We maintain the 2016 Omnibus Incentive Plan (the "2016 Plan"), which authorizes the grant of various equity-based and cash-based awards. During the periods presented, awards granted under the 2016 Plan consisted of RSUs and PSUs. We also maintain the ESPP, under which eligible employees may purchase shares of our common stock through payroll deductions at a discount to market value, subject to statutory and plan limits.

RSUs generally vest over service periods of up to three years. The fair value of RSUs is measured based on the market price of our common stock on the date of grant and compensation expense is recognized on a straight-line basis over the requisite service period.

PSUs generally vest over service periods of up to three years and are subject to the achievement of specified performance or market-based conditions. Performance-based PSUs are earned based on the achievement of predetermined performance objectives, while market-based PSUs are earned based on our total shareholder return relative to a designated market index over the performance period. Depending on actual performance, the number of shares ultimately earned may range from 0% to 300% of target for both performance or market based PSUs.

The fair value of performance-based PSUs is measured based on the market price of our common stock on the date of grant. The fair value of market-based PSUs is measured using a Monte Carlo simulation model, which incorporates assumptions as to the expected life of awards, a risk-free interest rate, stock price volatility, and dividend yield.

Compensation expense for PSUs is recognized using the accelerated method over the requisite service period. For performance-based PSUs, compensation expense reflects management's estimate of the number of awards expected to vest and is adjusted as necessary until achievement of the performance conditions is determined. Compensation expense for market-based PSUs is recognized based on the grant-date fair value of the target award and is not adjusted for estimated or actual achievement of the market conditions.

Under the ESPP, substantially all employees may purchase our common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of six-month offering periods. An employee’s payroll deductions under the ESPP are limited to 10% of the employee’s salary and employees may not purchase more than $25 of stock during any calendar year. The fair value of ESPP awards, including discount and look-back features, is measured using the Black-Scholes option pricing model, which also incorporates assumptions including expected term, risk-free interest rate, stock price volatility, and dividend yield. Compensation expense for the ESPP is recognized on a straight-line basis over the applicable offering period.

The following table presents the stock-based compensation expense recognized in our Consolidated Statements of Operations for the three months ended June 30, 2026 and 2025. Stock-based compensation is attributable to RSUs, PSUs, and the ESPP.


	Three Months Ended June 30,
	2026		2025
Cost of revenues	$	1,403	$	1,249
Sales and marketing	14,168		12,586
Research and development	8,284		7,070
General and administrative	10,870		9,200
Restructuring	565		75
Stock-based compensation expense	$	35,290	$	30,180

As of June 30, 2026, there was $214,928 of unrecognized stock-based compensation expense that is expected to be recognized over a weighted-average period of 2.28 years. We account for forfeitures as they occur. To the extent that awards are forfeited, stock-based compensation will be different from our current estimate.


	Number of Shares	Weighted- Average Grant Date Fair Value
Outstanding as of March 31, 2026	1,742	$	133.22
Granted	679	119.82
Vested	(273)	127.45
Forfeited	(52)	203.74
Outstanding as of June 30, 2026	2,096	$	127.81

The weighted-average fair value of shares granted was $119.82 and $185.21 per unit during the three months ended June 30, 2026 and 2025, respectively. The fair value of awards includes awards with performance and market conditions.