XML 28 R17.htm IDEA: XBRL DOCUMENT v3.26.1
Stock-Based Compensation
 6 Months Ended
Jun. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Our equity compensation plans include grants of incentive and nonqualified stock options, performance share units (“PSUs”), restricted stock awards (“RSAs”), restricted stock units (“RSUs”), and deferred stock units (“DSUs”), to employees, executive officers, and non-employee directors. We also provide an employee stock purchase plan (“ESPP”) and 401(k) match to eligible participants. At June 30, 2026, there were 10.5 million shares available for grant under approved equity compensation plans.
Stock-based compensation expense was allocated in the condensed consolidated statements of comprehensive income as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2026202520262025
Cost of revenues$3,248 $3,328 $6,404 $6,439 
Operating expenses
Sales and marketing3,999 3,357 8,259 5,784 
Research and development2,406 2,135 4,671 4,152 
General and administrative9,043 6,178 17,435 12,490 
$18,696 $14,998 $36,769 $28,865 
Stock-based compensation expense by grant type or plan was as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands)2026202520262025
Stock options$535 $472 $1,026 $1,021 
PSUs4,128 3,127 8,662 6,134 
RSUs & DSUs12,500 9,837 23,926 18,470 
RSAs— — — 113 
ESPP716 783 1,541 1,619 
401(k) stock match817 779 1,614 1,508 
$18,696 $14,998 $36,769 $28,865 
As of June 30, 2026, there was $115.2 million of unrecognized stock-based compensation expense under our equity compensation plans, which is expected to be recognized on a primarily straight-line basis over a weighted average period of 2.7 years.
Stock Options
Our stock option activity was as follows:
Six Months Ended
June 30, 2026
Options (#) Weighted Average
Exercise Price
($/share)
Outstanding, beginning of period261,403 $121.47 
Granted132,688 57.93 
Exercised(20,656)53.40 
Forfeited(8,340)118.31 
Outstanding, end of period365,095 $102.30 
Of the total outstanding options at June 30, 2026, 0.2 million were exercisable. The outstanding and exercisable options had a weighted average exercise price of $119.00 per share and a weighted average remaining contractual life of 2.7 years.
The weighted average grant date fair value of options granted during the six months ended June 30, 2026, was $20.76 per share. This was estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions:
Life (in years)4.0
Volatility39.9 %
Dividend yield— 
Risk-free interest rate3.6 %
Performance Share Units, Restricted Stock Units and Awards, and Deferred Stock Units
In each of the quarters ended March 31, 2026, 2025, 2024, and 2023, we granted PSU awards with a target performance level. These awards are earned based upon our Company’s total shareholder return as compared to an indexed total shareholder return over the course of a fiscal based three-year performance period, starting in the year of grant. Earned awards vest in the quarter following the conclusion of the performance period. During the three months ended March 31, 2026, PSU awards granted in 2023 vested without achievement of the minimum threshold of performance level and therefore no shares of common stock were issued.
Activity for our PSUs, RSUs, RSAs, and DSUs in aggregate was as follows:
Six Months Ended
June 30, 2026
#Weighted Average Grant
Date Fair Value
($/share)
Outstanding, beginning of period1,006,417 $150.69 
Granted1,038,439 63.18 
Vested and common stock issued(238,465)136.77 
Forfeited(121,171)215.77 
Outstanding, end of period1,685,220 $94.05 
The number of PSUs, RSUs, RSAs, and DSUs outstanding at June 30, 2026 included less than 0.1 million units that have vested, but the shares of common stock have not yet been issued, pursuant to the terms of the underlying agreements.
Employee Stock Purchase Plan
Our ESPP activity was as follows:
Three Months Ended
June 30,		Six Months Ended
June 30,
(in thousands, except shares)2026202520262025
Amounts for shares purchased$3,801 $5,015 $4,321 $5,426 
Shares purchased78,293 43,349 85,088 45,979 
A total of 1.4 million shares of common stock are reserved for issuance under the ESPP at June 30, 2026.
The fair value was estimated based on the market price of our common stock at the beginning of the offering period using the following assumptions:
Life (in years)0.5
Volatility55.7 %
Dividend yield— 
Risk-free interest rate3.7 %