v3.25.4
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
In March 2014, the Company's board of directors approved the 2014 Equity Incentive Plan, or 2014 Plan. The 2014 Plan terminated on June 1, 2023, except with respect to the outstanding awards previously granted thereunder. As of June 1, 2023, there were 7,606 shares of common stock that were reserved for issuance pursuant to outstanding awards, assuming maximum performance for any performance-based awards, under the 2014 Plan.
In May 2023, the Company's stockholders approved the 2023 Equity Incentive Plan, or 2023 Plan, with an effective date of June 1, 2023, under which stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares and units and other cash-based or stock-based awards may be granted to employees, consultants and directors. At time of approval, up to 14,045 shares of common stock were reserved for issuance under the 2023 Plan, all of which consisted of shares previously reserved for issuance under the 2014 Plan and any shares that would otherwise be returned to the 2014 Plan as a result of the forfeiture, repurchase or termination of awards issued under that plan. The 2023 Plan is a successor to and continuation of the Company's 2014 Plan. As of December 31, 2025, 5,587 shares remain authorized and available for future issuance under the 2023 Plan, assuming attainment of maximum performance for any market stock units or performance stock units.
In March 2014, the Company adopted its ESPP. The plan was implemented starting January 3, 2022, pursuant to which certain participating domestic employees are able to purchase shares of the Company's common stock at a 15% discount of the lower of the market price at the beginning or end of the applicable offering period. Offering periods commence on each June 1 and December 1. The Board provided for a share reserve with respect to the ESPP of 800 shares. The ESPP contains a provision that automatically increases the shares available for issuance under the plan on January 1 of each year through 2024, by an amount equal to the lesser of (a) 500 shares, (b) 1% of the number of shares issued and outstanding on the immediately preceding December 31 or (c) such other amount as may be determined by the Company's board of directors. As of December 31, 2025, 1,129 shares remain authorized and available for future issuance under the ESPP.
Stock-based compensation expense was recorded in the following cost and expense categories on the Company's consolidated statements of comprehensive income (loss):
 Year Ended December 31,
 202520242023
Cost of revenues$9,711 $11,821 $13,346 
Sales and marketing14,196 16,779 16,771 
Research and development16,860 16,456 15,157 
General and administrative46,182 44,159 33,914 
Total stock-based compensation expense$86,949 $89,215 $79,188 
Stock-based compensation capitalized as an asset was $3.1 million, $5.1 million and $5.3 million in the years ended December 31, 2025, 2024 and 2023, respectively.
Stock Options
Stock option activity was as follows:
Number of
Options		Weighted Average
Exercise Price
Balance as of January 1, 2023324 $35.07 
Granted— — 
Exercised(74)30.91 
Forfeited— — 
Expired(4)27.86 
Balance as of December 31, 2023246 36.43 
Granted— — 
Exercised(234)35.90 
Forfeited— — 
Expired— — 
Balance as of December 31, 202412 47.00 
Granted— — 
Exercised(12)47.00 
Forfeited— — 
Expired — — 
Balance as of December 31, 2025— $— 
The aggregate intrinsic value of stock options exercised during each of the years ended December 31, 2025, 2024 and 2023 was $0.5 million, $1.5 million and $0.4 million, respectively. There were no stock options outstanding as of December 31, 2025.
Restricted Stock Units
Restricted stock unit activity was as follows:
Number of
Shares		Weighted Average
Grant Date Fair Value
Nonvested as of January 1, 20232,944 $59.99 
Granted1,981 32.31 
Vested(963)63.59 
Forfeited(366)48.39 
Nonvested as of December 31, 20233,596 44.96 
Granted1,513 49.30 
Vested(1,231)50.49 
Forfeited(361)45.45 
Nonvested as of December 31, 20243,517 44.84 
Granted746 85.81 
Vested(1,346)48.88 
Forfeited(317)49.66 
Nonvested as of December 31, 20252,600 $53.91 
The total fair value of restricted stock units vested during each of the years ended December 31, 2025, 2024 and 2023 was $111.2 million, $75.7 million and $32.5 million, respectively. Total unrecognized stock-based compensation expense related to restricted stock units was $98.3 million as of December 31, 2025, which the Company expects to recognize over a weighted average period of 2.4 years.
Market Stock Units and Performance Stock Units
MSU and PSU activity was as follows:
Number of SharesWeighted Average Grant Date Fair Value
Nonvested as of January 1, 2023399 $57.42 
Granted587 39.59 
Vested(4)23.21 
Forfeited(48)55.55 
Nonvested as of December 31, 2023934 46.45 
Granted389 59.92 
Change in awards based on performance(1)
11 88.40 
Vested(82)45.90 
Forfeited(191)59.12 
Nonvested as of December 31, 20241,061 49.58 
Granted241 92.20 
Change in awards based on performance(1)
317 47.21 
Vested(629)47.08 
Forfeited(111)64.50 
Nonvested as of December 31, 2025879 $60.31 
________________________________________________________________________
(1)Represents the change in the number of MSUs and PSUs earned based on performance achievement for the performance period.
Significant assumptions used in the Monte Carlo simulation model for the TSR PSUs granted during the years ended December 31, 2025, 2024, and 2023 are as follows:
Year Ended December 31,
202520242023
Volatility
52.5%
53.5 - 54.1%
52.7 - 54.8%
Risk-free interest rate
3.9%
4.2 - 4.5%
3.9 - 4.5%
Dividend yield———
Longest remaining performance period (in years)333
The total fair value of MSUs and PSUs vested during each of the years ended December 31, 2025, 2024 and 2023 was $49.5 million, $5.6 million and $0.1 million, respectively. Total unrecognized stock-based compensation expense related to MSUs and PSUs was $27.3 million as of December 31, 2025, which the Company expects to recognize over a weighted average period of 1.6 years.
Employee Stock Purchase Plan
The following summarizes the assumptions used for estimating the fair value of ESPP purchase rights:
Year Ended December 31,
 202520242023
Risk-free interest rate
3.8 - 4.4%
4.4 - 5.4%
5.3 - 5.4%
Expected life (in years)
0.5
0.5
0.5
Expected volatility
41.4 - 46.3%
38.4 - 40.8%
37.2 - 66.0%
Dividend yield———
Grant date fair value per share
$19.54 - $24.97
$16.55 - $28.10
$9.71 - $9.87
During the year ended December 31, 2025, the Company's employees purchased 95 shares under the ESPP at a weighted-average price of $68.09 per share, resulting in cash proceeds of $6.5 million. Total unrecognized stock-based compensation expense related to the ESPP was $1.1 million as of December 31, 2025, which the Company expects to recognize over a weighted average period of 0.4 years.