Paymentus Holdings, Inc. Stock Compensation Disclosure

11. Stock-Based Compensation

In May 2021, the Company’s board of directors (the "Board") adopted, and its stockholders approved, the 2021 Equity Incentive Plan (the "2021 Plan"), which became effective in connection with the IPO. The 2021 Plan provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company's employees and any of its parent or subsidiary corporations’ employees, and for the grant of non-statutory stock options, restricted stock, restricted stock units, stock appreciation rights and performance awards to the Company’s employees, directors and consultants and any of its parent or subsidiary corporations’ employees and consultants. A total of 10,459,000 shares of the Company’s Class A common stock have been reserved for issuance under the 2021 Plan in addition to (i) an annual increase of 4% of the outstanding shares of the Company's common stock, with Class A and Class B common stock taken together, on the first day of each fiscal year (subject to the Compensation Committee of the Board exercising discretion to increase or decrease such amount, the "Evergreen Addition") and (ii) upon the expiration, forfeiture, cancellation, or reacquisition of any shares of Class B common stock underlying outstanding stock awards granted under the 2012 Equity Incentive Plan, an equal number of shares of Class A common stock, such number of shares not to exceed 7,563,990. On January 1, 2024 and 2025, pursuant to the Evergreen Addition, approximately 5.0 million and 5.0 million shares of Class A common stock were added to the 2021 Plan issuance reserve. At December 31, 2025, there were 25.5 million remaining shares available for the Company to grant under the 2021 Plan.

Stock Options

The fair value of these historical awards was estimated on the date of grant using the Black-Scholes option-pricing model. There were no options granted during the years ended December 31, 2025, 2024 and 2023. Aggregate intrinsic value represents the difference between the exercise price of the options and the fair value of the Company’s common stock. The aggregate intrinsic value of options exercised during the years ended December 31, 2025, 2024 and 2023 was $2.6 million, $7.1 million and $1.6 million, respectively.

At December 31, 2025, total unrecognized compensation cost related to unvested stock options granted under the 2012 Equity Incentive Plan was immaterial and is expected to be recognized over a weighted-average period of less than one year.

Restricted Stock Units (RSUs)

The fair value of RSU grants is determined based upon the market closing price of the Company's Class A common stock on the date of grant. The weighted-average grant-date fair value of RSUs granted during the years ended December 31, 2025, 2024 and 2023 was $52.2 million, $20.2 million and $10.8 million, respectively. RSUs vest over the requisite service period, which generally ranges between four years and five years from the date of grant for employees and one to three years for directors, subject to continued employment for employees and provision of services for non-employees. The weighted-average fair value of RSUs vested during the years ended December 31, 2025, 2024 and 2023 was $33.3 million, $15.3 million and $4.7 million, respectively.

At December 31, 2025, there was $61.3 million of total unrecognized compensation cost related to unvested RSUs granted under the 2021 Plan, which is expected to be recognized over a remaining weighted-average period of 3.4 years.

Stock-Based Compensation Expense