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Share-based compensation and stockholders' equity | 6 Months Ended
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Jun. 30, 2025
Stockholders' Equity Note [Abstract] |
Share-based compensation and stockholders' equity | Share-based compensation and stockholders' equity Share-based compensation The Company’s share-based compensation expense relates to stock options, performance stock options, restricted stock units, performance stock units and liability classified long-term incentive awards. During the six months ended June 30, 2025, the Company granted stock options to purchase 1.6 million shares of common stock, 2.5 million restricted stock units and 0.3 million performance stock units. The grants were made under the Emergent BioSolutions Inc. Amended and Restated Stock Incentive Plan and the Emergent BioSolutions Inc. Inducement Plan. The performance stock units settle in stock at the end of a one-year performance period based on the Company's results compared to the performance criteria. During the first quarter of 2024, the Company granted an $8.0 million long-term incentive award, subject to market conditions, with the option to settle in any combination of cash or shares, which is accounted for as a liability classified award. The Company’s performance stock options and the long-term incentive award are valued using Monte Carlo valuation models, and each have a performance period of five years to vest based on the Company’s stock price performance. The long-term incentive award is revalued at each reporting period until the award is earned or expires. The Company’s other equity awards typically vest over three equal annual installments beginning on the day prior to the anniversary of the grant date. The performance stock units settle in stock at the end of the three-year performance period based on the Company's results compared to the performance criteria. During the six months ended June 30, 2025, 0.3 million stock options, 0.2 million of restricted stock units and an immaterial number of performance stock units were forfeited prior to the completion of the applicable vesting requirements or expiration. Share-based compensation expense, net of forfeitures was recorded in the following financial statement line items:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Cost of products and services sales, net | $ | 0.3 |  |  | $ | 0.8 |  |  | $ | 0.6 |  |  | $ | 1.6 |
Research & development | 0.2 |  |  | 0.5 |  |  | 0.4 |  |  | 1.0 |
Selling, general and administrative | 4.1 |  |  | 4.2 |  |  | 5.1 |  |  | 8.8 |
Total share-based compensation expense | $ | 4.6 |  |  | $ | 5.5 |  |  | $ | 6.1 |  |  | $ | 11.4 |
Stockholders’ equity 2025 Share Repurchase Program On March 31, 2025, the Company announced that its Board of Directors had authorized the repurchase of up to $50.0 million of the Company’s common stock (the “2025 Share Repurchase Program”) on or before March 27, 2026. Repurchases under the 2025 Share Repurchase Program may be made from time to time on the open market or in privately negotiated transactions. The timing and amount of any shares repurchased will be determined by the Company’s management based on its evaluation of market conditions and other factors, including the market price of the Company’s common shares, macroeconomic environment and other investment opportunities, consistent with the Company’s insider trading policy. The 2025 Share Repurchase Program may be suspended or discontinued at any time. The Inflation Reduction Act of 2022, which was enacted on August 16, 2022, imposed a nondeductible 1% excise tax on the net value of certain stock repurchases made after December 31, 2022. Excise tax accrued during the three and six months ended June 30, 2025 was immaterial. During the three and six months ended June 30, 2025, the Company utilized $6.9 million to repurchase 1.1 million shares at an average price of $6.12 per share, excluding commissions and excise taxes. As of June 30, 2025, the Company had $43.1 million available to repurchase shares under the 2025 Share Repurchase Program. 2024 Issuance of Common Stock In connection with the Term Loan Agreement, the Company entered into a Subscription Agreement, dated as of August 30, 2024 (the “Subscription Agreement”) with the lenders under the Term Loan Agreement, under which on September 17, 2024, the Company issued to the lenders 1.1 million shares of common stock with an aggregate value of $10.0 million, at a price per share of $8.98, which was based on the volume weighted average price per share of common stock for the 30 consecutive trading days ending on, but excluding, the tenth business day of the Term Loan Agreement. At inception, the Subscription Agreement represented a forward sale of the Company’s common stock (the “Forward”). The Forward was initially classified and recorded as a liability and was remeasured to its fair value, resulting in a $1.6 million gain on settlement on September 17, 2024. 2024 Warrant Issuance In connection with the Term Loan Agreement, the Company issued to the lenders Series I Warrants to purchase 1.0 million shares of common stock and Series II Warrants to purchase 1.5 million shares of common stock. The Warrants are currently exercisable and will expire on August 30, 2029. Because the Warrants could be cash settled based on events that are outside the control of the Company, it precludes the Warrants from applying the equity contract scope exception, and so are classified as a liability. As of June 30, 2025, the fair value of the Warrants was $9.6 million. See Note 9, “Fair value measurements,” for more information on the accounting treatment and valuation of the Warrants. As of June 30, 2025, the Company had the following Warrants outstanding to acquire shares of its common stock:
| Warrants Outstanding | Range of Exercise Price per Share | Expiration Date
Warrants issued related to the Term Loan Agreement | 2.5 | $9.88 - $15.72 | August 2029
Total | 2.5 |  |
During the three and six months ended June 30, 2025, no Warrants expired or were exercised.

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