Stock-Based Compensation

6 Months Ended

Jun. 30, 2025

Share-Based Payment Arrangement [Abstract]

Pursuant to the 2022 Stock Incentive Plan, we grant stock options, stock-only stock appreciation rights ("SOSARs"), restricted stock units ("RSUs"), and performance stock units ("PSUs") to employees and non-employee directors. SOSARs and RSUs generally vest in two equal installments on the second and third anniversary of the grant date. PSUs are subject to service, market and performance vesting conditions, and the quantity of shares that vest will range from 0% to 300% of the targeted number of shares.

In response to the departure of our former CEO in 2024, we granted retention RSUs to key executives. These awards have various vesting terms, and will vest over one, two or three years. During the six months ended June 30, 2025, total expense recognized for the retention RSUs was $24,090. The impact of these employee retention awards are reflected in the tables below.

Total stock-based compensation expense was as follows:


	Three months ended June 30,				Six months ended June 30,
	2025		2024		2025		2024
Stock-based compensation	$	37,959	$	46,160	$	76,139	$	82,841
Stock-based compensation, net of income taxes	$	31,725	$	38,932	$	63,536	$	70,218
Total capitalized stock-based compensation included in leasehold improvements, property and equipment, net on the condensed consolidated balance sheets	$	410	$	920	$	989	$	1,598
Excess tax benefit on stock-based compensation recognized in provision for income taxes on the condensed consolidated statements of income and comprehensive income	$	1,406	$	2,833	$	11,587	$	16,088

SOSARs

A summary of SOSAR award activity was as follows (in thousands, except per share data):


	Shares	Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Outstanding, January 1, 2025	10,414	$	32.53	4.2	$	289,373
Granted	2,059	57.15
Exercised	(1,107)	26.33
Forfeited	(128)	45.16
Outstanding, June 30, 2025	11,238	37.51		4.3	202,108
Exercisable, June 30, 2025	5,634	26.33		2.9	161,788
Vested and expected to vest, June 30, 2025	10,842	36.99		4.2	200,289

RSUs

A summary of RSU award activity was as follows (in thousands, except per share data):


	Shares	Weighted-Average Grant Date Fair Value per Share
Outstanding, January 1, 2025	4,347	$	44.54
Granted	1,193	57.02
Vested	(1,127)	32.62
Forfeited	(139)	48.31
Outstanding, June 30, 2025	4,274	51.04
Vested and expected to vest, June 30, 2025	3,862	50.86

PSUs

A summary of PSU award activity was as follows (in thousands, except per share data):


	Shares	Weighted-Average Grant Date Fair Value per Share
Outstanding, January 1, 2025	2,045	$	38.32
Granted	759	57.27
Vested	(411)	31.56
Forfeited	(224)	32.29
Outstanding, June 30, 2025	2,169	46.85
Vested and expected to vest, June 30, 2025*	3,623	40.52

*The vested and expected to vest total above represents outstanding base PSUs, adjusted for expected payout amounts in line with current and future estimated performance levels.