The Company has various stock compensation plans, which are more fully described in Part II, Item 8 “Financial Statements and Supplementary Data—Note 12 to the Consolidated Financial Statements—Share-Based Compensation” in the Company’s 2025 Annual Report on Form 10-K. Under The Beauty Health Company 2021 Incentive Award Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents, other stock or cash-based awards to eligible service providers.


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Cost of sales	$	128	$	124	$	246	$	274
Selling and marketing	52		1,127		617		1,344
Research and development	67		149		142		292
General and administrative	2,648		3,908		3,969		6,874
Total share-based compensation	$	2,895	$	5,308	$	4,974	$	8,784

The following table summarizes the Company’s RSU and PSU activity:


			Weighted Average Grant Date Fair Value
	RSU Shares	PSU Shares	RSU		PSU
Outstanding - January 1, 2026	12,311,446	2,154,230	$	1.97	$	3.02
Granted	9,137,666	434,068	1.14		1.86
Vested	(3,656,966)	—	2.41		—
Forfeited	(2,930,180)	(651,047)	1.62		2.72

Outstanding - June 30, 2026	14,861,966	1,937,251	$	1.42	$	2.86

As of June 30, 2026, total unrecognized compensation expense related to unvested RSU and PSU totaled $20.1 million and is expected to be recognized over a weighted-average period of 2.1 years.


	Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)
Outstanding - January 1, 2026	2,459,920	$	13.51	5.37
Granted	—	—
Exercised	—	—
Forfeited	—	—
Expired	(20,000)	18.76
Outstanding - June 30, 2026	2,439,920	13.47		4.87
Vested and Exercisable - June 30, 2026	2,439,920	13.47		4.87
Options vested and expected to vest - June 30, 2026	2,439,920	$	13.47	4.87

During the six months ended June 30, 2026, cash performance awards with an original total target value of $2.8 million were granted for which the final payout will range from 0% to 200% of the target value based on the total shareholder return of the Company’s Class A Common stock relative to a defined peer group. The cash performance awards vest over a two to three-year period.

The cash performance awards can be settled in either cash or Class A Common Stock upon vesting at the Company’s discretion. These awards are accounted for as liability awards under Accounting Standards Codification (“ASC”) 718 and are measured at fair value through the end of the performance period using the Monte Carlo simulation model. For the three and six months ended June 30, 2026, the expense associated with the cash performance awards was $0.1 million. The estimated future cash payments of these awards are included within other long-term liabilities in the Condensed Consolidated Balance Sheets.

As of June 30, 2026, total unrecognized compensation expense related to unvested cash performance awards totaled $0.6 million and is expected to be recognized over a weighted-average period of 2.0 years.