The Company’s employees have historically participated in the Parent’s stock-based compensation plans. The following disclosures of stock-based compensation expense recognized by the Company are based on the awards and terms previously granted to the Company’s employees. Accordingly, the amounts presented are not necessarily indicative of future awards and do not necessarily reflect the results that the Company would have experienced as an independent company for the periods presented.

The compensation cost recognized in the Condensed Combined Statements of Operations of the stock-based compensation arrangements is as follows:


	Three Months Ended March 31,
	2026		2025
Cost of goods sold	$	314	$	289
Sales and marketing	1,070		1,169
General and administrative	1,374		1,331
Research and development	724		740
Total stock-based compensation expense	$	3,482	$	3,529

Certain employees of the Company participate in various defined contribution plans sponsored by the Parent, which include employees from other Hexagon subsidiaries. For the three months ended March 31, 2026 and 2025, defined contribution plan costs were $7.2 million and $9.4 million, respectively.