Roadzen Inc. Stock Compensation Disclosure
The share-based compensation awards issued under the Company’s 2023 Omnibus Incentive Plan to the Company’s employees, officers, directors, are all equity-classified instruments Restricted stock units (“RSUs”) outstanding as of March 31, 2025 have service vesting conditions up to March 2027. Compensation expenses are based on the grant-date fair value of the awards and recognized over the requisite service period using a straight-line method for stock options and a graded vesting method for RSUs. The Company has elected to account for forfeitures of employee stock awards as they occur.
Share-based compensation is in the form of restricted stock units (RSUs). The fair value per RSU is calculated using the Black-Scholes option valuation model.
Option value and assumption
| Fair value per share (as of grant date) | $ | 10.83 | ||
| Exercise price | $ | 0 | ||
| Assumptions: | ||||
| Volatility | % | |||
| Expected dividends | % | |||
| Expected term (in years) | ||||
| Risk free rate | % |
RSU vesting schedule for year ended | As of March 31, 2025 | |||
| March 2025 | 79,995 | |||
| March 2026 | 9,579,589 | |||
| March 2027 | 63,336 | |||
| Stock option activity | As of March 31, 2025 | |||
| Opening unvested units (as of April 01, 2024) | 9,707,928 | |||
| Granted | 215,000 | |||
| Exercised | ||||
| Cancelled | 200,008 | |||
| Closing unvested units | 9,722,920 | |||
Stock-based compensation expense related to RSUs granted to employees was $ for the year ended March 31, 2025. As of March 31, 2025, the unrecognized compensation expense related to unvested RSUs was approximately $ which is expected to be recognized over the remaining unvested period of RSU’s.
On September 18, 2023, prior to the business combination, Roadzen DE granted Restricted Stock Units (RSUs) under the 2023 Omnibus Incentive Plan. These RSUs were initially scheduled to vest on the one-year anniversary of the grant date, specifically on September 17, 2024. However, the Board of Directors of Roadzen DE has subsequently decided to extend the vesting period by an additional year, revising the vesting date to September 17, 2025. Consequently, outstanding RSUs did not vest as originally anticipated on September 17, 2024.
Based on the current market price of the shares, management has assessed that this revised vesting timeline will not result in any additional RSU compensation expense being recognized in the company’s financial statements.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jun 26, 2025 | Showing above |
| 2024 | Jul 1, 2024 | |
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.