MIAMI INTERNATIONAL HOLDINGS, INC.MIAX
MIAMI INTERNATIONAL HOLDINGS, INC. Stock Compensation Disclosure
SHARE-BASED COMPENSATION
In accordance with the Company’s stock incentive plans, the Company may grant stock option awards to employees, consultants and non-employee members of the Company’s Board of Directors. The Company may grant restricted stock awards to employees, consultants and non-employee members of the Company’s Board of Directors.
On May 16, 2022, the Company adopted the 2022 Equity Incentive Plan (“2022 Plan”) whereby the Company may grant up to 10,000,000 shares of the Company’s voting common stock. Commencing on the first day of each fiscal year beginning January 1, 2023 and ending January 1, 2032, the available shares under the 2022 Plan are to be increased by a number of shares of voting common stock of the Company equal to the lesser of (a) 5% of the aggregate number of shares outstanding on the final day of the immediately preceding fiscal year and (b) such smaller number of shares as determined by a committee as defined in the 2022 Plan. As a result, effective January 1, 2026 and 2025, the available shares under the 2022 Plan were increased for a new total of 23,129,145 and 18,852,332 shares, respectively. In addition to the 2022 Plan, the Company has outstanding stock awards granted pursuant to the 2021 Stock Option and Incentive Plan for Employees and Consultants (“2021 Plan”) which was effective January 26, 2021, the 2013 Director Stock Incentive Plan and the 2013 Employee Stock Incentive Plan (together, the “2013 Plans”), which were both effective November 15, 2013 and the 2008 Director Stock Incentive Plan and the 2008 Employee and Consultant Stock Incentive Plan (“2008 Plans”). In 2022, the Company terminated the 2021 Plan and the 2013 Plans. The Company terminated the 2008 Plans in 2018. The number of shares issuable in accordance with the Company’s various Employee and Director Stock Incentive Plans at December 31, 2025 and 2024 were 23,617,996 and 24,682,754 shares, respectively.
Stock Options
Share-based compensation payments related to stock options are recognized in the consolidated financial statements based on the grant date fair value using the Black-Scholes option pricing model. Share-based compensation expense is recognized over the related service or vesting period, net of actual forfeitures. The following assumptions were used by the Company for determining the fair value of awards granted:
| December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Weighted-average expected term (years) | 5.0 – 6.3 | 5.1 – 6.0 | 5.0 – 6.0 | ||||||||||||||
Volatility (range) | 21.7% – 27.2% | 26.3% – 27.4% | 26.2% – 27.6% | ||||||||||||||
Risk-free interest rate (range) | 3.5% – 4.1% | 3.6% – 4.5% | 3.6% – 4.7% | ||||||||||||||
Dividend yield | 0.00% | 0.00% | 0.00% | ||||||||||||||
Stock options are exercisable at prices that range from $12.00 to $48.94 per share. The options generally vest over a period of up to five years and expire after ten years.
The weighted-average grant-date fair value of options granted during the years 2025, 2024 and 2023 was $7.86, $6.98 and $6.70, respectively. The total intrinsic value of options exercised during the years ended December 31, 2025, 2024 and 2023 was $21.7 million, $6.6 million and $2.3 million, respectively.
Share-based compensation expense is included in compensation and benefits expense in the consolidated statements of operations. Stock-based compensation expense related to stock options was $15.5 million, $12.3 million and $12.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, there were $23.6 million
in total unrecognized compensation costs related to stock options. These costs are expected to be recognized over a weighted average period of 2.06 years.
Due to the full valuation allowance provided on its net deferred tax assets, the Company had not recorded any tax benefit attributable to stock-based awards for the years ended December 31, 2025, 2024 and 2023.
