STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

STOCKHOLDERS' EQUITY

NOTE 14. STOCKHOLDERS' EQUITY

Stock-based Compensation Expense

	Three Months Ended March 31,
(in thousands)	2025		2024
Cost of revenue	$	7,823	$	6,572
Selling and marketing	15,781		13,888
Research and development	8,385		7,646
General and administrative	9,436		6,675
	$	41,425	$	34,781
Income tax benefit	$	(587)	$	(311)

As of March 31, 2025, the Company had $161.9 million of unrecognized stock-based compensation expense, net of estimated forfeitures, which is expected to be recognized over a weighted-average period of 1.8 years.

Grants

	Three Months Ended March 31, 2025
(in thousands)	Quantity	Total Fair Value
Restricted stock units (1)	938	$	73,191
Non-qualified stock options	1,507	$	47,157
Common stock	1	$	52

(1) Includes units issued when employees elect to receive 50% of the employee’s target incentive compensation under the Company’s Corporate Incentive Compensation Plan (the “CICP”) in the form of RSUs instead of cash.

Stock repurchase program

On October 22, 2024, the Company’s Board of Directors extended the expiration date of the share repurchase program from June 30, 2025 to December 31, 2025 and increased the authorized repurchase by $250 million to $310 million as of that date.

During the three months ended March 31, 2025, the Company repurchased 1.5 million of its common stock for $118.7 million at an average price per share of $81.28. All purchases under this program have been made on the open market.

On April 22, 2025, the Company’s Board of Directors further extended the expiration date of the share repurchase program from December 31, 2025 to June 30, 2026 and increased the authorized repurchase by $500 million.

Proposed Stock Split

On February 12, 2025, the Company’s Board of Directors approved a two-for-one forward stock split of the Company’s common stock, to be effected as a stock dividend. Effectiveness of the stock split is subject to approval by the Company’s stockholders at the June 17, 2025 annual meeting of stockholders of a proportionate increase in the Company’s authorized shares of common stock. The Company’s financial results in this Quarterly Report do not include any impact of the stock split.