NOTE 3. SHARE-BASED COMPENSATION

The Company grants share-based compensation awards to its officers, directors, and certain key employees pursuant to the 2017 Pursuit Attractions and Hospitality, Inc. Omnibus Incentive Plan, as amended (the “2017 Plan”). The 2017 Plan has a 10-year term and provides for the following types of awards: (a) incentive and non-qualified stock options; (b) restricted stock awards and restricted stock units; (c) performance units or performance shares; (d) stock appreciation rights; (e) cash-based awards; and (f) certain other stock-based awards. As of December 31, 2025, there were approximately 1.0 million shares available for future grant under the 2017 Plan.

The following table summarizes share-based compensation expense for the years ended December 31, 2025, 2024, and 2023:

 

 

Year Ended December 31,

 

(in thousands)

 

2025

 

 

2024

 

 

2023

 

Restricted stock awards and restricted stock units

 

$

4,650

 

 

$

6,143

 

 

$

4,549

 

Performance-based restricted stock units

 

 

2,747

 

 

 

4,498

 

 

 

2,956

 

Stock options

 

 

51

 

 

 

528

 

 

 

1,471

 

Share-based compensation expense before income tax

 

 

7,448

 

 

 

11,169

 

 

 

8,976

 

Income tax benefit (1)

 

 

(190

)

 

 

(153

)

 

 

(126

)

Share-based compensation expense, net of income tax

 

$

7,258

 

 

$

11,016

 

 

$

8,850

 

(1)
The income tax benefit amount for all periods primarily reflects the tax benefit associated with Canadian-based employees. See Note 15 – Income Taxes.

Performance-based Restricted Stock Units

PSUs are tied to the Company’s stock price and/or the expected achievement of certain performance-based criteria. The vesting of PSUs is based upon the achievement of the performance-based criteria over a three-year period. The Company accounts for PSUs that will be settled in shares of the Company’s common stock as equity-based awards. Share-based compensation expense of equity-based awards is measured at fair value on the grant date on a straight-line basis over the vesting period. The estimated number of units to be achieved is updated each reporting period.

During the year ended December 31, 2024, PSUs granted in 2021 and 2022 vested, resulting in a total payout of $3.0 million in shares. During the year ended December 31, 2023, PSUs granted in 2020 vested; however, performance metrics were not achieved and accordingly, no awards were paid.

As of December 31, 2025, the unamortized cost of outstanding equity-based PSUs was $3.6 million, which the Company expects to recognize over a weighted-average period of approximately 1.8 years.

The following table summarizes the activity of the outstanding PSU awards during the year ended December 31, 2025:

 

 

Equity-Based
PSUs

 

 

 

Shares

 

 

Weighted-Average
Grant Date
Fair Value

 

Balance as of December 31, 2024

 

 

272,641

 

 

$

46.23

 

Granted (1)

 

 

76,354

 

 

$

55.08

 

Vested

 

 

 

 

$

 

Forfeited (1)

 

 

(95,180

)

 

$

49.61

 

Balance as of December 31, 2025

 

 

253,815

 

 

$

47.63

 

(1)
Includes adjustments for estimated achievement of performance-based criteria.

Service-based RSUs

RSUs are service-based awards. The Company accounts for RSUs that will be settled in shares of the Company’s common stock as equity-based awards. Share-based compensation expense of equity-based awards is measured at fair value on the grant date on a straight-line basis over the vesting period.

As of December 31, 2025, the unamortized cost of outstanding equity-based RSUs was $2.0 million, which the Company expects to recognize over a weighted-average period of approximately 1.2 years. During the years ended December 31, 2025, 2024, and 2023, respectively, the Company withheld 40,037 shares for $1.4 million, 125,200 shares for $5.1 million, and 48,039 shares for $1.5 million related to tax withholding requirements on vested share-based awards.

The following table summarizes the activity of the outstanding equity-based RSUs during the year ended December 31, 2025:

 

 

Equity-Based
RSUs

 

 

 

Shares

 

 

Weighted-Average
Grant Date
Fair Value

 

Balance at December 31, 2024

 

 

272,368

 

 

$

35.24

 

Granted

 

 

81,251

 

 

$

38.53

 

Vested

 

 

(144,290

)

 

$

34.24

 

Forfeited

 

 

(37,332

)

 

$

35.39

 

Balance at December 31, 2025

 

 

171,997

 

 

$

37.60

 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Mar 17, 2025
2023Mar 1, 2024
2022Feb 28, 2023
2021Feb 25, 2022
2020Mar 2, 2021
2019Feb 26, 2020
2018Feb 27, 2019
2017Feb 28, 2018
2016Mar 6, 2017
2015Mar 11, 2016

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.