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| Equity | Equity Preferred Stock In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 100,000,000 shares of undesignated preferred stock with a par value of $0.001 per share with rights and preferences, including voting rights, designated from time to time by the board of directors. As of June 30, 2026 and March 31, 2026, there were no shares of preferred stock issued and outstanding. Common Stock and Dual-Class Structure The Company has two classes of common stock authorized: Class A common stock and Class B common stock, and are collectively referred to as common stock throughout the notes to the condensed consolidated financial statements, unless otherwise noted. The Company’s amended and restated certificate of incorporation authorized the issuance of 1,000,000,000 shares of Class A common stock with par value of $0.001 and one vote per share, and 500,000,000 shares of Class B common stock with par value of $0.001 and ten votes per share. The holders of common stock are entitled to receive dividends, as may be declared by the board of directors. Each outstanding share of Class B common stock may be converted at any time at the option of the holder into one share of Class A common stock. As of June 30, 2026, there were 128,952,833 shares of Class A common stock, and 50,896,611 shares of Class B common stock outstanding. Stock Repurchase Program On May 1, 2024, the Company’s board of directors authorized a program to repurchase up to $500 million of the Company’s Class A common stock with no expiration date. The Company repurchased and retired 11,591,950 shares of Class A common stock under this program, which was completed in the fourth quarter of fiscal year 2026. On February 3, 2026, the Company’s board of directors authorized another program to repurchase up to $500 million of the Company’s Class A common stock with no expiration date. As of June 30, 2026, the Company repurchased and retired 4,759,886 shares of Class A common stock under this program for an aggregate purchase price of $99.1 million and $400.9 million remained available and authorized for repurchase. All repurchases are subject to general business and market conditions and other investment opportunities and may be executed through open market purchases or privately negotiated transactions, including through Rule 10b5-1 plans. Immediately upon the repurchase of any shares of Class A common stock, such shares shall be retired by the Company and shall automatically return to the status of authorized but unissued shares of Class A common stock. Effective January 1, 2023, the Company’s share repurchases in excess of allowable share issuances are subject to a 1% excise tax as a result of the Inflation Reduction Act of 2022. The Company’s accrued excise taxes were $3.0 million and $2.3 million as of June 30, 2026 and March 31, 2026, respectively. Common Stock Warrants In October 2021, the Company issued a warrant to U.S. News (the “U.S. News Warrant”) to purchase 516,000 shares of Class A common stock with an exercise price of $12.56 per share in connection with the execution of a commercial agreement with U.S. News. The U.S. News Warrant expires 10 years from the date of grant. The first tranche of the U.S. News Warrant vested on May 1, 2022 and the remainder will vest on a monthly basis over approximately 6 years. The grant-date fair value of the U.S. News Warrant was $34.7 million, which was determined using the Black-Scholes option-pricing model on the date of grant. The fair value of the warrant is recognized as expense in cost of revenue in the condensed consolidated statements of operations on a straight-line basis over its vesting term of 6.48 years. During the three months ended June 30, 2026 and 2025, $1.3 million was recognized as stock-based compensation expense relating to the U.S. News Warrant. As of March 31, 2026, 193,500 shares under the warrant were outstanding. During the three months ended June 30, 2026, 21,500 shares with an intrinsic value of $0.2 million were exercised under the warrant and 172,000 shares under the warrant were outstanding as of June 30, 2026. As of June 30, 2026, unamortized stock-based compensation expense related to the unvested warrants was $9.4 million, which is expected to be recognized over the remaining vesting period of 1.75 years. Equity Incentive Plans The Company maintains three equity incentive plans: the 2010 Equity Incentive Plan (the “2010 Plan”), the 2021 Stock Option and Incentive Plan (the “2021 Plan”), and the 2021 Employee Stock Purchase Plan (the “ESPP”). In June 2021, the Company’s board of directors approved the adoption of the 2021 Plan, which became effective upon the Company’s initial public offering and supersedes the 2010 Plan. The 2010 Plan continues to govern the terms of outstanding awards that were granted prior to the termination of the 2010 Plan. The 2021 Plan provides for the granting of incentive stock options, nonstatutory stock options, restricted stock units, and restricted stock awards to employees, non-employee directors, and consultants of the Company. The Company granted stock options under the terms of the Plans and outside of the Plans, as approved by the board of directors. During fiscal 2018, the Company granted 4,682,582 options outside of the Plans, of which 2,114,582 options were exercised and 2,568,000 were outstanding as of June 30, 2026. The Company has shares of common stock reserved for issuance as follows (in thousands):
Stock Options Stock options granted generally vest over four years with service-based, performance-based, and/or market-based conditions and expire ten years from the date of grant. Stock option activities within the Plans as well as outside of the Plans were as follows:
The aggregate intrinsic value of options exercised during the three months ended June 30, 2026 and 2025 was $6.6 million and $23.7 million, respectively. As of June 30, 2026, unamortized stock-based compensation expense related to unvested stock options was $12.9 million, which is expected to be recognized over a weighted-average period of 1.03 years. The Company has not granted any stock options since the first quarter of fiscal 2022. Restricted Stock Units (“RSUs”) The RSUs granted by the Company generally vest over to four years based on continued service. The following table summarizes RSU activity (in thousands, except per share information):
The total fair value of RSUs vested during the three months ended June 30, 2026 and 2025 was $13.1 million and $26.5 million, respectively. As of June 30, 2026, total unrecognized stock-based compensation expense related to unvested RSUs was $146.4 million, which is expected to be recognized over a weighted-average period of 2.18 years. Performance-Based Restricted Stock Units (“PSUs”) The Company grants PSUs that are subject to both service-based and performance-based vesting conditions that are satisfied upon meeting certain financial performance targets. Certain awards are granted with performance targets to be established in future years. For PSUs, the grant date cannot occur until performance targets have been clearly established and communicated. In July 2025, the Compensation Committee of the Board of Directors approved an equity award pool of up to $30 million, subject to both performance-based and service-based vesting conditions, in which participants could have earned up to 300% of the original pool. As the monetary value of the obligation was initially based on a fixed monetary amount and was to be settled in a variable number of shares, the obligation was initially recorded as a liability in other liabilities, non-current, on the consolidated balance sheets. During the fourth quarter of fiscal 2026, the Compensation Committee approved 1,963,338 PSUs based on actual achievement. The previously recorded liability was then reclassified to additional paid-in capital in equity. During the three months ended June 30, 2026, $6.5 million was recognized as stock-based compensation expense, net of amount capitalized as internal use software, for this equity award pool. The individual awards will vest on a quarterly basis through the fourth quarter of fiscal 2027. The following table summarizes PSU activity (in thousands, except per share information):
As of June 30, 2026, 2.3 million PSUs were outstanding, of which, 1.7 million PSUs are considered granted from an accounting perspective, as the performance targets have been established. As of June 30, 2026, the unamortized stock-based compensation expense related to outstanding PSUs for which performance conditions have been established was $34.9 million, which is calculated based on the probable outcome of the performance conditions as of June 30, 2026. The amount of expense to be recognized will be based on the extent the performance metrics are achieved and is expected to be recognized over a weighted-average period of 0.85 years. Stock-Based Compensation Expense Total stock-based compensation expense recognized in the condensed consolidated statements of operations was as follows (in thousands):
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