v3.26.3
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Total stock-based compensation recognized, before taxes, are as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Cost of sales$3,087 $2,380 $8,679 $6,796 
Research and development3,605 3,033 10,124 8,559 
Selling, general and administrative10,027 10,335 28,513 24,974 
Stock-based compensation capitalized in inventory(1,639)(1,258)(4,630)(3,568)
Total stock-based compensation$15,080 $14,490 $42,686 $36,761 
Stock Options
The Company had 6.7 million shares available for grant as of September 30, 2026 under the 2021 Equity Incentive Award Plan, or 2021 Plan.
A summary of the Company’s stock option activity and related information is as follows (options in thousands):
Nine Months Ended
September 30, 2026
Number of SharesWeighted-Average Exercise Price
Outstanding, beginning of period3,444 $17.00 
Granted616 24.28 
Exercised(120)4.21 
Forfeited(6)5.47 
Outstanding, end of period3,934 18.55 
Vested and expected to vest3,934 18.55 
Exercisable2,912 13.97 
As of September 30, 2026 and December 31, 2025, the aggregate pre-tax intrinsic value of options outstanding and exercisable was $28.4 million and $61.0 million, respectively, and the aggregate pre-tax intrinsic value of options outstanding were $28.4 million and $61.0 million, respectively. The aggregate pre-tax intrinsic value of options exercised was $2.6 million and $24.1 million during the nine months ended September 30, 2026 and 2025, respectively.
As of September 30, 2026, there was a total of $17.7 million of unrecognized stock-based compensation expense related to stock options.
The fair value of the options granted to employees or directors was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table:
Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Expected life (years)6.06.16.06.1
Expected volatility 64 %57 %64 %57 %
Risk-free interest rate 4.5 %3.8 %4.1 %3.9 %
Expected dividend rate — %— %— %— %
Weighted-average fair value$13.77 $22.61 $14.95 $26.39 
Restricted Stock Units
A summary of the Company’s restricted stock unit, or RSU, activity and related information is as follows (RSUs in thousands):
Nine Months Ended
September 30, 2026
Number of SharesWeighted-Average Fair Value
Unvested, beginning of period2,346 $48.63 
Awarded3,709 24.38 
Forfeited(549)36.28 
Vested(770)48.46 
Unvested, end of period4,736 31.10 
As of September 30, 2026, there was a total of $125.6 million of unrecognized stock-based compensation expense related to RSUs.
Performance Stock Units
The 2021 Plan provides for issuance of performance stock units, or PSUs. PSUs granted are contingent upon the achievement of predetermined market, performance, and service conditions. PSUs are awarded to executives of the Company and generally time vest over a period of up to three years. Vesting is also generally contingent upon achievement of applicable performance metrics. PSU expense is recognized over the requisite service period.

During the nine months ended September 30, 2026, the Company awarded PSU shares with both performance and service conditions.

A summary of the Company’s PSU activity and related information is as follows (PSUs in thousands):

Nine Months Ended
September 30, 2026
Number of SharesWeighted-Average Fair Value
Unvested, beginning of period115 $67.62 
Awarded307 25.35 
Forfeited— — 
Vested(34)82.14 
Performance change(52)66.36 
Unvested, end of period336 27.68 
As of September 30, 2026, total unrecognized stock-based compensation related to unvested PSUs was $4.0 million.
Employee Stock Purchase Plan
As of September 30, 2026, there was approximately $2.3 million of unrecognized cost related to the Employee Stock Purchase Plan, or ESPP. This cost is expected to be recognized over a weighted average period of 0.6 years. As of September 30, 2026, a total of 2.2 million shares were available for issuance under the ESPP.
The fair value of the options granted to employees was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table:
Nine Months Ended September 30,
20262025
Expected life (years)0.70.8
Expected volatility 57 %59 %
Risk-free interest rate 3.8 %4.2 %
Expected dividend rate — %— %
Weighted-average fair value$9.67 $23.52