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Stock-Based Compensation

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Note 16. Stock-Based Compensation

Equity Award Plan

Old SES established its initial share incentive plan in 2013 (the “2013 Plan”), which was subsequently replaced with a new share incentive plan in 2018 (the “2018 Plan”). Under the terms of the 2013 Plan and 2018 Plan, certain number of shares were reserved for the issuance of incentive stock options (“ISOs”) and non-statutory stock options (“NSOs”) to employees, officers, directors, consultants and advisors. On March 30, 2021, the Company amended the 2018 Plan with the SES Holdings Pte. Ltd. 2021 Share Incentive Plan (the “2021 Plan”) and increased the total shares reserved for future issuance by 486,975 shares. Upon approval of the 2021 Plan, any shares that, as of the date of stockholder approval, were reserved but not issued pursuant to any awards granted under the Company’s 2018 Plan were rolled into the 2021 Plan. In addition, any shares issued pursuant to or subject to stock options or similar awards granted under the 2018 Plan that expired or otherwise terminated without having been exercised in full or that were forfeited or repurchased by the Company, rolled into the 2021 Plan. The 2021 Plan provided for the discretionary grant of ISOs, NSOs, and Restricted Share Awards (“RSAs”).

In connection with the Business Combination, the 2021 Plan was terminated and the remaining unallocated share reserve was cancelled, and no new awards will be granted under the 2021 Plan. At Closing, a total of 20,748,976 ISOs and NSOs and 2,273,727 RSAs (as converted, due to retroactive application of reverse recapitalization) outstanding under the 2021 Plan were assumed by the Company under the SES AI Corporation 2021 Plan (defined below).

SES AI Corporation 2021 Plan

In connection with the Business Combination, the Company adopted the SES AI Corporation 2021 Incentive Award Plan (the “SES 2021 Plan”) under which 36,862,002 shares of Class A common stock were initially reserved for issuance of ISOs, NSOs, stock appreciation rights (“SARs”), RSAs, restricted stock units (“RSUs”), performance compensation awards (“PSUs”), other stock-based and cash-based awards, and dividend equivalents. In addition, and subject to certain limitations, any shares issued pursuant to or subject to awards granted under the 2021 Plan that expired or otherwise terminated without having been exercised in full or that were forfeited or repurchased by the Company, rolled into the SES 2021 Plan. The SES 2021 Plan allows for the maximum number of shares issuable to automatically increase on January 1st of each year for a period of ten years commencing on January 1, 2023 and ending on (and including) January 1, 2031, in an amount equal to two percent of the total number of shares of stock outstanding on December 31^st of the preceding year. As of December 31, 2025, 38,518,171 shares remain available for future issuance under the SES 2021 Plan.

Stock-Based Compensation Expense

Compensation expense related to stock-based awards was recorded as follows:


	Years Ended December 31,
(in thousands)	2025			2024
Research and development	$	3,037		$	8,021
General and administrative		7,595			11,896
Cost of revenue		339			18
Total	$	10,971		$	19,935

The following table summarizes share-based compensation expense by award type:


	Years Ended December 31,
(in thousands)	2025			2024
RSUs	$	8,359		$	12,733
PSUs		1,380			2,885
RSAs		1,199			1,950
Stock options		33			370
Earn-Out Restricted Shares		—			1,997
Total	$	10,971		$	19,935

Restricted Stock Units

RSUs granted under the SES 2021 Plan vest in equal annual installments over a three-year period and have only service vesting conditions. The fair value of RSUs is estimated based on the closing price of the Company’s Class A common stock at the date of grant and is amortized to expense on a straight-line basis over the vesting period. RSU activity is as follows:


		Number of Shares		Weighted Average Fair Value
Outstanding at December 31, 2023		6,359,474		$	3.71
Granted		11,729,289		$	1.32
Vested		(2,413,455)		$	4.14
Forfeited and canceled		(2,392,385)		$	1.95
Outstanding at December 31, 2024		13,282,923		$	1.83
Granted		9,029,793		$	0.75
Gross vested units		(5,209,010)		$	2.40
Forfeited and canceled		(3,219,825)		$	1.31
Outstanding at December 31, 2025		13,883,881		$	1.03

The total fair value of RSUs vested was $12.5 million and $10.0 million for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025, there was $8.8 million of unrecognized compensation cost related to RSUs, which is expected to be recognized over a weighted-average period of 1.7 years.

