Equity Incentive Plans

3 Months Ended

Mar. 31, 2026

Share-Based Payment Arrangement [Abstract]

Equity Incentive Plans

Equity Incentive Plans

Stock Options

The activity related to stock options during the three months ended March 31, 2026 consisted of the following:

	March 31, 2026
	Number of shares (in thousands)	Weighted-Average Exercise Price
Outstanding at December 31, 2025	8,992	$	9.98
Granted	1,612	13.98
Exercised/released	(64)	9.49
Cancelled/forfeited	(1,227)	10.94
Outstanding at March 31, 2026	9,313	$	10.55

The following weighted-average assumptions were used to estimate the fair value of the options granted during the three months ended March 31, 2026 and 2025:

	Three Months Ended March 31,
	2026			2025
Expected volatility	69		%	78		%
Risk-free interest rate	3.49		%	4.00		%
Expected term (in years)	5.0			5.0
Expected dividend yield	0.0		%	0.0%
Fair value per common share option	$	8.35		$	4.95

Performance Stock Units and Restricted Stock Units

During the three months ended March 31, 2026 and 2025, the Company granted PSUs that vest in 4 tranches upon the Company’s common shares achieving four progressively higher target prices, and each tranche is further subject to a one year service period following tranche achievement. The Company estimated the fair value of each PSU with a market and service condition on the date of grant by using a Monte Carlo simulation (lattice model).

Beginning in 2025, RSUs subject only to time-based vesting conditions are no longer being granted. RSUs granted prior to 2025 vest in 3 equal annual installments on the first, second and third anniversary of the grant date. The fair value of RSUs is based on the market price of the Company’s common shares on the date prior to the grant.

The activity related to PSUs and RSUs for the three months ended March 31, 2026 consisted of the following:

	March 31, 2026
	Number of shares (in thousands)	Weighted-average fair value $
Unvested balance, December 31, 2025	4,021	$	7.27
Granted	939	12.03
Vested	(1,650)	7.98
Cancelled/forfeited	(1,557)	7.81
Unvested balance, March 31, 2026	1,753	$	8.66

Share-based Compensation Expense

The classification of share-based compensation expense consisted of the following (in thousands):

	Three Months Ended  March 31,
	2026		2025
Research and development	$	111	$	93
Selling, general and administrative	(1,203)		(3,513)
Capitalized in inventory, net	226		11
Share-based compensation expense	$	(866)	$	(3,409)

As of March 31, 2026, total unrecognized share-based compensation expense related to unvested stock options, PSUs, RSUs and ESPP was $15.3 million, which is expected to be recognized over a weighted-average period of 1.4 years.