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Equity-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Equity-Based Compensation Equity-Based Compensation
The Company’s equity-based compensation programs are intended to attract, retain and provide incentives for employees, officers and directors. The Company has the following stock-based compensation plans and programs.
Restricted Stock
The majority of the Company’s restricted stock awarded to its employees was originally issued on December 10, 2020 in exchange for the Class B Units of EQT, which was the former parent of the Company. Additionally, the Company granted replacement shares of restricted stock in connection with the 2021 Pinnacle acquisition, which had fully vested in 2024.
Share-based compensation for the restricted stock exchanged for the time-based Class B Units is recognized on a straight-line basis over the requisite service period of the award, which is generally five years. Share-based compensation for the restricted stock exchanged for the performance-based Class B Units is recognized using the accelerated attribution approach.
A summary of the restricted stock activities as of and for the year ended December 31, 2024 is shown below:
SHARESWEIGHTED-AVERAGE
GRANT-DATE
FAIR VALUE
Non-vested restricted stock as of December 31, 2023538,661$23.18 
Granted*16,842 17.35 
Vested*(376,052)23.03 
Forfeited(5,123)23.00 
Cancelled*(16,842)23.00
Non-vested restricted stock as of December 31, 2024157,486$22.94 
__________________________________
•The number of the restricted stock vested includes 3,959 shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements.
•During the year ended December 31, 2024, the Company modified certain awards for recipients, resulting in 16,842 shares assumed to be granted, vested, and cancelled for accounting purposes.
The Company did not authorize or issue any restricted stock during the year ended December 31, 2024. Equity-based compensation expense related to the restricted stock exchanged for performance-based Class B Units were $668, $801 and $2,537 for the years ended December 31, 2024, 2023 and 2022, respectively. At December 31, 2024, the total unrecognized equity-based compensation expenses related to outstanding restricted stock recognized using the accelerated attribution approach was $160. The unrecognized compensation expense for the category at December 31, 2024 is expected to be recognized over a weighted-average period of 8.1 months.
Equity-based compensation expense related to the time-based restricted stock were $928, $1,313 and $3,166 for the years ended December 31, 2024, 2023 and 2022, respectively. At December 31, 2024, the total unrecognized equity-based compensation expense related to outstanding restricted stock recognized using the straight-line attribution approach was $321. The unrecognized compensation expense for the category at December 31, 2024 is expected to be recognized over a weighted-average period of 8.2 months.
Equity-based employee compensation expenses related to the time-based restricted stock for the Pinnacle acquisition were $318, $983, and $1,169 for the years ended December 31, 2024, 2023, and 2022, respectively. At December 31, 2024, there was no unrecognized equity-based compensation expense related to outstanding restricted stock recognized using the straight-line attribution approach.
2020 Incentive Plan
In order to align the Company’s equity compensation program with public company practices, the Company’s Board of Directors adopted and stockholders approved the 2020 Incentive Plan. The 2020 Incentive Plan allows for grants of non-qualified stock options, incentive stock options, restricted stock, restricted stock units (“RSUs”), and performance stock units (“PSUs”) to employees, directors, officers, and consultants or advisors of the Company. The 2020 Incentive Plan allows for 20,000,000 shares (the “plan share reserve”) of common stock to be issued. No more than the number of shares of common stock equal to the plan share reserve may be issued in the aggregate pursuant to the exercise of incentive stock options. The maximum number of shares of common stock granted during a single fiscal year to any non-employee director, taken together with any cash fees paid to such non-employee director during the fiscal year, may not exceed $1,000,000 in total value, except for certain awards made to a non-executive chair of our Board of Directors. At December 31, 2024, there were 13,699,466 shares reserved for future issuance.
The plan share reserve will be increased on the first day of each fiscal year beginning with the 2022 fiscal year and ending after the tenth anniversary of the effective date in an amount equal to the lesser of (i) the positive difference, if any, between (x) 4.0% of the outstanding common stock on the last day of the immediately preceding fiscal year and (y) the plan share reserve on the last day of the immediately preceding fiscal year and (ii) a lower number of shares of our common stock as determined by our board of directors.
Restricted Stock Units (“RSUs”)
RSUs represent the right to receive shares of the Company’s common stock at a specified date in the future. During the year ended December 31, 2024, the Company granted 2,322,890 RSUs under the 2020 Incentive Plan that generally vest over an average three-year period. The fair value of the RSUs is based on the fair value of the underlying shares on the date of grant.
