The Company’s equity incentive plan allows the Company to grant restricted stock units (“RSUs”), which includes time-based, performance-based, and market-based restricted stock units, restricted stock, as well as stock options to employees and consultants of the Company and any of the Company’s parent, subsidiaries, or affiliates, and to the members of the Board of Directors.

Time-based restricted stock units (“TRSUs”) generally vest based on continued service over a specified period, which is typically four years. Each TRSU represents the right to receive one share of common stock upon vesting. The fair value of TRSUs is determined based on the closing price of the Company’s common stock on the date of grant. Stock-based compensation expense for these awards is recognized on a straight-line basis over the requisite service period and is offset by actual forfeitures as they occur.

PRSUs are granted primarily to executive officers and, in limited cases, to certain other senior-level employees. Vesting is based on continued service and the attainment of certain financial performance metrics, including revenue and Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization targets, over a one-year performance period, as established and approved by the Board of Directors. The number of shares issued upon vesting may be greater or lesser than the target award amount depending on actual performance, and shares attained above target will be recognized as awards granted in the period earned.

The Company granted 235,600 PRSUs during the six months ended June 30, 2026 with the weighted average grant-date fair value per share of $39.78. The fair value of PRSUs is determined based on the closing price of the Company’s common stock on the date of grant. Stock-based compensation expense is recognized on a graded-vesting basis for multi tranche awards and on a straight-line basis for single-tranche awards, based on the estimated probability of achieving the performance conditions, which is reassessed each period. If achievement of the performance conditions is not considered probable, all previously recognized stock-based compensation expense related to the unvested awards is reversed.

MRSUs are granted to certain executive officers. Vesting is based on continued service and the Company’s total shareholder return during one-year, two-year, and three-year performance periods as measured relative to the group of companies comprising the S&P Software and Services Select Index. The number of shares issued upon vesting may vary from the target award amount depending on actual performance, and shares attained over the target will be recognized as awards granted in the period earned.

The Company granted 106,936 MRSUs during the six months ended June 30, 2026 with the weighted average grant-date fair value per share of $39.31. Stock-based compensation expense is recognized on a graded-vesting basis over the service period and is not adjusted for actual performance outcomes.


	Tranche 1			Tranche 2			Tranche 3
Expected volatility	62.3		%	62.3		%	62.3		%
Risk-free interest rate based on U.S. Treasury yields	3.7		%	3.7		%	3.7		%
Expected term (years)	1			2			3
Weighted average grant-date fair value per share	$	27.84		$	40.72		$	49.07


	Number of Shares	Weighted average grant date fair value
Balance as of December 31, 2025	4,294,367	$	34.05
RSUs granted	2,725,837	46.33
RSUs vested and settled	(1,146,647)	26.71
RSUs cancelled/forfeited	(634,202)	34.97
Balance as of June 30, 2026	5,239,355	$	41.93

As of June 30, 2026, there was total unrecognized stock-based compensation expense for outstanding RSUs of $194.0 million to be recognized over a period of approximately 3.0 years. This amount is comprised of unrecognized compensation expense of $176.1 million related to outstanding TRSUs, $10.7 million related to outstanding PRSUs, and $7.2 million related to outstanding MRSUs.

The number of RSUs vested and settled includes shares of common stock that the Company withheld on behalf of employees to satisfy the minimum statutory tax withholding requirements.


	Number of Shares Underlying Outstanding Options	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value
Balance as of December 31, 2025	4,108,029	$	5.66	2.8	$	240,230

Options exercised	(644,129)	8.14

Balance as of June 30, 2026	3,463,900	5.20		2.3	173,746
Exercisable as of June 30, 2026	3,463,900	$	5.20	2.3	$	173,746


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cost of subscription revenue	$	551	$	716	$	1,015	$	884
Cost of hardware revenue	319		438		619		673
Cost of advertising revenue	147		—		280		—

Total cost of revenue	1,017		1,154		1,914		1,557
Research and development	9,666		7,780		17,489		13,490
Sales and marketing	3,356		2,047		5,401		3,373
General and administrative	8,782		4,247		14,272		6,698
Total stock-based compensation expense, net of amounts capitalized	$	22,821	$	15,228	$	39,076	$	25,118