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Stock-Based Compensation | 9 Months Ended
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Sep. 30, 2025
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Prior to the IPO, the Company granted various equity classified awards, including Service-Based Incentive Units, Performance-Based Incentive Units, Phantom Units, and Service-Based Common Units. In addition, the Company issued liability classified awards, including Original Phantom Units. Service-Based Incentive Units The following table summarizes Service-Based Incentive Units activity for the nine months ended September 30, 2025 (in thousands):
| Number of Service-Based Incentive Units |  | Weighted-Average Grant Date Fair Value per Unit
Unvested at December 31, 2024 | 2,729 |  |  | $ | 1.82 |
Granted | 18,731 |  |  | 0.45 |
Vested | (5,276) |  |  | 0.77 |
Forfeited | (1,769) |  |  | 0.56 |
Unvested at September 10, 2025 | 14,415 |  |  | $ | 0.58 |
In connection with the IPO, on September 11, 2025 all 36,837,700 Service-Based Incentive Units that were fully vested and outstanding were exchanged for 4,699,140 shares of Class A common stock. All 14,415,951 Service-Based Incentive Units that were unvested were converted to 3,815,917 RSAs and vest following their original vesting schedules over the remaining life of the awards which is generally 2 years to 4 years after the date of grant. Refer to the RSU and RSA table below. As of September 30, 2025 and December 31, 2024, there were 0 and 34,673,621 Service-Based Incentive Units outstanding, respectively. Performance-Based Incentive Units In connection with the IPO, on September 11, 2025 all 677,750 Performance-Based Incentive Units that were fully vested and outstanding were modified to RSUs and exchanged for 141,004 shares of Class A common stock. As of September 30, 2025 and December 31, 2024, there were 0 and 677,750 Performance-Based Incentive Units that were fully vested and outstanding, respectively. There were no awards granted or forfeited during the nine months ended September 30, 2025. All Performance-Based Incentive Units were fully vested as of December 31, 2024. Phantom Units The following table summarizes Phantom Units activity for the nine months ended September 30, 2025 (in thousands):
| Number of Phantom Units |  | Weighted-Average Grant Date Fair Value per Unit
Unvested at December 31, 2024 | 376 |  |  | $ | 0.94 |
Granted | 2,508 |  |  | 0.45 |
Vested | (629) |  |  | 0.57 |
Forfeited | (154) |  |  | 0.45 |
Unvested at September 10, 2025 | 2,101 |  |  | $ | 0.50 |
In connection with the IPO, all 658,494 Phantom Units that were fully vested and outstanding were exchanged for 179,113 shares of Class A common stock. All 2,101,173 Phantom Units that were unvested were modified to 567,756 RSAs. As of September 30, 2025 and December 31, 2024, there were 0 and 406,600 Phantom Units outstanding, respectively. Service-Based Common Units In connection with the IPO, all 1,050,270 Service-Based Common Units that were fully vested and outstanding were converted to 321,219 shares of Class A common stock. As such, as of September 30, 2025 and December 31, 2024, there were 0 and 553,867 Service-Based Common Units that were fully vested and outstanding, respectively. There were no awards granted or forfeited during the nine months ended September 30, 2025. All Service-Based Common Units were fully vested as of December 31, 2024. Original Phantom Units The Company has granted options to certain employees under the Original Phantom Units plan that required automatic settlement in cash payment upon the occurrence of a change in control event. In connection with the IPO, all 384,312 Original Phantom Units that were fully vested and outstanding were exchanged for 64,144 shares of Class A common stock. All 94,973 Original Phantom Units that were unvested were modified to 15,871 RSAs. As such, there were 0 and 755,729 Original Phantom Units outstanding as of September 30, 2025 and December 31, 2024, respectively. Prior to the IPO, the Original Phantom Units were classified as a liability in Accrued expenses in the related condensed consolidated balance sheets due to the cash settlement requirements. As the service conditions were considered probable, the Company recognized a liability of $1.3 million as of December 31, 2024. Upon IPO, the previously recognized cumulative compensation cost of $0.1 million was reclassified to Additional paid in capital within stockholders' equity in the related condensed consolidated balance sheets. The remaining unrecognized