STOCK BASED COMPENSATION

9 Months Ended

Sep. 30, 2025

Share-Based Payment Arrangement [Abstract]

Restricted Stock Units (RSUs)

Time-based RSUs generally vest over a four-year term. Performance-based RSUs are subject to vesting requirements and are earned, in part, based on certain financial performance metrics as defined in the grant notice. Actual number of shares earned under performance-based RSUs may range from 0% to 200% of the target award. Performance-based awards granted in 2025 and 2024 are earned based on a single-year performance period subject to subsequent multi-year time-based vesting with 50% of the shares earned vesting in one year after the performance period and the remaining shares in the year after. RSUs are generally forfeited if the participant terminates service prior to vesting. The fair value of our RSUs is equal to the fair value of our common stock on the grant date.

The following tables summarize RSU activity for the nine months ended September 30, 2025:

Time-based RSUs



	Total Number of Shares	Weighted-Average Grant Date Fair Value
Nonvested at December 31, 2024	1,100,001	$	97.21
Granted	734,521	76.83
Vested	(458,119)	90.80
Forfeited	(160,184)	76.45
Nonvested at September 30, 2025	1,216,219	$	88.61

Performance-based RSUs


	Total Number of Shares	Weighted-Average Grant Date Fair Value
Nonvested at December 31, 2024	179,907	$	106.50
Granted	74,840	76.69
Vested	(4,856)	84.98

Forfeited	(23,526)	78.65
Nonvested at September 30, 2025	226,365	$	83.19

Stock Options

Stock options are granted to eligible employees at exercise prices equal to the fair market value of our common stock on the dates of grant. Stock options generally have a maximum contractual term of 10 years. Stock options vest after 3 years, and are generally forfeited if the employee terminates service prior to vesting.

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


	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in millions)
Balance at December 31, 2024	—	$	—	—	$	—
Granted	270,144	76.69		9.21	—




Balance at September 30, 2025	270,144	$	76.69	9.21	$	—

We estimated the fair value of stock options using the Black-Scholes option-pricing model. Because we do not have significant exercise history in granting stock options, we estimate the expected term using the simplified method. We estimate expected volatility using the daily historical trading data of our common shares. The table below summarizes the assumptions used.

The fair value of stock options is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:


	Stock Option Assumptions
	Expected Term (in Years)	Expected Volatility		Risk-Free Interest Rate		Expected Dividend Yield
September 30, 2025	6.5	42.3	%	4.09	%	1.43	%


Additional Disclosures for Stock Options (in millions)	September 30, 2025
Weighted-average grant date fair value of stock options	$	31.65
Total fair value of options granted	$	9

Stock Based Compensation

Stock based compensation expense for stock-based awards made to our employees pursuant to our equity plans were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2025		2024		2025		2024
Cost of providing services	$	4	$	4	$	12	$	12
Sales and marketing	3		3		8		9
General and administrative	9		7		23		28
Systems development and programming costs	1		1		5		4
Total stock based compensation expense	$	17	$	15	$	48	$	53
Total stock based compensation capitalized	$	1	$	1	$	2	$	2

The table below summarizes unrecognized compensation expense as of September 30, 2025 associated with the following:


	Amount (in millions)		Weighted-Average Period (in Years)
Nonvested stock options	$	7	2.47
Nonvested time based RSUs	100		2.56
Nonvested performance based RSUs	12		1.83