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Stock-based Compensation | 3 Months Ended
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Mar. 31, 2026
Share-Based Payment Arrangement [Abstract] |
Stock-based Compensation | Stock-based Compensation 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 March 31, |  |  |  |
|  | 2026 |  | 2025 |  |  |  |  |  |  |  |
Cost of revenue |  | $ | 1,251 |  |  | $ | 1,260 |  |  |  |  |  |  |  |  |
Sales and marketing |  | 3,548 |  |  | 3,767 |  |  |  |  |  |  |  |  |
Technology and development |  | 3,347 |  |  | 4,024 |  |  |  |  |  |  |  |  |
General and administrative |  | $ | 13,168 |  |  | $ | 20,705 |  |  |  |  |  |  |  |  |
Total stock-based compensation expense |  | 21,314 |  |  | 29,756 |  |  |  |  |  |  |  |  |
Amount capitalized to internal-use software |  | 1,209 |  |  | 1,340 |  |  |  |  |  |  |  |  |
Total stock-based compensation |  | $ | 22,523 |  |  | $ | 31,096 |  |  |  |  |  |  |  |  |
Restricted Stock Units During the three months ended March 31, 2026, we granted 9.9 million restricted stock units (“RSUs”) with a total grant date fair value of $66.3 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. Performance Stock Units During the three months ended March 31, 2026, we granted 3.6 million performance stock units (“PSUs”) to members of the Company’s senior leadership team (the “2026 PSUs”). The 2026 PSUs consist of two performance components: revenue and total shareholder return (“TSR”). The number of shares ultimately issuable under each component of the 2026 PSUs is based on the Company’s achievement relative to certain performance targets, continuous employment over the requisite service period as well as certification of results by the compensation committee of the board of directors following each applicable performance period. The revenue component of the 2026 PSUs represents 60% of the target award and achievement is measured based on the Company’s year-over-year revenue growth relative to pre-determined targets for three one-year performance periods ending on December 31, 2026, December 31, 2027, and December 31, 2028, respectively. Each annual performance period represents one-third of the awards that may be earned under the revenue component. The number of 2026 PSUs earned for each annual period may range from 0% to 300% of the number of awards allocated to each annual performance period. The grant-date fair value of the revenue component is based on the closing price of the Company’s common stock on the date of grant. Compensation expense for the revenue component is recognized over the requisite service period when achievement of the applicable performance condition is considered probable. The fair value of the revenue component on the grant date amounted to approximately $14.6 million assuming achievement at 100% of target. The TSR component represents 40% of the target award and achievement is measured based on the Company’s TSR percentile against a pre-determined peer set over two performance periods, each beginning January 1, 2026 and ending December 31, 2027 and December 31, 2028, respectively. Each performance period represents 50% of the awards that may be earned pursuant to the TSR component. The number of 2026 PSUs earned for each performance period may range from 0% to 400% of the number of awards allocated to each performance period. The grant-date fair value of the TSR component is estimated using a Monte Carlo simulation model as vesting depends on a market condition. Compensation expense for the TSR component is recognized over the longer of the requisite or derived service period regardless of whether the market condition is ultimately achieved. The Company estimated the weighted-average fair value of the TSR component to be approximately $17.9 million. The assumptions to the Monte Carlo simulation used to calculate the grant-date fair value of the TSR component is as follows:
|  | Three Months Ended March 31,
|  | 2026
Expected life (years) |  | 2.8
Risk-free interest rate |  | 3.6 | %
Expected volatility |  | 54.2 | %
Expected dividend yield |  | — |
We recognized $0.9 million in stock-based compensation expense during the three months ended March 31, 2026 related to the 2026 PSUs. In addition, we recognized $5.5 million and $13.3 million in stock-based compensation expense during the three months ended March 31, 2026 and 2025, respectively, related to PSUs with a market-based condition that were granted during the year ended December 31, 2024.

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