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Equity-Based Compensation | 3 Months Ended
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Mar. 31, 2025
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 three months ended March 31, 2025, the Company granted 1,480,042 restricted stock units (“RSUs") to certain employees, officers and directors of the Company. The RSUs granted during 2025 have grant date fair values ranging from $4.54 to $6.05 per unit and vest ratably over 3 years. Activity under the 2021 Incentive Plan for RSUs was as follows:
| Three Months Ended March 31, 2025
| Restricted Stock Units |  | Weighted Average Price
Outstanding, December 31, 2024 | 1,842,356 |  |  | $ | 12.21 |
Granted | 1,480,042 |  |  | $ | 4.60 |
Vested | (430,431) |  |  | $ | 20.86 |
Forfeited | (41,582) |  |  | $ | 12.74 |
Outstanding, March 31, 2025 | 2,850,385 |  |  | $ | 6.94 |
Performance Stock Units During the three months ended March 31, 2025, the Company granted an aggregate of 885,077 Performance Stock Units ("PSUs") to certain executives. The PSUs granted during 2025 cliff vest after 3 years upon meeting certain revenue and adjusted diluted EPS targets and contain a total shareholder return modifier which could increase or decrease the ultimate number 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 of $4.59. Activity under the 2021 Incentive Plan for PSUs was as follows:
| Three Months Ended March 31, 2025 |  |  |  |
| Performance Stock Units |  | Weighted Average Price |  |  |  |
Outstanding, December 31, 2024 | 472,666 |  |  | $ | 18.77 |  |  |  |  |
Granted | 885,077 |  |  | $ | 4.59 |  |  |  |  |
Vested | (37,678) |  |  | $ | 14.43 |  |  |  |  |
Forfeited | (20,831) |  |  | $ | 14.43 |  |  |  |  |
Outstanding, March 31, 2025 | 1,299,234 |  |  | $ | 9.31 |  |  |  |  |
The Company recognized equity-based compensation of $2.7 million and $5.0 million, respectively, for the three months ended March 31, 2025 and 2024. As of March 31, 2025, the Company had $19.7 million of unrecognized compensation costs which is expected to be recognized over a weighted average period of 2.5 years.

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