Annual report [Section 13 and 15(d), not S-K Item 405]

Stock-Based Compensation (Tables)

v3.25.4
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Summary of Stock-Based Compensation Expense
The Company recognizes stock-based compensation in the consolidated statements of operations, based on the department to which the related employee reports, as follows:
Year Ended December 31,
2025 2024 2023
(in thousands)
Cost of net revenue $ 722  $ 621  $ 763 
Research and development 41,474  38,814  44,189 
Selling, general and administrative 34,932  26,586  10,224 
$ 77,128  $ 66,021  $ 55,176 
Summary of Restricted Stock Unit Activity
A summary of the Company’s restricted stock unit activity for all equity plans is as follows:
Number of Shares
(in thousands)		 Weighted-Average Grant-Date Fair Value per Share
Outstanding at December 31, 2024 7,919  $ 24.99 
  Granted1
3,633  14.48 
  Vested2
(2,740) 25.61 
  Canceled3
(1,163) 23.67 
Outstanding at December 31, 2025 7,649  $ 19.89 
(1) Includes approximately 578 thousand shares granted under the Inducement Plan at a weighted-average grant-date fair value per share of $14.00.
(2) Includes approximately 74 thousand shares vested under the Inducement Plan at a weighted-average grant-date fair value per share of $14.68.
(3) Includes approximately 116 thousand shares canceled under the Inducement Plan at a weighted-average grant-date fair value per share of $13.62.
Summary of Performance-Based Restricted Stock Unit Activity
A summary of the Company’s performance-based restricted stock unit activity is as follows:
Number of Shares
(in thousands)		 Weighted-Average Grant-Date Fair Value per Share
Outstanding at December 31, 2024 3,520  $ 25.66 
  Granted 817  15.20 
  Released1
(61) 20.72 
  Canceled2
(943) 38.38 
Outstanding at December 31, 2025 3,333  $ 19.58 
Outstanding and expected to vest at December 31, 2025³ 1,859  $ 16.77 
________________
(1) Includes shares that were earned and vested in prior years for which an executive elected to defer receipt.
(2) Includes shares canceled due to achievement below threshold amounts from shares granted which were previously reserved at the maximum achievable (250%). No shares were earned and eligible to vest for the 2024 performance periods due to achievement below the 25th percentile.
(3) Based on estimate of financial performance achievement under performance-based restricted stock unit agreements as of December 31, 2025.
Summary of Employee Stock Purchase Plan, Valuation Assumptions
The fair values of employee stock purchase rights were estimated using the Black-Scholes option pricing model at their respective grant date using the following assumptions:
Year Ended December 31,
2025 2024 2023
Weighted-average grant date fair value per share
$4.22 - 5.24
$5.78 - 6.00
$6.35 - 11.97
Risk-free interest rate
3.81 - 4.29%
4.44 - 5.4%
4.54% - 5.41%
Dividend yield —  % —  % —  %
Expected life (in years)
0.49 - 0.51
 0.50 0.50
Volatility
59.07 - 92.19%
49.76 - 95.74%
59.78 - 70.46%
Summary of Stock Option Activity
A summary of the Company’s stock options activity is as follows:
Number of Options
(in thousands)		 Weighted-Average Exercise Price Weighted-Average Contractual Term (in years) Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2024 2,965  $ 19.35 
Canceled (247) 18.75 
Outstanding at December 31, 2025 2,718  $ 19.39  7.5 $ — 
Vested and expected to vest at December 31, 2025 2,641  $ 19.39  7.5 $ — 
Exercisable at December 31, 2025 573  $ 18.87  4.9 $ — 
Summary of Stock Options, Valuation Assumptions
The fair values of stock options were estimated using the Black-Scholes option pricing model at their respective grant date using the following assumptions:
Year Ended December 31,
2025(1) 2024(2)
Weighted-average grant date fair value per share
N/A - N/A
10.84 - 11.24
Risk-free interest rate N/A 4.33%
Dividend yield N/A $—
Expected life (in years) N/A 6.50
Volatility N/A 57.50%
__________________
(1) No options were granted during the year ended December 31, 2025.
(2) The risk-free interest rate assumption was based on the United States Treasury’s rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. The assumed dividend yield was based on the Company’s expectation of not paying dividends in the foreseeable future. The expected term of the options was calculated using the simplified method as prescribed by guidance provided by the SEC. This decision was based on the lack of historical data due to the Company’s limited number of stock option exercises under the 2010 Equity Incentive Plan. Estimated volatility incorporates historical volatility of the Company over the expected term based on the Company’s daily closing stock prices.