Equity-Based Compensation

3 Months Ended

Mar. 31, 2025

During the three months ended March 31, 2025, the Company granted 2.5 million equity-classified RSUs and 0.8 million liability-classified RSUs with aggregate grant date fair values of $34.3 million and $10.3 million, respectively, to certain

employees. The liability-classified RSUs are either classified as liabilities because they are required to be settled in cash or because the Company has the right to and intends to (as of the grant date or March 31, 2025, as applicable) settle the RSUs partially or wholly in cash. During the three months ended March 31, 2025, the Company reclassified 1.5 million RSUs from liability-classified to equity-classified based on management’s intent to settle the awards in shares of Class A common stock.

The majority of liability-classified awards outstanding as of December 31, 2024 were granted in October 2024, vested on March 1, 2025 and were delivered on April 15, 2025. Of the 0.8 million liability-classified RSUs granted during the three months ended March 31, 2025, 0.6 million vested and delivered on April 15, 2025. Other awards generally vest either (a) one-third at the grant date with the remainder over two years in equal annual installments or (b) over a one to three year period. Upon delivery, the Company may withhold the number of shares to satisfy the statutory withholding tax obligation and deliver the net number of resulting shares vested.

See Note 9 for additional information regarding GCMH Equityholders Awards and Holdings Awards.

A summary of non-vested equity-classified RSU activity for the three months ended March 31, 2025 is as follows:


	Number of RSUs	Weighted-Average Grant-Date Fair Value Per RSU
Balance as of December 31, 2024	3,251,068	$	8.40
Granted	2,511,371	13.66
Reclassified from liability-classified RSUs	1,495,791	11.31
Vested	(1,001,593)	11.51
Forfeited	(14,319)	12.74
Balance as of March 31, 2025	6,242,318	10.71

A summary of non-vested liability-classified RSU activity for the three months ended March 31, 2025 is as follows:


	Number of RSUs	Weighted-Average Grant-Date Fair Value Per RSU
Balance as of December 31, 2024	1,813,249	$	10.50
Granted	786,142	13.15
Reclassified to equity-classified RSUs	(1,495,791)	11.31
Vested	(507,688)	11.26

Balance as of March 31, 2025	595,912	$	11.32

The total grant-date fair value of RSUs that vested during three months ended March 31, 2025 was $17.2 million. For the three months ended March 31, 2025 and 2024, $20.3 million and $25.5 million, respectively, of compensation expense related to RSUs was recorded within employee compensation and benefits in the Condensed Consolidated Statements of Income (Loss). As of March 31, 2025, total unrecognized compensation expense related to unvested RSUs was $53.6 million and is expected to be recognized over the remaining weighted average period of 2.8 years.

During the three months ended March 31, 2025, a modification of a GCMH Equityholder Award was made that changed settlement of 200,000 shares to be from the Company’s 2020 Incentive Award Plan. Such amount is reflected as granted within the equity-classified RSU activity in the rollforward above.

The tax benefit related to RSUs that vested and were delivered during the three months ended March 31, 2025 was $0.1 million.