v3.26.3
OPTIONS AND AWARDS (Tables)
 9 Months Ended
Sep. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Schedule of total share-based compensation expense
Total share-based compensation expense for all Pennant Plans for the three and nine months ended September 30, 2026 and 2025 was:

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Share-based compensation expense related to stock options$2,565 1,928 $6,831 $4,902 
Share-based compensation expense related to Restricted Stock198 185 568 799 
Share-based compensation expense related to Restricted Stock to non-employee directors553 337 1,387 1,079 
Total share-based compensation$3,316 $2,450 $8,786 $6,780 

In future periods, the Company estimates it will recognize the following share-based compensation expense for unvested stock options and unvested Restricted Stock as of September 30, 2026:

Unrecognized Compensation ExpenseWeighted Average Recognition Period
(in years)
Unvested Stock Options$38,073 4.0
Unvested Restricted Stock1,304 2.7
Total unrecognized share-based compensation expense$39,377 
Schedule of stock options granted fair value assumptions
The fair value of each option is estimated on the grant date using a Black-Scholes option-pricing model with the following weighted average assumptions for stock options granted as of September 30:

Grant YearOptions GrantedRisk-Free Interest Rate
Expected Life(a)
Expected Volatility(b)
Dividend YieldWeighted Average Fair Value of Options
20261,164 4.1 %6.552.7 %— %$19.97 
20251,110 4.1 %6.542.0 %— %$13.64 
(a)
Under the midpoint method, the expected option life is the midpoint between the contractual option life and the average vesting period for the options being granted. This resulted in an expected option life of 6.5 years for the options granted.
(b)Because the Company’s equity shares have been traded for a relatively short period of time, expected volatility assumption was based on the volatility of related industry stocks.
Schedule of employee stock option activity
The following table represents the employee stock option activity during the nine months ended September 30, 2026:

Number of
Options
Outstanding
Weighted
Average
Exercise Price
Number of
Options Vested
Weighted
Average
Exercise Price
of Options
Vested
December 31, 20254,367 22.34 1,811 $21.44 
Granted1,164 35.42 
Exercised(327)18.61 
Forfeited(170)24.78 
Expired(17)34.76 
September 30, 20265,017 $25.50 2,092 $22.09 
Schedule of non-vested restricted stock awards
A summary of the status of Pennant’s non-vested Restricted Stock, and changes during the nine months ended September 30, 2026, is presented below:

Non-Vested Restricted StockWeighted Average Grant Date Fair Value
December 31, 2025127 $18.17 
Granted98 33.22 
Vested(138)27.47 
Forfeited(8)18.41 
September 30, 202679 $20.55