Tarsus Pharmaceuticals, Inc. Stock Compensation Disclosure
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Cost of sales | $ | 697 | $ | 603 | $ | 190 | |||||||||||
| Research and development | 10,035 | 6,804 | 5,833 | ||||||||||||||
| Selling, general and administrative | 30,988 | 20,411 | 13,807 | ||||||||||||||
| Total stock-based compensation | $ | 41,720 | $ | 27,818 | $ | 19,830 | |||||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Stock options | $ | 13,816 | $ | 15,182 | $ | 13,032 | |||||||||||
| Restricted stock units | 17,676 | 11,800 | 6,508 | ||||||||||||||
| Performance stock units | 9,232 | — | — | ||||||||||||||
| Employee stock purchase plan | 996 | 836 | 290 | ||||||||||||||
| Total stock-based compensation | $ | 41,720 | $ | 27,818 | $ | 19,830 | |||||||||||
| Unrecognized Compensation Expense ($) | Average Remaining Vesting Period (Years) | ||||||||||
| Stock options | 27,002 | 2.26 | |||||||||
| Restricted stock units | 43,214 | 2.69 | |||||||||
| Performance stock units | 23,218 | 2.00 | |||||||||
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Exercise price | $39.99 to $79.44 | $20.16 to $50.40 | $12.48 to $18.78 | ||||||||||||||
| Risk-free interest rate | 3.78% to 4.53% | 3.57% to 4.65% | 3.38% to 4.83% | ||||||||||||||
| Expected volatility | 65.8% to 68.6% | 69.3% to 71.6% | 69.7% to 73.3% | ||||||||||||||
| Weighted-average grant-date fair value per stock option | $ | 45.78 | $ | 35.60 | $ | 15.49 | |||||||||||
| Number of Shares | Weighted-Average Exercise Price/Share ($) | Weighted-Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value ($)(1) | ||||||||||||||||||||
| Outstanding - December 31, 2024 | 5,007,908 | 19.29 | 6.91 | 180,669 | |||||||||||||||||||
| Granted | 583,236 | 45.78 | |||||||||||||||||||||
| Exercised | (307,192) | 20.64 | |||||||||||||||||||||
| Forfeited | (52,827) | 24.66 | |||||||||||||||||||||
| Outstanding - December 31, 2025 | 5,231,125 | 22.11 | 6.26 | 312,647 | |||||||||||||||||||
| Vested - December 31, 2025 | 3,868,858 | 17.76 | 5.52 | 248,052 | |||||||||||||||||||
| Unvested - December 31, 2025 | 1,362,267 | 34.46 | 8.35 | 64,594 | |||||||||||||||||||
| Number of Shares | Weighted-Average Grant Date Fair Value ($) | ||||||||||
| Outstanding - December 31, 2024 | 1,915,281 | 24.41 | |||||||||
| Granted | 568,636 | 46.51 | |||||||||
| Vested | (598,256) | 23.62 | |||||||||
| Forfeited | (129,332) | 24.47 | |||||||||
| Outstanding - December 31, 2025 | 1,756,329 | 31.83 | |||||||||
| Number of Shares | Weighted-Average Grant Date Fair Value ($) | ||||||||||
| Outstanding - December 31, 2024 | — | — | |||||||||
| Granted | 724,793 | 44.77 | |||||||||
| Outstanding - December 31, 2025 | 724,793 | 44.77 | |||||||||
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.