STOCK-BASED AWARDS

6 Months Ended

Jun. 30, 2025

Share-Based Payment Arrangement [Abstract]

Stock Options

A summary of stock option activity for the six months ended June 30, 2025 was as follows:


	Outstanding Options
	Number of Options	Weighted Average Exercise Price		Weighted-Average Remaining Contractual Term	Intrinsic Value (in thousands)
Balance as of December 31, 2024	26,894,103	$	1.84	4.4	$	48,886
Options exercised	(4,490,688)	0.56
Options canceled	(330,230)	7.85
Balance as of June 30, 2025	22,073,185	$	2.01	4.46	$	20,608
Options vested and exercisable as of June 30, 2025	20,509,721	$	1.63	4.40	$	20,608

As of June 30, 2025, unrecognized stock-based compensation cost related to outstanding unvested stock options that are expected to vest was $4.9 million, and is expected to be recognized over a weighted-average period of 2.0 years.

Restricted Stock Units (“RSUs”)

A summary of RSUs activity for the six months ended June 30, 2025 was as follows:


	Restricted Stock Units
	Time-Based Shares	Performance-Based Shares	Total Shares	Weighted-Average Grant-Date Fair Value
Balance as of December 31, 2024	87,969,008	15,996,461	103,965,469	$	4.83
Granted	30,400,463	1,623,784	32,024,247	$	2.50
Vested	(29,324,838)	(4,985,271)	(34,310,109)	$	5.42
Cancelled/Forfeited	(6,210,649)	(781,552)	(6,992,201)	$	4.02
Balance as of June 30, 2025	82,833,984	11,853,422	94,687,406	$	3.89

As of June 30, 2025, unrecognized stock-based compensation cost related to outstanding unvested time-based RSUs that are expected to vest was $252.5 million, which is expected to be recognized over a weighted-average period of 1.7 years.

In 2021, the Company granted performance-based RSUs to the former CEO and they were subject to performance and market conditions. The performance condition was satisfied upon the closing of the merger. The Company recognized compensation expense using a graded vesting attribution method over the derived service period for the former CEO’s performance-based awards. Stock-based compensation expense was recognized when the relevant performance condition was considered probable of achievement for the performance-based award. During the year ended December 31, 2022, the market condition was met for the performance-based awards of the former CEO for four of the five tranches and certified by the Company’s board of directors (the “Board of Directors”), representing an aggregate of 13,934,271 performance RSUs. The unamortized expense of $8.2 million as of December 31, 2022 for the fifth tranche, representing 2,090,140 RSUs, was fully recognized during the year ended December 31, 2023.

The Company granted 13,834,748 shares of the time-based RSUs to the former CEO that would vest in sixteen equal quarterly installments, beginning on December 5, 2021, and were subject to continuous employment. The Company recognized compensation expense for these time-based RSUs on a graded vesting schedule over the requisite vesting period. The Company withheld approximately 0.5 million and 1.0 million shares of common stock for the three and six months ended June 30, 2025 and 2024, respectively, by net settlement to meet the related tax withholding requirements related to the former CEO’s time-based RSUs. In February 2025, the Company announced the former CEO’s resignation and transition. In connection with this transition, the Company recorded a reversal of $41.6 million related to previously recognized stock-based compensation expenses for his unvested time-based RSUs, resulted from modification accounting. As of June 30, 2025, there were no unrecognized stock-based compensation expenses related to the time-based RSUs.

The Company granted performance-based RSUs to certain employees and they are subject to (i) corporate performance conditions and/or individual performance and (ii) a service condition which will be met generally over 3 years. The number of awards granted represents 100% of the target goal. Under the terms of the awards, the recipient may earn between 0% to 150% of the original number of grants based on actual achievement of corporate performance goals and/or individual performance. Stock-based compensation expense is recognized when the relevant performance condition is considered probable of achievement for the performance-based award. The Company recorded stock-based compensation expenses of $3.5 million and $12.4 million during the three and six months ended June 30, 2025, respectively, and $3.3 million and $8.0 million for the same periods in the prior year, respectively, related to these performance-based RSUs. As of June 30, 2025, the unamortized expense for the performance-based RSUs was $12.3 million, which will be recognized over a weighted-average period of 0.9 years primarily contingent upon realization of the corporate performance conditions.

Employee Stock Purchase Plan (“ESPP”)

The ESPP authorizes the issuance of shares of common stock pursuant to purchase rights granted to employees. The plan provides for 24-month offering periods beginning in December and June of each year, and each offering period will consist of four six-month purchase periods. The purchase price for each share purchased during an offering period will be the lesser of 85% of the fair market value of the share on the purchase date or 85% of the fair market value of the share on the offering date. As of June 30, 2025, unrecognized stock-based compensation cost related to the ESPP was $25.1 million which is expected to be recognized over a weighted-average period of 1.5 years.

Stock-based Compensation Expense

Total employee and nonemployee stock-based compensation expense for the three and six months ended June 30, 2025 and 2024, was classified in the condensed consolidated statements of operations and comprehensive loss as follows (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Cost of revenue	$	582	$	899	$	1,704	$	1,811
Research and development	34,195		33,526		69,016		71,059
Selling, general and administrative	21,542		24,068		13,114		49,319
Restructuring charges	—		(1,480)		—		(1,480)
Total	$	56,319	$	57,013	$	83,834	$	120,709

The Company capitalized stock-based compensation expenses of $8.5 million and $18.3 million for the three and six months ended June 30, 2025, respectively, and $8.9 million and $19.4 million for the same periods in the prior year, respectively, primarily as part of the cost of inventory.