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Stock-based Compensation | 12 Months Ended
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Dec. 31, 2025
Share-Based Payment Arrangement [Abstract] |
Stock-based Compensation | Stock-based Compensation Share option plans 2020 Incentive Compensation Plan On July 2, 2020, the Company’s board of directors adopted and the Company’s stockholders approved the 2020 Incentive Compensation Plan (the “2020 Plan”), which became effective immediately prior to the effectiveness of the registration statement for the Company’s initial public offering (“IPO”) in 2020. The 2020 Plan provides for the issuance of incentive stock options, non-qualified stock options, stock awards, stock units, stock appreciation rights and other stock-based awards. The number of shares initially reserved for issuance under the 2020 Plan is 5,503,678 shares, inclusive of available shares previously reserved for issuance under the 2015 Incentive Share Option Plan, as amended and restated on September 4, 2019 (the “2015 Plan”). In addition, the number of shares reserved for issuance under the 2020 Plan is subject to increase for awards previously issued under the 2015 Plan which are forfeited or lapse unexercised. Annually, on the first day of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030, the reserve will be increased by an amount equal to the lesser of (A) 5% of the shares outstanding (on an as-converted basis) on the last day of the immediately preceding fiscal year and (B) such smaller number of shares as determined by the Company’s board of directors, provided that no more than 3,650,000 shares may be issued upon the exercise of incentive stock options. As of December 31, 2025, there we re 8,333,678 shares of common stock available for future grants. 2020 Employee Stock Purchase Plan On July 2, 2020, the Company's board of directors adopted and the Company's stockholders approved the 2020 Employee Stock Purchase Plan (the "2020 ESPP"), which became effective immediately prior to the effectiveness of the registration statement for the Company's IPO in 2020. The total shares of common stock initially reserved for issuance under the 2020 ESPP is limited to 1,000,000 shares. In addition, the number of shares available for issuance under the 2020 ESPP will be annually increased on January 1 of each calendar year beginning on January 1, 2021 and ending on and including January 1, 2030, by an amount equal to the lesser of (A) 1,000,000 shares, (B) 1% of the shares outstanding on the final day of the immediately preceding calendar year and (C) such smaller number of shares as is determined by the board of directors. The board of directors or a committee of the board of directors will administer and will have authority to interpret the terms of the 2020 ESPP and determine eligibility of participants. There were no shares issued under the 2020 ESPP as of December 31, 2025. 2015 Incentive Share Option Plan In July 2015, the Company adopted the 2015 Incentive Share Option Plan (“2015 Plan”). The 2015 Plan has been amended and restated from time to time to increase the number of shares reserved for grant and to enable the grant of options to employees of the Company's subsidiaries. Under the 2015 Plan, options to purchase common stock of the Company may be granted to employees, officers, directors and consultants of the Company. Each option granted can be exercised for one share of common stock of the Company. Options granted to employees generally vest over a period of no more than four years. The options expire ten years from the date of grant. Pursuant to the 2015 Plan, the Company had reserved 7,312,590 shares of common stock for issuance. Effective immediately upon the approval of the 2020 Plan, the remaining shares of common stock available for future grant under the 2015 Plan were transferred to the 2020 Plan. As of December 31, 2025, there were no shares of common stock available for future grant under the 2015 Plan. Subsequent to the approval of the 2020 Plan, no additional grants were made under the 2015 Plan and any outstanding awards under the 2015 Plan will continue with their original terms. Assumed Share Option Plans As part of the acquisition of Metromile in 2022, the Company assumed the Metromile 2011 Incentive Stock Plan (“2011 Plan”) and Metromile 2021 Incentive Stock Plan (“2021 Plan”) (collectively referred to as “Assumed Plans”). The Company assumed equity awards of 404,207 which were granted from the respective Assumed Plans and will be settled in the Company’s common stock. The remaining unallocated shares reserved under both the 2011 and 2021 Plans were cancelled and no new awards will be granted under these Assumed Plans. Share-pool increase in 2020 Incentive Compensation Plan and 2020 Employee Stock Purchase Plan On January 1, 2026, the 2020 Plan share pool was increased by 3,650,000 shares, equal to the maximum increase allowed under the 2020 Plan. There was no increase in the 2020 ESPP share pool as of January 1, 2026. Options granted to employees and non-employees The fair value of each option granted during the years ended December 31, 2025 and 2024 is estimated on the date of grant using the Black-Scholes model with the following assumptions:
