We have 10,000,000 shares of undesignated preferred stock, $0.001 par value per share, authorized but not issued with rights and preferences determined by our board of directors at the time of issuance of such shares. As of March 31, 2026 and June 30, 2025, there were no shares of preferred stock issued and outstanding.

We may issue up to 1,000,000,000 shares of common stock, $0.001 par value per share. The holders of our common stock are entitled to one vote for each share held of record on all matters submitted to a vote of stockholders.

Our 2020 Equity and Incentive Compensation Plan (the “2020 Plan”) was approved by stockholders on June 5, 2020, authorizing 50,000,000 plus 10,450,000 shares carried over from the 2016 Equity Incentive Plan (the “2016 Plan”). No new awards may be granted under the 2016 Plan, though 72,460,000 shares remained reserved for outstanding awards at the time of adoption. Stockholders approved amendments to the 2020 Plan in May 2022, January 2024, and June 2025, increasing the share reserve by 20,000,000, 15,000,000, and 18,000,000 respectively. Awards under the 2020 Plan include stock options, restricted stock units, performance shares, and other equity-based awards. Stock options are granted at a price not less than fair value (110% for 10% stockholders) and generally expire ten years after the date of the grant. Stock options and RSUs generally vest over four years (25% after one year and quarterly thereafter).

We measure RSUs at the grant-date stock price and stock options using the Black-Scholes model, with inputs for expected term, volatility, zero dividend yield, and U.S. Treasury risk-free rates, amortized over the vesting period.

The weighted-average estimated fair value of employee stock options granted during the three and nine months ended March 31, 2026 was $21.70 and $33.98 per share, respectively, and three and nine months ended March 31, 2025 was $18.97 and $26.03, respectively, using the below assumptions.

The fair value of stock option grants for the three and nine months ended March 31, 2026 and 2025 was estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions:


	Three Months Ended March 31,		Nine Months Ended March 31,
	2026	2025	2026	2025
Risk-free interest rate	3.92%	4.05% - 4.39%	3.68% - 4.00%	3.82% - 4.39%
Expected term	5.96 years	3.00 years - 5.98 years	3.44 years - 5.96 years	3.00 years - 5.98 years
Dividend yield	—%	—%	—%	—%
Volatility	77.64%	73.06% - 95.28%	76.16% - 92.16%	63.67% - 95.28%

The following table shows total stock-based compensation expense included in the condensed consolidated statements of operations for the three and nine months ended March 31, 2026 and 2025 (in thousands):


	Three Months Ended March 31,				Nine Months Ended March 31,
	2026		2025		2026		2025
Cost of sales	$	11,522	$	7,060	$	25,400	$	17,713
Research and development	83,115		54,254		200,090		141,590
Sales and marketing	12,276		9,923		33,700		27,245
General and administrative	19,021		13,467		46,368		44,292
Stock-based compensation expense before taxes	125,934		84,704		305,558		230,840
Income tax impact	(28,713)		(22,433)		(70,373)		(57,442)
Stock-based compensation expense, net	$	97,221	$	62,271	$	235,185	$	173,398

During the three and nine months ended March 31, 2026, there was no stock-based compensation expense capitalized to our condensed consolidated balance sheets. During the three and nine months ended March 31, 2025, stock-based compensation expense capitalized to our condensed consolidated balance sheets was $0.2 million and $0.5 million, respectively.

In November 2023, the Compensation Committee granted the CEO a stock option for 5,000,000 shares at an exercise price of $45.00. Vesting occurs in five tranches upon achievement of specified stock price targets ($45.00 to $110.00 per share) and revenue-based operational milestones, subject to continued service. Shares exercised before November 14, 2026 must be held until that date, except for those sold to cover exercise costs and taxes.


