v3.26.1
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Schedule of Nonvested Performance Stock Units
Changes in non-vested PSUs during the three months ended March 31, 2026 were:
Liability-Classified PSUs (a)
Equity-Classified PSUs
Total PSUs
Weighted-Average
Grant Date
Fair Value per Unit
Non-vested as of December 31, 2025569,477 488,857 1,058,334 $147.45 
Granted— 145,911 145,911 2,045.20 
Non-vested as of March 31, 2026 (b)
569,477 634,768 1,204,245 $583.67 
_____________
(a)See description of liability-classified awards below.
(b)Represents the target number of PSUs. Subject to the PSU award agreements, the actual amount of PSUs earned by participants at vesting can range from 0% to 200% of the target number of PSUs based on the Company’s stock price performance. In addition, certain of the PSUs are eligible to earn an additional amount of Talen shares based on the incremental Company stock price performance in excess of the PSU targets. Assuming all non-vested PSUs vested on March 31, 2026 at the then current share price of the Company’s common stock the aggregate non-vested PSUs would be 1,405,355.
Schedule of Significant Inputs and Assumptions of Fair Value The fair value of PSUs is determined using a Monte Carlo valuation methodology based on the fair value of the underlying stock price at the grant date. Significant inputs and assumptions used in the valuations of PSUs were:
Three Months Ended March 31, 2026
Volatility (a)
40% - 50%
Expected term (in years)
2 - 3
Risk-free rate (b)
3.45% - 3.49%
__________________
(a)     Derived from an option pricing method based on the average asset volatility of peer companies and the Company’s leverage ratio.
(b)     Based on the U.S. constant maturity treasury rate with a term matching the expected time to the end of the performance measurement period.
Schedule of Nonvested Restricted Stock Units
Changes in non-vested RSUs during the three months ended March 31, 2026 were:
Liability-Classified RSUs (a)
Equity-Classified RSUs
Total RSUs
Weighted-Average
Grant Date
Fair Value per Unit
Non-vested as of December 31, 2025169,642 171,011 340,653 $106.18 
Granted
— 75,687 75,687 391.43 
Non-vested as of March 31, 2026169,642 246,698 416,340 $193.70 
_____________
(a)See description of liability-classified awards below.
Schedule of Stock-based Compensation Expense
Stock-based compensation expense presented as “General and administrative” on the Consolidated Statement of Operations was:
Three Months Ended March 31,
20262025
Stock-based compensation expense (benefit), net, liability-classified awards$(24)$— 
Stock-based compensation expense (benefit), net, equity-classified awards23 11 
Income tax benefit— (3)
After-tax stock-based compensation expense (benefit), net$(1)$8 
Schedule of Unrecognized Stock-Based Compensation Expense
Unrecognized stock-based compensation expense and related periods of recognition as of March 31, 2026 were:
PSUs
RSUs
Equity-Classified
Liability-Classified
Equity-Classified
Liability-Classified
Unrecognized stock-based compensation expense (a)
$313 $19 $34 $3 
Weighted-average period of recognition (in years)0.80.11.00.2
__________________
(a)     Stock-based compensation expense related to liability-classified awards is subject to variability due to changes in their value through the settlement date.