v3.26.3
Stock-Based Compensation
 6 Months Ended
Sep. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation STOCK-BASED COMPENSATION
ADS has several programs for stock-based payments to employees and non-employee members of its Board of Directors, including stock options, performance-based restricted stock units and restricted stock. The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the periods presented:
Three Months Ended September 30,Six Months Ended September 30,
(Amounts in thousands)2026202520262025
Component of income before income taxes:
Cost of goods sold$2,109 $1,914 $4,250 $3,570 
Selling, general and administrative expenses9,148 6,663 20,281 13,411 
Total stock-based compensation expense$11,257 $8,577 $24,531 $16,981 
The following table summarizes stock-based compensation expense by award type for the periods presented:
Three Months Ended September 30,Six Months Ended September 30,
(Amounts in thousands)2026202520262025
Stock-based compensation expense:
Stock Options$1,786 $1,673 $3,647 $3,463 
Restricted Stock3,4033,2046,777 6,299 
Performance-based Restricted Stock Units5,0412,80011,828 5,224 
Employee Stock Purchase Plan5904641,419 1,112 
Non-Employee Directors437436860 883 
Total stock-based compensation expense$11,257 $8,577 $24,531 $16,981 
2017 Omnibus Incentive Plan - The 2017 Incentive Plan provides for the issuance of a maximum of 5.0 million shares of the Company’s common stock for awards made thereunder, which awards may consist of stock options, restricted stock, restricted stock units, stock appreciation rights, phantom stock, cash-based awards, performance awards (which may take the form of performance cash, performance units or performance shares) or other stock-based awards.
Restricted Stock - During the six months ended September 30, 2026, the Company granted 0.1 million shares of restricted stock with a grant date fair value of $13.8 million.
Performance-based Restricted Stock Units (“Performance Units”) - During the six months ended September 30, 2026, the Company granted 0.1 million shares of performance units at a grant date fair value of $16.7 million.
Options - During the six months ended September 30, 2026, the Company granted 0.1 million nonqualified stock options under the 2017 Incentive Plan with a grant date fair value of $7.8 million. The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The following table summarizes the assumptions used to estimate the fair value of stock options during the period presented:
Six Months Ended September 30, 2026
Common stock price$138.09
Expected stock price volatility43.0%
Risk-free interest rate4.3%
Weighted-average expected option life (years)6
Dividend yield0.58%

Employee Stock Purchase Plan (“ESPP”) - In July 2022, the Company’s stockholders approved the Advanced Drainage Systems, Inc. Employee Stock Purchase Plan, which provides for a maximum of 0.4 million shares of the Company’s common stock. Eligible employees may purchase the Company's common stock at 85% of the lower of the fair market value of the Company's common stock on the first day or the last day of the offering period. The offering periods are six months in duration beginning either January 1 or July 1 and ending June 30 and December 31.