Annualized Revenue Milestone (in billions) (1)	Achievement Status	Stock Price Milestone (1)	Achievement Status
$13.0	Achieved (6)	$45.00	Achieved (2)
$15.0	Achieved (7)	$60.00	Achieved (3)
$17.0	Achieved (8)	$75.00	Achieved (4)
$19.0	Achieved (9)	$90.00	Achieved (5)
$21.0	Achieved (10)	$110.00	Not yet achieved

(1)Under the terms of the 2023 CEO Performance Stock Option, the annualized revenue milestones and stock price milestones set forth in the table above must be achieved by December 31, 2028 and March 31, 2029, respectively.

(2)On March 2, 2024, the Compensation Committee certified achievement of the $45.00 stock price milestone based upon the 60 trading day average stock price from November 29, 2023 through February 26, 2024.

(3)On April 1, 2024, the Compensation Committee certified achievement of the $60.00 stock price milestone based upon the 60 trading day average stock price from December 15, 2023 through March 13, 2024.

(4)On April 1, 2024, the Compensation Committee certified achievement of the $75.00 stock price milestone based upon the 60 trading day average stock price from January 4, 2024 through April 1, 2024.

(5)On May 5, 2024, the Compensation Committee certified achievement of the $90.00 stock price milestone based upon the 60 trading day average stock price from January 31, 2024 through April 25, 2024.

(6)On February 27, 2025, the Compensation Committee certified achievement of the $13.0 billion revenue milestone based on our previous four consecutive fiscal quarters revenue as of June 30, 2024.

(7)On April 22, 2025, the Compensation Committee certified achievement of the $15.0 billion revenue milestone based on our previous four consecutive fiscal quarters revenue as of September 30, 2024.

(8)On April 22, 2025, the Compensation Committee certified achievement of the $17.0 billion revenue milestone based on our previous four consecutive fiscal quarters revenue as of September 30, 2024.

(9)On April 22, 2025, the Compensation Committee certified achievement of the $19.0 billion revenue milestone based on our previous four consecutive fiscal quarters revenue as of December 31, 2024.

(10)On August 26, 2025, the Compensation Committee certified achievement of the $21.0 billion revenue milestone based on our previous four consecutive fiscal quarters revenue as of March 31, 2025.

During the three and nine months ended March 31, 2026, we recognized compensation expense related to the 2023 CEO Performance Stock Option of $0.9 million and $2.9 million, respectively. During the three and nine months ended March 31, 2025, we recognized compensation expense related to the 2023 CEO Performance Stock Option of $0.9 million and $12.4 million, respectively. As of March 31, 2026, we had $2.6 million in unrecognized compensation cost related to the 2023 CEO Performance Stock Option. The unrecognized compensation cost as of March 31, 2026 is expected to be recognized over a period of 0.75 years.


	Options Outstanding	Weighted Average Exercise Price per Share		Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value (in thousands)
Balance as of June 30, 2025	34,848,133	$	22.47	$	—	—	$	—
Granted	3,178,597	$	49.37	$	33.98	—	$	—
Exercised	(1,630,182)	$	8.17	$	—	—	$	—
Forfeited/Cancelled	(975,634)	$	37.45	$	—	—	$	—
Balance as of March 31, 2026	35,420,914	$	25.13	$	—	6.49	$	322,574

Options exercisable at March 31, 2026	24,885,340	$	17.48	$	—	5.63	$	309,416

The total pretax intrinsic value of options exercised during the three and nine months ended March 31, 2026 was $10.8 million and $50.5 million, respectively. The total pretax intrinsic value of options exercised during the three and nine months ended March 31, 2025 was $46.8 million and $162.6 million, respectively.


	Time-Based RSUs Outstanding	Weighted Average Grant-Date Fair Value per Share
Balance as of June 30, 2025	20,428,647	$	34.22
Granted	8,120,018	$	45.07
Released	(8,117,534)	$	28.50
Forfeited	(1,402,029)	$	40.15
Balance as of March 31, 2026	19,029,102	$	40.85