Stock-Based Compensation |
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Mar. 31, 2026 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation |
The Company's Stock Incentive Plan allows for grants of incentive stock options, non-statutory stock options, restricted stock awards, restricted stock units, and other share-based or cash-based awards to officers, executives, key employees and nonemployee members of the Company’s Board of Directors. The Company uses original issuance shares to satisfy share-based payments.
SHARE-BASED COMPENSATION EXPENSE
Share-based compensation expense, which is primarily recorded in Selling, general, and administrative ("SG&A") expenses, consisted of the following:
STOCK OPTIONS
During the three months ended March 31, 2026, the Company granted a total of 252,530 stock options at a weighted average grant date fair
value of $12.95 per option. As of March 31, 2026, unrecognized costs related to outstanding stock options, which are net of estimated forfeitures, totaled $7.2 million, before any related tax benefit. These unrecognized costs related to stock options are expected to be recognized over a weighted average period of 2.93 years.
RESTRICTED STOCK UNITS
Time-Based Restricted Stock Units
During the three months ended March 31, 2026, the Company granted 459,880 time-based restricted stock units ("time-based RSUs") at a weighted average grant date fair value of $57.27 per time-based RSU. As of March 31, 2026, unrecognized costs related to outstanding time-based RSUs, which are net of estimated forfeitures, totaled $49.8 million, before any related tax benefit. These unrecognized costs related to time-based RSUs are expected to be recognized over a weighted average period of 3.11 years.
Performance-Based Restricted Stock Units
During the three months ended March 31, 2026, the Company granted 41,856 performance-based restricted stock units (“performance-based RSUs”), 5,269 of which were granted at a weighted average grant date fair value of $56.95 per performance-based RSU. The remaining 36,587 performance-based RSUs were granted without defined performance targets and, accordingly, did not meet all criteria for grant date fair value to be established in accordance with GAAP. Grant date fair value for the 36,587 performance-based RSUs will not be determined until all grant date criteria are met.
As of March 31, 2026, unrecognized costs related to outstanding performance-based RSUs, which are net of estimated forfeitures and reflect achievement of performance forecasted as of the balance sheet date, totaled $2.4 million, before any related tax benefit. These unrecognized costs related to performance-based RSUs are expected to be recognized over a weighted average period of 1.95 years.
Market-Based Restricted Stock Units
During the three months ended March 31, 2026, the Company granted 36,587 market-based restricted stock units (“market-based RSUs”) at a weighted average grant date fair value of $75.82 per market-based RSU. As of March 31, 2026, unrecognized costs related to outstanding market-based RSUs, which are net of estimated forfeitures, totaled $4.1 million, before any related tax benefit. These unrecognized costs related to market-based RSUs are expected to be recognized over a weighted average period of 1.95 years.
Market-Based Long-Term Cash Awards During the three months ended March 31, 2026, the Company issued long-term cash awards to certain of its executive officers with a target value of $1.6 million that includes both a market and time-based vesting condition. As of March 31, 2026, the fair value of all outstanding market-based long-term cash awards was $3.3 million and the Company had unrecognized compensation costs of $2.3 million. These unrecognized costs are expected to be recognized over a weighted average period of 1.97 years.
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