v3.26.1
10-K Share-based compensation
3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Share-based compensation Share-based compensation
Equity Incentive Plans
The Company maintains a LTIP, which provides for the grant of incentive stock options, non-statutory stock options, restricted stock units, performance stock units and other share-based awards to eligible participants. The number of SVS reserved for issuance from time to time under the LTIP is calculated as 10% of the aggregate number of SVS and MVS outstanding on an “as-converted” basis.
On June 5, 2026, the Company effected a 1-for-3 reverse stock split of its SVS and MVS. All share amounts, per share amounts, voting rights and equity award information included herein has been retrospectively adjusted to reflect the reverse stock split for all periods presented. See Note 2 — Basis of presentation and consolidation for further detail.
Virtual Employee Share Options
In the second quarter of 2025, the Company granted VSOs in connection with the Company’s prior acquisition of Four20 in September 2022. The VSOs were granted to certain employees of Four20 and vest over a 36-month requisite service period ending December 31, 2025, with payment contingent on a qualifying “Exit Event”, as defined in the underlying plan agreement. Settlement of the Company’s outstanding VSO obligation occurred in the first half of 2026.
Share-based compensation consisted of the following for the years ended December 31, 2025, 2024 and 2023:
Years Ended December 31,
2025
2024
2023
Equity-classified awards:
Stock options
$
8,268 
$
9,374 
$
7,591 
Performance stock units
10,660 
1,705 
501 
Restricted stock units
11,779 
14,617 
11,918 
Share-based compensation expense: equity-classified awards
30,707 
25,696 
20,010 
Liability-classified awards:
Virtual share option awards(1)
5,029 
— 
— 
Share-based compensation expense: liability-settled awards
5,029 
— 
— 
Total share-based compensation expense
$
35,736 
$
25,696 
$
20,010 
(1) Includes the cumulative share-based compensation expense recognized for VSOs granted during the second quarter of 2025, for which the requisite service periods retroactively commenced in January 2023.
Stock options
As of December 31, 2025, 2024 and 2023, total unamortized compensation cost related to unvested stock options was $12.2 million, $13.7 million, $18.3 million, respectively, which the Company expects to recognize over a weighted-average period of 1.95, 2.00 and 2.31 years, respectively.
The total intrinsic value of stock options exercised and the total fair value of stock options vested during the years ended December 31, 2025, 2024 and 2023 were as follows:
Years Ended December 31,
2025
2024
2023
Total intrinsic value of options exercised
4,807
208
798
Total fair value of options vested
5,256 
8,353 
10,221 
Significant assumptions used to estimate the fair value of the Company’s stock options granted during the years ended 2025, 2024 and 2023 were as follows:
Years Ended December 31,
2025
2024
2023
Expected volatility
72% — 79%
71% — 74%
68% — 72%
Expected life in years
6.16 - 6.24
6.01 - 6.02
5.38 — 6.73
Expected dividends(1)
— 
%
— 
%
— 
%
Risk-free interest rate (based on government bonds)
3.81% — 4.21%
3.63% — 4.52%
3.13% — 4.60%
(1) The Company has never paid cash dividends nor expects to pay cash dividends in the foreseeable future.
