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Stock-Based Compensation | 6 Months Ended
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Jun. 30, 2026
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | 10. Stock-Based Compensation The Company adopted the 2008 Stock Plan (“2008 Plan”) under which it may issue stock options to purchase shares of common stock, and award restricted stock and stock appreciation rights to employees, Directors and consultants. The 2008 Plan expired in March 2018 and all award issuance therefore ceased. Options generally vest over a four-year period with a one-year cliff. The option term is no longer than five years for incentive stock options for which the grantee owns greater than 10% of the Company’s capital stock and no longer than 10 years for all other options. The Company has a repurchase option on unvested restricted stock exercisable upon the voluntary or involuntary termination of the purchaser’s employment with the Company for any reason. The Company’s repurchase right lapses in accordance with the vesting terms. Options outstanding under the 2008 Plan will remain outstanding until they are exercised, canceled or expired. In May 2018, the Company adopted the 2018 Stock Plan (“2018 Plan”) under which the Company may issue stock options to purchase shares of common stock, and award restricted stock and stock appreciation rights to employees, Directors and consultants. Under the 2018 Plan, the Board of Directors may grant incentive stock options or non-qualified stock options. Incentive stock options may only be granted to Company employees. The 2018 Plan expired in May 2023 and all award issuance therefore ceased. The exercise price of incentive stock options and non-qualified stock options cannot be less than 100% of the fair value per share of the Company’s common stock on the grant date. If an individual owns more than 10% of the Company’s outstanding capital stock, the price of each share incentive stock option will be at least 110% of the fair value. Fair value was determined by the Board of Directors. Options generally vest over a four-year period with a one-year cliff. The option term is no longer than five years for incentive stock options for which the grantee owns greater than 10% of the Company’s capital stock and no longer than 10 years for all other options. The Company has a repurchase option on unvested restricted stock exercisable upon the voluntary or involuntary termination of the purchaser’s employment with the Company for any reason. The Company’s repurchase right lapses in accordance with the vesting terms. Options outstanding under the 2018 Plan will remain outstanding until they are exercised, canceled or expire. In May 2023, the Company adopted the 2023 Equity Incentive Plan (“2023 Plan”) under which the Company may issue stock options to purchase shares of common stock, award restricted stock, restricted stock units (“RSU”), performance stock units (“PSUs”), dividend equivalents, stock appreciation rights, and other stock-based or cash-based awards to employees, Directors and consultants. Stock options granted to newly hired employees generally vest over a four-year period, following the date of grant, with 25% vesting on the first anniversary of the grant date and the remaining vesting in equal monthly installments thereafter, and grants of additional stock options to employees generally vest in equal monthly installments over a four-year period with no cliff vesting. The RSUs generally vest over a three-year period, following the date of grant, with a third of the award vesting on each year on the annual anniversary of the grant date. Collectively, the 2008 Stock Plan, 2018 Stock Plan and the 2023 Equity Incentive Plan are referred to as “the Plans”. The Company measures stock-based awards at their grant-date fair value and records compensation expense on a straight-line basis over the vesting period of the awards. The Company also measures the PSU awards at their grant-date fair value and assumes that performance goals will be achieved. If the performance goals are not met, no compensation expense is recognized and any recognized compensation expense is reversed. The Company recorded stock-based compensation expense in the following expense categories in its accompanying condensed consolidated statements of operations and comprehensive income (loss):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(in thousands) |  | 2026 |  |  | 2025 |  |  | 2026 |  |  | 2025 |
Cost of sales |  | $ | 22 |  |  | $ | 18 |  |  | $ | 49 |  |  | $ | 39 |
Research and development |  |  | 144 |  |  |  | 136 |  |  |  | 326 |  |  |  | 442 |
Sales and marketing |  |  | 458 |  |  |  | 801 |  |  |  | 995 |  |  |  | 1,204 |
General and administrative |  |  | 755 |  |  |  | 1,345 |  |  |  | 1,617 |  |  |  | 2,191 |
Total stock-based compensation |  | $ | 1,379 |  |  | $ | 2,300 |  |  | $ | 2,987 |  |  | $ | 3,876 |
Stock Options The following table summarizes stock option activity for the Plans for the six months ended June 30, 2026:
|  | Number of shares |  |  | Weighted average exercise price per share |  |  | Weighted average remaining contractual term (years) |  |  | Aggregate intrinsic value (in 000’s) |
Outstanding at December 31, 2025 |  |  | 4,707,635 |  |  | $ | 1.58 |  |  |  | 6.61 |  |  |  |
Exercised |  |  | (481,893 | ) |  |  | 0.93 |  |  |  |  |  |  |
Forfeited/expired |  |  | (82,450 | ) |  |  | 2.06 |  |  |  |  |  |  |
Outstanding at June 30, 2026 |  |  | 4,143,292 |  |  | $ | 1.65 |  |  |  | 6.58 |  |  | $ | 3,667 |
