Stock-Based Compensation

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Restricted Stock Units (“RSUs”)

RSUs granted under the Company’s 2021 Equity Incentive Plan (the “2021 Plan”) and the 2024 New Employee Equity Incentive Plan (the “Inducement Plan”) generally vest based on continued service up to a four-year period for employees and over a one-year period, for non-employee directors and consultants.

RSU activity for the three months ended March 31, 2026 was as follows:


	RSUs	Weighted-average grant date fair value per unit
RSUs unvested as of December 31, 2025	4,609,077	$	6.44
Granted	3,497,158	$	4.16
Vested	(1,161,649)	$	5.35
Forfeited	(231,099)	$	6.50
RSUs unvested as of March 31, 2026	6,713,487	$	5.44

As of March 31, 2026, total unrecognized compensation cost related to RSUs was $33.3 million, which will be recognized over a weighted-average period of 2.4 years.

In April 2026, the Compensation Committee approved the issuance of RSUs totaling 553,420, which vest over a three-year service period. The Company expects to recognize approximately $2.0 million of stock-based compensation expense on a straight-line basis over the vesting period.

Performance-based RSUs (“PSUs”)

PSUs granted under the 2021 Plan vest based on the Company’s achievement of predefined operational performance targets and continued service through the requisite service period, measured over a one-year performance period. PSUs are subject to one-year cliff vesting and are settled in shares of the Company’s Class A common stock. The number of PSUs earned will range from 0% to 150% of the initial award. Compensation expense is recognized over the requisite service period based on the grant-date fair value of the awards and the estimated number of PSUs expected to vest. The Company revises its estimate of the achievement of performance conditions at each reporting period, with cumulative catch-up adjustments recorded in the period of change.

PSU activity for the three months ended March 31, 2026 was as follows:


	PSUs	Weighted-average grant date fair value per unit
PSUs unvested as of December 31, 2025	—	$	—
Granted	128,205	$	3.56
Vested	—	$	—
Forfeited	—	$	—
PSUs unvested as of March 31, 2026	128,205	$	3.56

As of March 31, 2026, total unrecognized compensation cost related to PSUs was $0.4 million, which will be recognized over a weighted-average period of 0.9 years.

In April 2026, the Compensation Committee approved the issuance of 754,275 PSUs, which vest based on the achievement of predefined operational performance targets over a one-year performance period and continued service over a three-year service period. The Company expects to recognize approximately $2.7 million of stock-based compensation expense over the requisite service period, based on the grant-date fair value and estimated number of PSUs expected to vest.

Bonus Plan

The Company maintains an annual bonus program under which bonus awards are contingent upon the achievement of corporate performance targets and individual performance objectives, and are generally settled in RSUs issued under the Company’s 2021 Plan. Bonus amounts represent fixed monetary values that are settled in a variable number of RSUs based on the Company’s stock price at the date of settlement. Participants must remain employed with the Company through the payout date to maintain eligibility for bonus awards. The requisite service period for these awards begins on the date the Compensation Committee approves the bonus plan and ends on the payout date. The 2026 bonus plan will be settled in cash for a limited number of executives and offshore contracted employees. The expense for cash-based bonus is excluded from stock-based compensation expense.

In February 2026, the Compensation Committee approved the issuance of RSUs with an aggregate grant-date fair value of approximately $4.1 million based on actual performance against the targets set in the bonus plan for the year ended December 31, 2025. Upon issuance, 689,790 RSUs vested and were settled on a net share basis with a fair value of $2.6 million.

Pursuant to the bonus plans, the Company recognized $2.0 million and $1.1 million in stock-based compensation during the three months ended March 31, 2026 and 2025, respectively, of which the Company capitalized $0.3 million and $0.1 million in each period for the development of internal-use software.

Stock Options

Stock options granted under the equity plans generally vest based on continued service over four years and expire ten years from the date of grant.

A summary of stock option activity under the Company’s equity plans and related information is as follows (in thousands, except share, price and year data):


	Outstanding stock options	Weighted- average exercise Price		Weighted- average remaining contractual life (years)	Aggregate intrinsic value
Balance as of December 31, 2025	4,498,025	$	8.42
Options granted	—	$	—
Options exercised	(129,084)	$	2.66
Options canceled	(131,046)	$	11.49


Balance as of March 31, 2026	4,237,895	$	8.50	4.13	$	1,271
Vested and exercisable as of March 31, 2026	4,237,895	$	8.50	4.13	$	1,271

The intrinsic value of options exercised for the three months ended March 31, 2026 and 2025 was $0.3 million and $1.5 million, respectively. As of March 31, 2026, there was no unrecognized compensation cost, as all outstanding options were fully vested.

2021 ESPP

Stock-based compensation under the 2021 ESPP was $0.6 million and $0.5 million for the three months ended March 31, 2026 and 2025, respectively, of which the Company capitalized $0.1 million for each period, for the development of internal-use software.

As of March 31, 2026, the total unrecognized stock-based compensation expense related to the 2021 ESPP was $2.0 million and is expected to be recognized over a weighted average period of 0.7 years.

Total Stock-Based Compensation Expense

Stock-based compensation expense included in the condensed consolidated statements of operations and comprehensive loss was as follows (in thousands):


	Three Months Ended March 31,
	2026		2025
Cost of revenue	$	458	$	420
Research and development	2,881		3,467
Sales and marketing	1,643		1,797
General and administrative	1,919		1,675
Total stock-based compensation expense	$	6,901	$	7,359

During the three months ended March 31, 2026 and 2025, the Company capitalized $0.9 million and $0.7 million, respectively, of stock-based compensation expense for the development of internal-use software.