Share-Based Compensation |
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| Share-Based Compensation | 15. Share-Based Compensation Equity awards Compensation Expense Equity awards compensation expense recorded in the consolidated statements of operations was as follows:
(1) The periods ended December 31, 2025 and 2024, are presented net of $5.8 million and $4.0 million, respectively, capitalized stock-based compensation relating to internally developed software. During the year ended December 31, 2025, the departures of the Company’s former Chief Executive Officer and Chief Revenue Officer resulted in the forfeiture of unvested stock-based compensation awards of both restricted and performance based awards. As a result, the Company reversed $4.5 million of previously recognized stock-based compensation expense, which is reflected, respectively as a reduction of $3.4 million in General and Administrative expense and a reduction of $1.1 million in Sales and Operations, for the year ended December 31, 2025. The summary of the forfeitures by award type is presented in the tables below. The breakdown of the equity award compensation expense by instrument type was as follows:
(1) The periods ended December 31, 2025 and 2024, are presented net of $5.8 million and $4.0 million, respectively, capitalized stock-based compensation relating to internally developed software. A detailed description of each instrument type is provided below. Restricted Stock Units and Performance Stock Units During the year ended December 31, 2025, the Company granted new equity awards under our current equity compensation plans, which were comprised of restricted stock units (“RSU”), and performance-based awards for the Company’s senior executives, which are subject to the achievement of certain performance goals (“Financial PSU”) or to share price metrics tied to total shareholder return (“TSR PSU”). Restricted Stock Units Restricted stock units generally vest over four years, subject to the holder’s continued service. The grant date fair value is determined by the Company's Nasdaq share price the day prior to the grant.
The RSUs generally vest over a -year period, with expense recognized on a graded vesting basis over the requisite service period for each separately vesting tranche. A total of 2,465,484 shares have been granted under this plan in the year 2025, with a weighted-average grant-date fair value of $29.14. As of December 31, 2025, the Company had unrecognized stock-based compensation relating to restricted stock units of approximately $78.9 million, which is expected to be recognized over a weighted-average period of 3.1 years. Performance Stock Units Performance stock units (PSUs) are subject to either internal financial performance conditions or external market conditions. Financial PSUs Financial PSUs are earned based on the achievement of certain financial metrics, including Contribution ex-TAC, Contribution ex-TAC of Retail Media and Adjusted EBITDA. In the period ending December 31, 2025, a total of 217,239 shares have been granted at target with a vesting period of three years. The target shares are subject to a range of vesting from 0% to 200% based on the performance of internal financial metrics, for a maximum number of shares of 434,478. The grant-date fair value is determined by the Company's Nasdaq share price the day prior to the grant. The weighted average grant-date fair value of those plans is $28.27 per share for a total fair value of approximately $6.1 million, to be expensed on a straight-line basis over the respective vesting period. The number of shares granted, vesting and outstanding subject to performance conditions is as follows:
As of December 31, 2025, the Company had unrecognized stock-based compensation related to performance stock units of approximately $3.9 million, which is expected to be recognized over a weighted-average period of 2.6 years. TSR PSUs TSR PSUs are earned based on the Company’s total shareholder return relative to the Nasdaq Composite Index, and certain other vesting conditions. In the period ending December 31, 2025, 217,239 shares have been granted at target under this plan, to be earned in two equal tranches over a term of and three years, respectively. The target shares are subject to a range of vesting from 0% to 200% for each tranche based on the TSR, for a maximum number of shares of 434,478. The grant-date fair value is approximately $12.4 million, to be expensed on a straight-line basis over the respective vesting period. The grant-date fair value was determined based on a Monte-Carlo valuation model using the following key assumptions:
The number of shares granted, vested and outstanding subject to market conditions is as follows:
As of December 31, 2025, the Company had unrecognized stock-based compensation related to performance stock units based on market conditions of $11.5 million, which is expected to be recognized over a weighted-average period of 1.8 years. Modification of Performance Stock Units On December 22, 2025, the Board of Directors approved modifications to the terms of certain outstanding and unvested PSUs previously granted, as further described below. The modification of Financial PSUs amended the performance targets to allow for previously unvested and unearned performance awards that were not probable to vest, to vest, subject to three-year service period. This modification pertained to all nine grantees and was accounted for as an improbable-to-probable Type III modification under ASC 718, Compensation - Stock Compensation, resulting in no incremental compensation expense. The fair value of the modified performance awards was estimated using the closing stock price on the date of modification. The modification of TSR PSUs replaced the market condition with financial performance conditions to be determined at a later date, subject to three-year service period. This modification pertained to grants awarded to our Chief Executive Officer and was accounted for as a probable-to-probable Type I modification under ASC 718, resulting in incremental compensation expense of $0.4 million, over the remaining service period, of which an immaterial amount was recognized during year-end December 31, 2025. The incremental fair value of the modified awards was measured as the difference between the fair value of the modified award and the fair value of the original award as of the modification date. Lock-up shares On August 1, 2022, the Company transferred 2,960,243 treasury shares (the “Lock-up Shares”) to the Iponweb Founder as partial consideration for the Iponweb acquisition. These shares were accounted for as share-based compensation in accordance with ASC 718, using the Nasdaq weighted average share price on the grant date, and the related expense was recognized within Research and Development in the Consolidated Statement of Income. As of December 31, 2024, all Lock-up Shares were fully vested, and there was no remaining unrecognized stock-based compensation expense related to these awards. Nonemployee warrants Nonemployee warrants generally vest over four years, subject to the holder’s continued service through the vesting date.
The aggregate intrinsic value represents the difference between the exercise price of the nonemployee warrants and the fair market value of common stock on the date of exercise. During the period ended December 31, 2025 there were no exercises of nonemployee warrants. No new nonemployee warrants were granted in the year ending December 31, 2025. As of December 31, 2025, all instruments have fully vested. Stock Options Stock options granted under the Company’s stock incentive plans generally vest over four years, subject to the holder’s continued service through the vesting date and expire no later than 10 years from the date of grant.
The aggregate intrinsic value represents the difference between the exercise price of the options and the fair market value of common stock on the date of exercise. The aggregate intrinsic value of the stock options exercised was $0.4 million, $0.8 million and $0.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. No new stock options were granted in the year ending December 31, 2025 and December 31, 2024. As of December 31, 2025, there was no remaining unrecognized stock-based compensation related to unvested stock options.
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