STOCKHOLDERS' EQUITY |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2026 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| STOCKHOLDERS' EQUITY | 6.STOCKHOLDERS’ EQUITY The following table represents a share reconciliation of the Company’s common stock issued for the periods presented:
Dividends During the three months ended March 31, 2026, cash dividends paid totaled $7,970. The Board currently intends to continue paying quarterly dividends. However, payment of cash dividends is at the discretion of the Board in accordance with applicable law after considering various factors, including our financial condition, operating results, current and anticipated cash needs and plans for growth. Under Delaware law, we can only pay dividends either out of surplus or out of the current or the immediately preceding year’s earnings. Therefore, no assurance is given that we will pay any future dividends to our common stockholders, or as to the amount of any such dividends. Stock Compensation Programs Related to the Agent Equity Program, during the three months ended March 31, 2026 and 2025, the Company issued shares of the Company’s common stock to agents and brokers with a value of $18,555 and $20,756, respectively, inclusive of discount. Related to the Agent Growth Incentive Program (“AGIP”), during the three months ended March 31, 2026 and 2025 the Company’s stock-based compensation expense was $9,073 and $7,922, respectively, of which the total amount of stock-based compensation attributable to liability classified awards was $968 and $622, respectively. As of March 31, 2026, the total unrecognized compensation costs associated with AGIP, where the performance metric has been achieved and the number of shares awarded are fixed, was $58,412, which is expected to be recognized over a weighted-average period of approximately 2.00 years. The following table illustrates changes in the Company’s stock-based compensation liability for the periods presented:
Other Restricted Stock Units (“RSUs”) RSUs may be granted to directors, officers, certain employees and consultants. Each RSU represents the right to receive one share of the Company’s common stock upon vesting, subject to time-based and/or performance-based restrictions. RSUs typically vest over a three-year period with equal and periodically graded vesting or cliff vesting, as applicable. The fair value of RSUs granted is determined based on the closing market price of the Company's common stock on the grant date. The total fair value of RSUs is recognized as stock-based compensation expense over the vesting period, with adjustments for estimated forfeitures. During the three months ended March 31, 2026 and 2025, the Company's stock compensation attributable to RSUs was $396 and $197, respectively. As of March 31, 2026, the total unrecognized compensation costs associated with these RSUs was $3,124, which is expected to be recognized over a weighted-average period of approximately 2.14 years. Stock Option Awards Stock options are granted to directors, officers, certain employees and consultants with an exercise price equal to the fair market value of common stock on the grant date and the stock options expire 10 years from the date of grant. These options generally have time-based restrictions with equal and periodically graded vesting over a three-year period. During the three months ended March 31, 2026 and 2025, the Company granted 112,510 and 72,845 stock options, respectively, to employees with an estimated grant date fair value of $3.79 and $5.66 per share, respectively. The fair values were calculated using a Black Scholes-Merton option pricing model. Stock Repurchase Plan The Company’s share repurchase program does not obligate the Company to acquire a minimum amount of shares and it limits the Company’s aggregate repurchases to $1.0 billion. Under the program, shares may be repurchased in privately negotiated or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended. For accounting purposes, common stock repurchased under the stock repurchase program is recorded based upon the trade date of the applicable trade. Such repurchased shares are held in treasury and are presented using the cost method. These shares are considered issued but not outstanding. During the three months ended March 31, 2026, there were no repurchases of common stock, and no shares were issued from treasury. As of March 31, 2026, and December 31, 2025, the Company held 46,735,783 shares in treasury with a total cost of $743 million. |
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