The following table summarizes information about the stock option activity during the years ended December 31, 2025, 2024 and 2023 (aggregate intrinsic value, in thousands):
| Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Life (in Years) | Aggregate Intrinsic Value | ||||||||||||||||||||
| Outstanding at December 31, 2022 | 22,213,680 | $ | 13.42 | 5.01 | $ | 149,713 | |||||||||||||||||
Granted | 2,461,387 | $ | 20.04 | ||||||||||||||||||||
Exercised | (282,250) | $ | 12.06 | ||||||||||||||||||||
Cancelled, expired or forfeited | (3,223,853) | $ | 10.22 | ||||||||||||||||||||
| Outstanding at December 31, 2023 | 21,168,964 | $ | 14.68 | 5.42 | $ | 119,677 | |||||||||||||||||
| Exercisable at December 31, 2023 | 17,489,973 | $ | 13.60 | 4.73 | $ | 115,513 | |||||||||||||||||
Granted | 2,489,785 | $ | 20.07 | ||||||||||||||||||||
Exercised | (835,541) | $ | 12.23 | ||||||||||||||||||||
Cancelled, expired or forfeited | (1,618,300) | $ | 14.03 | ||||||||||||||||||||
| Outstanding at December 31, 2024 | 21,204,908 | $ | 15.47 | 5.36 | $ | 149,710 | |||||||||||||||||
| Exercisable at December 31, 2024 | 17,565,664 | $ | 14.43 | 4.64 | $ | 142,023 | |||||||||||||||||
Granted | 2,657,056 | $ | 22.80 | ||||||||||||||||||||
Exercised | (1,479,377) | $ | 13.17 | ||||||||||||||||||||
Cancelled, expired or forfeited | (344,673) | $ | 19.97 | ||||||||||||||||||||
| Outstanding at December 31, 2025 | 22,037,914 | $ | 16.43 | 5.10 | $ | 616,036 | |||||||||||||||||
| Exercisable at December 31, 2025 | 17,710,269 | $ | 15.16 | 4.18 | $ | 517,472 | |||||||||||||||||
Additional information regarding stock options outstanding as of December 31, 2025 is as follows (aggregate intrinsic value, in thousands):
| Stock Options Outstanding | Stock Options Exercisable | |||||||||||||||||||||||||||||||
| Exercise Price | Number of Options Outstanding | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | Number of Exercisable Options | Aggregate Intrinsic Value | |||||||||||||||||||||||||||
| $ | 12.00 | 8,184,256 | 2.16 | $ | 265,006 | 8,184,256 | $ | 265,006 | ||||||||||||||||||||||||
| $ | 13.50 | 177,779 | 4.18 | 5,490 | 177,779 | 5,490 | ||||||||||||||||||||||||||
| $ | 14.00 | 758,559 | 4.35 | 23,045 | 758,559 | 23,045 | ||||||||||||||||||||||||||
| $ | 15.22 | 2,491,355 | 4.91 | 72,648 | 2,491,355 | 72,648 | ||||||||||||||||||||||||||
| $ | 15.50 | 154,998 | 5.30 | 4,476 | 154,998 | 4,476 | ||||||||||||||||||||||||||
| $ | 16.14 | 2,167,463 | 5.54 | 61,209 | 2,167,463 | 61,209 | ||||||||||||||||||||||||||
| $ | 16.34 | 54,497 | 3.27 | 1,528 | 54,497 | 1,528 | ||||||||||||||||||||||||||
| $ | 19.84 | 1,848,061 | 7.17 | 45,351 | 1,315,668 | 32,286 | ||||||||||||||||||||||||||
| $ | 20.00 | 319,558 | 8.18 | 7,791 | 216,460 | 5,277 | ||||||||||||||||||||||||||
| $ | 20.08 | 1,708,562 | 8.33 | 41,518 | 654,410 | 15,902 | ||||||||||||||||||||||||||
| $ | 20.60 | 22,075 | 7.97 | 525 | 22,075 | 525 | ||||||||||||||||||||||||||
| $ | 20.76 | 422,465 | 7.62 | 9,979 | 282,174 | 6,665 | ||||||||||||||||||||||||||
| $ | 21.32 | 21,148 | 8.74 | 488 | 21,148 | 488 | ||||||||||||||||||||||||||
