Stock-based Compensation

9 Months Ended

Sep. 30, 2025

Share-Based Payment Arrangement [Abstract]

Stock-based Compensation Expense

We recorded stock-based compensation expense in the following categories in the accompanying unaudited condensed consolidated statements of operations and balance sheets (in thousands):


	Three Months Ended September 30,					Nine Months Ended September 30,
		2025		2024		2025		2024
Cost of revenue		$	1,421	$	1,165	$	4,159	$	4,505
Sales and marketing		4,445		1,864		12,685		5,349
Technology and development		2,893		6,179		11,575		18,407
General and administrative		$	19,610	$	6,507	$	60,344	$	21,225
Total stock-based compensation expense		28,369		15,715		88,763		49,486
Amount capitalized to internal-use software		1,334		1,536		4,253		4,580
Total stock-based compensation		$	29,703	$	17,251	$	93,016	$	54,066

Restricted Stock Units and Performance Stock Units

During the nine months ended September 30, 2025, we granted 6.2 million restricted stock units, or RSUs, with a total grant date fair value of $61.2 million to various employees. RSUs are measured based on the fair market value of the underlying stock on the date of grant and recognized as expense over the requisite service period.

During the nine months ended September 30, 2024, we granted 2.5 million RSUs with a performance condition, or PSUs. Vesting of the PSUs is contingent upon the recipient’s continuous employment over the requisite service period and was subject to fulfillment by the Company of a predefined profitability target during the performance period. The number of PSUs subject to vesting was determined at the end of the performance period and could equal zero percent (0%) to two hundred percent (200%) of the target award. If the performance criteria were achieved, one third of the PSUs would vest on the date the compensation committee of the board of directors certified achievement of the performance criteria, and the remaining awards would vest quarterly thereafter through February 2027. These PSU awards also included a modifier to the total number of shares earned based on the Company’s total shareholder return, or TSR, compared to the TSR of the Nasdaq Composite Index during the performance period. The total number of shares issued pursuant to the PSU award could be increased, decreased, or remain unchanged based on the TSR modifier. The TSR modifier applicable to the PSUs was considered a market condition and therefore is reflected in the respective grant-date fair values of the awards. A Monte Carlo simulation was used to account for this market condition in the grant-date fair value of the awards. Expense related to the PSUs is recognized over the employee’s requisite service period using graded vesting attribution method to the extent it is probable that the performance conditions will be achieved. During the nine months ended September 30, 2025, our compensation committee certified achievement of the predefined profitability target during the performance period. In addition, no additional awards were granted as a result of the TSR modifier. We recognized $1.2 million and $2.9 million during the three months ended September 30, 2025 and 2024, respectively, and $5.1 million and $6.4 million during the nine months ended September 30, 2025 and 2024, respectively, in stock-based compensation expense related to these awards.

In July 2024, we granted 2.7 million RSUs with a market vesting condition. Vesting of this award is contingent upon the recipient’s continuous employment over the requisite service period and is subject to achievement of predetermined stock price targets during a five-year performance period. Achievement of the predetermined stock price targets is measured based on a 45-trading day volume weighted-average closing price of our common stock, subject to a 44-day extension in certain circumstances. The number of RSUs subject to vesting during the performance period may equal zero percent (0%) to two hundred percent (200%) of the target award. Upon the achievement of a stock price target during the performance period, one-half of the eligible RSUs will vest on the date the compensation committee of the board of directors certifies achievement of the stock price target and the other half will vest one year from such date, subject to the recipient’s continued employment through the vesting date. We recognized $2.4 million during the three months ended September 30, 2025 and 2024, respectively and $7.4 million and $2.4 million, respectively, during the nine months ended September 30, 2025 and 2024, respectively, in stock-based compensation expense related to these awards.

In November 2024, we also granted 2.4 million RSUs with a market vesting condition to members of our senior leadership team. The grant date fair value of these RSUs at 100% of the target was $12.6 million. The weighted-average grant-date fair value per share of the RSUs granted was $5.30. The fair value of the RSUs was estimated using the Monte Carlo simulation model on the date of the grant. Vesting of this award is contingent upon the recipient’s continuous employment over the requisite service period and is subject to achievement of predetermined stock price targets during a three-year performance period, subject to certification by the compensation committee of the board of directors. Achievement of the predetermined stock price targets is measured based on the trailing 30-trading day volume weighted average closing stock price of our common stock subject to a 29-day extension in certain circumstances. The number of RSUs subject to vesting during the performance period may equal zero percent (0%) to four hundred percent (400%) of the target award. If the compensation committee of the board of directors certifies achievement of a stock price target prior to November 15, 2025, the eligible shares will vest in full and become non-forfeitable on November 15, 2025. If the compensation committee of the board of directors certifies achievement of a stock price target on or subsequent to November 15, 2025, 100% of the eligible shares will vest and become non-forfeitable immediately on the date of certification by the compensation committee of the board of directors. We recognized $11.0 million during the three months ended September 30, 2025, and $32.6 million during the nine months ended September 30, 2025, in stock-based compensation expense related to these awards.