Stock-Based Compensation |
3 Months Ended |
|---|---|
Mar. 31, 2026 | |
| Share-Based Payment Arrangement [Abstract] | |
| Stock-Based Compensation | Stock-Based Compensation The Company uses equity awards as a long-term retention program that is intended to attract, retain and provide incentives for employees, officers, and directors and to more closely align shareholder and employee interests. The Company recognizes compensation expense for all of its share-based stock awards based on their fair values. On March 11, 2026, the Company granted 1,137,500 performance stock unit awards (“PSUs”) to certain key employees, pursuant to the Company’s 2019 Omnibus Stock and Incentive Plan, as amended (the “Plan”) in connection with the closing of the CHP Merger. The PSUs are expressly conditioned upon the requisite approval by the Company’s stockholders of an increase to the share reserve under the Plan (the “Plan Amendment”) on or before December 31, 2026. The PSUs are subject to a performance period that begins on March 11, 2027 and ends on March 11, 2030 (the “Performance Period”). During the Performance Period, PSUs will be earned and become vested upon the achievement of stock price hurdles measured by reference to the VWAP per share of the Company’s common stock for thirty (30) consecutive trading days (the “Vesting Stock Price”). The PSUs are allocated equally across three tranches, which can be earned during the Performance Period if the Vesting Stock Price meets or exceeds $40.11, $53.48 and $66.85 per share hurdles. The PSU grants had a grant date fair value of $28.0 million. The Company recognized $2.4 million and $1.0 million in stock-based compensation expense for the three months ended March 31, 2026 and March 31, 2025, respectively. As of March 31, 2026, the Company had $33.0 million in unrecognized stock compensation expense which will be recognized over approximately 1.27 years.
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