v3.26.1
Note 5 - Shareholders' Equity and Stock-based Compensation
 6 Months Ended
Jun. 30, 2026
Notes to Financial Statements  
Equity [Text Block]

5. SHAREHOLDERS' EQUITY AND STOCK-BASED COMPENSATION

 

Dividends on Common Stock

 

During the six months ended June 30, 2026, the Company's Board of Directors (“Board”) declared the following quarterly dividends under the Company's dividend policy (in thousands, except per share data):

 

Dividend Payment Date Dividend Declaration Date Dividend Per Share Record Date Cash Outlay 
March 20, 2026 February 23, 2026 $0.035 March 9, 2026 $1,028 
May 29, 2026 May 4, 2026 $0.035 May 18, 2026 $1,027 

 

Additionally, on August 3, 2026, the Board declared a quarterly cash dividend of $0.035 per share, payable on August 28, 2026 to holders of record on August 17, 2026. 

 

Stock Option Activity

 

A summary of stock option activity for the three months ended June 30, 2026 is as follows (in thousands, except weighted-average exercise price).

 

      

Weighted-

     
  

Common

  

Average

  

Aggregate

 
  

Shares

  

Exercise Price

  

Intrinsic Value

 

Outstanding at beginning of period

  233  $22.54     

Granted

  38   23.96     

Exercised

  —   —     

Expired

  —   —     

Forfeited

  (3)  23.93     

Outstanding at end of period

  268  $22.73  $1,210 

Exercisable at end of period

  90  $20.34  $622 

 

The weighted average remaining contractual term of options outstanding at  June 30, 2026 was 7.8 years.

 

Restricted Share Unit Activity

 

A summary of Restricted Share Unit ("RSU") activity for the three months ended  June 30, 2026 is as follows (in thousands, except weighted-average grant date fair value):

 

      

Weighted-

     
  

Number of

  

Average Grant Date

  

Aggregate

 
  

RSU’s

  

Fair Value

  

Intrinsic Value

 

Outstanding at beginning of period

  480  $26.34     

Granted

  31   24.67     

Vested

  (25)  26.20     

Forfeited

  (10)  26.82     

Outstanding at end of period

  476  $26.23  $12,980 

 

The aggregate fair value of RSUs that vested during both the three months ended June 30, 2026 and 2025, as of the respective vesting dates, was $0.6 million.

 

Stock-Based Compensation

 

Total stock-based compensation expense recognized in the Condensed Consolidated Statements of Income is as follows (in thousands):

 

  

Three Months Ended June 30,

  

Six Months Ended June 30,

 
  

2026

  

2025

  

2026

  

2025

 

Cost of revenues (excluding depreciation and amortization)

 $51  $50  $107  $103 

Product development

  239   198   512   428 

Sales and marketing

  141   109   309   253 

General and administrative

  675   479   1,487   1,156 

Total stock-based compensation expense

 $1,106  $836  $2,415  $1,940 

 

As of  June 30, 2026, total unrecognized compensation expense related to non-vested stock options, RSUs, and performance-based RSUs where the performance criteria has been established was $8.6 million, net of estimated forfeitures, with a weighted average expense recognition period remaining of 2.7 years.

 

Share Repurchase Plan

 

On November 11, 2025, the Board approved a share repurchase program under which the Company was authorized to repurchase up to $10.0 million of its outstanding shares of common stock. Pursuant to this authorization, the Company was authorized to make repurchases in the open market, including under Rule 10b5-1 plans, through privately negotiated transactions, or otherwise. The terms of this program provided that it would terminate on the earlier of February 26, 2026 or when the maximum dollar amount had been expended. During the six months ended June 30, 2026, the Company repurchased and subsequently retired 222,978 shares of common stock at an aggregate fair value of $5.0 million under this authorization, reflecting an average price per share of $22.42 (excluding the cost of broker commissions and the 1% share repurchase excise tax imposed by the Inflation Reduction Act of 2022). This share repurchase program terminated in January 2026 when the maximum dollar amount under this program was expended.

 

 

On March 13, 2026, the Company announced the adoption of a new share repurchase program approved by the Board under which the Company is authorized to repurchase up to $10.0 million of its outstanding shares of common stock. Pursuant to this authorization, the Company is authorized to make repurchases in the open market, including under Rule 10b5-1 plans, through privately negotiated transactions, or otherwise. This share repurchase program terminates on the earlier of September 12, 2026 or when the maximum dollar amount under the plan has been expended. During the three months ended  June 30, 2026, the Company repurchased and subsequently retired 90,131 shares of common stock at an aggregate fair value of $1.8 million under this authorization, reflecting an average price per share of $19.95 (excluding the cost of broker commissions and the 1% share repurchase excise tax imposed by the Inflation Reduction Act of 2022). During the six months ended June 30, 2026, the Company repurchased 209,498 shares of common stock at an aggregate fair value of $4.3 million under this authorization, reflecting an average price per share of $20.51 (excluding the cost of broker commissions and the 1% share repurchase excise tax imposed by the Inflation Reduction Act of 2022).

 

In the aggregate, during the six months ended June 30, 2026, the Company repurchased 432,476 shares of common stock at an aggregate fair value of $9.3 million under both of the share repurchase programs described above, reflecting an average price per share of $21.50 (excluding the cost of broker commissions and the 1% share repurchase excise tax imposed by the Inflation Reduction Act of 2022).