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.