Stock-Based Compensation

3 Months Ended

Mar. 31, 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 months ended March 31, 2025 and 2024:

	Three months ended March 31,
		2025		2024
	(in thousands)
Cost of revenues	$	5,270	$	3,777
Research and development		26,511		20,649
Selling, general and administrative		46,046		40,021
Total	$	77,827	$	64,447

Stock Options

The following table summarizes option activity during the three months ended March 31, 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	(50)	$	11.80
Options forfeited/cancelled	(3)	$	3.78
March 31, 2025	3,822	$	30.47

Restricted Stock Units and Performance-Based Awards

The following table summarizes unvested RSU and PSU activity during the three months ended March 31, 2025:

		Weighted-
		Average
		Grant Date
	Shares	Fair Value
	(in thousands, except for per share data)
Balance at December 31, 2024	10,593	$	61.28
Granted	2,721	$	171.72
Vested	(3,236)	$	59.65
Cancelled/Forfeited	(104)	$	74.42
Balance at March 31, 2025	9,974	$	86.75

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 three months ended March 31, 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. As of March 31, 2025, the Company expects to recognize remaining stock-based compensation expense of $142.1 million over the requisite performance period for these performance-based awards. The future stock-based compensation expense recognized for these performance-based awards may be up to 200% of grant date fair value based on the achievement of certain targets.

For all performance-based awards, the Company has recognized total stock-based compensation of $18.7 million and $20.7 million for the three months ended March 31, 2025 and 2024, respectively.