H2O America’s long-term incentive plans provide employees, non-employee board members or the board of directors of any parent or subsidiary, consultants, and other independent advisors who provide services to the company or subsidiary the opportunity to acquire an equity interest in H2O America. H2O America also maintains stock plans in connection with its acquisition of CTWS which are no longer granting new stock awards. In addition, shares are issued to employees under H2O America’s employee stock purchase plan.

On April 26, 2023, H2O America adopted the successor plans, the 2023 Long-Term Incentive Plan and the 2023 Employee Stock Purchase Plan, to replace the Amended and Restated Long-Term Incentive Plan (the “Predecessor Incentive Plan”) and the 2014 Employee Stock Purchase Plan (the “Predecessor ESPP”), respectively. The Predecessor Incentive Plan terminated on April 23, 2023 and the Predecessor ESPP terminated on July 31, 2023. Each outstanding award under the Predecessor Incentive Plan will remain outstanding under the Predecessor Incentive Plan and shall be governed solely by the terms of the documents evidencing such awards. The 2023 Long-Term Incentive Plan reserves a total of 1,142,000 shares of H2O America’s common

stock for issuance to employees, non-employee board members or the board of directors of any parent or subsidiary, consultants, and other independent advisors who provide services to the H2O America and its subsidiaries. The 2023 Employee Stock Purchase Plan reserves for a total of 500,000 shares of H2O America’s common stock for issuance for eligible employees to purchase common stock at a discount through accumulated payroll deductions. Remaining reserves for both of the predecessor plans were terminated with the adoption of the successor plans.

A participant in the plans generally may not receive plan awards covering an aggregate of more than 600,000 shares of common stock in any calendar year. Additionally, awards granted under the plans may be conditioned upon the attainment of specified Company performance goals. The types of awards included in the plans are restricted stock awards, restricted stock units, performance shares, or other share-based awards. In addition, shares are issued to employees under the employee stock purchase plan (“ESPP”) that was approved by H2O America stockholders.

As of December 31, 2025, 2024 and 2023, 1,213,202, 1,142,770 and 1,080,759 shares have been issued pursuant to the plans, and 278,565, 191,177 and 150,704 shares are issuable upon the vesting of outstanding restricted stock units, performance-based stock units, and deferred restricted stock units for the years ended 2025, 2024 and 2023, respectively. The remaining shares available for issuance under the plans are 862,815 as of December 31, 2025. The compensation costs charged to income is recognized on a straight-line basis over the requisite service period.

A summary of compensation costs charged to income and proceeds from share-based compensation, which are recorded to additional paid-in capital and common stock, by award type, are presented below for the years ended December 31:


	2025		2024	2023
Compensation costs charged to income:
ESPP	$	360	557	378
Restricted stock and deferred restricted stock	6,084		5,066	4,269
Total compensation costs charged to income	$	6,444	5,623	4,647
ESPP proceeds	$	2,131	2,188	2,141

A summary of H2O America’s outstanding restricted and deferred restricted stock awards under the Plan as of December 31, 2025, and changes during the year ended December 31, 2025, are presented below:


	Units	Weighted- Average Grant- Date Fair Value
Outstanding as of January 1, 2025	191,177	$	65.36
Granted	175,037	48.65
Issued	(70,611)	63.53
Forfeited	(17,038)	58.29
Outstanding as of December 31, 2025	278,565	$	52.32
Shares vested as of December 31, 2025	30,162	$	79.89

A summary of the status of H2O America’s nonvested restricted and deferred restricted stock awards under the plans as of December 31, 2025, and changes during the year ended December 31, 2025, are presented below:


	Units	Weighted- Average Grant- Date Fair Value
Nonvested as of January 1, 2025	159,156	$	64.30
Granted	175,037	48.65
Vested	(76,725)	68.03
Forfeited	(9,065)	58.29
Nonvested as of December 31, 2025	248,403	$	52.34

Total fair value of restricted stock awards for all plans that were vested for the years ended 2025, 2024 and 2023 were $1,478, $4,788 and $4,170, respectively. As of December 31, 2025, the total unrecognized compensation costs related to restricted and

For the years ended December 31, 2025, 2024 and 2023, 29,413, 33,670 and 15,955, respectively, of performance-based and market-based restricted stock awards were issued upon the attainment of certain performance metrics and service-based vesting under the Plan. Based upon actual attainment relative to the target performance metric, the number of shares issuable can range between 0% to 150% of the target number of shares for performance-based restricted stock awards, or between 0% and 200% of the target number of shares for market-based restricted stock awards. As of December 31, 2025, 7,805 performance-based and market-based restricted stock awards vested and 28,598 remained outstanding.

The ESPP allows eligible employees to purchase shares of H2O America’s common stock at 85% of the fair value of shares on the purchase date. Under the ESPP, employees can designate up to a maximum of 10% of their base compensation for the purchase of shares of common stock, subject to certain restrictions. A total of 500,000 shares of H2O America’s common stock have been reserved for issuance under the ESPP. The remaining shares available for issuance under the ESPP are 406,286 as of December 31, 2025.