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Equity-Based Compensation | 6 Months Ended
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Jun. 30, 2023
Share-Based Payment Arrangement [Abstract] |
Equity-Based Compensation | Equity-Based Compensation 2021 Long-term Incentive Plan The Shoals Technologies Group, Inc. 2021 Long-Term incentive Plan (the “2021 Incentive Plan”) became effective on January 26, 2021. The 2021 Incentive Plan authorized 8,768,124 new shares, subject to adjustment pursuant to the 2021 Incentive Plan. Restricted Stock Units During the six months ended June 30, 2023, the Company granted 289,713 restricted stock units (“RSUs") to certain employees, officers and directors of the Company. The RSUs have grant date fair values ranging from $18.12 to $28.26 per unit and generally vest ratably over 3 years, except director grants which vest over 1 year. Activity under the 2021 Incentive Plan for RSUs was as follows:
| Six Months Ended June 30, 2023
| Restricted Stock Units |  | Weighted Average Price
Outstanding, December 31, 2022 | 1,736,975 |  |  | $ | 22.34 |
Granted | 289,713 |  |  | $ | 24.73 |
Vested | (697,847) |  |  | $ | 19.67 |
Forfeited | (46,582) |  |  | $ | 22.54 |
Outstanding, June 30, 2023 | 1,282,259 |  |  | $ | 24.33 |
Performance Stock Units During the six months ended June 30, 2023, the Company granted an aggregate of 143,810 Performance Stock Units ("PSUs") to certain executives. The PSUs cliff vest after 3 years upon meeting certain revenue and gross margin targets and contain certain modifiers which could increase or decrease the ultimate number of shares of Class A common stock issued to the executives. The PSUs were valued using the market value of the Class A common stock on the grant date ranging from $26.55 to $28.26. Activity under the 2021 Incentive Plan for PSUs was as follows:
| Six Months Ended June 30, 2023 |  |  |  |
| Performance Stock Units |  | Weighted Average Price |  |  |  |
Outstanding, December 31, 2022 | 256,305 |  |  | $ | 11.89 |  |  |  |  |
Granted | 143,810 |  |  | $ | 28.19 |  |  |  |  |
Vested | (53,144) |  |  | $ | 10.42 |  |  |  |  |
Forfeited | (79,533) |  |  | $ | 10.42 |  |  |  |  |
Outstanding, June 30, 2023 | 267,438 |  |  | $ | 21.38 |  |  |  |  |
The Company recognized equity-based compensation of $4.4 million and $4.1 million for the three months ended June 30, 2023 and 2022, respectively, and $12.0 million and $7.9 million for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, the Company had $29.4 million of unrecognized compensation costs which is expected to be recognized over a period of 1.9 years.

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