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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2025
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] |
Stock-Based Compensation | 14. STOCK-BASED COMPENSATION Equity Incentive Plans The Company sponsors the 2015 Equity Incentive Plan (the “2015 Plan”), which provided for the grant of share-based compensation to certain officers, directors, employees, consultants, and advisors. Subsequent to September 2021, no further awards were made pursuant to the 2015 Plan. For awards granted under the 2015 Plan, vesting generally occurs over four to five years from the date of grant. The Company also sponsors the 2021 Equity Incentive Plan (the “2021 Plan”), which provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit (“RSU”) awards, performance awards and other forms of awards to employees, directors, and consultants. The number of shares of the Company’s common stock reserved for issuance under the 2021 Plan automatically increases on January 1 of each year, through and including January 1, 2031, by 5% of the fully diluted number of shares of common stock (as defined in the 2021 Plan) outstanding on December 31 of the preceding year, or a lesser number of shares determined by the Company’s board of directors prior to such increase. As of January 1, 2025, the number of shares reserved for issuance under the 2021 Plan increased by 14,532,010. For awards granted under the 2021 Plan, vesting terms range from less than one year to four years from the date of grant. As of September 30, 2025, the Company had 28,460,721 shares available for grant under the 2021 Plan. In May 2025, in connection with the Lightsynq Acquisition, the Company assumed the Lightsynq Technologies Inc. 2024 Equity Incentive Plan (the “Lightsynq Plan”). Upon closing of the Lightsynq Acquisition, no further awards were made pursuant to the Lightsynq Plan and certain outstanding Lightsynq stock options under the Lightsynq Plan were assumed by the Company. Such stock options granted under the Lightsynq Plan will continue to be governed by the terms of the Lightsynq Plan and the stock option agreements thereunder, until such outstanding options are exercised or until they terminate or expire. For awards granted under the Lightsynq Plan, vesting generally occurs over four years from the date of grant. As of September 30, 2025, the Company had no shares available for grant under the Lightsynq Plan. Under each equity incentive plan, all options granted have a contractual term of 10 years. Stock Options The Company estimates the fair value of stock options on the date of grant using the Black-Scholes option pricing model. The Black-Scholes option-pricing model requires estimates of highly subjective assumptions, which affect the fair value of each stock option. The assumptions used to estimate the fair value of stock options are as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Risk-free interest rate |  |  | — | % |  |  | — | % |  |  | 4.07 | % |  |  | 4.31 | %
Expected term (in years) |  |  | — |  |  |  | — |  |  |  | 5.89 |  |  |  | 6.00 |
Expected volatility |  |  | — | % |  |  | — | % |  |  | 86.79 | % |  |  | 79.33 | %
Dividend yield |  |  | — | % |  |  | — | % |  |  | — | % |  |  | — | %
The stock option activity is summarized in the following table:
|  | Number of Option Shares |  |  | Weighted Average Exercise Price |  |  | Weighted Average Remaining Contractual Term (Years) |  |  | Aggregate Intrinsic Value (in millions) |
Outstanding as of December 31, 2024 |  |  | 16,687,129 |  |  | $ | 2.40 |  |  |  |  |  |  |
Replacement awards(1) |  |  | 1,747,622 |  |  |  | 4.36 |  |  |  |  |  |  |
Exercised |  |  | (10,272,027 | ) |  |  | 1.20 |  |  |  |  |  |  |
Cancelled/ Forfeited |  |  | (432,952 | ) |  |  | 2.66 |  |  |  |  |  |  |
Outstanding as of September 30, 2025 |  |  | 7,729,772 |  |  | $ | 4.42 |  |  |  | 5.85 |  |  | $ | 441.20 |
Exercisable as of September 30, 2025 |  |  | 5,550,278 |  |  | $ | 5.21 |  |  |  | 4.78 |  |  | $ | 312.42 |
Exercisable and expected to vest as of September 30, 2025 |  |  | 7,729,772 |  |  | $ | 4.42 |  |  |  | 5.85 |  |  | $ | 441.20 |
(1) In connection with certain acquisitions, the Company converted certain outstanding stock options of the acquirees into stock options to acquire common stock of the Company, for which $11.3 million of the fair value was attributed to pre-combination services and was allocated to purchase consideration. Restricted Stock Units The Company’s RSU activity is summarized in the following table:
|  | Number of RSUs |  |  | Weighted Average Grant Date Fair Value |  |  | Weighted Average Remaining Contractual Term (Years) |
Outstanding as of December 31, 2024 |  |  | 14,509,717 |  |  | $ | 9.54 |  |  |  |
Granted |  |  | 6,409,003 |  |  |  | 36.92 |  |  |  |
Vested |  |  | (5,952,489 | ) |  |  | 12.04 |  |  |  |
Forfeited |  |  | (1,138,230 | ) |  |  | 11.77 |  |  |  |
Outstanding as of September 30, 2025 |  |  | 13,828,001 |  |  | $ | 20.96 |  |  |  | 2.46 |
Expected to vest after September 30, 2025 |  |  | 13,828,001 |  |  | $ | 20.96 |  |  |  | 2.46 |