| December 31,
| 2025 |  | 2024
Weighted average expected term (years) | 5.8 |  | 5.8
Risk-free interest rate | 4.0% |  | 4.1%
Volatility | 81% |  | 77%
Expected dividend yield | 0% |  | 0%
Expected volatility is calculated based on implied volatility from market comparisons of certain publicly traded companies and other factors. The expected term of options granted is based on the simplified method, which uses the midpoint between the vesting date and the contractual term in accordance with ASC 718. The risk-free interest rate is based on observed interest rates appropriate for the term of the Company's stock options. The dividend yield assumption is based on the Company's historical and expected future dividend payouts and may be subject to substantial change in the future. The following tables summarize activity of stock options and restricted stock units (“RSU’s”): Stock options
| Number of Options |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Term (Years) |  | Aggregate Intrinsic Value
|  |  |  |  |  |  | ($ in millions)
Outstanding as of December 31, 2024 | 9,376,193 |  |  | $ | 36.03 |  |  | 6.81 |  | $ | 106.8 |
Granted | 608,928 |  |  | $ | 58.31 |  |  |  |  |
Exercised | (1,346,225) |  |  | $ | 23.73 |  |  |  |  |
Canceled/forfeited | (1,385,045) |  |  | $ | 85.55 |  |  |  |  |
Outstanding as of December 31, 2025 | 7,253,851 |  |  | $ | 30.76 |  |  | 6.39 |  | $ | 302.9 |
Options exercisable as of December 31, 2025 | 5,295,891 |  |  | $ | 30.71 |  |  | 5.74 |  | $ | 224.0 |
Options unvested as of December 31, 2025 | 1,957,960 |  |  | $ | 30.91 |  |  | 8.15 |  | $ | 78.9 |
Restricted Stock Units
| Number of shares |  | Grant Date Fair Value
Outstanding as of December 31, 2024 | 4,278,383 |  |  | $ | 20.00 |
Granted | 1,189,864 |  |  | $ | 49.90 |
Vested | (1,840,124) |  |  | $ | 21.62 |
Canceled/forfeited | (432,051) |  |  | $ | 21.59 |
Outstanding as of December 31, 2025 | 3,196,072 |  |  | $ | 29.98 |
Stock-based compensation expense Stock-based compensation expense from stock options and RSUs, including equity awards from the Assumed Plans as discussed above and warrants (Note 15), were included and presented in the consolidated statements of operations and comprehensive income (loss) as follows ($ in millions):
| December 31,
| 2025 |  | 2024 |  | 2023
Loss and loss adjustment expense, net | $ | 2.3 |  |  | $ | 2.1 |  |  | $ | 2.8 |
Other insurance expense | 2.9 |  |  | 2.5 |  |  | 2.2 |
Sales and marketing (1) | (1.5) |  |  | 10.6 |  |  | 6.4 |
Technology development | 29.1 |  |  | 26.2 |  |  | 25.7 |
General and administrative | 28.5 |  |  | 23.1 |  |  | 22.8 |
Total stock-based compensation expense | $ | 61.3 |  |  | $ | 64.5 |  |  | $ | 59.9 |
(1) Includes the impact of the canceled unvested warrant shares for contract year 2 related to the termination of the Warrant Agreement with Chewy in the amount of $5.2 million for the year ended December 31, 2025, and compensation expense related to warrant shares of $6.5 million and $2.5 million for the years ended December 31, 2024 and 2023. Stock-based compensation expense classified by award type as included in the consolidated statements of operations and comprehensive income (loss) is as follows ($ in millions):
| December 31,
| 2025 |  | 2024 |  | 2023
Stock options | $ | 25.2 |  |  | $ | 29.8 |  |  | $ | 37.6 |
RSUs | 41.3 |  |  | 28.2 |  |  | 19.8 |
Warrant shares | (5.2) |  |  | 6.5 |  |  | 2.5 |
Total stock-based compensation expense | $ | 61.3 |  |  | $ | 64.5 |  |  | $ | 59.9 |
The total unrecognized expense for outstanding stock options and RSU’s granted to employees and nonemployee amounted to $35.2 million for stock options and $89.6 million for RSUs as of December 31, 2025, with a remaining weighted average vesting period of 1.1 years for stock options and 1.3 years for RSUs. Warrants In connection with the Warrant Agreement as discussed in Note 15, the Company is authorized to issue 3,352,025 warrant shares with a grant date fair value of $20.37 that will vest in installments on a yearly basis in increasing amounts over a period of five years. Compensation expense is recognized over the vesting period, for each of the installments, in increasing amounts over five years and presented under “Sales and marketing expense” in the consolidated statements of operations and comprehensive income (loss). The Company recognized compensation expense in the amount of $6.5 million and $2.5 million related to these equity-classified warrants for the years ended December 31, 2024 and 2023, respectively. There were 181,191 warrant shares that vested in April 2024 and were exercised in June 2024. As a result of the termination of the Warrant Agreement as discussed in Note 10, the remaining unvested warrant shares of 3,170,834 were canceled. The Company recognized the impact of the canceled unvested warrant shares for contract year 2 in the amount of $5.2 million for the year ended December 31, 2025.

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