v3.26.1
Stock-Based Compensation
3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation
10.
Stock-Based Compensation

The Company recognizes cumulative stock-based compensation expense for the portion of the awards for which the service period is probable of being satisfied. Stock-based compensation expense is included in selling, general and administrative expense in the condensed consolidated statements of income. The related deferred tax benefit for stock-based compensation recognized was $0.6 million and $0.5 million for the three months ended March 31, 2026 and 2025, respectively.

Stock Options

The Company recognized stock-based compensation expense relating to stock option activity of $1.8 million and $1.7 million for the three months ended March 31, 2026 and 2025, respectively.

Stock option activity for the three months ended March 31, 2026, was as follows:

 

 

 

 

 

Weighted-Average

 

 

 

 

 

 

Number of
Options

 

 

Exercise Price
per Option

 

 

Remaining
Contractual
Term

 

 

Aggregate
Intrinsic
Value

 

 

 

(thousands)

 

 

 

 

 

(years)

 

 

(millions)

 

Outstanding at December 31, 2025

 

 

16,336

 

 

$

5.69

 

 

 

6.2

 

 

$

4.7

 

Granted

 

 

20

 

 

 

4.30

 

 

 

 

 

 

 

Exercised

 

 

(1

)

 

 

3.81

 

 

 

 

 

 

 

Forfeited/Expired

 

 

(29

)

 

 

8.60

 

 

 

 

 

 

 

Outstanding at March 31, 2026

 

 

16,326

 

 

$

5.68

 

 

 

5.9

 

 

$

5.0

 

Exercisable at March 31, 2026

 

 

12,252

 

 

$

6.19

 

 

 

5.4

 

 

$

2.8

 

There was a total of $4.6 million unrecognized stock-based compensation expense at March 31, 2026 related to unvested stock options expected to be recognized over a weighted-average period of 1.17 years.

Restricted Stock Units (“RSUs”)

The Company grants RSUs that contain service conditions to certain executives and employees. The Company recognizes cumulative stock-based compensation expense for the portion of the awards for which the service period is probable of being satisfied. Stock-based compensation expense relating to RSU activity recognized in the three months ended March 31, 2026 and 2025 was $1.1 million and $0.9 million, respectively. There was a total of $4.3 million of unrecognized stock-based compensation expense at March 31, 2026 related to unvested RSUs expected to be recognized over a weighted-average period of 1.7 years.

During the three months ended March 31, 2026, upon vesting, the Company settled certain RSUs that were granted in 2025 in exchange for cash. The awards were classified as equity awards from the grant date as they were intended to be settled in shares. The Company has no history or stated policy of settling such awards in cash, and there is no implied obligation to do so in the future. The total cash outflow related to this settlement was $4.2 million.

RSU activity for the three months ended March 31, 2026, was as follows:

(share data in thousands, except per share data)

 

Number of
RSUs
(share data in
thousands)

 

 

Weighted
Average
Grant Date
Fair Value
per Share

 

Unvested balance, December 31, 2025

 

 

2,924

 

 

$

4.17

 

Granted

 

 

140

 

 

 

4.30

 

Forfeited

 

 

(37

)

 

 

4.13

 

Vested

 

 

(1,150

)

 

 

4.22

 

Unvested balance, March 31, 2026

 

 

1,877

 

 

$

4.15