The Company's Equity Plan became effective on September 12, 2025. Under the Equity Plan, the Company is authorized to grant shares of common stock in the form of stock options, RSUs, and RSAs to employees, directors, and consultants. As of March 31, 2026, there were 15,247,387 shares of Class A common stock subject to issued and outstanding RSUs and stock options under the Equity Plan. As of March 31, 2026, the Company had 15,728,436 shares available for future issuance under the Equity Plan.

The Company's ESPP became effective on September 12, 2025. An aggregate of 8,557,801 shares of the Company’s Class A common stock has been authorized for issuance under the ESPP. During the three months ended March 31, 2026, no shares were purchased under the ESPP. As of March 31, 2026, all 8,557,801 shares remained available for future issuance under the ESPP. The Company did not recognize any stock-based compensation expense or liability related to the ESPP for the three months ended March 31, 2026.

The following table summarizes RSU activity for the three months ended March 31, 2026 (in thousands):


	Number of RSUs	Weighted-Average Grant Date Fair Value per Share
Unvested at December 31, 2025	8,669	$	18.97
Granted	1,366	5.82
Vested	(1,083)	18.18
Forfeited	(3,149)	23.04
Unvested at March 31, 2026	5,803	$	13.82

As of March 31, 2026, total unrecognized compensation expense related to RSUs amounted to $72.3 million. The unrecognized expense for the RSUs is expected to be recognized over a weighted-average period of 2.3 years, subject to continued vesting.

The aggregate fair value for the RSUs which vested during the three months ended March 31, 2026 was $19.7 million.

The following table summarizes RSA activity for the three months ended March 31, 2026 (in thousands):


	Number of RSA	Weighted-Average Grant Date Fair Value per Share
Unvested at December 31, 2025	3,180	$	2.06
Granted	—	—
Vested	(743)	2.11
Forfeited	(848)	1.86
Unvested at March 31, 2026	1,589	$	2.15

As of March 31, 2026, total unrecognized compensation expense related to RSAs amounted to $3.3 million. The unrecognized expense for the RSAs is expected to be recognized over a weighted-average period of 1.4 years, subject to continued vesting.

The aggregate fair value for the RSAs which vested during the three months ended March 31, 2026 was $1.6 million.

The following table summarizes time-based stock options activity for the three months ended March 31, 2026 (in thousands):


	Number of Stock Options	Weighted-Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2025	482	$	28.00	9.7	$	—
Granted	—	—
Exercised	—	—
Forfeited	(482)	28.00

Expired

—

Outstanding at March 31, 2026

—

Exercisable at March 31, 2026

—

As of March 31, 2026, no time-based stock options remained outstanding and there is no remaining unrecognized expense.

The Company takes into consideration many factors in determining the fair value of the time-based stock options and estimates the fair value of such awards on the grant date. The Company used the Black-Scholes-Merton option pricing model to estimate the fair value of the time-based stock options with the following assumptions as of March 31, 2026:


	March 31,
Assumptions	2026
Expected term in years	6.1
Volatility	70	%
Risk-free rate	3.7	%
Dividend Yield	0.0	%

Expected term in years - The expected term is based on the average period the time-based stock options are expected to remain outstanding, generally calculated as the midpoint of the time-based stock options' remaining vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior.

Volatility - The expected volatility is based on the volatility of peer companies, as there is limited trading history for the Company's common stock. Management believes this is the best estimate of the expected volatility over the expected life of the time-based stock options.

Risk-free rate - The risk-free interest rate is based on the U.S. Treasury yield curve that corresponds with the expected term at the time of grant.

Dividend yield - The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero.

The following table summarizes market-based stock options activity for the three months ended March 31, 2026 (in thousands):


	Number of Stock Options	Weighted-Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding at December 31, 2025	6,365	$	—	9.7	$	—
Granted	—	—
Exercised	—	—
Forfeited	—	—
Expired	—	—

As of March 31, 2026, total unrecognized compensation expense related to market-based stock options amounted to $106.5 million. The unrecognized expense for the stock options is expected to be recognized over a weighted-average period of 3.5 years, subject to continued vesting.

The Company takes into consideration many factors in determining the fair value of the market-based stock options and estimates the fair value of such awards on the grant date. The Company used a Monte Carlo Simulation Model (a binomial lattice-based valuation model) to estimate the fair value of the market-based stock options with the following assumptions as of March 31, 2026:


	March 31,
Assumptions	2026
Expected term in years	10.0
Volatility	70	%
Risk-free rate	4.0	%
Dividend Yield	0.0	%

Expected term in years - The expected term is based on the average period the market-based stock options are expected to remain outstanding, generally calculated as the midpoint of the market-based stock options’ remaining vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior.

Volatility - The expected volatility is based on the volatility of peer companies, as there is limited trading history for the Company’s common stock. Management believes this is the best estimate of the expected volatility over the expected life of the market-based stock options.

Risk-free rate - The risk-free interest rate is based on the U.S. Treasury yield curve that corresponds with the expected term at the time of grant.

Dividend yield - The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero.

Prior to the IPO in September 2025, the Company had Original Phantom Units that were classified as a liability in Accrued expenses on the condensed consolidated balance sheets due to the cash settlement requirements. As the service conditions were considered probable, the Company recognized a liability of $0 and $1.2 million as of March 31, 2026 and December 31, 2025, respectively.

The Company recognized stock-based compensation expense of $24.2 million and $1.5 million for the three months ended March 31, 2026 and 2025, respectively. During the three months ended March 31, 2026 and 2025, the Company recognized an income tax benefit (provision) of $0 related to stock-based compensation expense. Stock-based compensation expense is classified within Salaries and compensation in the condensed consolidated statements of operations and comprehensive loss.