11. Equity-based Compensation

Option and Grant Plans

In April 2015, the Company’s shareholders approved the 2015 Stock Option and Grant Plan, or the 2015 Plan, and in July 2016, the Company’s shareholders approved the 2016 Stock Option and Incentive Plan, or the 2016 Plan. In May 2018, the Company’s shareholders approved the 2018 Stock Option and Incentive Plan, or the 2018 Plan (collectively, the “Plans”). Subsequent to the IPO, no further options were granted under the 2015 Plan. The Plans provide for the issuance of equity awards in the form of restricted shares, options to purchase common shares which may constitute incentive stock options, or ISOs, or non-statutory stock options, or NSOs, unrestricted stock unit grants, and qualified performance and market-based awards to eligible employees, officers, directors, non-employee consultants and other key personnel. Terms of the equity awards, including vesting requirements, are determined by our board of directors, subject to the provisions of the Plans. Options granted by the Company typically vest over four years and have a contractual life of ten years. Restricted stock unit grants typically vest over two to four years. At December 31, 2025, the Company had 29,405,365 common shares authorized for issuance under the 2018 Plan and 9,254,175 common shares available for future grant under the 2018 Plan.

Equity-Based Compensation Expense

The Company recognized stock-based compensation expense totaling $72.5 million, $86.6 million, and $81.0 million during the years ended December 31, 2025, 2024 and 2023, respectively. Stock‑based compensation expense by classification within the consolidated statements of operations and comprehensive loss is as follows (in thousands):

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Research and development

 

$

34,374

 

 

$

47,944

 

 

$

46,356

 

General and administrative

 

 

38,125

 

 

 

38,623

 

 

 

34,672

 

Total

 

$

72,499

 

 

$

86,567

 

 

$

81,028

 

As of December 31, 2025, there was $61.7 million and $76.3 million of unrecognized compensation expense related to unvested stock options and restricted stock units, respectively, that is expected to be recognized over a weighted-average period of 2.5 and 2.5 years, respectively.

Stock Options

The fair value of each option issued to employees was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions:

 

 

Years Ended December 31,

 

 

 

2025

 

 

2024

 

 

2023

 

Options granted

 

 

1,391,380

 

 

 

1,566,536

 

 

 

1,860,485

 

Weighted-average exercise price

 

$

47.76

 

 

$

62.40

 

 

$

45.47

 

Weighted-average grant date fair value

 

$

28.51

 

 

$

38.63

 

 

$

28.39

 

Assumptions:

 

 

 

 

 

 

 

 

 

Expected volatility

 

 

60.9

%

 

 

63.9

%

 

 

65.1

%

Expected term (in years)

 

 

6.0

 

 

 

6.0

 

 

 

6.0

 

Risk-free interest rate

 

 

4.0

%

 

 

4.2

%

 

 

4.1

%

Expected dividend yield

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

The following table summarizes stock option activity under the Company’s equity award plans (intrinsic value in thousands):

 

 

Shares

 

 

Weighted-
Average
Exercise Price

 

 

Weighted-
Average
Remaining
Contractual
Term (years)

 

 

Aggregate
Intrinsic
Value

 

Outstanding at December 31, 2024

 

 

7,288,883

 

 

$

58.07

 

 

 

6.6

 

 

$

14,050

 

Granted

 

 

1,391,380

 

 

 

47.76

 

 

 

 

 

 

 

Exercised

 

 

(726,396

)

 

 

37.23

 

 

 

 

 

 

 

Cancelled or forfeited

 

 

(1,206,032

)

 

 

65.74

 

 

 

 

 

 

 

Outstanding at December 31, 2025

 

 

6,747,835

 

 

$

56.82

 

 

 

6.3

 

 

$

42,270

 

Exercisable at December 31, 2025

 

 

4,709,497

 

 

$

58.57

 

 

 

5.2

 

 

$

31,455

 

Vested and expected to vest at December 31, 2025

 

 

6,747,835

 

 

$

56.82

 

 

 

6.3

 

 

$

42,270

 

 

The total intrinsic value (the amount by which the fair market value exceeded the exercise price) of stock options exercised during the year ended December 31, 2025, 2024 and 2023 was $15.3 million, $32.2 million, and $13.9 million, respectively.

As of December 31, 2025, options to purchase 150,000 common shares subject to market-based vesting conditions were vested, as market conditions were satisfied in prior years. 100,000 options to purchase common shares subject to market-based vesting conditions were outstanding as of December 31, 2025.

The Company did not grant stock options subject to performance-based or market-based vesting conditions during 2025, 2024, and 2023.

Restricted Stock Units

 

The following table summarizes the restricted stock unit activity under the Company’s equity award plans:

 

 

Shares

 

 

Weighted-
Average
Grant Date
Fair Value

 

Unvested balance at December 31, 2024

 

 

2,397,643

 

 

$

59.21

 

Granted

 

 

958,921

 

 

 

46.86

 

Vested

 

 

(736,238

)

 

 

60.99

 

Cancelled or forfeited

 

 

(654,759

)

 

 

58.55

 

Unvested balance at December 31, 2025

 

 

1,965,567

 

 

$

52.16

 

During the years ended December 31, 2025, 2024 and 2023, the total fair value of restricted stock units vested was $36.6 million, $30.0 million, and $14.1 million, respectively.

During 2022, the Company granted 150,000 performance stock units with market-based vesting conditions in which the recipient is eligible to receive between zero and 150,000 common shares at the end of a three-year service period based upon achieving a specified average stock price. Expense for these awards was recognized over the requisite service period. As of December 31, 2025, 150,000 of previously unvested performance stock units were forfeited during 2025 as the market-based vesting conditions were not achieved. Activity related to stock units subject to market-based vesting conditions is included in the table above.

The Company did not grant restricted stock units subject to performance-based or market-based vesting conditions during 2025, 2024, and 2023.

Employee Stock Purchase Plan

On July 19, 2016, our board of directors adopted its 2016 Employee Stock Purchase Plan, or the ESPP Plan, which was subsequently approved by its shareholders and became effective on October 19, 2016. The ESPP Plan authorizes the initial issuance of up to a total of 413,226 shares of the Company’s common stock to participating employees. The Company activated its ESPP Plan on January 1, 2020. The Company issued 44,128, 37,245, and 53,282 shares under the ESPP Plan during the years ended December 31, 2025, 2024 and 2023, respectively.

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Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2018Feb 25, 2019
2017Mar 8, 2018
2016Mar 10, 2017

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.