H2O America’s long-term incentive plan provides employees, non-employee board members or the board of directors of any parent or subsidiary, consultants, and other independent advisors who provide services to the company or subsidiary the opportunity to acquire an equity interest in H2O America. In addition, shares are issued to employees under H2O America’s Employee Stock Purchase Plan (“ESPP”).

As of September 30, 2026, 270,852 shares are issuable upon the vesting of outstanding restricted stock units and deferred restricted stock units and an additional 796,651 shares are available for award issuances under the long-term incentive plans.


	Three months ended September 30,			Nine months ended September 30,
	2026		2025	2026		2025
Compensation costs charged to income:
ESPP	$	90	75	$	270	264
Restricted stock and deferred restricted stock	1,660		1,913	4,407		4,398
Total compensation costs charged to income	$	1,750	1,988	$	4,677	4,662
ESPP proceeds	$	1,034	1,015	$	2,057	2,131

For the three months ended September 30, 2026, H2O America granted 2,468 restricted stock awards with a weighted average grant date fair value per unit of $58.28, which consisted of 1,480 three-year service-based restricted stock awards and 988 target units of three-year performance-based restricted stock awards. For the nine months ended September 30, 2026, H2O America granted 136,424 restricted stock awards with a weighted average grant date fair value per unit of $49.53, which consisted of 64,128 three-year service-based restricted stock awards and 72,296 target units of three-year performance-based restricted stock awards. Based upon actual attainment relative to the target performance metric, the number of shares issuable can range between 0% to 150% of the target number of shares.

For the three months ended September 30, 2025, H2O America granted 31,771 two-year and three-year service-based restricted stock awards with a weighted average grant date fair value per unit of $45.81 and 18,744 target units of performance-based and market-based restricted stock awards with a weighted average grant date fair value per unit of $51.47. For the nine months ended September 30, 2025, H2O America granted 98,085 one-year, two-year, and three-year service-based restricted stock awards with a weighted average grant date fair value per unit of $46.17 and 76,952 target units of performance-based and market-based restricted stock awards with a weighted average grant date fair value per unit of $51.80. Based upon actual attainment relative to the target performance metric, the number of shares issuable can range between 0% to 150% of the target number of shares for performance-based restricted stock awards and 0% to 200% of the target number for market-based restricted stock awards.

As of September 30, 2026, the total number of outstanding restricted stock awards and deferred restricted stock awards was 297,884 and the total number of shares vested but not issued was 27,032. As of September 30, 2026, unrecognized compensation costs related to restricted and deferred restricted stock plans were $9.6 million. This cost is expected to be recognized over a weighted average period of 1.2 years.