v3.26.1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
Stockholders’ Equity Stockholders’ Equity
Stock-Based Compensation Expense
Stock-based compensation expense, consisting of service-based expense related to the equity incentive plans, including expense from stock options and restricted stock units, and the employee stock purchase plan, was classified as follows in the accompanying unaudited condensed consolidated statements of operations and comprehensive loss for each of the periods presented (in thousands):
Three Months Ended March 31,
20262025
Cost of revenue$166 $285 
Sales and marketing1,987 1,841 
Research and development2,057 2,362 
General and administrative2,920 4,497 
Total$7,130 $8,985 
Equity Incentive Plan
In November 2021, in connection with the Company’s initial public offering (“IPO”), the Company adopted the 2021 Equity Incentive Plan (the “2021 EIP”) under which the Company could issue stock options or restricted stock units (“RSUs”) as awards. In addition to shares remaining available for issuance under a prior plan and shares subject to awards under the prior plan that may return to the 2021 EIP, the Company reserved 9.0 million shares of common stock for future issuance under the 2021 EIP, with scheduled annual increases to the reserve for amounts to be determined by the board of directors of the Company (the “Board”), subject to a maximum amount. In the first fiscal quarters of 2026 and 2025, the Board reserved an additional 3.9 million and 3.7 million common shares, respectively, for future issuance under the 2021 EIP.
In March 2023, the Company adopted the 2022 Inducement Equity Incentive Plan (the “Inducement Plan”) and reserved an additional 7.0 million shares of common stock for future issuance.
Stock-based compensation expense related to the 2021 EIP and the Inducement Plan was $6.9 million and $8.8 million for the three months ended March 31, 2026 and 2025, respectively.
Stock Options
The aggregate intrinsic value of stock options outstanding is outlined in the table below. The intrinsic value represents the excess of the estimated fair value of the Company’s common stock on the date of exercise over the exercise price of each stock option.
Stock option activity was as follows:
Number of Stock Options
Weighted Average Exercise PriceWeighted Average Remaining Contractual Life (years)Aggregate Intrinsic Value
(in thousands)
Outstanding as of December 31, 20251,228,367 $4.10 3.12$4,282 
Exercisable as of December 31, 20251,228,367 $4.10 3.12$4,282 
Exercised(349,361)$0.93 
Forfeited and expired(250)$4.32 
Outstanding as of March 31, 2026878,756 $5.37 3.98$327 
Exercisable as of March 31, 2026878,756 $5.37 3.98$327 
The aggregate intrinsic value of stock options exercised for the three months ended March 31, 2026 was $1.3 million. The aggregate intrinsic value represents the excess of the estimated fair value of the Company’s common stock on the date of exercise over the exercise price of each stock option. There was no unrecognized stock-based compensation expense related to outstanding stock options as of March 31, 2026.
The Company did not grant any stock options during the three months ended March 31, 2026 and 2025.
Restricted Stock Units
RSUs granted under the 2021 EIP and the Inducement Plan vest and settle upon the satisfaction of a service-based condition. The service-based condition for these awards is generally satisfied over three years. As of March 31, 2026, a total of 147,234 RSUs are outstanding that were issued to non-employee directors that have a one-year vesting schedule, with 100% vesting on the earlier of one year from the grant date or the annual meeting of stockholders. A total of 43,747 RSUs are outstanding that were issued to non-employee directors that have a three-year vesting schedule, with 33% vesting one year from the grant date and the remaining 67% vesting annually over the remaining two years. The remaining RSUs that have been issued have a three-year vesting schedule with 33% vesting one year from grant date and the remaining 67% vesting quarterly over the remaining two years.
RSU activity was as follows:
Number of SharesWeighted Average Grant Date Fair Value
Outstanding as of December 31, 20256,098,079 $9.42 
Granted1,907,730 $4.55 
Vested(761,433)$10.48 
Forfeited(212,278)$9.61 
Outstanding as of March 31, 20267,032,098 $7.97 
The total fair value of RSUs that vested during the three months ended March 31, 2026 and 2025 was $8.0 million and $12.5 million, respectively.
As of March 31, 2026, there was $48.6 million of unrecognized stock-based compensation expense related to outstanding RSUs, which is expected to be recognized over a weighted-average period of 2.1 years.
In connection with the acquisition of TrueLark, the Company granted PRSUs to key TrueLark employees that vest based on the achievement of certain service- and revenue-based conditions. Refer to Note 3 above for further discussion.
Employee Stock Purchase Plan
In October 2021, the Company adopted the Employee Stock Purchase Plan (“ESPP”) in which eligible employees may contribute up to 50% of their base compensation to purchase shares of common stock at a price equal to 85% of the lower of (1) the fair market value of a share of the Company’s common stock at the beginning of the offering period and (2) the fair market value of a share of the Company’s common stock on the purchase date. No participant may purchase more than 2,500 shares during any offering period. The ESPP became effective in November 2021 in connection with the Company’s IPO. As of March 31, 2026 and December 31, 2025, 4,817,587 and 4,034,053 shares were reserved for issuance, and 1,164,117 and 925,887 shares, respectively, of common stock had been issued under the ESPP. The number of shares available for issuance under the ESPP may be increased on the first day of each fiscal year beginning with the 2022 fiscal year by an amount to be determined by the board of directors. In the first fiscal quarter of 2026, the Board reserved an additional 783,534 common shares for issuance under the ESPP.
The 2021 ESPP provides for six-month offering periods, which begin February 25 and August 25 of each year, and the last day of each offering period is the purchase date for that period.
During the three months ended March 31, 2026 and 2025, the Company recognized $0.2 million and $0.2 million of stock-based compensation expense related to the ESPP, respectively. As of March 31, 2026 and December 31, 2025, $0.3 million and $1.0 million in ESPP employee payroll contributions are included within accrued liabilities and other on the unaudited condensed consolidated balance sheets, respectively. As of March 31, 2026, total unrecognized compensation expense related to the ESPP was $0.2 million, which will be amortized over the remaining offering period through August 24, 2026.