Stock-Based Compensation

6 Months Ended

Jun. 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 six months ended June 30, 2025 and 2024.

	Three months ended June 30,
		2025		2024
	(in thousands)
Cost of revenues	$	6,196	$	4,046
Research and development		30,772		21,957
Selling, general and administrative		56,390		41,408
Total	$	93,358	$	67,411

	Six months ended June 30,
		2025		2024
	(in thousands)
Cost of revenues	$	11,466	$	7,823
Research and development		57,283		42,606
Selling, general and administrative		102,436		81,429
Total	$	171,185	$	131,858

Stock Options

The following table summarizes option activity for the six months ended June 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	(69)	$	13.01
Options forfeited/cancelled	(2)	$	3.78
June 30, 2025	3,804	$	30.54

Restricted Stock Units and Performance-Based Awards

The following table summarizes unvested RSU and PSU activity during the six months ended June 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	3,009	$	170.07
Awards vested	(3,926)	$	59.65
Awards forfeited/cancelled	(178)	$	81.90
Balance at June 30, 2025	9,498	$	90.89

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 granted 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 six months ended June 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 June 30, 2025, the Company expects to recognize remaining stock-based compensation expense of $178.3 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 $29.8 million and $48.5 million for the three and six months ended June 30, 2025, respectively, which includes a $9.2 million change in estimate related to expectations for certain performance targets that increased from 100% to 200% as of June 30, 2025. The Company has recognized total performance-based stock compensation of $22.1 million and $42.8 million for the three and six months ended June 30, 2024, respectively.