The Company’s equity incentive plan allows the Company to grant restricted stock units (“RSUs”), which includes time-based, performance-based, and market-based restricted stock units, restricted stock, as well as stock options to employees and consultants of the Company and any of the Company’s parent, subsidiaries, or affiliates, and to the members of the Board of Directors.

Time-based restricted stock units (“TRSUs”) generally vest based on continued service over a specified period, which is typically four years. Each TRSU represents the right to receive one share of common stock upon vesting. The fair value of TRSUs is determined based on the closing price of the Company’s common stock on the date of grant. Stock-based compensation expense for these awards is recognized on a straight-line basis over the requisite service period and is offset by actual forfeitures as they occur.

PRSUs are granted primarily to executive officers and, in limited cases, to certain other senior-level employees. Vesting is based on continued service and the attainment of certain financial performance metrics, including revenue and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization targets, over a one-year performance period, as established and approved by the Board of Directors. The number of shares issued upon vesting may be greater or lesser than the target award amount depending on actual performance, and shares attained above target will be recognized as awards granted in the period earned.

The Company did not grant any new PRSUs during the three months ended March 31, 2026. Outstanding PRSUs continue to vest based on related performance and service conditions.

MRSUs are granted to certain executive officers. Vesting is based on continued service and the Company’s total shareholder return during one-year, two-year, and three-year performance periods as measured relative to the group of companies comprising the S&P Software and Services Index. The number of shares issued upon vesting may vary from the target award amount depending on actual performance, and shares attained over the target will be recognized as awards granted in the period earned.

The Company did not grant any new MRSUs during the three months ended March 31, 2026. Outstanding MRSUs continue to vest based on relative total shareholder return (“TSR”) performance and service conditions.


	Number of Shares	Weighted average grant date fair value
Balance as of December 31, 2025	4,294,367	$	34.05
RSUs granted	733,375	55.73
RSUs vested and settled	(545,286)	23.58
RSUs cancelled/forfeited	(183,905)	34.65
Balance as of March 31, 2026	4,298,551	$	39.05

As of March 31, 2026, there was total unrecognized stock-based compensation expense for outstanding RSUs of $146.8 million to be recognized over a period of approximately 2.9 years. This amount is comprised of unrecognized compensation expense of $136.0 million related to outstanding TRSUs, $5.8 million related to outstanding PRSUs, and $5.0 million related to outstanding MRSUs.

The number of RSUs vested and settled includes shares of common stock that the Company withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.

The following summary of stock option activity for the periods presented is as follows (in thousands, except share and per share data):


	Number of Shares Underlying Outstanding Options	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value
Balance as of December 31, 2025	4,108,029	$	5.66	2.8	$	240,230

Options exercised	(358,697)	6.50

Balance as of March 31, 2026	3,749,332	5.58		2.6	132,122
Exercisable as of March 31, 2026	3,744,483	$	5.57	2.6	$	131,978

As of March 31, 2026, unrecognized stock-based compensation expense for outstanding stock options was immaterial and expected to be recognized over a period of approximately 0.1 years.


	Three Months Ended March 31,
	2026		2025
Cost of subscription revenue	$	463	$	168
Cost of hardware revenue	299		235
Cost of advertising revenue	133		—
Cost of other revenue	—		—
Total cost of revenue	895		403
Research and development	7,824		5,709
Sales and marketing	2,046		1,326
General and administrative	5,490		2,451
Total stock-based compensation expense, net of amounts capitalized	$	16,255	$	9,889

There was $0.5 million and $0.3 million of capitalized stock-based compensation expense recognized during the three months ended March 31, 2026 and 2025, respectively.