Share-Based Compensation

9 Months Ended

Sep. 30, 2025

Share-Based Payment Arrangement [Abstract]

NOTE 11 — Share-Based Compensation

The following table presents the aggregate share-based compensation expense, net of forfeitures, for the following periods:


	Three Months Ended September 30,				Nine Months Ended September 30,
$ in thousands	2025		2024		2025		2024
Share-based compensation expense	$	11,656	$	8,995	$	35,759	$	23,795

Performance Stock Units

As of September 30, 2025, there was $0.9 million of unrecognized share-based compensation expense related to unvested performance stock units (“PSUs”).

During 2025, there have been 524,000 PSUs awarded to certain executives for which the vesting occurs upon the achievement of specific market-based conditions related to the Company’s financial performance over a three-year period, modified based on the Company’s Relative Total Shareholder Return (“TSR”) and subject to final vesting based on the participant’s continued employment through the end of the requisite service period. The amount of awards that will ultimately vest for the PSU can range from 0% to 200% based on the TSR calculated over a three-year period. The fair value of the PSUs was determined using the Monte Carlo Simulation model and is being expensed over the three-year vesting period. The assumptions used to calculate the fair value of these awards were:


Weighted average expected life	3 years
Risk-free interest rates	3.9	%
Expected volatility	80.0	%

The following table presents a summary of PSU activity as of September 30, 2025 and the changes during the

nine months ended September 30, 2025:


In thousands, except per share data	Quantity	Weighted-Average Grant Date Fair Value Per Share

Unvested, beginning of period	128	$	16.24
Granted	524	2.89
Forfeited	(330)	5.03

Unvested, end of period	322	$	6.00

Stock Options

As of September 30, 2025, there was $3.3 million of unrecognized share-based compensation expense related to stock options.

The stock options granted to employees during 2025 vest on the one-year anniversary of the date of grant. The Company will recognize compensation expense from the grant date through the expected vesting date. The fair value of the Company’s stock option grants was estimated utilizing the following range of assumptions using the Black-Scholes Merton model:


Weighted average expected life						3 years
Risk-free interest rates						3.58% - 3.87%
Expected volatility						86.0% - 89.6%

The following table presents a summary of stock option activity during the nine months ended September 30, 2025:


In thousands, except per share data	Quantity	Weighted-Average Exercise Price Per Share


Unvested, beginning of period	2,460		$	11.30
Granted	4,163		2.14
Forfeited	(141)		2.13
Unvested, end of period	6,482		$	5.62

Restricted Stock Units

As of September 30, 2025, there was $6.1 million of unrecognized share-based compensation expense related to unvested restricted stock units (“RSUs”), which the Company expects to recognize over a weighted average period of three years.

Generally, RSUs granted to employees and the majority of executives either cliff-vest on the three-year anniversary of the date of grant or vest ratably on each anniversary of the date of grant over a three-year period. Annual awards granted to independent directors cliff-vest on the first anniversary of each award’s grant date.

The following table presents a summary of RSU activity during the nine months ended September 30, 2025:


In thousands, except per share data	Quantity	Weighted-Average Grant Date Fair Value Per Share

Unvested, beginning of period	2,132	$	11.54
Granted	2,114	2.58
Vested	(383)	8.04
Forfeited	(387)	3.51
Unvested, end of period	3,476	$	7.35

Refer to Note 14 — Related Party Transactions for information related to the BHES JDA.