Equity-Based Compensation |
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| Equity-Based Compensation | Equity-Based Compensation 2021 Long-Term Incentive Plan The Shoals Technologies Group, Inc. 2021 Long-Term Incentive Plan (the “2021 Incentive Plan”) became effective on January 26, 2021. The 2021 Incentive Plan authorized 8,768,124 new shares, subject to adjustment pursuant to the 2021 Incentive Plan. On February 26, 2026, the Company filed a registration statement on Form S-8 to register an additional 7,208,912 shares of our common stock issuable under the 2021 Incentive Plan. Restricted Stock Units During the six months ended June 30, 2026, the Company granted 967,675 restricted stock units (“RSUs") to certain employees, officers and directors of the Company. The RSUs granted during 2026 have grant date fair values ranging from $5.96 to $12.18 per unit and vest ratably over 3 years, except director grants, which vest over 1 year. Activity under the 2021 Incentive Plan for RSUs was as follows:
Performance Stock Units During the six months ended June 30, 2026, the Company granted an aggregate of 432,943 Performance Stock Units ("PSUs") to certain executives. The PSUs granted during 2026 cliff vest after 3 years based upon the level of achievement of certain revenue and adjusted diluted EPS targets during the performance period commencing January 1, 2026 and ending on December 31, 2028, and contain a total shareholder return modifier which could increase or decrease the ultimate number of Class A common stock issued to the executives. The PSUs were valued based on assumed vesting at target and using the market value of the Class A common stock on the grant dates with a value of 10.70. Activity under the 2021 Incentive Plan for PSUs was as follows:
The Company recognized equity-based compensation of $4.4 million and $2.6 million, respectively, for the three months ended June 30, 2026 and 2025 and $7.7 million and $5.3 million, respectively, for the six months ended June 30, 2026 and 2025. As of June 30, 2026, the Company had $23.0 million of unrecognized compensation costs which is expected to be recognized over a weighted average period of 2.1 years.
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