A summary of the Company’s RSU activity is as follow:
UNITSWEIGHTED-
AVERAGE
GRANT DATE
FAIR VALUE
Non-vested RSUs as of December 31, 20232,588,403$23.77 
Granted*2,322,89017.62 
Vested**(1,278,002)24.04 
Forfeited(386,604)20.36 
Cancelled*(42,098)$24.21 
Non-vested RSUs as of December 31, 20243,204,589$19.61 
* The majority of shares granted during 2024 were issued under the 2020 Incentive Plan. During the year ended December 31, 2024, the Company modified awards for recipients, resulting in 42,098 shares assumed to be granted, vested, and cancelled for accounting purposes.
** The number of the RSUs vested included 462,339 shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements.
The weighted average grant date fair values per share of RSUs granted during 2024, 2023, and 2022 were $17.62, $23.35, and $21.98, respectively. The total fair value of RSUs vested during 2024, 2023, and 2022 were $30,723, $20,261, and $12,395, respectively.
Equity-based compensation expense related to the RSUs was $31,582, $26,734 and $19,012 for the years ended December 31, 2024, 2023, and 2022, respectively. At December 31, 2024, the total unrecognized equity-based compensation expense related to outstanding RSUs was $41,088, which is expected to be recognized over a weighted-average period of 22.6 months.
Performance Restricted Stock Units (“PSUs”)
PSUs are issued under the 2020 Incentive Plan and represent the right to receive shares of the Company’s common stock at a specified date in the future based on the satisfaction of various service conditions and the achievement of certain performance thresholds for individual PSU plans including year-over-year revenue growth, unlevered free cash flow growth, annual revenue, and annual EBITDA. The PSUs granted in 2023 and 2024 also contain market condition.
Equity-based compensation for the PSUs is only recognized to the extent a threshold is probable of being achieved and is recognized using the accelerated attribution approach. The Company will continue to assess the probability of each condition being achieved at each reporting period to determine whether and when to recognize compensation cost.
A summary of the Company's PSU activity as of and for the year ended December 31, 2024 is as follows:
UNITSWEIGHTED-
AVERAGE
GRANT DATE
FAIR VALUE
Non-vested PSUs as of December 31, 2023849,467$24.84 
Granted*338,44518.98 
Vested**(106,354)22.91 
Forfeited(42,131)21.23 
Cancelled*(394,050)$27.09 
Non-vested PSUs as of December 31, 2024645,377$20.95 
* During 2024, the Company modified an award for a recipient, resulting in 6,651 shares assumed to be granted and cancelled for accounting purpose.
** The number of the PSUs vested included 46,785 shares that were withheld on behalf of employees to satisfy the statutory tax withholding requirements.
The weighted average grant date fair values per share of PSUs granted during 2024, 2023, and 2022 were $18.98 and $27.00, and $22.25, respectively. The total fair values of PSUs vested were $2,437, $5,269, $305 during 2024, 2023 and 2022, respectively.
Equity-based compensation expense related to the PSUs was $1,279, $(1,531), and $4,462 for the years ended December 31, 2024, 2023, and 2022, respectively. At December 31, 2024, the total unrecognized equity-based compensation expense related to outstanding PSUs was $759, which is expected to be recognized over a weighted-average period of 17.1 months.
The grant date fair values for PSU 2023 and 2024 were determined based on Monte Carlo price model and the valuation assumptions noted in the following table.
Year Ended December 31,
20242023
Expected dividend yield——
Volatility
52.2% - 54.7%
61.4% - 61.9%
Expected term (years)
1.78 - 2.78
2.54 - 2.74
Risk-free interest rate
4.36%- 4.64%
3.89%- 4.29%

In March 2023, the Company modified the 2022 PSU agreement to adjust criteria regarding the inclusion of merger and acquisition revenues in the second and third years of the performance period, as well as the corresponding base years. This change affected 12 participants at the time of the modification. As of December 31, 2024, the Company did not recognize any lifetime incremental cost associated with this modification, as it will not result in the issuance of incremental shares to participants.
Equity-based compensation expense
The following table summarizes the components of total equity-based compensation expense included in the consolidated statements of operations and comprehensive income (loss) for each period presented:
YEAR ENDED DECEMBER 31,
202420232022
(In thousands)
Cost of revenues$13,323 $11,545 $7,494 
Sales and marketing3,481 1,763 2,091 
Research and development5,233 6,316 5,829 
General and administrative expenses12,737 8,676 14,931 
Total$34,774 $28,300 $30,345 
The tax benefit related to compensation expense was $5,051, $3,797, and $1,933 for the years ended December 31, 2024, 2023, and 2022.