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Share-Based Compensation | 6 Months Ended
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Jun. 30, 2026
Share-Based Payment Arrangement [Abstract] |
Share-Based Compensation | Note 13. Share-Based Compensation
2021 Stock Option and Incentive Plan The Amended and Restated 2021 Stock Option and Incentive Plan (the “Amended and Restated 2021 Plan”) allows for the issuance of stock options, stock appreciation rights, restricted stock, RSUs (including PSUs), dividend equivalents and other stock or cash based awards for issuance to its employees, non-employee directors and non-employee third parties. Shares associated with option exercises and RSU vesting are issued from the authorized pool. Effective January 1, 2023, we approved a plan to allow our non-employee directors to elect, on an annual basis, to defer their cash retainers into equity awards, and/or to defer their RSU grants, which vest in accordance with the grant terms (collectively referred to as DSUs). DSUs are equity awards that entitle the holder to shares of our common stock when the awards vest. Directors may choose to receive their deferred stock distributions in a lump sum or in installments over different time periods. DSUs are measured based on the fair value of our common stock on the date of grant. DSU activity is presented with RSUs in the disclosures below. 2024 Employee Stock Purchase Plan The 2024 Employee Stock Purchase Plan (the “2024 ESPP”) allows for the issuance of common stock pursuant to our ESPP. Our ESPP provides permitted eligible employees the right to purchase shares of the Company's common stock through payroll deductions of up to 15% of their eligible compensation, subject to certain limitations. Compensation and Benefits Share-based compensation expense related to stock options, RSUs, PSUs and the ESPP is presented within the following line items in the condensed consolidated statements of operations and comprehensive income:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2026 |  | 2025 |  | 2026 |  | 2025
Technology and product development | $ | 25,764 |  |  | $ | 21,977 |  |  | $ | 53,744 |  |  | $ | 45,884 |
Sales and marketing | 5,540 |  |  | 5,296 |  |  | 10,701 |  |  | 10,648 |
Cost of operations | 5,502 |  |  | 3,343 |  |  | 9,477 |  |  | 6,768 |
General and administrative | 40,059 |  |  | 32,640 |  |  | 74,955 |  |  | 63,712 |
Total | $ | 76,865 |  |  | $ | 63,256 |  |  | $ | 148,877 |  |  | $ | 127,012 |
Total compensation and benefits, inclusive of share-based compensation expense, was $343,353 and $673,080 for the three and six months ended June 30, 2026, respectively, and $269,799 and $538,405 for the three and six months ended June 30, 2025, respectively. Compensation and benefits expenses are presented within the following categories of expenses within noninterest expense: (i) technology and product development, (ii) sales and marketing, (iii) cost of operations, and (iv) general and administrative in the condensed consolidated statements of operations and comprehensive income. Stock Options The following is a summary of stock option activity:
| Number of Stock Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (in years)
Outstanding as of January 1, 2026 | 13,748,914 |  |  | $ | 7.95 |  |  | 2.2
Exercised | (374,725) |  |  | 6.93 |  |  |
Outstanding as of June 30, 2026 | 13,374,189 |  |  | $ | 7.98 |  |  | 1.7
Exercisable as of June 30, 2026 | 13,374,189 |  |  | $ | 7.98 |  |  | 1.7
As of June 30, 2026, there was no unrecognized compensation cost related to unvested stock options. Restricted Stock Units RSUs, inclusive of DSUs, are equity awards granted to employees that entitle the holder to shares of our common stock when the awards vest. RSUs are measured based on the fair value of our common stock on the date of grant. The following table summarizes RSU activity:
| Number of RSUs |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2026 | 45,221,279 |  |  | $ | 11.57 |
Granted | 17,710,762 |  |  | 18.01 |
Vested(1) | (15,117,902) |  |  | 10.69 |
Forfeited | (2,343,332) |  |  | 11.56 |
Outstanding as of June 30, 2026 | 45,470,807 |  | $ | 14.37 |
________________________ (1)The total fair value, based on grant date fair value, of RSUs that vested during the six months ended June 30, 2026 was $161.7 million. As of June 30, 2026, there was $612.3 million of unrecognized compensation cost related to unvested RSUs, inclusive of DSUs, which will be recognized over a weighted average period of approximately 2.3 years. Performance Stock Units PSUs are equity awards granted to employees that, upon vesting, entitle the holder to shares of our common stock. The following table summarizes PSU activity:
| Number of PSUs |  | Weighted Average Grant Date Fair Value
Outstanding as of January 1, 2026 | 10,343,841 |  |  | $ | 11.50 |
Granted | 2,093,352 |  |  | 20.76 |
Forfeited | (7,918,836) |  |  | 9.33 |
Outstanding as of June 30, 2026 | 4,518,357 |  |  | $ | 16.13 |
Compensation cost associated with PSUs is recognized using the accelerated attribution method for each of the three vesting tranches over the respective derived service period. We determined the grant-date fair value of PSUs utilizing a Monte Carlo simulation model. During 2026, we granted PSUs that will vest, if at all, at the conclusion of a three-year measurement period commencing January 1, 2026, subject to the achievement of specified performance goals, such as absolute growth in tangible book value, total risk weighted capital ratio, and relative total shareholder return. The following table summarizes the inputs used for estimating the fair value of PSUs granted:
|  | Six Months Ended June 30,
Input |  | 2026 |  | 2025
Risk-free interest rate |  | 3.6% |  | 3.9%
Expected volatility |  | 61.3% |  | 64.3%
Fair value of common stock |  | $18.53 |  | $11.26
Dividend yield |  | —% |  | —%
Our use of a Monte Carlo simulation model requires the use of subjective assumptions: •Risk-free interest rate — Based on the U.S. Treasury rate at the time of grant commensurate with the remaining term of the PSUs. •Expected volatility — Based on the implied volatility of our common stock from a set of comparable publicly-traded companies. •Fair value of common stock — Based on the closing stock price on the date of grant. •Dividend yield — We assumed no dividend yield because we have historically not paid out dividends to common stockholders. As of June 30, 2026, there was $78.2 million of unrecognized compensation cost related to unvested PSUs, which will be recognized over a weighted average period of approximately 2.2 years. Employee Stock Purchase Plan Our ESPP provides permitted eligible employees the right to purchase shares of the Company's common stock through payroll deductions of their eligible compensation, subject to certain limitations. Compensation expense for the ESPP relates to the 15% discount and is calculated as of the beginning of the offering period as the fair value of the employees’ purchase rights utilizing the Black-Scholes Model and compensation expense is recognized over the offering period. The table below presents the fair value assumptions used for the period indicated:
|  | Six Months Ended June 30,
Input |  | 2026 |  | 2025
Risk-free interest rate |  | 3.8% |  | 4.3%
Expected term (in years) |  | 0.5 |  | 0.5
Expected volatility |  | 57.4% |  | 61.9%
Fair value of common stock |  | $23.23 |  | $14.70
Dividend yield |  | —% |  | —%
Our use of a Black-Scholes Model requires the use of subjective assumptions: •Risk-free interest rate — Based on the U.S. Treasury rate at the time of grant commensurate with the offering period. •Expected term — Based on the 6-month offering period and corresponding purchase period. •Expected volatility — Based on the historical volatility at the offering date, over a historical period equal to the expected term. •Fair value of common stock — Based on the closing stock price on the date of grant (first day of offering period). •Dividend yield — We assumed no dividend yield because we have historically not paid out dividends to common stockholders. As of June 30, 2026, there was $4.5 million of unrecognized compensation cost related to the ESPP, to be recognized over the remainder of the six-month offering period ending in December 2026.

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