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Stock-Based Compensation
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
The following equity incentive plans govern a significant amount of the outstanding equity awards as of December 31, 2025:
2016 Stock Option Plan
The Company’s 2016 Stock Option and Incentive Plan (the “2016 Plan”) became effective on June 21, 2016. The 2016 Plan provides for the grant of ISOs, NSOs, restricted stock awards, RSUs, stock appreciation rights, unrestricted stock awards, performance share awards, dividend equivalent rights and cash-based awards to employees, directors and consultants of the Company. A total of 11,500,000 shares of the Company’s Class A common stock were initially reserved for issuance under the 2016 Plan. These available shares automatically increase each January 1, beginning on January 1, 2017, by 5% of the number of shares of the Company’s Class A and Class B common stock outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the Company’s compensation committee. On January 1, 2025 and 2024, the shares available for grant under the 2016 Plan were automatically increased by 7,630,534 shares and 9,097,289 shares, respectively.
Under the 2016 Plan, the stock options are granted at a price per share not less than 100% of the fair market value per share of the underlying common stock on the date of grant.
2016 Employee Stock Purchase Plan
The Company’s 2016 ESPP was effective on June 21, 2016. A total of 2,400,000 shares of the Company’s Class A common stock were initially reserved for issuance under the 2016 ESPP. These available shares automatically increase each January 1, beginning on January 1, 2017, by the lesser of 1,800,000 shares of the Company's Class A common stock, 1% of the number of shares of the Company’s Class A and Class B common stock outstanding on the immediately preceding December 31 or such lesser number of shares as determined by the Company’s compensation committee. On January 1, 2025 and 2024, the shares available for grant under the 2016 ESPP were automatically increased by 1,526,106 and 1,800,000 shares, respectively.
The 2016 ESPP allows eligible employees to purchase shares of the Company’s Class A common stock at a discount of 15% through payroll deductions of their eligible compensation, subject to any plan limitations. The 2016 ESPP provides for separate six-month offering periods beginning in May and November of each year.
On each purchase date, eligible employees purchase shares of the Company’s Class A common stock at a price per share equal to 85% of the lesser of (i) the fair market value of the Company’s Class A common stock on the offering date or (ii) the fair market value of the Company’s Class A common stock on the purchase date.
As of December 31, 2025, total unrecognized compensation cost related to the 2016 ESPP was not significant.
Stock-options and restricted stock units and awards activity under the Company’s equity incentive plans is as follows:
Stock Options
Number of
options
outstanding		Weighted-
average
exercise
price
(Per share)		Weighted-
average
remaining
contractual
term
(In years)		Aggregate
intrinsic
value
(In thousands)
Outstanding options as of December 31, 20241,322,176 $74.15 3.05$74,838 
Exercised(420,056)$14.87 
Outstanding options as of December 31, 2025902,120 $101.75 2.87$59,701 
Options vested and exercisable as of December 31, 2025902,120 $101.75 2.87$59,701 
Year Ended December 31,
202520242023
(In thousands, except per share amounts)
Aggregate intrinsic value of stock options exercised (1)
$41,976 $8,649 $15,242 
Total estimated grant date fair value of options vested$844 $9,351 $28,619 
____________________________________
(1) Aggregate intrinsic value represents the difference between the fair value of the Company’s Class A common stock as reported on the New York Stock Exchange and the exercise price of outstanding “in-the-money” options.
As of December 31, 2025, all stock options have vested.
Restricted Stock Units
Number of
awards
outstanding		Weighted-
average
grant date
fair value
(Per share)		Aggregate
intrinsic
value
(In thousands)
Unvested RSUs as of December 31, 202418,386,271 $71.96 $1,394,966 
Granted4,728,094 $119.02 
Vested(6,944,005)$84.28 
Forfeited and canceled(2,506,383)$78.06 
Unvested RSUs as of December 31, 202513,663,977 $80.86 $1,943,564 
In 2025 and 2024, the Company granted to certain of its executive employees performance-based restricted stock units (“PSUs”) covering 185,899 and 516,626 shares, respectively, of Class A common stock that had an aggregate grant date fair value of $27.1 million and $34.5 million, respectively. These awards are included in the table above. The PSUs will vest if certain operational performance conditions or market conditions, as defined in the respective grant agreements, are met during the performance achievement periods, which expire on December 31, 2027 and 2026, respectively. At the end of the vesting period, the number of shares actually issued may range from 0% to 200% of the target based on levels of performance.
As of December 31, 2025, total unrecognized compensation cost related to unvested RSUs was $994.9 million, which will be amortized over a weighted-average period of 2.2 years.
Valuation Assumptions
The Company used the following assumptions in the Black-Scholes option pricing model to estimate the fair value of the purchase rights issued under the 2016 ESPP:
Year Ended December 31,
Employee Stock Purchase Plan:202520242023
Fair value of common stock
$116.34 - $120.22
$61.54 - $96.41
$47.36 - $61.55
Expected term (in years)0.50
0.50
0.50
Expected volatility
57.8% - 58.7%
38.6% - 41.8%
45.8% - 57.1%
Risk-free interest rate
3.8% - 4.3%
4.4% - 5.4%
5.3% - 5.4%
Stock-Based Compensation Expense
The Company recorded stock-based compensation expense as follows:
Year Ended December 31,
202520242023
(In thousands)
Cost of revenue$16,570 $22,001 $26,343 
Research and development326,767 330,933 331,526 
Sales and marketing136,998 135,331 183,389 
General and administrative118,319 125,164 121,584 
Restructuring costs1,753 3,178 13,015 
Total$600,407 $616,607 $675,857