SHARE-BASED COMPENSATION

6 Months Ended

Jun. 30, 2026

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plans

The Company has grants outstanding under its amended and restated 2016 Equity Incentive Plan (the “2016 Plan”) and its 2020 Equity Incentive Plan (the “2020 Plan” and collectively with the 2016 Plan, the “Equity Incentive Plans”). Additionally, beginning in July 2021, the Company granted stock options and restricted stock units (“RSUs”) outside of its Equity Incentive Plans to certain employees to induce them to accept employment with the Company (the “Inducement Awards”). The terms and conditions of the Inducement Awards are substantially similar to those awards granted under the Company’s Equity Incentive Plans. In June 2022, the Company’s stockholders approved the amendment and restatement of the 2016 Plan to, among other things, transfer the then remaining number of shares available for issuance under the 2020 Plan into the 2016 Plan so that the Company operates from a single equity plan going forward. The 2016 Plan will terminate in April 2035.

As of June 30, 2026, the Company had the following balances by plan:


	Restricted Stock Units Outstanding	Stock Options Outstanding	Shares Available for Issuance
Inducement Awards	—	7,318,942	—
2020 Plan	—	40,459	—
2016 Plan	1,832,304	9,250,029	6,315,210
Total	1,832,304	16,609,430	6,315,210

Restricted Stock Units

RSUs granted under the Equity Incentive Plans and the Inducement Awards generally vest annually over a two or four-year period and are settled in shares of the Company’s common stock.

A summary of RSU activity is as follows:


	RSUs	Weighted-Average Grant Date Fair Value Per Share
Outstanding at December 31, 2025	1,064,375	$15.51
Granted	1,008,950	$27.46
Vested	(207,928)	$15.06
Forfeited	(33,093)	$20.85
Outstanding at June 30, 2026	1,832,304	$22.04

Stock Options

Options granted under the Equity Incentive Plans and the Inducement Awards have an exercise price equal to the market value of the common stock at the date of grant and expire 10 years from the date of grant. Options generally vest 25% on the first anniversary of the vesting commencement date and 75% ratably in equal monthly installments over the remaining 36 months or in equal monthly or quarterly amounts over periods of up to 48 months.

A summary of common stock option activity is as follows:


	Number of Options	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2025	14,468,627	$16.82	8.40	$	209,090
Granted	3,285,200	$29.15
Exercised	(466,294)	$14.88
Forfeited	(443,024)	$17.69
Expired	(235,079)	$31.81
Outstanding as of June 30, 2026	16,609,430	$19.08	8.30	$	43,021

Exercisable as of June 30, 2026	6,371,180	$17.24	7.50	$	20,143

The aggregate intrinsic value of options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s common stock for those stock options that had exercise prices lower than the fair value of the common stock as of the end of the period.

The aggregate intrinsic value of stock options exercised during the six months ended June 30, 2026 and 2025 was $6.8 million and $1.2 million, respectively. The total fair value of options vested during the six months ended June 30, 2026 and 2025 was $24.3 million and $22.0 million, respectively. The tax benefit from the exercise of options eligible for a tax deduction realized during the six months ended June 30, 2026 and 2025 was $2.4 million and $0.2 million, respectively.

Fair Value Assumptions

The Company uses the Black-Scholes option pricing model to estimate the fair value of stock options granted under its equity compensation plans. The Black-Scholes model requires inputs for risk-free interest rate, dividend yield, volatility, and expected terms of the options. Because the Company has a limited history of stock purchase and sale activity, expected volatility is based on a blend of historical data from public companies that are similar to the Company in size and nature of operations, as well as the Company’s own volatility. The Company will continue to use similar entity volatility information until its historical volatility is relevant to measure expected volatility for option grants. The Company accounts for forfeitures as they occur. The risk-free rate for periods within the contractual life of each option is based on the U.S. Treasury yield curve in effect at the time of the grant for a period commensurate with the expected term of the grant. The expected term (without regard to forfeitures) for options granted represents the period of time that options granted are expected to be outstanding and is derived from the contractual terms of the options granted, and actual and expected option-exercise behaviors. The fair value of the underlying common stock is based on the closing price of the common stock on The Nasdaq Capital Market at the date of grant.

The weighted-average grant-date fair value of options granted during the six months ended June 30, 2026 and 2025 was $17.29 and $10.34, respectively. The fair value was determined by the Black-Scholes option pricing model using the following weighted-average assumptions:


	Six Months Ended June 30,
	2026	2025
Expected term (in years)	4.96	4.96
Expected volatility	68.4%	84.9%
Risk-free interest rate	3.7%	4.0%
Expected dividend yield	—%	—%
Weighted average exercise price	$29.15	$15.00

Employee Stock Purchase Plan

In June 2025, the Company’s stockholders approved the 2025 Employee Stock Purchase Plan (“2025 ESPP”). The 2025 ESPP allows qualified employees to purchase shares of common stock at a price equal to 85% of the lower of: (i) the closing price on the first day of the offering period or (ii) the closing price on the purchase date. As of June 30, 2026, the Company had 1,907,158 shares available for issuance. There were 92,842 shares issued as of June 30, 2026. During the three and six months ended June 30, 2026, the Company recognized $0.2 million and $0.3 million, respectively, in related stock-based compensation expense.

Share-Based Compensation Expense

Share-based compensation related to all equity awards issued pursuant to the Equity Incentive Plans, the Inducement Awards, and for estimated shares to be issued under the 2025 ESPP for the purchase periods active during each respective period is included in the unaudited condensed consolidated statements of operations and comprehensive loss as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
	(in thousands)				(in thousands)
Research and development	$	7,336	$	5,173	$	13,170	$	10,921
Selling, general and administrative	9,648		5,671		17,204		10,143
Total share-based compensation expense	$	16,984	$	10,844	$	30,374	$	21,064

As of June 30, 2026, the Company had $127.2 million of total unrecognized share-based compensation costs related to stock options, which the Company expects to recognize over a weighted-average remaining period of 2.86 years. As of June 30, 2026, the Company had $34.9 million of total unrecognized share-based compensation costs related to unvested RSUs, which the Company expects to recognize over a weighted-average remaining period of 3.31 years.