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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2025
Equity [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Prior to the IPO, the Company granted options to purchase shares of the Company’s common stock and restricted stock units (“RSU”) in respect of shares of the Company’s common stock to employees, directors and consultants under the Company’s 2011 Equity Incentive Plan. In connection with the IPO, the Company adopted the 2021 Incentive Award Plan (“2021 Plan”) and the 2021 Employee Stock Purchase Plan (“ESPP”), both of which became effective on July 26, 2021. The 2021 Plan and ESPP include an annual share increase provision through January 1, 2031, subject to limits and Board discretion. On January 1, 2025, the number of Class A shares available under the 2021 Plan was increased by 2,247 shares of common stock. No grants have been made under the ESPP, and in February 2025, the Board waived all future automatic share increases under the ESPP.
The Company’s stock options generally vest over four years based on continued service to the Company and its subsidiaries. Each option has a term of ten years. Any stock options granted under the 2021 Plan
must generally have an exercise price of not less than the estimated fair market value of the underlying Class A common stock at the date of the grant, but as of June 30, 2025 no options had been granted under the 2021 Plan.
A summary of stock option activity as of June 30, 2025 is as follows:
(In thousands, except prices and years)Number of
options		Weighted-
average
exercise
price		Weighted- average remaining contractual life (years)Aggregate intrinsic value
Options outstanding at January 1, 20251,523 $18.73 4.67$465,985 
Granted (1)— 
Exercised(438)15.88 
Forfeited and expired (2)— — 
Options outstanding at June 30, 2025
1,085 $19.88 4.36$424,207 
Options exercisable at June 30, 2025
1,085 $19.88 4.36$424,207 
________________
(1) There were no stock options granted during the three and six months ended June 30, 2025.
(2) There was a nominal amount of forfeitures and expirations during the three and six months ended June 30, 2025.

The total intrinsic value of options exercised was approximately $160,618 and $110,042 for the periods ended June 30, 2025 and 2024, respectively. 
The Company began to grant RSUs in November 2020. The fair value of RSUs is estimated based on the fair value of our Class A common stock on the date of grant. Each RSU vests based upon the satisfaction of length of service. The Company measures and recognizes stock-based compensation expense for all stock-based awards based on the estimated fair value of the award.
A summary of RSU activity as of June 30, 2025 is as follows:
(In thousands, except prices)Restricted stock unitsWeighted-
average
grant date fair value per share
Outstanding at January 1, 2025
1,802 $143.96 
Granted305 504.38 
Released(413)116.37 
Forfeited(56)178.10 
Outstanding at June 30, 2025
1,638 $216.93 
As of June 30, 2025, there was no unrecognized stock-based compensation expense related to stock options granted under the plans. The amount of unrecognized stock-based compensation expense for RSUs as of June 30, 2025 was $325,074 with a weighted-average period of approximately three years.
There were 10,949 shares available for grant at June 30, 2025.
Performance-based RSUs
In June 2021, the Company granted an aggregate of 1,800 performance-based RSUs (the “Founder Awards”) to its founders. Vesting is subject to both service- and performance-based conditions, with settlement occurring one year after vesting. The awards vest in 10 tranches based on stock-price hurdles measured over a ten year period from the grant date. The service condition vests 25% annually beginning on the IPO anniversary, July 30, 2021, subject to continued service.
The Company used a Monte Carlo simulation to estimate the fair value of the Founder Awards. The weighted-average grant date fair value was $61.56 per share, and total estimated expense to be recognized over the derived service periods (ranging from 3.58 to 5.92 years) is $110,817. Stock-based compensation expense is recognized over the derived service period, regardless of whether the stock-price hurdles are achieved, and is accelerated if hurdles are met earlier.
The Company recognized $3,963 and $8,077 of stock-based compensation expense related to the Founder Awards for the three and six months ended June 30, 2025, and $5,557 and $11,097 for the three and six months ended June 30, 2024, respectively. As of June 30, 2025, $8,859 of unrecognized stock-based compensation expense remains.
Total stock-based compensation expense was $34,592 and $65,610 for the three and six months ended June 30, 2025, and $26,746 and $51,731 for the three and six months ended June 30, 2024, respectively.
Stock-based compensation expense is included in the Unaudited Condensed Consolidated Statements of Operations and Comprehensive Income as shown in the following table:
Three Months Ended June 30,Six Months Ended June 30,
(In thousands)2025202420252024
Cost of revenues$24 $18 $44 $34 
Research and development20,481 14,095 38,294 27,101 
Sales and marketing1,593 1,198 3,024 2,252 
General and administrative12,494 11,435 24,248 22,344 
Total$34,592 $26,746 $65,610 $51,731 
Nominal amounts of stock-based compensation expense is capitalized into intangible assets for the three and six months ended June 30, 2025 and 2024.