Share-Based Compensation

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Note 11. Share-Based Compensation

A summary of share-based compensation expense recognized in the Condensed Consolidated Statements of Operations is as follows (in thousands):


	Three Months Ended March 31,
		2026		2025
Cost of revenues		$	3,129	$	6,160
Research and development		14,191		17,572
Sales and marketing		23,568		35,184
General and administrative		13,777		18,965
Total share-based compensation expense		$	54,665	$	77,881

A summary of share-based compensation expense by award type is as follows (in thousands):


	Three Months Ended March 31,
		2026		2025
Employee stock purchase plan rights (“ESPP”)		$	1,695	$	1,404
Performance stock units (“PSUs”)		5,452		10,106
Restricted stock units (“RSUs”)		47,518		66,371
Total share-based compensation expense		$	54,665	$	77,881

Equity Incentive Plans

As of March 31, 2026, a total of 17,703,282 shares remained available for grant under the Company’s Amended and Restated 2013 Equity Incentive Plan (the “2013 Plan”).

Employee Stock Purchase Plan

The Company’s ESPP allows eligible employees to purchase shares of the Company’s Class A Common Stock at a discounted price through payroll deductions.

As of March 31, 2026, there was a total of $1.0 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to the ESPP, which will be recognized on a straight-line basis over the remaining weighted-average vesting periods of approximately 0.1 years. As of March 31, 2026, a total of 7,706,776 shares were available for issuance under the ESPP.

Restricted and Performance Stock Units

A summary of activity of restricted and performance-based stock units as of March 31, 2026, and changes during the period then ended is presented in the following table:


	Number of RSUs/PSUs Outstanding (in thousands)	Weighted- Average Grant Date Fair Value Per Share		Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2025	6,275	$	34.30	$	181,227
Granted	901	32.64
Released	(1,967)	31.59
Canceled/Forfeited	(115)	33.16
Outstanding as of March 31, 2026	5,094	$	35.07	$	189,432

Restricted Stock Units

The 2013 Plan provides for the issuance of RSUs to employees, directors, and consultants. RSUs issued under the 2013 Plan generally vest over two or three years.

As of March 31, 2026, there was a total of $129.0 million of unrecognized share-based compensation expense, net of estimated forfeitures, related to RSUs, which will be recognized on a straight-line basis over the remaining weighted-average vesting periods of approximately 1.3 years.

Performance Stock Units

The 2013 Plan provides for the issuance of PSUs. The PSUs granted under the 2013 Plan are contingent upon the achievement of predetermined market, performance, and service conditions which are independently measured. The Company uses a Monte Carlo simulation model to determine the fair value of its market condition PSUs. The grant date fair value of performance-based PSUs are valued based on the Company’s stock price at the grant date. PSU expense is recognized using the graded vesting method over the requisite service period. For performance-based metrics, the compensation expense is based on a probability of achievement of the performance conditions. For market-based conditions, if the market conditions are not met but the service conditions are met, the PSUs will not vest; however, any stock-based compensation expense recognized will not be reversed.

For the majority of the PSUs granted, the number of shares of common stock to be issued at vesting will range from 0% to 200% of the target number based on the achievement of the different performance and market conditions over the respective measurement period. The PSUs generally vest over a two to three-year period.

As of March 31, 2026, there was a total of $17.3 million unrecognized share-based compensation expense, net of estimated forfeitures, related to these PSUs, which will be recognized over the remaining service period of approximately 1.1 years.

Employee Equity Compensation Plans

The Company’s board of directors adopted employee equity bonus plans (“Plans”), which allow the recipients to earn fully vested shares of the Company’s Class A Common Stock upon the achievement of quarterly service and/or performance conditions. During the three months ended March 31, 2026, the Company issued 338,617 shares of Class A Common Stock under the employee equity bonus plans. The shares under these Plans are issued from the reserve of shares available for issuance under the 2013 Plan. The total requisite service period for these Plans is approximately 0.4 years.

The unrecognized share-based compensation expense as of March 31, 2026 was approximately $2.6 million, which will be recognized over the remaining service period of 0.1 years.