The Company recorded stock-based compensation expense for the periods presented as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cost of revenue	$	1,836	$	1,989	$	3,754	$	4,470
Research and development	10,533		12,613		21,228		26,719
Selling, general and administrative	13,247		12,643		23,276		27,132
Total stock-based compensation expense	$	25,616	$	27,245	$	48,258	$	58,321


	Restricted Stock Units	Weighted-Average Grant Date Fair Value (per share)
Outstanding as of December 31, 2025	7,826,741	$	19.68
Granted	3,512,697	23.49
Vested	(1,863,853)	23.08
Cancelled	(717,295)	19.31
Outstanding as of June 30, 2026	8,758,290	$	20.52


	Stock Options	Weighted-Average Exercise Price
Outstanding as of December 31, 2025	3,561,297	$	48.55

Exercised	(117,009)	3.86
Cancelled and forfeited	(53,462)	45.79
Outstanding as of June 30, 2026	3,390,826	$	50.13

In February 2026, the Company granted 396,060 performance stock units (“2026 PSUs”) under the 2019 Omnibus Incentive Plan (“2019 Plan”) to certain members of management which are subject to the achievement of certain performance conditions established by the Company’s Compensation Committee of the Board of Directors as described below:

i.50% of target 2026 PSUs earned will be based on the Company’s compound annual growth rate (“CAGR”) of the Company’s revenue over a two-year performance period from January 1, 2026 to December 31, 2027. Holders may earn from 0% to 200% of the target amount of shares and earned 2026 PSUs will then be subject to service-based vesting; and

ii.50% of target 2026 PSUs earned will be based on the relative Total Shareholder Return (“TSR”) of the Company’s Class A common stock as compared to the TSR of the members of the Russell 3000 Medical Equipment and Services Sector Index over a three-year performance period from January 1, 2026 to December 31, 2028. Depending on the results relative to the TSR market condition, the holders may earn from 0% to 200% of the target amount of shares which will vest at the end of the performance period.

The 2026 PSUs will be forfeited if the performance conditions are not achieved at the end of the relative performance periods as described above. The vesting of the 2026 PSUs can also be triggered upon certain change in control events or in the event of death or disability.

The weighted-average grant date fair values of the 2026 PSUs for the CAGR and TSR components were $22.13 and $35.88 per share, respectively. Stock-based compensation expense recognized for the TSR component of the 2026 PSUs was $0.6 million and $0.8 million for the three and six months ended June 30, 2026. The vesting of the CAGR component of the 2026 PSUs was deemed not probable of vesting as of June 30, 2026, which resulted in no stock-based compensation expense recognized for the three and six months ended June 30, 2026.

The Company estimated the weighted-average grant date fair values of shares granted under the TSR component of the 2026 PSUs using a Monte Carlo simulation model with the following assumptions:

In March 2025, the Company granted 561,603 PSUs (“2025 PSUs”) under the 2019 Plan to certain members of management, which are subject to the achievement of certain market-condition and performance-condition goals established by the Company’s Compensation Committee of the Board of Directors.

As of June 30, 2026, the measurement periods for the 2026 and 2025 PSUs were not completed and the market and performance criteria for the stock awards were not met and therefore no shares vested or became exercisable.

As of June 30, 2026, a total of 6,186,502 shares of Class A common stock were reserved for issuance under the 2019 Employee Stock Purchase Plan (“ESPP”). The price at which Class A common stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first day of the offering period or purchase date, whichever is lower.

During the three months ended June 30, 2026 and 2025, 213,541 and 446,766 shares of Class A common stock, respectively, were issued under the ESPP. As of June 30, 2026, there were 4,287,045 shares available for issuance under the ESPP.