Vested and expected to vest at June 30, 2026 |  |  | 4,143,292 |  |  | $ | 1.65 |  |  |  | 6.58 |  |  | $ | 3,667 |
Exercisable at June 30, 2026 |  |  | 2,847,531 |  |  | $ | 1.69 |  |  |  | 5.85 |  |  | $ | 2,606 |
As of June 30, 2026, the total unrecognized compensation expense related to unvested stock option awards was $2.7 million, which the Company expects to recognize over a weighted-average period of 1.9 years. There were no options granted during the three and six months ended June 30, 2026. The fair value of options is estimated using the Black-Scholes option pricing model, which takes into account inputs such as the exercise price, the value of the underlying common stock at the grant date, expected term, expected volatility, risk-free interest rate and dividend yield. The fair value of each grant of options was determined using the methods and assumptions discussed below. • The expected term of employee options with service-based vesting is determined using the “simplified” method, as prescribed in the U.S. Securities and Exchange Commission’s Staff Accounting Bulletin (“SAB”) No. 107, whereby the expected life equals the arithmetic average of the vesting term and the original contractual term of the option due to the Company’s lack of sufficient historical data. The expected term of non-employee options is equal to the contractual term. • The expected volatility is based on historical volatilities of similar entities within the Company’s industry which were commensurate with the expected term assumption as described in SAB No. 107. • The risk-free interest rate is based on the interest rate payable on U.S. Treasury securities in effect at the time of grant for a period that is commensurate with the assumed expected term. • The expected dividend yield is 0% because the Company has not historically paid and does not expect in the foreseeable future to pay a dividend on its common stock. • For periods prior to Tigo’s common stock becoming publicly traded, the fair value of Legacy Tigo’s common stock used to measure stock-based compensation was estimated by Legacy Tigo’s board of directors with reference to contemporaneous third-party valuations. Restricted Stock Units The following table summarizes RSU activity for the Plans for the six months ended June 30, 2026:
|  | Number of shares |  |  | Weighted average grant date fair value per share |
Unvested at December 31, 2025 |  |  | 3,530,813 |  |  | $ | 2.08 |
Granted |  |  | 255,310 |  |  |  | 3.89 |
Vested |  |  | (668,941 | ) |  |  | 1.03 |
Forfeited/expired |  |  | (139,805 | ) |  |  | 2.53 |
Unvested at June 30, 2026 |  |  | 2,977,377 |  |  | $ | 2.45 |
As of June 30, 2026, the total unrecognized compensation expense related to unvested RSUs was $3.9 million, which the Company expects to recognize over a weighted-average period of 1.7 years. Performance Stock Units The PSUs vest over a three-year period, which began on January 1, 2025, with one-third of the award eligible to vest at the end of each fiscal year through December 31, 2027, based on the Company’s level of achievement of certain performance-based criteria tied to annual net revenue and adjusted EBITDA targets. The number of shares may be increased or decreased based on the results of these measurement targets ranging between 0% and 200% in accordance with the terms established at the date of grant. The PSUs were valued using the market value of the Company’s Common Stock at the closing market price on the grant date. The following table summarizes PSU activity for the Plans for the six months ended June 30, 2026:
|  | Number of shares |  |  | Weighted average grant date fair value per share |
Unvested at December 31, 2025 |  |  | 1,760,048 |  |  | $ | 1.58 |
Adjustment to conform prior period presentation to target units(1) |  |  | (586,683 | ) |  |  | 1.58 |
Vested(2) |  |  | (432,851 | ) |  |  | 1.58 |
Forfeited |  |  | (153,832 | ) |  |  | 1.58 |
Unvested at June 30, 2026 |  |  | 586,682 |  |  | $ | 1.58 |
(1) As of June 30, 2026, the Company changed its presentation of unvested PSUs in the table above from the maximum number of shares issuable under the award agreements to the target number of shares specified in those agreements. This change had no effect on compensation expense recognized, diluted earnings per share, or the number of shares reserved for issuance under the Plan. PSUs are presented at the target number of shares because the Company has assessed target-level achievement of the applicable performance criteria as the probable outcome for compensation expense recognition purposes under ASC 718. Compensation expense is recognized based on the number of units deemed probable of vesting, which may differ from the target, maximum, or actual number of units ultimately earned upon final certification. As of June 30, 2026, the maximum number of shares that could be earned under outstanding PSU grants was 1,173,366 shares. (2) Represents PSUs granted for the 2025 performance period for which the Compensation Committee certified achievement of the applicable 2025 net revenue and Adjusted EBITDA performance conditions on March 17, 2026. The service condition for this tranche was satisfied and vested as of December 31, 2025 and the common stock associated with the PSUs was issued in March 2026. As of June 30, 2026, the total unrecognized compensation expense related to PSUs that were deemed probable to vest at the end of their respective performance period was $0.2 million, which the Company expects to recognize over a weighted-average period of 1.5 years.

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