v3.26.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
We grant stock-based incentive awards to attract, motivate and retain qualified employees, non-employee directors and consultants, and to align their financial interests with those of our stockholders. We utilize stock-based compensation in the form of restricted stock units, performance restricted stock units, options to purchase Class A common stock and Employee Stock Purchase Plan ("ESPP") purchase rights. In December 2014, our Board of Directors adopted and the Company’s stockholders approved the 2014 Equity Incentive Plan ("the Plan").
Stock-Based Compensation Expense
Stock-based compensation expense was recorded in the following cost and expense categories consistent with the respective employee or service provider’s related cash compensation (in thousands):
Three months ended March 31,
20262025
Cost of revenue
Subscription and support
$2,848 $2,433 
Professional services
1,189 996 
Operating expenses
Research and development
6,401 6,050 
Sales and marketing
9,847 9,751 
General and administrative
8,322 8,658 
Total
$28,607 $27,888 
Stock Options
The following table summarizes the option activity under the Plan for the three months ended March 31, 2026:




Options

Weighted-
Average
Exercise
Price
Weighted-
Average
Remaining
Contractual
Term (Years)
Outstanding at December 31, 2025463,369 $13.72 1.1
Exercised(43,692)16.68 
Outstanding at March 31, 2026419,677 $13.41 0.9
Exercisable at March 31, 2026419,677 $13.41 0.9
Restricted Stock Units and Performance Restricted Stock Units
The following table summarizes the restricted stock unit and performance restricted stock unit activity under the Plan for the three months ended March 31, 2026:




Number of Shares
Weighted-
Average
Grant Date Fair Value
Unvested at December 31, 20252,856,553 $90.25 
Granted1,602,036 76.73 
Forfeited(83,689)86.78 
Vested(1)
(705,661)97.09 
Unvested at March 31, 20263,669,239 $83.11 
(1) During the three months ended March 31, 2026, in accordance with our Nonqualified Deferred Compensation Plan, no recipients elected to defer settlement of their vested restricted stock units and 42,406 shares were released from deferral.
Employee Stock Purchase Plan
During the three months ended March 31, 2026, 140,328 shares of common stock were purchased under the ESPP at a weighted-average price of $57.38 per share, resulting in cash proceeds of $8.1 million.
Compensation expense associated with ESPP purchase rights is recognized on a straight-line basis over the vesting period. As of March 31, 2026, there was approximately $1.8 million of total unrecognized compensation expense related to the ESPP, which is expected to be recognized over a weighted-average period of 0.3 years.