expense of less than $0.1 million will be recognized as stock-compensation expense over the remaining requisite service period. ESPP The ESPP became effective on September 12, 2025. An aggregate of 7,383,241 shares of the Company’s class A common stock has been authorized for issuance under the ESPP. During the nine months ended September 30, 2025, 0 shares were purchased under the ESPP. As of September 30, 2025, 7,383,241 shares remained available for future issuance under the ESPP. The Company did not recognize any share-based compensation expense or liability related to the ESPP for the three and nine months ended September 30, 2025 and 2024. Equity Plan The Equity Plan became effective on September 12, 2025. Under the Equity Plan, the Company is authorized to grant shares of common stock in the form of stock options, RSUs, and RSAs to its employees, directors, and consultants. As of September 30, 2025, there were 12,130,692 shares of Class A common stock related to issued and outstanding RSUs and stock options under the Equity Plan. This consisted of 5,283,088 shares of Class A common stock issuable upon the vesting of RSUs granted under the Equity Plan to certain executive officers, other employees and board members, and 6,847,604 shares of Class A common stock issuable upon the exercise of stock options granted under the Equity Plan to the Company's founders and certain executive officers. As of September 30, 2025, the Company had 12,972,329 shares available for future issuance under the Equity Plan. RSUs In June 2025, the Company approved its annual bonus arrangements totaling $15.1 million to be settled in shares of Class A common stock contingent upon the completion of an IPO. Upon the completion of the IPO on September 11, 2025, 538,612 shares of RSUs were issued, vested, and outstanding, based on the IPO price of $28.00 per share. The Company recognized the full stock-based compensation expense upon completion of the IPO. In addition to the bonus RSUs, upon the completion of the IPO, there were 4,730,917 shares of Class A common stock issuable upon the vesting and settlement of RSUs, granted under the Equity Plan to certain executive officers, other employees and board members. The following table summarizes RSU activity for the nine months ended September 30, 2025 (in thousands):
| Number of RSUs |  | Weighted-Average Grant Date Fair Value per Unit
Unvested at December 31, 2024 | — |  |  | $ | — |
Granted | 5,270 |  |  | 28.00 |
Vested | (1,382) |  |  | 28.00 |
Forfeited | — |  |  | — |
Unvested at September 30, 2025 | 3,888 |  |  | $ | 28.00 |
As of September 30, 2025 and December 31, 2024, there were 5,269,529 and 0 RSUs outstanding, respectively. As of September 30, 2025, total unrecognized compensation expense related to unvested RSUs amounted to $106.1 million. The unrecognized expense for the RSUs is expected to be recognized over a weighted-average period of 3.2 years, subject to continued vesting. RSAs Upon the completion of the IPO, there were 4,399,544 shares of restricted Class A common stock granted under the Equity Plan to certain executive officers, other employees and board members. The following table summarizes RSA activity for the nine months ended September 30, 2025 (in thousands):
| Number of RSA |  | Weighted-Average Grant Date Fair Value per Unit
Unvested at December 31, 2024 | — |  |  | $ | — |
Conversion of awards in connection with IPO | 4,400 |  |  | 28.00 |
Vested | (200) |  |  | 28.00 |
Forfeited | — |  |  | — |
Unvested at September 30, 2025 | 4,200 |  |  | $ | 28.00 |
As of September 30, 2025 and December 31, 2024, there were 4,399,544 and 0 RSAs outstanding, respectively. As of September 30, 2025, total unrecognized compensation expense related to unvested RSAs amounted to $8.3 million. The unrecognized expense for the RSAs is expected to be recognized over a weighted-average period of 1.7 years, subject to continued vesting. Time-Based Stock Options As of September 30, 2025, there were 482,142 shares of Class A common stock issuable upon the exercise of stock options granted under the Equity Plan to the Company certain executive officers. The following table summarizes stock options activity for the nine months ended September 30, 2025 (in thousands):
| Number of Stock Options |  | Weighted-Average Exercise Price |  | Weighted Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value
Ou t stan ding at December 31, 2024 | — |  |  | $ | — |  |  | — |  |  | $ | — |
Granted | 482 |  |  | 28.00 |  |  |  |  |
Exercised | — |  |  | — |  |  |  |  |
Forfeited | — |  |  | — |  |  |  |  |
