v3.25.4
Stock-Based Compensation
12 Months Ended
Dec. 31, 2025
Stock-Based Compensation  
Stock-Based Compensation

14. Stock-Based Compensation

 

We have various incentive stock-based compensation plans that provide for the grant of stock options, restricted stock units (RSUs), and other share-based awards of up to 5,706 shares to eligible employees, consultants, and directors. As of December 31, 2025, we had 1,586 shares remaining in the plans available to grant.

 

Stock Options

 

The weighted-average fair value of stock options on the date of grant and the assumptions used to estimate the fair value of stock options granted during the years ended December 31, 2025 and 2024 using the Black-Scholes option-pricing model were as follows:

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Weighted-average fair value of options granted

 

$3.62

 

 

$3.64

 

Expected volatility

 

 

70%

 

 

75%

Expected life (in years)

 

 

5.78

 

 

 

5.69

 

Risk-free interest rate

 

 

4.43%

 

 

4.13%

Expected dividend yield

 

 

0.00%

 

 

0.00%

 

The expected volatility of the options is determined using historical volatilities based on historical stock prices. The expected life of the options granted is based on our historical share option exercise experience. The risk-free interest rate is determined using the yield available for zero-coupon U.S. government issues with a remaining term equal to the expected life of the option.

 

The following table summarizes the stock option activity under the plans for the years ended December 31, 2025 and 2024 (in thousands, except share data):

 

 

 

Number of Shares

 

 

Weighted-Average

Exercise Price

 

 

Weighted-Average

Remaining

Contract Life

 

Aggregate

Intrinsic Value

(in thousands)

 

Outstanding at January 1, 2024

 

 

7,995,799

 

 

 

2.73

 

 

5.3 years

 

 

3,362

 

Granted

 

 

328,500

 

 

 

1.88

 

 

 

 

 

 

 

Exercised

 

 

(1,460,404)

 

 

1.32

 

 

 

 

 

 

 

Cancelled/forfeited

 

 

(201,096)

 

 

3.04

 

 

 

 

 

 

 

Outstanding at December 31, 2024

 

 

6,662,799

 

 

 

2.64

 

 

4.9 years

 

 

19,469

 

Granted

 

 

405,500

 

 

 

5.72

 

 

 

 

 

 

 

Exercised

 

 

(3,270,703)

 

 

1.57

 

 

 

 

 

 

 

Cancelled/forfeited

 

 

(143,098)

 

 

5.00

 

 

 

 

 

 

 

Outstanding at December 31, 2025

 

 

3,654,498

 

 

 

4.38

 

 

4.4 years

 

 

7,707

 

Shares vested and expected to vest

 

 

3,603,664

 

 

 

4.37

 

 

5.3 years

 

 

7,503

 

Exercisable as of December 31, 2025

 

 

3,269,982

 

 

 

4.30

 

 

3.8 years

 

 

7,170

 

Exercisable as of December 31, 2024

 

 

5,866,379

 

 

 

2.89

 

 

3.8 years

 

 

14,950

 

  

The total intrinsic value of options exercised during the years ended December 31, 2025 and 2024, was $16,018 and $5,098, respectively.

 

As of December 31, 2025, the total future compensation expense related to non-vested options not yet recognized in the consolidated statements of operations was approximately $1,085 and the weighted-average period over which these awards are expected to be recognized is approximately 1.8 years.

 

Restricted Stock Units:

 

The following table summarizes the RSUs outstanding with service vesting in future years (in thousands):

 

 

 

Years Ended December 31,

 

 

 

2026

 

 

2027

 

 

2028

 

RSUs with service-based vesting conditions

 

 

225

 

 

 

165

 

 

 

37

 

 

The following table summarizes the RSUs activity under the plans for the years ended December 31, 2025 and 2024 (in thousands, except unit data):

 

 

 

Number of Units

 

 

Weighted-Average

Fair Value

 

Outstanding at January 1, 2024

 

 

13,334

 

 

$1.73

 

Granted

 

 

440,000

 

 

 

5.24

 

Vested/released

 

 

(109,166)

 

 

5.05

 

Cancelled/forfeited

 

 

(38,334)

 

 

4.73

 

Outstanding at December 31, 2024

 

 

305,834

 

 

 

5.21

 

Granted

 

 

395,000

 

 

 

5.87

 

Vested/released

 

 

(228,321)

 

 

5.48

 

Cancelled/forfeited

 

 

(7,500)

 

 

5.36

 

Outstanding at December 31, 2025

 

 

465,013

 

 

 

5.64

 

 

The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2025 and 2024 was $5.87 and $5.24, respectively.

 

The total intrinsic value of RSUs that vested and were released during the years ended December 31, 2025 and 2024 was $1,453 and $480 respectively.

 

As of December 31, 2025, the total future compensation expense related to non-vested RSUs not yet recognized in the consolidated statements of operations was approximately $2,479 and the weighted-average period over which these awards are expected to be recognized is approximately 1.9 year.

 

The following table summarizes the statement of operations effect of stock-based compensation for the years ended December 31, 2025 and 2024 (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Share-based compensation expense by type:

 

 

 

 

 

 

Stock options

 

$1,633

 

 

$2,399

 

Restricted stock units

 

 

1,299

 

 

 

603

 

Total cost related to share-based compensation expense

 

$2,932

 

 

$3,002

 

Share-based compensation expense by financial statement line item:

 

 

 

 

 

 

 

 

Cost of revenue

 

$358

 

 

$476

 

Research and development

 

 

474

 

 

 

611

 

Selling and marketing

 

 

440

 

 

 

548

 

General and administrative

 

 

1,660

 

 

 

1,367

 

Total cost related to share-based compensation expense

 

$2,932

 

 

$3,002

 

 

The tax benefit related to stock compensation expense on net deferred tax assets at December 31, 2025 and 2024 was $1,096 and $812, respectively.