| $ | 22.34 | 291,541 | 9.16 | 6,426 | 137,041 | 3,020 | ||||||||||||||||||||||||||
| $ | 22.40 | 2,227,461 | 9.45 | 48,960 | — | — | ||||||||||||||||||||||||||
| $ | 23.00 | 79,000 | 9.61 | 1,689 | — | — | ||||||||||||||||||||||||||
| $ | 24.70 | 94,999 | 6.75 | 1,870 | 94,999 | 1,870 | ||||||||||||||||||||||||||
| $ | 25.78 | 554,486 | 6.21 | 10,313 | 554,486 | 10,313 | ||||||||||||||||||||||||||
| $ | 25.98 | 287,401 | 6.40 | 5,288 | 287,401 | 5,288 | ||||||||||||||||||||||||||
| $ | 26.00 | 132,500 | 6.80 | 2,435 | 132,500 | 2,435 | ||||||||||||||||||||||||||
| $ | 44.07 | 3,000 | 9.90 | 1 | 3,000 | 1 | ||||||||||||||||||||||||||
| $ | 44.73 | 250 | 9.92 | NA | — | NA | ||||||||||||||||||||||||||
| $ | 48.94 | 36,500 | 9.86 | NA | — | NA | ||||||||||||||||||||||||||
| 22,037,914 | 5.10 | $ | 616,036 | 17,710,269 | $ | 517,472 | ||||||||||||||||||||||||||
Additional information regarding stock options outstanding as of December 31, 2024 is as follows (aggregate intrinsic value, in thousands):
| Stock Options Outstanding | Stock Options Exercisable | |||||||||||||||||||||||||||||||
| Exercise Price | Number of Options Outstanding | Weighted Average Remaining Contractual Life (in years) | Aggregate Intrinsic Value | Number of Exercisable Options | Aggregate Intrinsic Value | |||||||||||||||||||||||||||
| $ | 12.00 | 9,260,428 | 2.90 | $ | 95,753 | 9,260,428 | $ | 95,753 | ||||||||||||||||||||||||
| $ | 13.50 | 200,000 | 5.17 | 1,768 | 200,000 | 1,768 | ||||||||||||||||||||||||||
| $ | 14.00 | 771,689 | 5.35 | 6,436 | 771,689 | 6,436 | ||||||||||||||||||||||||||
| $ | 15.22 | 2,854,875 | 5.97 | 20,327 | 2,854,875 | 20,327 | ||||||||||||||||||||||||||
| $ | 15.50 | 155,000 | 6.30 | 1,060 | 155,000 | 1,060 | ||||||||||||||||||||||||||
| $ | 16.14 | 2,186,742 | 6.54 | 13,558 | 2,186,742 | 13,558 | ||||||||||||||||||||||||||
| $ | 16.34 | 54,500 | 6.90 | 327 | 54,500 | 327 | ||||||||||||||||||||||||||
| $ | 19.84 | 1,881,761 | 8.24 | 4,706 | 795,706 | 1,989 | ||||||||||||||||||||||||||
| $ | 20.00 | 446,827 | 9.20 | 1,046 | 154,027 | 360 | ||||||||||||||||||||||||||
| $ | 20.08 | 1,744,256 | 9.44 | 3,943 | 50,000 | 113 | ||||||||||||||||||||||||||
| $ | 20.60 | 24,787 | 8.97 | 43 | 24,787 | 43 | ||||||||||||||||||||||||||
| $ | 20.76 | 456,477 | 8.62 | 721 | 168,839 | 267 | ||||||||||||||||||||||||||
| $ | 21.32 | 21,148 | 9.74 | 22 | 21,148 | 22 | ||||||||||||||||||||||||||
| $ | 24.70 | 94,994 | 7.75 | NA | 63,334 | NA | ||||||||||||||||||||||||||
| $ | 25.78 | 581,519 | 7.21 | NA | 395,512 | NA | ||||||||||||||||||||||||||
| $ | 25.98 | 287,410 | 7.42 | NA | 287,410 | NA | ||||||||||||||||||||||||||
| $ | 26.00 | 182,495 | 7.80 | NA | 121,667 | NA | ||||||||||||||||||||||||||
| 21,204,908 | 5.36 | $ | 149,710 | 17,565,664 | $ | 142,023 | ||||||||||||||||||||||||||
Restricted Stock
The Company grants restricted stock awards that vest upon the satisfaction of both time-based service and performance-based conditions. In certain cases, restricted stock is granted to certain employees that vest only upon the satisfaction of performance-based conditions such as the Company's consummation of a deemed liquidation event or an IPO.
