XML 26 R15.htm IDEA: XBRL DOCUMENT v3.25.3
Stock-Based Compensation
9 Months Ended
Sep. 30, 2025
Stock-Based Compensation  
Stock-Based Compensation

9. Stock-Based Compensation

Stock-Based Compensation Expense

The following table presents stock-based compensation expense recorded for equity-classified awards in the three and nine months ended September 30, 2025 and 2024.

Three months ended September 30, 

2025

2024

(in thousands)

Cost of revenues

$

6,158

$

4,174

Research and development

 

30,797

 

22,549

Selling, general and administrative

 

53,682

 

43,921

Total

$

90,637

$

70,644

Nine months ended September 30, 

 

    

2025

    

2024

 

 

(in thousands)

Cost of revenues

$

17,623

$

11,997

Research and development

 

88,080

 

65,155

Selling, general and administrative

 

156,119

 

125,350

Total

$

261,822

$

202,502

Stock Options

The following table summarizes option activity for the nine months ended September 30, 2025:

Weighted-

Number of

Average

Shares

Exercise

Outstanding

Price

(in thousands, except for per share data)

December 31, 2024

3,875

$

30.22

Options exercised

(134)

$

21.26

Options forfeited/cancelled

(2)

$

3.78

September 30, 2025

3,739

$

30.55

Restricted Stock Units and Performance-Based Awards

The following table summarizes unvested RSU and PSU activity during the nine months ended September 30, 2025:

Weighted-

Average

Grant Date

Shares

Fair Value

(in thousands, except for per share data)

Balance at December 31, 2024

10,593

$

61.28

Awards granted

3,280

$

169.06

Awards vested

(4,637)

$

60.46

Awards forfeited/cancelled

(343)

$

85.77

Balance at September 30, 2025

8,893

$

94.92

The above table of unvested RSU and PSU activity reflects unvested PSUs at 100% of their target vesting amount; however, the number of shares that are ultimately issued can be up to 200% of target, and vesting can vary from 0% to 200% of target, depending on the level of achievement of performance criteria.

The Company grants certain senior-level executives performance stock units that vest based on performance and time-based service conditions, which are referred to herein as performance-based awards.  During the nine months ended September 30, 2025 and 2024, the Company granted 0.4 million and 0.8 million performance-based awards with an aggregate grant date fair value of $64.9 million and $55.0 million, respectively. Stock-based compensation for these performance-based awards milestones are assessed to be 200% of the grant value. As of September 30, 2025, the Company expects to recognize remaining stock-based compensation expense of $151.9 million over the requisite performance period for all outstanding performance-based awards, which includes up to 200% of grant date fair value based on the achievement of certain targets.

The Company has recognized total performance-based stock compensation of $25.5 million and $74.0 million for the three and nine months ended September 30, 2025, respectively. The Company has recognized total performance-based stock compensation of $23.7 million and $66.5 million for the three and nine months ended September 30, 2024, respectively.