Stock-based Compensation

Stock Incentive Plans. In September 2015, the Company’s stockholders approved the 2015 Stock Incentive Plan

(2015 SIP), which initially reserved 7,650,000 shares of the Company’s common stock for issuance to employees,

directors, consultants, independent contractors, and advisors. The 2015 SIP provided for the issuance of a variety of

stock-based compensation awards, including RSUs, performance-based restricted stock units (PSUs), LTIP PSUs,

stock appreciation rights, stock bonuses, incentive stock options (ISOs), and non-qualified stock options (NQSOs).

In September 2024, the Company’s stockholders approved the 2024 Stock Incentive Plan (2024 SIP), which

replaced the 2015 SIP. Like the 2015 SIP, the primary purpose of the 2024 SIP is to encourage ownership in the

Company by key personnel, whose long-term service is considered essential to the Company’s continued success.

The 2024 SIP initially reserved 7,800,000 shares of the Company’s common stock for issuance to employees,

directors, consultants, independent contractors, and advisors. The maximum aggregate number of shares that may

be issued to employees under the 2024 SIP through the exercise of ISOs is 4,500,000. As of March 31, 2026,

7,445,947 shares of common stock remained available for future issuance under the 2024 SIP, subject to

adjustment for future stock splits, stock dividends, and similar changes in capitalization.

Annual Stock Awards. During the years ended March 31, 2026, 2025, and 2024, the Company granted RSU and

LTIP PSU awards to certain members of the Company’s management team, which entitle the recipients to receive

shares of the Company’s common stock upon vesting. No dividends are paid or accumulated on any RSU or LTIP

A summary of the status and changes of the Company’s nonvested shares is as follows:


	RSUs		LTIP PSUs
	Number of Shares	Weighted- Average Grant-Date Fair Value	Number of Shares	Weighted- Average Grant-Date Fair Value
Nonvested, March 31, 2023	535,746	$55.10	667,224	$57.98
Granted (1)	235,788	95.55	277,692	95.13
Vested (2)	(264,888)	(52.19)	(301,368)	(61.39)
Forfeited	(39,864)	(77.07)	(112,404)	(87.15)
Nonvested, March 31, 2024	466,782	75.31	531,144	69.29
Granted (1)	165,988	158.78	148,770	151.19
Vested (2)	(235,872)	(70.69)	(327,868)	(55.07)
Forfeited	(31,026)	(96.52)	(51,708)	(80.76)
Nonvested, March 31, 2025	365,872	114.34	300,338	123.42
Granted (1)	327,175	103.24	274,860	94.42
Vested (2)	(200,370)	(96.02)	(157,992)	(98.81)
Forfeited	(28,310)	(116.51)	(7,922)	(102.91)
Nonvested, March 31, 2026	464,367	$114.29	409,284	$113.84

(1) The amounts granted are the maximum amounts under the terms of the applicable LTIP PSUs.

(2) The amounts vested include shares withheld to cover taxes that are not issued to the recipient.

Restricted Stock Units. RSUs are subject to a time-based vesting condition and typically vest in equal annual

installments over three years following the date of grant.

Long-Term Incentive Plan Awards. LTIP PSU awards have a multi-fiscal year performance period, generally three

years (Measurement Period), with performance metrics established at the beginning of the period. The grant date

fair value of LTIP PSUs is determined using a Monte-Carlo simulation model, which estimates a range of possible

future stock prices for the Company and each member of a peer group over the Measurement Period. For each

grant, the model incorporates key assumptions, including the Company’s common stock price at the grant date,

risk-free interest rate, expected dividend yield, stock price volatility, and correlation coefficients. The model also

incorporates a market condition based on the Company’s relative TSR compared to a peer group of companies

(peer market condition), which is reflected in the grant date fair value and not subsequently adjusted.

In addition to the peer market condition reflected in grant date fair value, LTIP PSU awards include financial

performance conditions and service requirements that affect the recognition of compensation expense and the

ultimate vesting of the awards. Financial performance conditions are tied to specified revenue and pre-tax income

targets (financial performance conditions). The Company evaluates the probability of achieving the financial

performance conditions based on its most recent long-range forecast at least quarterly and may adjust stock-based

compensation expense to reflect updated expectations.

Following a determination of achievement of the financial performance conditions for the applicable Measurement

Period, vesting of each LTIP PSU award is subject to adjustment for the peer market condition through the

application of the TSR modifier. The number of LTIP PSUs that ultimately vest may increase up to a maximum of

200% of the target award, based on achievement of the financial performance conditions and the TSR modifier.

LTIP PSU awards are subject to time-based service requirements and will not vest if minimum threshold financial

performance conditions are not met. For LTIP PSUs granted during the fiscal years 2026, 2025, and 2024, the

Company expects to exceed the minimum threshold target performance criteria based on its long-range forecast as

of March 31, 2026.

Grants to Directors. Each of the Company’s nonemployee directors was entitled to receive common stock with a

total value of $170 for annual service on the Board of Directors (Board) during the year ended March 31, 2026. The

shares are issued in equal quarterly installments with the number of shares being determined using the rolling

average of the closing price of the Company’s common stock during the last ten trading days leading up to, and

including, the grant date, which is in alignment with the Company’s equity grant guidelines. Each of these shares is

fully vested and recorded as compensation expense in the consolidated statements of comprehensive income on

the date of issuance.

Employee Stock Purchase Plans. In September 2024, the Company’s stockholders approved the 2024 Employee

Stock Purchase Plan (2024 ESPP). The 2024 ESPP reserves 6,000,000 shares of the Company’s common stock

for sale to eligible employees using after-tax payroll deductions, which are refundable until purchases are made,

and are liability-classified. Each offering period under the 2024 ESPP is anticipated to run for approximately six

months with purchases occurring on the last day of each offering period (no look-back provision) at a 15% discount

on the closing price on that date. The first offering period commenced on March 1, 2025. As of March 31, 2026,

5,955,235 shares of common stock remained available for future issuance under the 2024 ESPP, subject to

adjustment for future stock splits, stock dividends, and similar changes in capitalization.

Stock-Based Compensation. Components of stock-based compensation recorded, net of estimated forfeitures, in

SG&A expenses in the consolidated statements of comprehensive income were as follows:


	Years Ended March 31,
	2026	2025	2024
Stock-based compensation
RSUs	$23,876	$19,758	$15,935
LTIP PSUs	18,463	15,676	18,941
Grants to Directors	1,704	1,858	1,907
Subtotal	44,043	37,292	36,783


	Years Ended March 31,
	2026	2025	2024
Other stock-based compensation
Employee Stock Purchase Plan	792	651	505
Total stock-based compensation, pre-tax	44,835	37,943	37,288
Income tax benefit	(10,741)	(9,304)	(9,097)
Total stock-based compensation, net of tax	$34,094	$28,639	$28,191

Unrecognized Stock-Based Compensation. Total remaining unrecognized stock-based compensation as of

March 31, 2026, related to non-vested awards that the Company considers probable to vest and the weighted-

average period over which the cost is expected to be recognized in future periods, is as follows:


	Unrecognized Stock-Based Compensation	Weighted- Average Remaining Vesting Period (Years)
RSUs	$28,554	1.2
LTIP PSUs	23,149	1.7
Total	$51,703