Equity

9 Months Ended

Sep. 30, 2025

Share-Based Payment Arrangement [Abstract]

Equity Award Plan

In May 2025, the Company adopted the 2025 Stock Option and Incentive Plan (the “2025 Plan”), which replaced its previous stock option and incentive plan. The 2025 Plan provides for a maximum of 7.4 million shares to be issued.

Stock-Based Compensation Expense

Compensation expense related to stock-based awards was recorded as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2025		2024		2025		2024
Cost of revenue	$	0.2	$	0.2	$	0.6	$	0.5
Research and development expenses	3.1		2.3		8.7		6.5
Selling, general and administrative expenses	13.4		15.7		33.2		42.3
Total	$	16.7	$	18.2	$	42.4	$	49.3

Performance Share Units

During the nine months ended September 30, 2025, the Company granted 119,459 performance stock units (“PSUs”) with a weighted-average grant-date fair value per share of $299.58. The PSUs included a relative total shareholder return (total shareholder return for the Company compared with total shareholder return of a peer group) as a market component. Depending on the achievement of the performance criteria and the Company’s relative market performance during the three-year performance period, a recipient of the award could ultimately vest at up to 250% of the target award. Stock-based payments that contain both performance and market condition are recognized when performance conditions are probable of being achieved based on the grant date fair value. The Company uses the Monte Carlo model to estimate the probability of satisfying the market condition. The weighted-average assumptions used in the Monte Carlo model for PSUs granted were:


Risk-free interest rate			4.0%
Expected stock price volatility			41.7%
Peer group stock price volatility			46.0%
Correlation of returns			29.2%

Deferred Compensation Plan

The Company has an unfunded, non-qualified deferred compensation plan for non-employee directors that allows participants to defer receipt of RSUs or cash compensation in the form of stock until a later date. Deferred awards are credited to a deferred stock account. The shares are held in a rabbi trust, which is classified and accounted for as equity in a manner consistent with the accounting for treasury stock. As of September 30, 2025, 3,495 shares were held in the trust. No shares were held in the trust as of December 31, 2024. The shares will be distributed when board service ceases.

Share Repurchase Program

In March 2025, the Company’s Board of Directors authorized a program to repurchase up to $125 million of common stock through December 31, 2026 to offset dilution from stock-based compensation. During the three and nine months ended September 30, 2025, the Company repurchased approximately 91 thousand shares for $29.6 million and 184 thousand shares for $59.6 million, respectively.