
	Fiscal Year Ended March 31,
	2026		2025		2024
Cost of revenue	$	40,276	$	36,924	$	26,622
Research and development	114,110		100,866		69,543
Sales and marketing	84,480		77,336		65,762
General and administrative	60,760		56,577		46,969
Total share-based compensation expense	$	299,626	$	271,703	$	208,896

In July 2019, the Company’s Board of Directors (the “Board”), upon the recommendation of the Compensation Committee of the Board, adopted the 2019 Equity Incentive Plan (the “Equity Incentive Plan”) which was subsequently approved by the Company’s stockholders and was later amended and restated by the Board in January 2021.

The Company initially reserved 52,000,000 shares of common stock for the issuance of awards under the Equity Incentive Plan. The Equity Incentive Plan provides that the number of shares reserved and available for issuance under the plan automatically increases each April 1 by 4% of the outstanding number of shares of the Company’s common stock on the immediately preceding March 31 or such lesser number determined by the compensation committee. This number is subject to adjustment in the event of a stock split, stock dividend or other change in the Company’s capitalization. As of March 31, 2026, 63,036,517 shares of common stock were available for future issuance under the Equity Incentive Plan.

The awards granted under the Equity Incentive Plan have varying terms but generally vest over a three- or four-year period, upon satisfaction of a service-based vesting condition, with 33% and 25% vesting one year after the grant date and the remaining vesting ratably on a quarterly basis over two and three years for three-year and four-year grants, respectively. From time to time, the Company also grants performance-based and market-based awards to certain key employees that generally vest over a three- or four-year period upon satisfaction of certain financial performance and relative total stockholder return performance targets established and approved by the Company’s Board for each fiscal year.


	Number of RSUs	Weighted Average Grant Date Fair Value		Number of RSAs	Weighted Average Grant Date Fair Value
	(in thousands)	(per share)		(in thousands)	(per share)
Balance, March 31, 2025	10,024	$	48.33	95	$	49.05
Granted	7,132	53.72		41	49.05
Vested	(5,679)	47.97		(75)	49.05
Forfeited	(1,074)	50.85		—	—
Balance, March 31, 2026	10,403	$	51.96	61	$	49.05

The Company grants PSUs that contain financial performance conditions (the “Financial PSUs”) and PSUs based on relative total stockholder return performance (the “rTSR PSUs”). Both the Financial PSUs and rTSR PSUs are not earned if the applicable threshold percentage of the specific metric is not achieved. The maximum number of shares that may be earned is 200% of the target award. The PSUs are also subject to time-based vesting and are contingent upon the employee remaining employed by the Company or one of its subsidiaries through the applicable vesting date.

The Financial PSUs generally vest 33% one year after the grant date and the remaining 67% vest ratably on a quarterly basis over the following two years. The number of shares that may be earned pursuant to the Financial PSUs is based on specific Company metrics related to the fiscal year that the award was granted.

The rTSR PSUs generally vest 33% annually after the grant date. The number of shares that may be earned pursuant to the rTSR PSUs granted is based on the Company’s stock price performance relative to companies that are the constituents of the Russell 3000 index over performance periods of one, two, and three fiscal years.


	Fiscal Year Ended March 31,
	2026	2025
Expected dividend yield	—	—
Expected volatility of the Company	35.3%	44.5% - 44.8%
Average expected volatility of peer group	49.0%	48.5% - 49.2%
Expected term (years)	0.8 - 2.8	0.6 - 2.8
Risk-free interest rate	3.9%	3.9% - 4.5%

The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero. The expected volatility of the Company is based on the historical volatility of the Company’s common stock and the average expected volatility of the peer group is based on the average historical volatility of the constituents of the Russell 3000 index. The computation of expected term is based upon the remaining term of each performance period upon grant date. The risk-free interest rate is based on the continuously compounded U.S. Treasury yield curve in effect at the time of grant that corresponds with the longest remaining performance period.

The weighted average grant-date fair value of RSUs granted during fiscal 2026, 2025, and 2024 was $53.72, $48.27, and $51.60, respectively. The weighted average grant-date fair value of RSAs granted during fiscal 2026 and 2024 was $49.05. There were no RSAs granted during the year ended March 31, 2025.

The aggregate fair value of RSUs vested during fiscal 2026, 2025, and 2024 was $279.1 million, $266.7 million, and $220.3 million, respectively. The aggregate fair value of RSAs vested during fiscal 2026, 2025, and 2024 was $3.6 million, $2.7 million, and $0.2 million, respectively.

As of March 31, 2026, the total unrecognized compensation expense related to unvested RSUs was $412.2 million and is expected to be recognized over a weighted average period of 2.0 years. As of March 31, 2026, the total unrecognized compensation expense related to unvested RSAs is $2.2 million and is to be recognized over a weighted average period of 0.8 years.


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value
	(in thousands)	(per share)		(years)	(in thousands)
Balance, March 31, 2025	2,072	$	22.07

Exercised	(315)	20.63
Forfeited or expired	(30)	34.99
Balance, March 31, 2026	1,727	$	22.11	3.6	$	26,877
Options vested and expected to vest at March 31, 2026	1,727	$	22.11	3.6	$	26,877
Options vested and exercisable at March 31, 2026	1,727	$	22.11	3.6	$	26,877

There were no options granted during fiscal 2026, 2025, or 2024. The aggregate intrinsic value of options exercised during fiscal 2026, 2025, and 2024 was $8.7 million, $28.1 million, and $46.1 million, respectively. The grant date fair value of options vested during fiscal 2026, 2025, and 2024 was $0.1 million, $1.6 million, and $9.1 million, respectively.

In July 2019, the Board adopted, and the Company’s stockholders approved, the 2019 Employee Stock Purchase Plan (the “ESPP”). The Company offers, sells and issues shares of common stock under this ESPP from time to time based on various factors and conditions, although the Company is under no obligation to sell any shares under this ESPP. The ESPP provides that the number of shares reserved and available for issuance under the plan will automatically increase each April 1 by lesser of (i) 1% of the outstanding number of shares of the Company’s common stock on the immediately preceding March 31, (ii) 3,500,000 shares of common stock, or (iii) such lesser number determined by the compensation committee. The ESPP provides for six-month offering periods and each offering period consists of six-month purchase periods. On each purchase date, eligible employees purchase shares of the Company’s common stock at a price per share equal to 85% of the lesser of (1) the fair market value of the Company’s common stock on the offering date or (2) the fair market value of the Company’s common stock on the purchase date. For the year ended March 31, 2026, 585,374 shares of common stock were purchased under the ESPP. As of March 31, 2026, 20,716,161 shares of common stock were available for future issuance under the ESPP.

The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero. The expected volatility is based on the historical volatility of the Company’s common stock. The computation of expected term was based on the offering period, which is six months. 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.