v3.26.1
Stockholders' Equity
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Stockholders' Equity Stockholders’ Equity
Share-based Compensation
The following table summarizes share-based compensation expense included in our condensed consolidated statements of income related to share-based awards (in thousands):
Three Months Ended
March 31,
 20262025
Research and development$5,044 $3,229 
Selling, general and administrative11,593 7,444 
Total share-based compensation expense$16,637 $10,673 
Share-based compensation expense by type of share-based award was as follows (in thousands):
Three Months Ended
March 31,
 20262025
Stock options$5,541 $3,809 
RSUs, PSUs and ESPP11,096 6,864 
Total share-based compensation expense$16,637 $10,673 
We granted stock options to purchase approximately 0.3 million and 0.4 million shares of common stock during the three months ended March 31, 2026 and 2025, respectively. The exercise price of stock options granted is equal to the closing price of the common stock on the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model (“Black-Scholes Model”). Expected volatility is based on historical volatility of our common stock. The expected term of options granted is based on analyses of historical employee termination rates and option exercises. The risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The dividend yield assumption is based on the expectation of no future dividend payments. The assumptions used in the Black-Scholes Model were as follows:
Three Months Ended March 31,
 20262025
Expected volatility
29.91 - 41.95%
39.68 - 39.68%
Average expected term (in years)4.74.8
Risk-free interest rate
3.62 - 3.83%
4.34 - 4.34%
Expected dividend yield— — 
In February 2021, our Board of Directors approved our 2021 ESPP and our stockholders approved the plan in May 2021. The 2021 ESPP enables eligible employees to purchase shares of our common stock at the end of each offering period at a price equal to 85% of the fair market value of the shares on the first business day or the last business day of the offering period, whichever is lower. Share purchases are funded through payroll deduction of at least 1% and up to 15% of an employee’s compensation for each payroll period, and no employee may purchase shares under the 2021 ESPP that exceeds $25,000 worth of our common stock for a calendar year. As of March 31, 2026, 2.5 million shares were available for future purchase. The offering period is generally for a six-month period. Offering periods shall commence on or about the sixteenth day of June and December of each year and end on or about the fifteenth day of the next December and June, respectively, occurring thereafter.
Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized was as follows (in thousands, unless otherwise noted):
March 31, 2026
 Unrecognized
Expense
Remaining
Weighted-Average
Recognition Period
(in years)
Stock options$36,478 2.44
RSUs75,290 2.83
PSUs28,145 2.25
ESPP112 0.16

Share Repurchases
In February 2024, our Board of Directors authorized a new capital return program to repurchase up to $750.0 million of our outstanding common stock. During 2024, we repurchased approximately 4.7 million shares for $250.0 million at an average price of $53.95 per share.
In May 2025, we announced the second $250.0 million share repurchase tranche under the $750.0 million approved program from February 2024. The second $250.0 million share repurchase was completed in June 2025, resulting in a total purchase of approximately 4.8 million shares at an average price of $52.09 per share.
In June 2025, we initiated the third $250.0 million share repurchase tranche under the $750.0 million approved program from February 2024. As of September 30, 2025, $92.3 million has been used to repurchase approximately 1.7 million shares at an average price of $52.89 per share.
All shares repurchased under our capital return programs have been retired and have resumed their status of authorized and unissued shares.