v3.25.1
Stock-Based Compensation Expense and Shareholders' Equity
 9 Months Ended
Apr. 30, 2025
Stockholders' Equity and Stock-based Compensation [Abstract]  
Stock-Based Compensation Expense and Shareholders' Equity Stock-Based Compensation Expense and Shareholders’ Equity
Stock-Based Compensation Expense
Stock-based compensation expense related to stock options and Stock Awards is included in the Company’s condensed consolidated statements of operations as follows (in thousands):
Three Months EndedNine Months Ended
April 30,April 30,
2025202420252024
Stock-based compensation expense$40,367 $36,809 $119,398 $109,411 
Net impact of deferred stock-based compensation(10)(159)(33)(237)
 Total stock-based compensation expense, net$40,357 $36,650 $119,365 $109,174 
Stock-based compensation expense is included in the following categories:
Cost of subscription and support revenue$3,598 $3,183 $10,511 $10,059 
Cost of license revenue32 — 104 148 
Cost of services revenue5,055 4,729 15,218 14,161 
Research and development10,267 10,003 30,560 30,127 
Sales and marketing10,832 9,349 31,400 25,268 
General and administrative10,573 9,386 31,572 29,411 
Total stock-based compensation expense$40,357 $36,650 $119,365 $109,174 
Total unrecognized stock-based compensation expense related to the Company’s Stock Awards as of April 30, 2025 is as follows:
Unrecognized Expense
(in thousands)		Weighted Average Expected Recognition Period
(in years)
Stock Awards297,590 2.1
Total unrecognized stock-based compensation expense$297,590 
Stock Awards
A summary of the Company’s Stock Awards activity under the Company’s equity incentive plans is as follows:
 Stock Awards Outstanding
 Number of Stock Awards  Weighted Average Grant Date Fair Value
 Aggregate Intrinsic Value (in thousands)(1)
Balance as of July 31, 20243,202,066 $86.60 $480,534 
Granted1,006,028 $176.01 
Released(1,149,635)$98.90 $202,473 
Canceled(98,340)$98.58 
Balance as of April 30, 20252,960,119 $111.81 $606,144 
Expected to vest as of April 30, 20252,960,119 $111.81 $606,144 
(1) Aggregate intrinsic value at each period end represents the total market value of Stock Awards at the Company’s closing stock price of $204.77 and $150.07 on April 30, 2025 and July 31, 2024, respectively. Aggregate intrinsic value for released Stock Awards represents the total market value of released Stock Awards at date of release.

In September 2023 and September 2024, certain executive officers were granted Stock Awards that cliff vest after three years, subject to continued service until such time, with the opportunity to increase the number of vested awards based on Company financial performance and, for a select number of awards, the market performance of the Company’s common stock. The fair value of the awards will be recognized over the three-year performance period and may increase or decrease depending on the estimated attainment of Company financial performance criteria. The Company determined the fair value of the portion of the awards subject to the market performance of the Company’s common stock using a Monte Carlo simulation model, which included the following assumptions:
Nine Months Ended
April 30,
20252024
Performance period
September 11, 2024 to September 11, 2027September 13, 2023 to September 13, 2026
3-year historical volatility
36.0%35.0%
3-year risk free rate
3.4%4.5%
For the portion of the award subject to the market performance of the Company’s common stock, stock-based compensation expense is recognized over the requisite service period regardless of whether or not the market condition is ultimately satisfied, subject to continued service over the period.
Prior to fiscal year 2024, certain executives and employees of the Company received PSUs, which vest over three years, with 50% vesting annually over the three-year performance period and the remaining 50% vesting at the end of the third year.
The Company recognized stock-based compensation related to PSUs of $7.1 million and $4.6 million during the three months ended April 30, 2025 and 2024, respectively, and $19.2 million and $11.7 million during the nine months ended April 30, 2025 and 2024, respectively.
Stock Options
A summary of stock option activity under the Company’s equity incentive plans is as follows:
 Number of Stock Options Outstanding Weighted Average Exercise PriceWeighted Average Remaining Contractual Life
 Aggregate Intrinsic Value(1)
(in years) (in thousands)
Balance as of July 31, 2024166,838 $65.63 7.9$14,088 
Granted— $— 
Exercised(45,755)$69.36 $4,910 
Canceled— $— 
Balance as of April 30, 2025121,083 $64.21 7.1$17,019 
Vested and expected to vest as of April 30, 2025121,083 $64.21 7.1$17,019 
Exercisable as of April 30, 2025121,083 $64.21 7.1$17,019 
(1) Aggregate intrinsic value at each period end represents the difference between the Company’s closing stock price of $204.77 and $150.07 on April 30, 2025 and July 31, 2024, respectively, and the exercise price of outstanding options. Aggregate intrinsic value for exercised options represents the difference between the Company’s stock price at date of exercise and the exercise price.
Share Repurchase Program
In September 2022, the Company’s board of directors authorized and approved a share repurchase program of up to $400.0 million of the Company’s outstanding common stock. Share repurchases under the program may be made from time to time, in the open market, in privately negotiated transactions and otherwise, at the discretion of management of the Company and in accordance with applicable federal securities laws, including Rule 10b-18 of the Exchange Act, and other applicable legal requirements. Such repurchases may also be made in compliance with Rule 10b5-1 trading plans entered into by the Company.
During the three and nine months ended April 30, 2025 and 2024, the Company did not repurchase any shares of common stock. As of April 30, 2025, $138.2 million remained available for future share repurchases subject to our compliance with the terms of the Credit Agreement.