In August 2021, the Board of Directors approved the 2021 Incentive Award Plan (the “2021 Plan”), which became effective on September 28, 2021. The Company no longer grants equity awards under its 2010 Equity Incentive Plan, 2011 Stock Plan, 2012 Milestone Stock Plan, or 2019 Founder Stock Plan (collectively, the “Prior Plans”, and together with the 2021 Plan, the “Plans”), and shares available for issuance under the Prior Plans were made available for issuance under the 2021 Plan. The shares authorized under the 2021 Plan will increase annually, beginning on January 1, 2022 and continuing through 2031, by the lesser of (i) 5% of the outstanding common stock (on an as converted basis) as of the last day of the immediately preceding fiscal year, or (ii) a smaller amount as agreed by the Board of Directors. Awards granted under the 2021 Plan generally vest over four years. In addition, the shares authorized under the 2021 Plan will increase, among other things, to the extent that an award (including an award under the Prior Plans) terminates, expires, or lapses for any reason or an award is settled in cash without the delivery of shares.

In August 2021, the Board of Directors adopted and the stockholders of the Company approved the 2021 Employee Stock Purchase Plan (the “ESPP”). The shares authorized under the ESPP will increase annually on the first day of each fiscal year beginning in 2022 and ending in 2031, by the lesser of (i) 1% of the shares of the Company’s outstanding common stock (on an as converted basis) on the last day of the immediately preceding fiscal year, or (ii) a smaller amount as agreed by the Board of Directors; provided, however, no more than 16,615 shares of common stock may be issued under the ESPP.

Stock-based compensation expense consists of the following:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cost of goods sold	$	382	$	286	$	670	$	531
Selling, general, and administrative expenses	9,522		8,610		20,625		20,698
Total stock-based compensation expense	$	9,904	$	8,896	$	21,295	$	21,229

Stock-based compensation expense for the three and six months ended June 30, 2026 primarily consists of $7.4 million and $16.4 million from RSUs and $2.1 million and $3.3 million from PSUs, respectively. Stock-based compensation expense for the three and six months ended June 30, 2025 primarily consists of $7.6 million and $17.7 million from RSUs and $0.9 million and $2.3 million from PSUs, respectively.

A summary of RSU activity for the six months ended June 30, 2026 is as follows:


	Number of Restricted Stock Units	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2025	2,072	$	19.94
Granted	1,430	26.43
Forfeited	(97)	20.23
Released	(886)	23.31
Vested and not yet released(1)	(51)	31.30
Unvested as of June 30, 2026	2,468	$	22.25

The total value of unrecognized stock-based compensation expense related to outstanding RSUs granted under the Plans was $53.3 million as of June 30, 2026 which is expected to be recognized over a weighted-average period of 1.4 years. Stock-based compensation for RSUs is recognized on a straight-line basis over the vesting period.

A summary of PSU activity for the six months ended June 30, 2026 is as follows:


	Number of Performance Stock Units	Weighted Average Grant Date Fair Value
Unvested as of December 31, 2025	4,633	$	29.86
Granted	310	44.73
Unvested as of June 30, 2026	4,943	$	30.80

In March 2025, the Company granted 236 PSUs for Class A common stock, and in February and March 2026, the Company granted 310 PSUs for Class A common stock under the 2021 Plan. Vesting of the PSUs will occur after the end of the applicable performance period, which begins on January 1 of the award year and ends on the earlier of a change of control or December 31 of the third year of the award, in each case based on the Company’s TSR relative to the TSRs of the companies in the Russell 2000 Growth Index. The final settlement of the PSUs is subject to continued employment with the Company through the end of the performance period. The number of shares to be issued on vesting is based on the linear interpolation of the achievement factors set forth in the table below.

The Company used a Monte Carlo simulation to calculate the grant date fair value of the PSUs granted in 2025 of $9.6 million and of the PSUs granted in 2026 of $13.9 million. The PSUs contain a single vesting tranche and expense will be recognized on a straight-line basis over the applicable performance period.

In June 2021, the Company granted 4,398 PSUs to the Co-CEOs, in the aggregate, under the 2019 Founder Stock Plan (the “2021 Founders Grant”). The PSUs had a grant-date fair value of $128.8 million, as determined by a Monte Carlo simulation, and vest in eight equal tranches upon the satisfaction of two performance conditions, (i) a qualified public offering, which was satisfied upon the Company’s direct listing on September 29, 2021, and (ii) the price of the Company’s Class A common stock reaches stock price hurdles, ranging from $47.75 to $103.46, over a period of ten years, as defined by the terms of the award. If the PSUs vest, the Company will deliver one share of Class B common stock for each PSU on the settlement date, and unvested PSUs will expire in June 2031. Vesting of the PSUs is subject to the Co-CEOs’ continued employment with the Company through the applicable vesting dates. Shares underlying vested 2021 Founders Grant PSUs will be issued to the Co-CEOs on a specified quarterly date following the second anniversary of the vesting date, except for an amount necessary to cover any taxes due in connection with the vesting, which will be withheld or sold to cover, or issued to offset, such taxes.

A summary of stock option activity for the six months ended June 30, 2026 is as follows:


	Number of Stock Options	Weighted Average Exercise Price		Weighted average contractual term (years)	Aggregate intrinsic value
Balance at December 31, 2025	1,637	$	5.62	1.6	$	26,477
Exercised	(202)	3.83			4,464
Forfeited	—	—
Balance at June 30, 2026	1,436	$	5.87	1.2	$	35,128

Exercisable and vested as of June 30, 2026	1,436	$	5.87	1.2	$	35,128