
	Three Months Ended March 31,
	2026		2025

Cost of sales	$	2,694	$	2,187
Research and development	3,241		2,525
Sales, general and administrative	8,583		6,569
Stock-based compensation capitalized in inventory	(1,446)		(1,173)
Total stock-based compensation	$	13,072	$	10,108

The Company had 8.0 million shares available for grant as of March 31, 2026 under the 2021 Equity Incentive Award Plan, or 2021 Plan.

A summary of the Company’s stock option activity and related information are as follows (options in thousands):


	Three Months Ended
	March 31, 2026

	Number of Shares	Weighted-Average Exercise Price
Outstanding, beginning of period	3,444	$	17.00
Granted	293	25.35
Exercised	(56)	3.96
Forfeited	—	—
Outstanding, end of period	3,681	17.87
Vested and expected to vest	3,681	17.87
Exercisable	2,774	11.75

As of March 31, 2026 and December 31, 2025, the aggregate pre-tax intrinsic value of options outstanding and exercisable was $44.7 million and $61.0 million, respectively, and the aggregate pre-tax intrinsic value of options outstanding were $44.7 million and $61.0 million, respectively. The aggregate pre-tax intrinsic value of options exercised was $1.4 million and $8.7 million during the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, there was a total of $16.9 million of unrecognized stock-based compensation expense related to stock options.

The fair value of the options granted to employees or directors was estimated as of the grant date using the Black-Scholes model assuming the weighted-average assumptions listed in the following table:


	Three Months Ended March 31,
	2026			2025

Expected life (years)	6.0			6.0
Expected volatility	64		%	58		%
Risk-free interest rate	3.8		%	4.0		%
Expected dividend rate	—		%	—		%
Weighted-average fair value	$	15.60		$	35.00

A summary of the Company’s restricted stock unit, or RSU, activity and related information are as follows (RSUs in thousands):


	Three Months Ended
	March 31, 2026

	Number of Shares	Weighted-Average Fair Value
Unvested, beginning of period	2,346	$	48.63
Awarded	2,195	25.54
Forfeited	(71)	43.29
Vested	(484)	47.28
Unvested, end of period	3,986	36.18

As of March 31, 2026, there was a total of $130.3 million of unrecognized stock-based compensation expense related to RSUs.

The 2021 Plan provides for issuance of performance stock units, or PSUs. PSUs granted are contingent upon the achievement of predetermined market, performance, and service conditions. PSUs are awarded to executives of the Company and generally time vest over a period of up to three years. Vesting is also generally contingent upon achievement of applicable performance metrics. PSU expense is recognized over the requisite service period.

During the three months ended March 31, 2026, the Company awarded PSU shares with both a performance and service condition.

A summary of the Company’s PSU activity and related information are as follows (PSUs in thousands):


	Three Months Ended
	March 31, 2026

	Number of Shares	Weighted-Average Fair Value
Unvested, beginning of period	115	$	67.62
Awarded	285	25.35
Forfeited	—	—
Vested	(34)	82.14
Performance change	(52)	66.36
Unvested, end of period	314	27.85

As of March 31, 2026, total unrecognized stock-based compensation related to unvested PSUs was $7.6 million.

During the period ended March 31, 2026, there were no stock purchases under the Employee Stock Purchase Plan, or ESPP. As of March 31, 2026, there was approximately $2.1 million of unrecognized cost related to the Employee Stock Purchase Plan, or ESPP. This cost is expected to be recognized over a weighted average period of 0.4 years. As of March 31, 2026, a total of 2.4 million shares were available for issuance under the ESPP.