The Company’s stock options activity and related information during the years ended December 31, 2025, 2024 and 2023 were as follows:
Number of options
Weighted average exercise price
Weighted average remaining contractual life (years)
Aggregate intrinsic value
Outstanding at January 1, 2025
9,887,023
$
14.940 
Forfeited
(2,284,138)
21.933 
Expired
(737,931)
26.877 
Exercised
(621,424)
0.411 
Granted
4,375,072
3.279 
Outstanding at December 31, 2025
10,618,602
$
8.658 
6.65
$
28,364 
Options exercisable at December 31, 2025
3,374,323
$
10.596 
3.03
$
10,928 
Number of options
Weighted average exercise price
Weighted average remaining contractual life (years)
Aggregate intrinsic value
Outstanding at January 1, 2024
9,310,868
$
15.870 
Forfeited
(487,165)
13.542 
Expired
(143,459)
44.220 
Exercised
(25,130)
6.180 
Granted
1,231,909
10.595 
Outstanding at December 31, 2024
9,887,023
$
14.940 
5.50
$
8,846 
Options exercisable at December 31, 2024
5,572,751
$
16.621 
3.40
$
8,778 
Number of options
Weighted average exercise price
Weighted average remaining contractual life (years)
Aggregate intrinsic value
Outstanding at January 1, 2023
8,179,723
$
20.01 
Forfeited
(856,521)
22.20 
Expired
(807,244)
27.72 
Exercised
(70,590)
0.69 
Granted
2,865,500
8.91 
Outstanding at December 31, 2023
9,310,868
$
15.87 
6.29
$
34,646 
Options exercisable at December 31, 2023
4,989,095
$
16.23 
4.22
$
25,679 
Performance stock units
As of December 31, 2025, 2024 and 2023 total unamortized compensation cost related to unvested performance stock units was $10.7 million, $2.3 million and $5.3 million, respectively, which the Company expected to recognize over a weighted-average period of 1.53, 1.41 and 2.20 years, respectively.
The Company’s PSU activity and related information for the years ended December 31, 2025, 2024 and 2023 were as follows:
Number of PSUs
Weighted-Average Grant Date Fair Value
Unvested at January 1, 2025
629,861
$
11.430 
Forfeited
(583,446)
8.430 
Vested
(119,983)
10.350 
Granted
3,337,046
2.820 
Unvested at December 31, 2025
3,263,478
$
3.180 
Inception-to-date PSUs vested at December 31, 2025
252,162
$
9.480 
Number of PSUs
Weighted-Average Grant Date Fair Value
Unvested at January 1, 2024
674,707
$
8.670 
Forfeited
(713,942)
10.110 
Vested
(132,179)
8.670 
Granted
801,275
12.120 
Unvested at December 31, 2024
629,861
$
11.430 
Inception-to-date PSUs vested at December 31, 2024
132,179
$
8.670 
Number of PSUs
Weighted-Average Grant Date Fair Value
Unvested at January 1, 2023
$
— 
Forfeited
(72,084)
8.670 
Vested
— 
Granted
746,791
8.670 
Unvested at December 31, 2023
674,707
$
8.670 
Inception-to-date PSUs vested at December 31, 2023
Modifications
During the year ended December 31, 2025, the Company modified the performance targets for PSUs granted in 2025. The modification resulted in incremental compensation cost of $19.1 million, which will be recognized prospectively over the remaining service period.
Restricted stock units
As of December 31, 2025, 2024 and 2023, total unamortized compensation cost related to unvested restricted stock units was $33.9 million, $15.7 million and $17.9 million, respectively, which the Company expected to recognize over a weighted-average period of 2.39, 1.95 and 1.83 years, respectively.
The Company’s RSU activity and related information for the years ended December 31, 2025, 2024 and 2023 were as follows:
Number of RSUs
Weighted-Average Grant Date Fair Value
Unvested at January 1, 2025
2,111,261
$
10.890 
Forfeited
(798,159)
6.270 
Vested
(872,741)
11.640 
Granted
8,408,305
4.170 
Unvested at December 31, 2025
8,848,666
$
4.830 
Inception-to-date RSUs vested at December 31, 2025
3,893,206
$
17.760 
Number of RSUs
Weighted-Average Grant Date Fair Value
Unvested at January 1, 2024
2,048,653
$
12.360 
Forfeited
(819,826)
12.180 
Vested
(1,076,186)
12.990 
Granted
1,958,620
11.040 
Unvested at December 31, 2024
2,111,261
$
10.890 
Inception-to-date RSUs vested at December 31, 2024
3,020,465
$
19.530 
Number of RSUs
Weighted-Average Grant Date Fair Value
Unvested at January 1, 2023
1,428,146
$
22.320 
Forfeited
(583,199)
16.980 
Vested
(533,768)
23.310 
Granted
1,737,474
9.090 
Unvested at December 31, 2023
2,048,653
$
12.360 
Inception-to-date RSUs vested at December 31, 2023
1,944,279
$
23.140