Restricted Stock Awards

RSAs granted under the 2021 Plan and assumed under the SES 2021 Plan generally vest 1/4^th upon completion of one year of service and 1/48^th per month thereafter and have only service vesting conditions. The fair value of RSAs is estimated based on the closing price of the Company’s Class A common stock at the date of grant and is amortized to expense on a straight-line basis over the vesting period. RSA activity is as follows:


		Number of Shares		Weighted Average Fair Value
Outstanding at December 31, 2023		649,567		$	5.05
Granted		—		$	-
Vested		(386,964)		$	5.05
Forfeited and canceled		(7,145)		$	5.07
Outstanding at December 31, 2024		255,458		$	5.04
Granted		—		$	—
Vested		(253,358)		$	5.04
Forfeited and canceled		(2,100)		$	5.30
Outstanding at December 31, 2025		—		$	—

The total fair value of RSAs vested was $1.3 million and $2.0 million for the years ended December 31, 2025 and 2024, respectively.

As of December 31, 2025, the compensation cost related to RSAs was fully recognized.

Performance Stock Units

PSUs granted under the SES 2021 Plan generally vest over a three-year period and have both service and market vesting conditions. PSUs are measured at their estimated fair value using a Monte Carlo simulation valuation model with the effect of the market condition reflected in the grant date fair value of the award. The fair value of PSU awards is amortized to expense on a straight-line basis over the requisite service period, irrespective of whether the market vesting condition is satisfied, which is generally two to three years. There were no awards granted in 2025 that required meeting market conditions for vesting that would require a valuation. The key inputs used in the Monte Carlo simulation model for PSUs granted during the year ended December 31, 2024 at their measurement date were as follows:


		2024
Expected term (in years)		3.0
Risk free rate		4.06%
Expected volatility		90.0%
Expected dividends		0%
Stock price	$	1.36

The stock price is based on the closing price of the Company’s Class A common stock as of the valuation date and simulated through the end of the earn-out period following Geometric Brownian Motion. Expected volatility is based on the weighted average historical volatilities of the Company’s Class A common stock and select peer companies’ common stock that matches the expected term of the awards. The expected term is derived from the vesting period. The risk-free interest rate is based on the yield curve for zero-coupon U.S. Treasury notes with maturities corresponding to the expected term of the awards. The dividend rate is based on the historical rate, which the Company anticipates remaining at zero.

PSU activity is as follows:


		Number of Shares		Weighted Average Fair Value
Outstanding at December 31, 2023		3,364,810		$	3.60
Granted		3,637,556		$	0.42
Vested		—		$	—
Forfeited and canceled		(1,029,316)		$	6.96
Outstanding at December 31, 2024		5,973,050		$	1.34
Granted		264,469		$	2.32
Vested		—		$	—
Forfeited and canceled		(274,365)		$	1.31
Outstanding at December 31, 2025		5,963,154		$	1.39

As of December 31, 2025, there was $0.9 million of unrecognized compensation cost related to PSUs, which is expected to be recognized over a weighted-average period of 1.0 years.

Earn-Out Restricted Shares

The Earn-Out Restricted Shares granted in connection with the Business Combination have a contractual term of five years and have both service and market vesting conditions. During the year ended December 31, 2023, the Earn-Out Restricted Shares met the requisite service period and the related expense was fully amortized.

Earn-Out Restricted Shares activity is as follows:


		Number of Shares		Weighted Average Fair Value
Outstanding at December 31, 2023		1,619,998		$	6.53
Granted/vested		—		$	—
Forfeited and canceled		(854,008)		$	6.53
Outstanding at December 31, 2024		765,990		$	6.53
Granted/vested		—		$	—
Forfeited and canceled		(23,710)		$	6.53
Outstanding at December 31, 2025		742,280		$	6.53

Stock Options

Options granted under the 2021 Plan and assumed under the SES 2021 Plan vest 1/4th upon completion of one year of service and 1/48th per month thereafter, however in certain instances options have been granted with immediate vesting. Options under the Plan generally expire 10 years from the date of grant and have only service vesting conditions. Stock option activity is as follows:


		Number of Options			Weighted Average Exercise Price			Weighted Average Remaining Contractual Term (in years)			Aggregate Intrinsic Value (in millions)
Outstanding at December 31, 2023		13,619,793		$	0.17			6.8		$	22.7
Granted		—		$	—
Exercised		(6,507,475)		$	0.16					$	4.0
Forfeited and canceled		(1,049,208)		$	0.19
Outstanding at December 31, 2024		6,063,110		$	0.19			5.5		$	12.2
Granted		—		$	—
Exercised		(614,255)		$	0.12					$	0.9
Forfeited and canceled		(17,130)		$	0.39
Outstanding at December 31, 2025		5,431,725		$	0.19			4.7		$	8.8
Vested, December 31, 2025		5,431,725		$	0.19			4.7		$	8.8
Vested or expected to vest, December 31, 2025		5,431,725		$	0.19			4.7		$	8.8

No income tax benefit was recognized for stock options exercised as the Company does not anticipate realizing any such benefit in the near future. The fair value of stock options vested for the years ended December 31, 2025 and 2024 were $8.8 million and $11.8 million, respectively.

As of December 31, 2025, there was less than $0.1 million of unrecognized compensation cost related to stock options, which is expected to be recognized during 2026.