The total fair value as of the respective vesting dates of restricted stock that vested during 2025, 2024 and 2023 was $53.3 million, $30.8 million and $9.8 million, respectively, including the $46.8 million fair value of 2,035,000 restricted stock that vested upon IPO for the year ended December 31, 2025. Total compensation expense related to the shares granted was $38.2 million, 28.0 million and $12.7 million for the years ended December 31, 2025, 2024 and 2023, respectively. Of the total restricted stock compensation expense for the year ended December 31, 2025, the Company recognized $11.9 million related to certain awards where the performance condition was met upon the completion of the IPO in August 2025 and $9.4 million related to certain awards that vest upon IPO and satisfaction of a subsequent time-based service condition. The compensation expense related to restricted stock is included in employee compensation and benefits on the consolidated statements of operations. Share-based compensation expense related to the restricted stock awards is measured at the grant date fair value of the Company's common stock. See Note 15 - Fair Value Measurement for details regarding the Company’s common stock valuation prior to the IPO. As of December 31, 2025, there was $9.1 million of unrecognized compensation cost. Of this amount, $7.7 million relates to awards for which the time-based vesting condition is not fully satisfied, the weighted average period of unrecognized share-based compensation cost is 0.55 year. Unrecognized share-based compensation of $1.4 million relates to awards for which the performance-based vesting condition had not yet been satisfied.
The following table summarizes information about the unvested restricted stock activities during the years ended December 31, 2025, 2024 and 2023:
| Number of Shares | Weighted-Average Grant Date Fair Value | ||||||||||
| Outstanding at December 31, 2022 | 2,957,190 | $ | 16.94 | ||||||||
Awarded | 1,999,113 | $ | 20.40 | ||||||||
Vested | (443,552) | $ | 15.94 | ||||||||
Cancelled or forfeited | (375) | $ | 19.16 | ||||||||
| Outstanding at December 31, 2023 | 4,512,376 | $ | 17.42 | ||||||||
Awarded | 608,134 | $ | 20.10 | ||||||||
Vested | (1,476,930) | $ | 15.46 | ||||||||
Cancelled or forfeited | (166,917) | $ | 14.15 | ||||||||
| Outstanding at December 31, 2024 | 3,476,663 | $ | 18.85 | ||||||||
Awarded | 400,000 | $ | 22.40 | ||||||||
Vested | (2,292,372) | $ | 18.94 | ||||||||
Cancelled or forfeited | (4,209) | $ | 19.15 | ||||||||
| Outstanding at December 31, 2025 | 1,580,082 | $ | 18.73 | ||||||||
In 2010 and 2011, in addition to grants issued under the Employee and Director Stock Incentive Plans, the Company also granted restricted stock awards to certain employees and non-employee service providers that, at the original grant or when subsequently modified, vest only upon the satisfaction of performance-based conditions such as the Company's consummation of a deemed liquidation event or an IPO. As of December 31, 2024, there were 714,310 unvested restricted shares related to these grants with weighted-average grant date fair value of $9.82 per share and $3.8 million of unrecognized compensation costs. For the year ended December 31, 2025, the Company recognized the entire $3.8 million of share-based compensation expense related to these awards as the restricted shares vested upon the completion of the IPO in August 2025. At vesting date, the total fair value of the restricted shares amounted to $16.4 million.
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.