Expired | — |  |  | — |  |  |  |  |
Out standing at September 30, 2025 | 482 |  |  | $ | 28.00 |  |  | 3.9 |  | $ | — |
Exercisable at September 30, 2025 | — |  |  | — |  |  | — |  |  | $ | — |
As of September 30, 2025, total unrecognized compensation expense related to unvested stock options amounted to $8.7 million. The unrecognized expense for the stock options is expected to be recognized over a weighted-average period of 3.9 years, subject to continued vesting. The Company takes into consideration many factors in determining the fair value of the time-based stock options and estimates the fair value of such awards on the grant date. The Company used an option pricing model to estimate the fair value of the time-based stock options with the following assumptions as of September 30, 2025:
| September 30, |  |
Assumptions | 2025 |  |
Expected term in years | 6.1 |  |
Volatility | 70 | % |  |
Risk-free rate | 3.7 | % |  |
Dividend Yield | 0.0 | % |  |
Expected term in years - The expected term is based on the average period the time-based stock options are expected to remain outstanding, generally calculated as the midpoint of the time-based stock options' remaining vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. Volatility - The expected volatility is based on the volatility of peer companies. Management believes this is the best estimate of the expected volatility over the expected life of the time-based stock options. Risk-free rate - The risk-free interest rate is based on the U.S. Treasury yield curve that corresponds with the expected term at the time of grant. Dividend yield - The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero. Market-Based Stock Options As of September 30, 2025, there were 6,365,462 shares of Class A common stock issuable upon the exercise of stock options granted under the Equity Plan to the Company founders. The following table summarizes stock options activity for the nine months ended September 30, 2025 (in thousands):
| Number of Stock Options |  | Weighted-Average Exercise Price |  | Weighted Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value
Outstanding at December 31, 2024 | — |  |  | $ | — |  |  | — |  |  | $ | — |
Granted | 6,365 |  |  | 28.00 |  |  |  |  |
Exercised | — |  |  | — |  |  |  |  |
Forfeited | — |  |  | — |  |  |  |  |
Expired | — |  |  | — |  |  |  |  |
Outstanding at September 30, 2025 | 6,365 |  |  | $ | 28.00 |  |  | 6.9 |  | $ | — |
Exercisable at September 30, 2025 | — |  |  |  |  | — |  |  | $ | — |
The Company takes into consideration many factors in determining the fair value of the market-based stock options and estimates the fair value of such awards on the grant date. The Company used an option pricing model to estimate the fair value of the market-based stock options with the following assumptions as of September 30, 2025:
| September 30, |  |
Assumptions | 2025 |  |
Expected term in years | 10.0 |  |
Volatility | 70 | % |  |
Risk-free rate | 4.0 | % |  |
Dividend Yield | 0.0 | % |  |
Expected term in years - The expected term is based on the average period the market-based stock options are expected to remain outstanding, generally calculated as the midpoint of the market-based stock options’ remaining vesting term and contractual expiration period, as the Company does not have sufficient historical information to develop reasonable expectations about future exercise patterns and post-vesting employment termination behavior. Volatility - The expected volatility is based on the volatility of peer companies. Management believes this is the best estimate of the expected volatility over the expected life of the market-based stock options. Risk-free rate - The risk-free interest rate is based on the U.S. Treasury yield curve that corresponds with the expected term at the time of grant. Dividend yield - The Company has not paid and does not expect to pay dividends. Consequently, the Company uses an expected dividend yield of zero. As of September 30, 2025, total unrecognized compensation expense related to unvested market-based stock options amounted to $122.5 million. The unrecognized expense for the stock options is expected to be recognized over a weighted-average period of 6.9 years, subject to continued vesting. The Company recognized stock compensation expense of $45.6 million and $48.8 million for the three and nine months ended September 30, 2025, respectively, and $1.3 million and $4.5 million for the three and nine months ended September 30, 2024, respectively.

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