Share-Based Compensation |
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May 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION: Overview of Stock Incentive Plans The Company recognizes share-based compensation expense for all share-based awards made to employees and outside directors, including employee stock options, restricted stock awards ("RSAs"), restricted stock units ("RSUs"), performance-based RSUs ("PSUs") and employee stock purchase rights, based on estimated fair values. The following tables summarize the Company's share-based awards activity for stock incentive plans during the six months ended May 31, 2026. A summary of the changes in the Company's stock options is set forth below:
A summary of the changes in the Company's non-vested RSAs and RSUs is presented below:
The Company recorded $17.9 million and $41.5 million of share-based compensation expense during the three and six months ended May 31, 2026, respectively, and $12.0 million and $33.8 million during the three and six months ended May 31, 2025, respectively, within "Selling, general and administrative expenses" in the Consolidated Statements of Operations for stock incentive plans. Warrants In May 2026, the Company issued the Warrant to Amazon.com NV Investment Holdings LLC (“Warrantholder”) to acquire up to 3,238,066 Warrant Shares. The Warrant provides for the immediate vesting of 215,871 Warrant Shares at an exercise price of $0.01 per share. The remaining 3,022,195 Warrant Shares vest in tranches, at an exercise price of $191.10 per Warrant Share, upon the attainment of specified payment thresholds based on aggregate qualifying payments to the Company in consideration for qualifying sales transactions. The Warrant expires on May 30, 2033. The Warrant does not entitle the Warrantholder to any voting rights or any other common stockholder rights prior to exercise, except for the entitlement to participate in certain distributions to stockholders as if the Warrant had been exercised, subject to specified limitations. The exercise price and the number of Warrant Shares are subject to customary antidilution adjustments. The Black-Scholes option pricing model was used to determine the fair value of the Warrant. The expected stock price volatility assumption was determined using historical volatility of the Company’s common stock. The grant-date fair value of each Warrant Share subject to immediate vesting was $246.19, which approximated the stock price on the grant date. For the Warrant Shares subject to vesting based on qualifying payments, the following assumptions were used in the Black-Scholes option pricing model to determine the fair value as of the grant date:
The calculated grant-date fair value of each Warrant Share subject to vesting based on qualifying payments was $116.15. The following table summarizes the Warrant activity for the six months ended May 31, 2026:
(1) There were no exercises for the six months ended May 31, 2026. The Company did not record any reductions of revenue related to the Warrant during the three or six months ended May 31, 2026.
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