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Stock-Based Compensation | 3 Months Ended
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Jun. 30, 2026
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | STOCK-BASED COMPENSATION ADS has several programs for stock-based payments to employees and non-employee members of its Board of Directors, including stock options, performance-based restricted stock units and restricted stock. The Company recognized stock-based compensation expense in the following line items of the Condensed Consolidated Statements of Operations for the periods presented:
| Three Months Ended June 30, |  |
(In thousands) | 2026 |  | 2025 |  |  |  |
Component of income before income taxes:
Cost of goods sold | $ | 2,141 |  |  | $ | 1,656 |  |  |  |  |
Selling, general and administrative expenses | 11,133 |  | 6,748 |  |  |  |
Total stock-based compensation expense | $ | 13,274 |  |  | $ | 8,404 |  |  |  |  |
The following table summarizes stock-based compensation expense by award type for the periods presented:
| Three Months Ended June 30, |  |
(In thousands) | 2026 |  | 2025 |  |  |  |
Stock-based compensation expense: |  |  |  |  |  |  |
Stock Options | $ | 1,861 |  |  | $ | 1,790 |  |  |  |  |
Restricted Stock | 3,374 |  | 3,095 |  |  |  |
Performance-based Restricted Stock Units | 6,787 |  | 2,424 |  |  |  |
Employee Stock Purchase Plan | 829 |  | 648 |  |  |  |
Non-Employee Directors | 423 |  | 447 |  |  |  |
Total stock-based compensation expense | $ | 13,274 |  |  | $ | 8,404 |  |  |  |  |
2017 Omnibus Incentive Plan - The 2017 Incentive Plan provides for the issuance of a maximum of 5.0 million shares of the Company’s common stock for awards made thereunder, which awards may consist of stock options, restricted stock, restricted stock units, stock appreciation rights, phantom stock, cash-based awards, performance awards (which may take the form of performance cash, performance units or performance shares) or other stock-based awards. Restricted Stock - During the three months ended June 30, 2026, the Company granted 0.1 million shares of restricted stock with a grant date fair value of $12.0 million. Performance-based Restricted Stock Units (“Performance Units”) - During the three months ended June 30, 2026, the Company granted 0.1 million shares of performance units at a grant date fair value of $12.0 million. Options - During the three months ended June 30, 2026, the Company granted 0.1 million nonqualified stock options under the 2017 Incentive Plan with a grant date fair value of $7.8 million. The Company estimates the fair value of stock options using a Black-Scholes option-pricing model. The following table summarizes the assumptions used to estimate the fair value of stock-options during the period presented:
| Three Months Ended June 30, 2026
Common stock price | $138.09
Expected stock price volatility | 43.0%
Risk-free interest rate | 4.3%
Weighted-average expected option life (years) | 6
Dividend yield | 0.58%
Employee Stock Purchase Plan (“ESPP”) - In July 2022, the Company’s stockholders approved the Advanced Drainage Systems, Inc. Employee Stock Purchase Plan, which provides for a maximum of 0.4 million shares of the Company’s common stock. Eligible employees may purchase the Company's common stock at 85% of the lower of the fair market value of the Company's common stock on the first day or the last day of the offering period. The offering periods are six months in duration beginning either January 1 or July 1 and ending June 30 and December 31.

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