The Company recognizes cumulative stock-based compensation expense for the portion of the awards for which the service period is probable of being satisfied. Stock-based compensation expense is included in selling, general and administrative expense in the condensed consolidated statements of income and comprehensive income. The related deferred tax benefit for stock-based compensation recognized was $0.5 million and $0.6 million for the three months ended March 31, 2025 and 2024, respectively.

The Company recognized stock-based compensation expense relating to stock option activity of $1.7 million and $2.0 million for the three months ended March 31, 2025 and 2024, respectively.

Stock option activity for the three months ended March 31, 2025, was as follows:


				Weighted-Average
	Number of Options			Exercise Price per Option		Remaining Contractual Term		Aggregate Intrinsic Value
	(thousands)					(years)		(millions)
Outstanding at December 31, 2024		17,624		$	5.94		6.1	$	6.9
Granted		943			4.14
Exercised		(18	)		3.80
Forfeited/Expired		(365	)		7.54
Outstanding at March 31, 2025		18,184		$	5.81		6.2	$	0.9
Exercisable at March 31, 2025		11,232		$	6.59		5.2	$	0.3

There was a total of $8.0 million unrecognized stock-based compensation expense at March 31, 2025 related to unvested stock options expected to be recognized over a weighted-average period of 1.84 years.

The Company grants RSUs that contain service conditions to certain executives and employees. The Company recognizes cumulative stock-based compensation expense for the portion of the awards for which the service period is probable of being satisfied. Stock-based compensation expense relating to RSU activity recognized in the three months ended March 31, 2025 and 2024 was $0.9 million and $0.4 million, respectively. There was a total of $12.0 million of unrecognized stock-based compensation expense at March 31, 2025 related to unvested RSUs expected to be recognized over a weighted-average period of 2.8 years.

RSU activity for the three months ended March 31, 2025, was as follows:


(share data in thousands, except per share data)	Number of RSUs (share data in thousands)			Weighted Average Grant Date Fair Value per Share
Unvested balance, December 31, 2024		268		$	5.71
Granted		3,035			4.13
Vested		(180	)		5.93
Unvested balance, March 31, 2025		3,123		$	4.16

In January 2020, the Company granted performance-based market condition share awards to one senior executive under the 2017 Omnibus Equity Plan, which entitle this employee the right to receive shares of common stock equal to a maximum value of $4.9 million in the aggregate, upon achievement of specified targeted share prices measured over sixty days within a ninety-day trading period. As of March 31, 2025, all outstanding performance-based market condition share awards remain unvested with an estimated weighted average conversion threshold of $21.09 per share, which would result in an estimated 45,718 shares of common stock to be issued upon vesting. Each of the estimated 45,718 shares of common stock have a weighted-average grant date fair value of $24.53 per share.

As of March 31, 2025 and December 31, 2024, the liability for these awards was $0.5 million and is reported on the condensed consolidated balance sheets in other noncurrent liabilities. The fair value of performance-based market condition share awards is estimated on the grant date using a risk-neutral Monte Carlo simulation model. The Company recognized stock-based compensation expense relating to performance-based market condition share awards of zero for each of the three months ended March 31, 2025 and 2024.

The weighted-average expected term of the Company’s performance-based market condition share awards is the weighted-average of the derived service periods for the share awards.