Employee benefit plans

6. Employee benefit plans

Equity incentive plans. The Company has outstanding equity grants from four of its five stock-based employee compensation plans: the 2024 Equity Incentive Plan (2024 Plan), the 2014 Equity Incentive Plan (2014 Plan), the 2010 Equity Incentive Plan (2010 Plan), and the 2024 Employee Stock Purchase Plan (2024 ESPP). The 2024 Plan serves as a successor to the 2014 Plan and the 2014 Plan served as successor to the 2010 Plan. The effective date of both the 2024 Plan and the 2024 ESPP was February 15, 2024. The 2014 Plan and the 2014 Employee Stock Purchase Plan (2014 ESPP) each expired on February 15, 2024. The 2014 ESPP plan’s final purchase was on February 15, 2024, and no remaining purchase rights are accrued under this plan. Awards granted under the 2010 and 2014 Plans will continue to be subject to the terms and provisions of the 2010 and 2014 Plans.

The 2024 Plan provides for the granting of incentive and non-qualified stock options, restricted stock awards (RSAs), restricted stock units (RSUs), stock appreciation rights, stock bonus awards (SBAs) and performance awards to qualified employees, non-employee directors and consultants. Options granted under the 2024 Plan generally expire within ten years from the date of grant and generally vest over one to four years. RSUs granted under the 2024 Plan generally vest over two to four years based upon continued service and are settled at vesting in shares of the Company’s Class A common stock. Performance stock units (PSUs) granted under the 2024 Plan generally vest over three years based upon continued service and the Company achieving certain financial and operating targets and are settled at vesting in shares of the Company’s Class A common stock. SBAs granted under the 2024 Plan are generally granted and vested on the same day based on continued service and employees achieving certain performance goals and are settled at vesting in shares of the Company’s Class A common stock. The Company accounts for forfeitures of stock-based payment awards in the period they occur. The 2024 ESPP allows eligible employees to purchase shares of the Company’s Class A common stock through payroll deductions at a price equal to 85% of the lesser of the fair market value of the stock as of the first date or the ending date of each six-month offering period. For additional information regarding the Company’s equity incentive plans, refer to the Annual Report on Form 10-K for the year ended December 31, 2025.

A summary of the Company’s stock option activity for the three months ended March 31, 2026 is as follows:


	Shares (in thousands)	Weighted-average exercise price		Weighted-average remaining contractual term (in years)	Aggregate intrinsic value (in thousands)
Outstanding at December 31, 2025	1,444	$	7.06	3.24	$	—
Granted	—	—
Exercised	—	—
Forfeited/Cancelled	(213)	7.44
Outstanding at March 31, 2026	1,231	$	7.00	3.52	$	—

Vested and expected to vest at March 31, 2026	1,231	$	7.00	3.52	$	—
Exercisable at March 31, 2026	1,231	$	7.00	3.52	$	—

The aggregate intrinsic value of the stock options outstanding as of March 31, 2026 represents the value of the Company’s closing stock price on March 31, 2026 in excess of the exercise price multiplied by the number of options outstanding.

Restricted stock units

A summary of the Company’s RSU activity for the three months ended March 31, 2026 is as follows:


	Shares (in thousands)	Weighted-average grant date fair value
Non-vested shares at December 31, 2025	9,915	$	1.81
Granted	104	0.81
Vested	(1,918)	3.15
Forfeited	(379)	1.99
Non-vested shares at March 31, 2026	7,722	$	1.46

Performance stock units

A summary of the Company’s PSU activity for the three months ended March 31, 2026 is as follows:


	Shares (in thousands)	Weighted-average grant date fair value
Non-vested shares at December 31, 2025	47	$	5.79
Granted	—	—
Vested	(47)	5.79
Forfeited	—	—
Non-vested shares at March 31, 2026	—	$	—

Employee stock purchase plan. For the three months ended March 31, 2026 and 2025, the Company issued 0.4 million and 0.6 million shares under its employee stock purchase plans, respectively, at weighted-average prices of $0.73 and $0.68 per share, respectively.

Stock-based compensation expense. The Company measures compensation expense for all stock-based payment awards based on the estimated fair values on the date of the grant. The fair value of stock options

granted and ESPP issuances is estimated using the Black-Scholes option pricing model. The fair value of RSUs and PSUs are determined using the Company’s closing stock price on the date of grant. The fair value of SBAs is determined using the expected fixed dollar amount that will be settled by issuing shares of the Company’s Class A common stock on the vesting date. There have been no significant changes in the Company’s valuation assumptions from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2025.

The following table summarizes stock-based compensation expense included in the condensed consolidated statements of operations:


	Three months ended March 31,
(in thousands)		2026		2025
Cost of revenue		$	144	$	248
Research and development		1,560		2,820
Sales and marketing		575		882
General and administrative		719		1,420
Total stock-based compensation expense		$	2,998	$	5,370

Total stock-based compensation expense includes accrued stock bonus expense of $0.5 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively.

There was no income tax benefit related to stock-based compensation expense for the three months ended March 31, 2026 and 2025 due to a full valuation allowance on the Company’s United States net deferred tax assets. See Note 8, Income taxes, for additional details.