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Stock-Based Compensation Plans

6 Months Ended

Jul. 31, 2025

Stock-Based Compensation Plans

Stock-Based Compensation Plans

Note 17 - Stock-Based Compensation Plans

Total estimated stock-based compensation expense recognized in our condensed consolidated statement of operations was as follows:


		Three Months Ended				Six Months Ended
		July 31,		July 31,		July 31,		July 31,
		2025		2024		2025		2024
Cost of revenues		375		386		692		652
Sales and marketing		1,487		1,768		2,867		2,980
Research and development		679		740		1,219		1,235
General and administrative		1,912		2,614		4,041		4,410
Effect on net income		4,453		5,508		8,819		9,277

Differences between how GAAP and applicable income tax laws treat the amount and timing of recognition of stock-based compensation expense may result in a deferred tax asset. We have recorded a valuation allowance against any such deferred tax asset except for $1.3 million ($1.2 million at January 31, 2025) recognized in the United States and Canada. We realized a $0.1 million tax benefit in connection with stock options exercised during both the three and six month periods ended July 31, 2025, and a nominal tax benefit for both the same periods in fiscal 2025.

Stock Options

As of July 31, 2025, we had 1,617,804 stock options granted and outstanding under our shareholder-approved stock option plan and 1,856,542 remained available for grant.

As of July 31, 2025, $16.9 million of total unrecognized compensation costs related to non-vested stock option awards is expected to be recognized over a weighted average period of 2.9 years. The total fair value of stock options vested during the three and six month periods ended July 31, 2025 was $0.2 million and $0.3 million, respectively.

For the three and six month periods ended July 31, 2025, 50,750 and 382,191 stock options, respectively, were granted compared to 357 and 276,361 stock options for the same periods in fiscal 2025. The weighted average grant-date fair value of stock options granted during the six month periods ended July 31, 2025 and July 31, 2024 was $30.55 per option and $29.83 per option, respectively.

The weighted-average assumptions were as follows:


		Six Months Ended
		July 31,		July 31,
		2025		2024

Expected dividend yield (%)		—		—
Expected volatility (%)		28.3		30.0
Risk-free rate (%)		2.8		3.7
Expected option life (years)		5		5

A summary of option activity under all of our plans is presented as follows:


							Weighted-		Aggregate
		Number of		Weighted-			Average		Intrinsic
		Stock		Average			Remaining		Value
		Options		Exercise			Contractual		(in
		Outstanding		Price			Life (years)		millions)
Balance at January 31, 2025		1,501,901		$	61.06		3.8		$	91.6
Granted		382,191		$	101.20
Exercised		(204,845)		$	40.57
Forfeited		(61,292)		$	77.35
Expired		(151)		$	77.12
Balance at July 31, 2025		1,617,804		$	71.73		4.2		$	53.4

Vested or expected to vest at July 31, 2025		1,617,804		$	71.73		4.2		$	53.4

Exercisable at July 31, 2025		903,025		$	57.02		2.9		$	43.1

The total intrinsic value of stock options exercised during the three and six month periods ended July 31, 2025 was $5.6 million and $12.4 million, compared to $5.3 million and $12.5 million during the same periods of fiscal 2025, respectively.

Performance Share Units

A summary of PSU activity is as follows:


				Weighted-			Weighted-		Aggregate
				Average			Average		Intrinsic
		Number of		Granted			Remaining		Value
		PSUs		Date Fair			Contractual		(in
		Outstanding		Value			Life (years)		millions)
Balance at January 31, 2025		1,008,645		$	62.92		4.6		$	123.1
Granted		103,558		$	120.70
Performance units issued		58,628		$	60.81
Exercised		(121,829)		$	39.64
Forfeited		(36,734)		$	111.17
Balance at July 31, 2025		1,012,268		$	69.33		4.9		$	106.0

Vested or expected to vest at July 31, 2025		1,012,268		$	69.32		4.9		$	106.0

Exercisable at July 31, 2025		758,984		$	51.52		3.7		$	79.5

The aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate closing share price of our common shares on July 31, 2025) that would have been received by PSU holders if all PSUs had been vested on July 31, 2025.

As of July 31, 2025, $16.2 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of 2.0 years. The total fair value of PSUs vested during the three and six month periods ended July 31, 2025 was nil and $5.8 million, respectively.

Restricted Share Units

A summary of RSU activity is as follows:


				Weighted-			Weighted-		Aggregate
				Average			Average		Intrinsic
		Number of		Granted			Remaining		Value
		RSUs		Date Fair			Contractual		(in
		Outstanding		Value			Life (years)		millions)
Balance at January 31, 2025		489,689		$	48.48		5.0		$	59.8
Granted		69,355		$	101.07
Exercised		(67,992)		$	28.46
Forfeited		(17,053)		$	93.91
Balance at July 31, 2025		473,999		$	56.71		5.5		$	49.6

Vested or expected to vest at July 31, 2025		473,999		$	56.71		5.5		$	49.6

Exercisable at July 31, 2025		359,621		$	45.20		4.4		$	37.6

The aggregate intrinsic value represents the total pre-tax intrinsic value (the aggregate closing share price of our common shares on July 31, 2025) that would have been received by RSU holders if all RSUs had been vested on July 31, 2025.

As of July 31, 2025, $8.5 million of total unrecognized compensation costs related to non-vested awards is expected to be recognized over a weighted average period of 2.0 years. The total fair value of RSUs vested during both the three and six month periods ended July 31, 2025 was nil.

Deferred Share Unit Plan

As at July 31, 2025, the total number of DSUs held by participating directors was 306,258 (332,473 at January 31, 2025), representing an aggregate accrued liability of $31.6 million ($38.6 million at January 31, 2025). During the six month period ended July 31, 2025, 16,058 DSUs were granted. The fair value of the DSU liability is based on the closing price of our common shares at the balance sheet date. The total compensation cost (recovery) related to DSUs recognized during the three and six month periods ended July 31, 2025 was ($3.4) million and ($8.7) million, respectively, compared to $3.9 million and $6.3 million for the same periods in fiscal 2025, respectively.

Cash-Settled Restricted Share Unit Plan

A summary of activity under our CRSU plan is as follows:


				Weighted-
				Average
		Number of		Remaining
		CRSUs		Contractual
		Outstanding		Life (years)
Balance at January 31, 2025		12,017		1.7
Granted		9,050
Vested and settled in cash		(3,735)
Forfeited		(148)
Balance at July 31, 2025		17,184		2.1

Non-vested at July 31, 2025		17,184		2.1

We recognize the compensation cost of the CRSUs ratably over the service/vesting period relating to the grant and have recorded an aggregate accrued liability of $0.2 million at July 31, 2025 ($0.2 million at January 31, 2025). As at July 31, 2025, the unrecognized aggregate liability for the unvested CRSUs was $ 1.6 million ($1.2 million at January 31, 2025). The fair value of the CRSU liability is based on the closing price of our common shares at the balance sheet date. The total compensation cost related to CRSUs recognized during the three and six month periods ended July 31, 2025 was $0.2 million and $0.4 million, respectively, compared to $0.2 million and $0.4 million for the same periods in fiscal 2025, respectively.