v3.26.1
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock-Based Compensation Expense
The following table presents stock-based compensation expense recorded in the three and six months ended June 30, 2026 and 2025.
Three months ended June 30,
20262025
(in thousands)
Cost of revenues$7,303 $6,196 
Research and development37,564 30,772 
Selling, general and administrative58,230 56,390 
Total$103,097 $93,358 
Six months ended June 30,
20262025
(in thousands)
Cost of revenues$13,928 $11,466 
Research and development70,971 57,283 
Selling, general and administrative113,305 102,436 
Total$198,204 $171,185 
The stock-based compensation expense presented above includes $1.6 million and $3.0 million of liability-classified awards (including $0.5 million and $1.6 million related to Foresight contingent consideration) for the three and six months ended June 30, 2026, respectively. There was no such expense for the three and six months ended June 30, 2025.

Stock Options

The following table summarizes option activity for the six months ended June 30, 2026:
Number of
Shares
Outstanding
Weighted-
Average
Exercise
Price
(in thousands, except for per share data)
December 31, 20253,591 $27.03 
Options exercised(454)$11.68 
Options forfeited/cancelled(5)$29.12 
June 30, 20263,132 $29.28 
Restricted Stock Units and Performance-Based Awards
The following table summarizes unvested RSU and PSU activity during the six months ended June 30, 2026:
Shares
Weighted-
Average
Grant Date
Fair Value
(in thousands, except for per share data)
Balance at December 31, 20258,323 $100.44 
Awards granted2,625 $216.23 
Awards vested(3,387)$82.35 
Awards forfeited/cancelled(240)$118.34 
Balance at June 30, 20267,321 $134.23 
The above table of unvested RSU and PSU activity reflects unvested PSUs at 100% of their target vesting amount; however, vesting can vary from 0% to 200% of target, depending on the level of achievement of performance criteria.
The Company grants certain senior-level executives performance stock units which vest based on performance and time-based service conditions, which are referred to herein as performance-based awards. During the six months ended
June 30, 2026 and 2025, the Company granted 0.2 million and 0.4 million performance-based awards with an aggregate grant date fair value at 100% of their target vesting of $42.4 million and $64.9 million, respectively. Stock-based compensation for these performance-based awards milestones are assessed to be 200% of the grant value for 2025 and prior unvested awards and 100% of grant value for 2026 awards.
The Company has recognized $24.5 million and $46.4 million for performance-based awards for the three and six months ended June 30, 2026, respectively. The Company has recognized $29.8 million and $48.5 million for performance-based awards for the three and six months ended June 30, 2025, respectively.