v3.26.1
Stock-based Compensation
3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
We use share-based payments to compensate employees and non-employee directors. We grant incentive awards in the form of restricted stock units (a small portion of which are subject to the achievement of performance conditions) and performance unit awards (which are subject to the achievement of performance conditions). Certain of these incentive awards are share-settled, and certain of these incentive awards are cash-settled. See Note 12 in Notes to consolidated financial statements in Item 8 of our Annual Report for further description of the various types of stock-based compensation awards and the applicable award terms and accounting.
Stock Options — No stock options have been granted since 2016. There was no stock option activity from January 1, 2026 to March 31, 2026.
Restricted Stock Units (Equity Based) — Share-settled restricted stock unit activity from January 1, 2026 to March 31, 2026 follows:
Time Based SharesPerformance
Based Shares
Weighted Average Grant Date Fair Value Per Share
Non-vested restricted stock units outstanding at January 1, 2026
6,673,838409,890$8.06 
Granted269,226$6.11 
Performance based restricted stock units settled (1)
(331,675)$14.10 
Vested(352,164)$9.51 
Forfeited(51,567)$7.80 
Non-vested restricted stock units outstanding at March 31, 2026
6,539,33378,215$7.60 
(1)Performance based restricted stock units reached the end of their performance period in February 2026, and no shares were issued to settle such performance based restricted stock units.
As of March 31, 2026, we had unrecognized compensation cost related to our unvested restricted stock units totaling $29.9 million. The weighted-average remaining vesting period for these unvested restricted stock units was 1.69 years as of March 31, 2026.
Restricted Stock Units (Liability Based) — A portion of the restricted stock unit awards granted in 2025 are cash-settled. Cash-settled restricted stock unit activity from January 1, 2026 to March 31, 2026 follows:
Time Based Shares
Non-vested cash-settled restricted stock units outstanding at January 1, 2026
628,175
Granted
Vested
Forfeited
Non-vested cash-settled restricted stock units outstanding at March 31, 2026
628,175
As of March 31, 2026, we had unrecognized compensation cost related to our unvested cash-settled restricted stock units totaling $4.5 million. The weighted-average remaining vesting period for these unvested cash-settled restricted stock units was 2.08 years as of March 31, 2026.
Performance Unit Awards — We have granted performance unit awards to certain employees (the “Performance Units”). The Performance Units generally vest over a three-year period based on the achievement of performance goals. Historically, Performance Units have been tied to total shareholder return (“TSR”) achievement as compared to the TSR of a designated peer group, and allow for a payout ranging between 0% and 200% of the target payout. With respect to the Performance Units granted in May 2025, (i) one-half are cash-settled and are otherwise structured similarly to the 2024 Performance Units with vesting tied to our relative TSR and (ii) one-half are share-settled and tied to our relative free cash flow return as compared to the free cash flow return of a designated peer group (“FCF”).
Performance Units activity from January 1, 2026 to March 31, 2026 follows:
Performance Units
Share-Settled
(at target)
Weighted
Average Grant
Date Fair Value
Per Share
Performance
Units
Cash-Settled
(at target)
Non-vested Performance Units outstanding at January 1, 2026
2,214,700$10.49 743,800
Granted$— 
Performance Units settled$— 
Forfeited$— 
Non-vested Performance Units outstanding at March 31, 2026
2,214,700$10.49 743,800
As of March 31, 2026, we had unrecognized compensation cost related to our unvested Performance Units totaling $14.5 million. The weighted-average remaining vesting period for these unvested Performance Units was 1.79 years as of March 31, 2026.
Stock-Based Compensation Expense — Expense associated with restricted stock units and Performance Unit awards is included in “Direct operating costs” and “General and administrative” in our unaudited condensed consolidated statements of operations. The following table presents stock-based compensation expense for the three months ended March 31, 2026 and 2025 (in thousands):
Three Months Ended
March 31,
20262025
Share-settled awards
Restricted stock units$1,928 $9,886 
Performance Units – TSR1,550 2,403 
Performance Units – FCF934 — 
Total share-settled awards4,412 12,289 
Cash-settled awards
Cash-settled restricted stock units1,126 
Cash-settled Performance Units1,834 — 
Total cash-settled awards2,960 
Stock-based compensation expense$7,372 $12,297