v3.26.1
Stock-Based Compensation
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Stock Options and SARs
The following table summarizes stock option and stock appreciation right (“SAR”) activity for the three months ended March 31, 2026 (in thousands, except per share amounts, years, and aggregate intrinsic value):
Options OutstandingSARs Outstanding
Number of Awards
Weighted-Average Exercise Price Per Share
Weighted-Average
Remaining Contractual Life (years)		Aggregate Intrinsic Value (millions)Number of Awards
Weighted-Average Exercise Price Per Share
Weighted-Average
Remaining Contractual Life (years)		Aggregate Intrinsic Value (millions)
Balance as of December 31, 2025152,202 $9.98 6.1$25,536 11,271 $130.00 7.1$794 
Granted
— — 1,117 191.70 
Exercised(1,038)4.72 — — 
Canceled and forfeited(256)6.30 (252)172.39 
Balance as of March 31, 2026150,908 $10.02 5.9$20,563 12,136 $134.80 7.1$565 
Vested and exercisable as of March 31, 202675,833 $8.67 5.4$10,435 — $— 0.0$— 
As of March 31, 2026, the total unrecognized stock-based compensation expense related to options and SARs outstanding was $383 million and $146 million, respectively, which is expected to be recognized over a weighted-average service period of five and eight years, respectively. The weighted-average grant date fair value of SARs granted during the three months ended March 31, 2026 was $25.44 per share.
Time-Vesting SARs
The Company grants SARs that vest over explicit service periods of up to ten years and are exercisable at expiration, during a limited window, if the Company’s stock price reaches a certain threshold (“Time-Vesting SARs”). Time-Vesting SARs have exercise prices of between $39–$250 and maximum appreciation values of between $60–$300.
The Company determined the grant-date fair value of Time-Vesting SARs granted using a Black-Scholes option-pricing model, calculated as the difference in fair value between a SAR with a strike price at the exercise price and a SAR with the strike price at its maximum appreciation, using the following assumptions:
Three Months Ended March 31,
20262025
Expected volatility rate
56.7% - 57.0%
61.0% - 66.1%
Expected term (in years)
8.7 - 9.7
3.4 - 8.9
Risk-free interest rate
3.9% - 4.2%
4.3% - 4.6%
Expected dividend yield—%—%
The expected volatility rate is based on a combination of the Company’s implied and historical volatility, and the historical volatility of comparable publicly-traded companies. The expected term represents the period of time the SARs are expected to be outstanding. The risk-free interest rate is based on the U.S. Treasury zero coupon issues in effect at the time of grant for periods corresponding with the expected term of the SAR. The Company has never paid and has no plans to pay dividends on its common stock, therefore the expected dividend yield is zero.
RSUs and P-RSUs
The following table summarizes the RSU and P-RSU activity for the three months ended March 31, 2026 (in thousands, except per share amounts):
RSUs OutstandingWeighted Average Grant Date Fair Value per ShareP-RSUs OutstandingWeighted Average Grant Date Fair Value per Share
Unvested and outstanding as of December 31, 202541,644 $27.74 118 $180.79 
Granted523 156.44 106 178.40 
Vested(4,933)30.79 (118)180.79 
Canceled and forfeited(658)64.76 (5)178.40 
Adjustment for performance achievement(1)
— — 
Unvested and outstanding as of March 31, 202636,576 $28.51 101 $178.40 
—————
(1) This amount represents the difference between the maximum number of shares that could have been issued under the grant and the actual number of shares earned based on final performance.

As of March 31, 2026, the total unrecognized stock-based compensation expense related to the RSUs outstanding was $817 million, which the Company expects to recognize over a weighted-average service period of three years. As of March 31, 2026, there was no unrecognized stock-based compensation expense related to the P-RSUs outstanding.
Stock-based Compensation Expense
Total stock-based compensation expense was as follows (in thousands):
Three Months Ended March 31,
20262025
Cost of revenue$17,906 $15,016 
Sales and marketing76,896 52,513 
Research and development36,545 31,834 
General and administrative70,245 55,976 
Total stock-based compensation expense$201,592 $155,339