H2O America’s long-term incentive plans provide employees, non-employee board members or the board of directors of any parent or subsidiary, consultants, and other independent advisors who provide services to the company or subsidiary the opportunity to acquire an equity interest in H2O America. In addition, shares are issued to employees under H2O America’s Employee Stock Purchase Plan (“ESPP”).

As of June 30, 2026, 292,308 shares are issuable upon the vesting of outstanding restricted stock units and deferred restricted stock units and an additional 998,880 shares are available for award issuances under the long-term incentive plans.


	Three months ended June 30,			Six months ended June 30,
	2026		2025	2026		2025
Compensation costs charged to income:
ESPP	$	95	100	$	180	189
Restricted stock and deferred restricted stock	1,620		1,364	2,747		2,485
Total compensation costs charged to income	$	1,715	1,464	$	2,927	2,674
ESPP proceeds	$	—	—	$	1,023	1,116

For the three months ended June 30, 2026, H2O America granted 19,879 restricted stock awards with a weighted average grant date fair value per unit of $54.26, which consisted of 18,753 three-year service-based restricted stock awards and 1,126 target units of three-year performance-based restricted stock awards. For the six months ended June 30, 2026, H2O America granted 133,211 restricted stock awards with a weighted average grant date fair value per unit of $49.37, which consisted of 61,903 three-year service-based restricted stock awards and 71,308 target units of three-year performance-based restricted stock awards. Based upon actual attainment relative to the target performance metric, the number of shares issuable can range between 0% to 150% of the target number of shares.

For the three months ended June 30, 2025, H2O America granted 19,909 of one-year and three-year service-based restricted stock awards with a weighted average grant date fair value per unit of $48.57 and 1,562 target units of performance-based and market-based restricted stock awards with a weighted average grant date fair value per unit of $53.19. For the six months ended June 30, 2025, H2O America granted 66,314 one-year and three-year service-based restricted stock awards with a weighted average grant date fair value per unit of $45.49 and 58,208 target units of performance-based and market-based restricted stock awards with a weighted average grant date fair value per unit of $51.91. Based upon actual attainment relative to the target performance metric, the number of shares issuable can range between 0% to 150% of the target number of shares for performance-based restricted stock awards and 0% to 200% of the target number for market-based restricted stock awards.

As of June 30, 2026, the total number of outstanding restricted stock awards and deferred restricted stock awards was 313,106 and the total number of shares vested but not issued was 6,588. As of June 30, 2026, unrecognized compensation costs related to restricted and deferred restricted stock plans was $10.5 million. This cost is expected to be recognized over a weighted average period of 1.98 years.