During the nine months ended September 30, 2025 and 2024, the Company released 206,316 and 1,064,518 RSUs, respectively, related to the settlement of an accrued bonus liability. Performance-Based Restricted Stock Units From fiscal year 2023 to fiscal year 2025, the Company granted performance-based restricted stock unit awards (“PSUs”) to certain officers, employees, and consultants, which vest over approximately two to four years. The number of shares that can be earned will range from 0% to 300% of the target number of shares, based on the Company’s achievement of certain financial and technical goals, as well as a stock price hurdle requirement for a portion of the awards. In the event that the stock price hurdle is not met at the time the PSUs vest, the maximum PSU opportunity shall be limited to target (100%) performance. During fiscal year 2025, the Company granted PSU awards to certain officers and employees, which vest over three years. The number of shares that can be earned will range from 0% to 200% of the target number of shares based on the Company’s achievement of certain performance goals. The number of PSUs expected to vest and for which compensation cost has been recognized is based on the number of awards that the Company believes are probable of vesting as of September 30, 2025. For those PSUs subject to the stock price hurdle, the fair value was determined using a Monte Carlo simulation model. The Monte Carlo simulation model requires estimates of subjective assumptions, which affect the fair value of each PSU. The assumptions used to estimate the fair value of PSUs subject to the stock price hurdle are as follows:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Risk-free interest rate |  |  | — | % |  |  | — | % |  |  | 3.79 | % |  |  | 4.86 | %
Contractual term (in years) |  |  | — |  |  |  | — |  |  |  | 1.72 |  |  |  | 2.69 |
Expected volatility |  |  | — | % |  |  | — | % |  |  | 104.32 | % |  |  | 85.00 | %
Dividend yield |  |  | — | % |  |  | — | % |  |  | — | % |  |  | — | %
The PSU activity is summarized in the following table, based on awards at target:
|  | Number of PSUs |  |  | Weighted Average Grant Date Fair Value |  |  | Weighted Average Remaining Contractual Term (Years) |
Outstanding as of December 31, 2024 |  |  | 3,972,257 |  |  | $ | 16.17 |  |  |  |
Granted |  |  | 2,757,511 |  |  |  | 36.48 |  |  |  |
Vested |  |  | (619,874 | ) |  |  | 16.77 |  |  |  |
Forfeited |  |  | (456,445 | ) |  |  | 15.08 |  |  |  |
Outstanding as of September 30, 2025 |  |  | 5,653,449 |  |  | $ | 26.10 |  |  |  | 1.84 |
Expected to vest after September 30, 2025(1) |  |  | 12,929,029 |  |  | $ | 24.27 |  |  |  | 1.79 |
(1) Represents the number of PSUs expected to vest, which may exceed the target number of shares, based on the Company’s probability assessment of expected performance during the performance period. Restricted Stock The restricted stock activity is summarized in the following table:
|  | Number of Restricted Stock |  |  | Weighted Average Grant Date Fair Value |  |  | Weighted Average Remaining Contractual Term (Years) |
Outstanding as of December 31, 2024 |  |  | — |  |  | $ | — |  |  |  |
Replacement awards(1) |  |  | 6,176,959 |  |  |  | 40.34 |  |  |  |
Vested |  |  | (1,927,662 | ) |  |  | 40.34 |  |  |  |
Outstanding as of September 30, 2025 |  |  | 4,249,297 |  |  |  | 40.34 |  |  |  | 4.51 |
Expected to vest after September 30, 2025 |  |  | 4,249,297 |  |  | $ | 40.34 |  |  |  | 4.51 |
(1) In connection with certain acquisitions, the Company converted certain outstanding restricted stock of the acquirees into restricted stock of the Company, for which $48.1 million of the fair value was attributed to pre-combination services and was allocated to purchase consideration. Stock-Based Compensation Expense Total stock-based compensation expense for stock option awards, RSUs, PSUs, and restricted stock which are included in the condensed consolidated financial statements, is as follows (in thousands):
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Cost of revenue |  | $ | 4,247 |  |  | $ | 1,332 |  |  | $ | 7,125 |  |  | $ | 3,392 |
Research and development |  |  | 31,766 |  |  |  | 13,907 |  |  |  | 125,392 |  |  |  | 37,840 |
Sales and marketing |  |  | 6,560 |  |  |  | 2,929 |  |  |  | 16,488 |  |  |  | 8,157 |
General and administrative |  |  | 30,372 |  |  |  | 6,399 |  |  |  | 56,361 |  |  |  | 18,218 |
Stock-based compensation, net of amounts capitalized |  |  | 72,945 |  |  |  | 24,567 |  |  |  | 205,366 |  |  |  | 67,607 |
Capitalized stock-based compensation—Property and equipment, net and Intangible assets, net |  |  | 1,678 |  |  |  | 1,468 |  |  |  | 3,681 |  |  |  | 4,214 |
Total stock-based compensation |  | $ | 74,623 |  |  | $ | 26,035 |  |  | $ | 209,047 |  |  | $ | 71,821 |
Unrecognized Stock-Based Compensation A summary of the Company’s remaining unrecognized compensation expense and the weighted-average remaining amortization period as of September 30, 2025, related to its non-vested RSUs, PSUs, restricted stock, and stock option awards is presented below (in millions, except time period amounts):
|  | Unrecognized Expense |  |  | Weighted- Average Amortization Period (Years) |
Restricted stock units |  | $ | 274.3 |  |  |  | 2.9 |
Performance-based restricted stock units |  |  | 237.9 |  |  |  | 2.1 |
Restricted stock |  |  | 142.6 |  |  |  | 4.5 |
Stock options |  |  | 47.5 |  |  |  | 3.0 |

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