v3.26.1
Note 5 - Shareholders' Equity and Stock-Based Compensation
 3 Months Ended
Mar. 31, 2026
Notes to Financial Statements  
Equity [Text Block]

5. SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

 

Dividends on Common Stock

 

During the three months ended March 31, 2026, the Company's Board of Directors (“Board”) declared the following quarterly dividend under the Company's dividend policy (in thousands, except per share data):

 

Dividend Payment Date Dividend Declaration Date Dividend Per Share Record Date Cash Outlay 
March 20, 2026 February 23, 2026 $0.035 March 9, 2026 $1,028 

 

Additionally, on May 4, 2026, the Board declared a quarterly cash dividend of $0.035 per share, payable on May 29, 2026 to holders of record on May 18, 2026. 

 

Stock Option Activity

 

A summary of stock option activity for the three months ended  March 31, 2026 is as follows (in thousands, except weighted-average exercise price).

 

      

Weighted-

     
  

Common

  

Average

  

Aggregate

 
  

Shares

  

Exercise Price

  

Intrinsic Value

 

Outstanding at beginning of period

  233  $22.54     

Granted

  —   —     

Exercised

  —   —     

Expired

  —   —     

Forfeited

  —   —     

Outstanding at end of period

  233  $22.54  $33 

Exercisable at end of period

  90  $20.34  $33 

 

The weighted average remaining contractual term of options outstanding at  March 31, 2026 was 7.8 years.

 

 

Restricted Share Unit Activity

 

A summary of Restricted Share Unit ("RSU") activity for the three months ended  March 31, 2026 is as follows (in thousands, except weighted-average grant date fair value):

 

      

Weighted-

     
  

Number of

  

Average Grant Date

  

Aggregate

 
  

RSU’s

  

Fair Value

  

Intrinsic Value

 

Outstanding at beginning of period

  518  $26.57     

Granted

  57   20.61     

Vested

  (95)  24.13     

Forfeited

  —   —     

Outstanding at end of period

  480  $26.34  $9,935 

 

The aggregate fair value of RSUs that vested during the three months ended March 31, 2026 and 2025, as of the respective vesting dates, was $2.3 million and $2.9 million, respectively.

 

Stock-Based Compensation

 

Total stock-based compensation expense recognized in the Condensed Consolidated Statements of Income is as follows (in thousands):

 

  

Three Months Ended March 31,

 
  

2026

  

2025

 

Cost of revenues (excluding depreciation and amortization)

 $56  $53 

Product development

  273   229 

Sales and marketing

  168   145 

General and administrative

  812   677 

Total stock-based compensation expense

 $1,309  $1,104 

 

As of  March 31, 2026, total unrecognized compensation expense related to non-vested stock options, RSUs, and performance-based RSUs where the performance criteria has been established was $8.6 million, net of estimated forfeitures, with a weighted average expense recognition period remaining of 2.7 years. 

 

Share Repurchase Plan

 

On November 11, 2025, the Board approved a share repurchase program under which the Company was authorized to repurchase up to $10.0 million of its outstanding shares of common stock. Pursuant to this authorization, the Company was authorized to make repurchases in the open market, including under Rule 10b5-1 plans, through privately negotiated transactions, or otherwise. The terms of this program provided that it would terminate on the earlier of February 26, 2026 or when the maximum dollar amount had been expended. During the three months ended March 31, 2026, the Company repurchased and subsequently retired 222,978 shares of common stock at an aggregate fair value of $5.0 million, reflecting an average price per share of $22.42 (excluding the cost of broker commissions and the 1% share repurchase excise tax imposed by the Inflation Reduction Act of 2022). This share repurchase program terminated in January 2026 when the maximum dollar amount under this program was expended.

 

On March 13, 2026, the Company announced the adoption of a new share repurchase program approved by the Board under which the Company is authorized to repurchase up to $10.0 million of its outstanding shares of common stock. Pursuant to this authorization, the Company is authorized to make repurchases in the open market, including under Rule 10b5-1 plans, through privately negotiated transactions, or otherwise. This share repurchase program terminates on the earlier of September 12, 2026 or when the maximum dollar amount under the plan has been expended. During the three months ended March 31, 2026, the Company repurchased and subsequently retired 119,367 shares of common stock at an aggregate fair value of $2.5 million under this authorization, reflecting an average price per share of $20.94 (excluding the cost of broker commissions and the 1% share repurchase excise tax imposed by the Inflation Reduction Act of 2022), and the Company continued to repurchase shares pursuant to this authorization during the second quarter of 2026, repurchasing 90,131 additional shares valued at $1.8 million through April 30, 2026.