Share-based Payments

3 Months Ended

Jun. 30, 2026

16. Share-based Payments

Stock Options

During the three months ended June 30, 2026 and 2025, no options to purchase shares of the Company’s common stock were granted.

The following is a summary of stock option transactions:


	Number of Shares			Weighted Average Exercise Price
Outstanding at March 31, 2026		965,834		$	19.47
Exercised		(2,091	)	$	11.42
Forfeited/Cancelled		(5,234	)	$	20.24
Expired		(115,900	)	$	28.68
Outstanding at June 30, 2026		842,609		$	18.22

At June 30, 2026, options to purchase 43,245 shares of common stock were unvested at a weighted average exercise price of $9.32.

At June 30, 2026, there was $36,000 of total unrecognized compensation expense related to unvested stock option awards, which will be recognized over the weighted average remaining vesting period of approximately 0.2 years.

Restricted Stock Units (“RSUs”)

During the three months ended June 30, 2026 and 2025, the Company granted 386,555 and 428,552, respectively, of time-based vesting RSUs, based on the closing market price on the grant date.

The following is a summary of non-vested RSUs:


	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding at March 31, 2026		684,720		$	9.03
Granted		386,555		$	15.36
Vested		(209,009	)	$	8.77
Forfeited/Cancelled		(931	)	$	8.45
Outstanding at June 30, 2026		861,335		$	11.94

At June 30, 2026, there was $9,565,000 of unrecognized compensation expense related to RSUs, which will be recognized over the weighted average remaining vesting period of approximately 2.5 years.

Performance Stock Units (“PSUs”)

During the three months ended June 30, 2026 and 2025, the Company granted 309,289 and 353,778 PSUs (at target performance levels), respectively, based on the Company’s stock price or a total shareholder return (“TSR”) market conditions. All PSUs granted have a three-year performance period, subject to continued employment.

Stock Price PSUs

During the three months ended June 30, 2026, the Company granted 154,650 PSUs (at target performance levels), which vest as follows: (i) if the stock price is greater than or equal to $16.00 per share, then 1/3 of the grant will vest, (ii) if the stock price is greater than or equal to $18.00 per share then the next 1/3 of the grant will vest, and (iii) if the stock price is greater than or equal to $20.00 per share then the final 1/3 of the grant will vest. Recipients are eligible to vest in between 50% and 150% of the third tranche by achieving a stock price between $19.00 and $22.00 per share (each stock price target must be met for thirty consecutive trading days).

During the three months ended June 30, 2025, the Company granted 176,893 PSUs (at target performance levels), which vest as follows: (i) if the stock price is greater than or equal to $15.00 per share, then 1/3 of the grant will vest, (ii) if the stock price is greater than or equal to $17.00 per share then the next 1/3 of the grant will vest, and (iii) if the stock price is greater than or equal to $20.00 per share then the final 1/3 of the grant will vest. Recipients are eligible to vest in between 50% and 150% of the third tranche by achieving a stock price between $18.00 and $22.00 per share (each stock price target must be met for thirty consecutive trading days).

The Company calculated the fair value of these PSUs individually for each tranche using the Monte Carlo Simulation Model at the grant date. Compensation cost is recognized over the estimated derived service period. Compensation cost related to these awards will not be adjusted even if the market condition is not met.

TSR PSUs

During the three months ended June 30, 2026 and 2025, the Company granted 154,639 and 176,885 PSUs (at target performance levels), respectively, which cliff vest and the number of shares earned at the end of the three-year performance period will vary, based only on actual performance, from 0% to 150% of the target number of PSUs granted, depending on the Company’s TSR percentile rank relative to that of a peer group over the performance period. TSR is measured based on a comparison of the closing price on the first trading day of the performance period and the average closing price over the last 30 trading days of the performance period. TSR is considered a market condition because it measures the Company’s return against the performance of the Russell 3000, excluding companies classified as financials and real estate and companies with a market capitalization of more than $600 million, as of the start of the performance period. Compensation cost is determined at the grant date and recognized on a straight-line basis over the requisite service period to the extent the conditions are deemed probable. Compensation cost related to the TSR award will not be adjusted even if the market condition is not met.

The fair value of PSUs subject to a market condition is determined using the Monte Carlo simulation model. The following table summarizes the assumptions used in determining the fair value of the awards subject to market conditions:


	Three Months Ended June 30,
	2026				2025
Risk free interest rate		4.19	%		3.86	%
Expected life in years		0.1-3.0			0.7-3.0
Expected volatility of the Company's common stock		66.20	%		66.80	%
Average correlation coefficient of peer companies		14.10	%		15.70	%
Expected dividend yield		-			-
Grant date fair value	$	13.90-20.09		$	7.33-12.68

The following is a summary of non-vested PSUs:

	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding at March 31, 2026		744,542		$	8.54
Granted		309,289		$	17.99
Forfeited/Cancelled		(176,192	)	$	4.20
Outstanding at June 30, 2026		877,639		$	13.02

At June 30, 2026, there was $7,462,000 of unrecognized compensation expense related to these awards, which will be recognized over the weighted average remaining vesting period of approximately 1.8 years.