ |
528,153 |
|
|
$ |
504,770 |
|
|
$ |
432,271 |
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| Effect of Stock-Based Compensation on Income by Line Item |
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2025 |
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2024 |
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|
2023 |
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(in thousands) |
|
Cost of revenue, subscription |
|
$ |
34,591 |
|
|
$ |
23,613 |
|
|
$ |
12,652 |
|
Cost of revenue, service |
|
|
3,972 |
|
|
|
4,339 |
|
|
|
4,958 |
|
Research and development |
|
|
261,747 |
|
|
|
243,164 |
|
|
|
198,953 |
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Sales and marketing |
|
|
139,346 |
|
|
|
145,778 |
|
|
|
140,362 |
|
General and administrative |
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|
88,497 |
|
|
|
87,876 |
|
|
|
75,346 |
|
Total stock-based compensation |
|
$ |
528,153 |
|
|
$ |
504,770 |
|
|
$ |
432,271 |
|
|
| Schedule of Assumptions Used for Estimation of Fair Value of Options Granted to Employees |
Stock Options —The fair value of employee options is estimated on the date of each grant using the Black-Scholes option-pricing model with the following assumptions. There were no options granted in 2024 or 2025.
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2023 |
|
Risk-free interest rate (%) |
3.46-4.37 |
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Expected term (years) |
5.3-6.0 |
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Volatility (%) |
52.72-55.06 |
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Expected dividends |
|
— |
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| Summary of Stock Option Activity |
The stock option activity for the year ended December 31, 2025 is as follows:
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Shares (in
thousands) |
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|
Weighted-
Average
Exercise
Price |
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Weighted-
Average
Remaining
Life (in years) |
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|
Aggregate
Intrinsic
Value
(in thousands) |
|
Outstanding—January 1, 2025 |
|
|
302 |
|
|
$ |
226.61 |
|
|
|
4.7 |
|
|
$ |
141,860 |
|
Granted |
|
|
— |
|
|
|
— |
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|
|
|
|
|
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Exercised |
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|
(124 |
) |
|
|
139.48 |
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|
|
|
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Forfeited/expired |
|
|
(4 |
) |
|
|
307.65 |
|
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Outstanding—December 31, 2025 |
|
|
174 |
|
|
$ |
286.89 |
|
|
|
4.7 |
|
|
$ |
23,443 |
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Options vested or expected to vest—December 31, 2025 |
|
|
174 |
|
|
$ |
286.89 |
|
|
|
4.7 |
|
|
$ |
23,443 |
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Options exercisable—December 31, 2025 |
|
|
163 |
|
|
$ |
279.13 |
|
|
|
4.5 |
|
|
$ |
23,244 |
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Year Ended December 31, |
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|
2025 |
|
|
2024 |
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|
2023 |
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|
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(in thousands, except per share amounts) |
|
Total intrinsic value of options exercised |
|
$ |
53,504 |
|
|
$ |
67,545 |
|
|
$ |
23,105 |
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Total estimated grant date fair value of options vested |
|
$ |
5,339 |
|
|
$ |
8,980 |
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|
$ |
11,565 |
|
Weighted-average grant date fair value per share of options granted |
|
n/a |
|
|
n/a |
|
|
$ |
197.31 |
|
|
| Summary of Activity Related to RSUs |
The following table summarizes the activity related to RSUs for the year ended December 31, 2025:
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Shares
(in thousands) |
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|
Weighted-Average Grant Date Fair Value Per Share |
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Unvested and outstanding at January 1, 2025 |
|
|
1,475 |
|
|
$ |
504.89 |
|
Granted |
|
|
1,129 |
|
|
|
605.25 |
|
Vested |
|
|
(1,008 |
) |
|
|
498.64 |
|
Forfeited |
|
|
(200 |
) |
|
|
558.53 |
|
Unvested and outstanding at December 31, 2025 |
|
|
1,396 |
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|
$ |
583.31 |
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Year Ended December 31, |
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|
2025 |
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|
2024 |
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|
2023 |
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(in thousands, except per share amounts) |
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Total intrinsic value of RSUs vested |
|
$ |
575,540 |
|
|
$ |
616,970 |
|
|
$ |
481,196 |
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Total grant date fair value of RSUs vested |
|
$ |
502,467 |
|
|
$ |
458,913 |
|
|
$ |
383,175 |
|
Weighted-average grant date fair value per share of RSUs granted |
|
$ |
605.25 |
|
|
$ |
596.51 |
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|
$ |
411.64 |
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|
| Summary of Activity Related to PSUs |
The following table summarizes the activity related to PSUs for the year ended December 31, 2025:
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Shares
(in thousands) |
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|
Weighted-Average Grant Date Fair Value Per Share |
|
Unvested and outstanding at January 1, 2025 |
|
|
71 |
|
|
$ |
548.13 |
|
Granted |
|
|
56 |
|
|
|
631.62 |
|
Vested |
|
|
(45 |
) |
|
|
524.83 |
|
Forfeited |
|
|
(7 |
) |
|
|
654.26 |
|
Unvested and outstanding at December 31, 2025 |
|
|
75 |
|
|
$ |
613.94 |
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Year Ended December 31, |
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|
2025 |
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|
2024 |
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|
2023 |
|
Total intrinsic value of PSUs vested |
|
$ |
28,829 |
|
|
$ |
20,358 |
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|
$ |
— |
|
Total grant date fair value of PSUs vested |
|
$ |
23,452 |
|
|
$ |
13,025 |
|
|
$ |
— |
|
Weighted-average grant date fair value per share of PSUs granted |
|
$ |
631.62 |
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|
$ |
633.80 |
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|
$ |
383.13 |
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| Schedule of Assumptions Used for Estimation of Fair Value of Employee Options |
The fair value of the purchase rights under the ESPP is estimated using the Black-Scholes option-pricing model with the following assumptions:
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Year Ended December 31, |
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2025 |
|
|
2024 |
|
|
2023 |
|
Risk-free interest rate (%) |
|
3.75-4.43 |
|
|
4.43-5.39 |
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|
4.65-5.44 |
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Expected term (years) |
|
|
0.50 |
|
|
|
0.50 |
|
|
|
0.50 |
|
Volatility (%) |
|
38.58-42.04 |
|
|
34.88-38.83 |
|
|
38.83-76.02 |
|
Expected dividends |
|
|
— |
|
|
|
— |
|
|
|
— |
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| Summary of Activity Related to Employee Stock Purchase Plan |
The following table summarizes the activity related to ESPP:
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Shares Issued
(in thousands) |
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|
Weighted-
Average
Purchase Price |
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|
Total Cash
Proceeds
(in thousands) |
|
2025 |
|
|
136 |
|
|
$ |
421.22 |
|
|
$ |
54,304 |
|
2024 |
|
|
109 |
|
|
$ |
469.73 |
|
|
$ |
50,993 |
|
2023 |
|
|
127 |
|
|
$ |
319.70 |
|
|
$ |
40,479 |
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| Summary of Stock Repurchase Activity |
The following table summarizes the stock repurchase activity under the 2025 Share Repurchase Program (in thousands, except per share data):
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Year Ended December 31, |
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|
2025 |
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|
2024 |
|
|
2023 |
|
Number of shares repurchased |
|
|
997 |
|
|
$ |
— |
|
|
$ |
— |
|
Average stock price per share |
|
$ |
501.67 |
|
|
$ |
— |
|
|
$ |
— |
|
Aggregate repurchase amount |
|
$ |
500,000 |
|
|
$ |
— |
|
|
$ |
— |
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