Stock-Based Compensation

9 Months Ended

Sep. 30, 2025

Note 15. Stock-Based Compensation

Stock Options

During the three and nine months ended September 30, 2025 and 2024, we granted stock options at exercise prices equal to or higher than the quoted market price of our common stock on the grant date. The fair value of each option grant was estimated on the date of grant using Black-Scholes with the following weighted average assumptions:


	September 30,
	2025	2024
Expected life (years)	3.7 - 4.8	3.8 - 4.9
Risk-free interest rate	3.6% - 4.0%	3.5% - 4.5%
Volatility	74.4% - 82.9%	68.9% - 74.9%
Dividend yield	0%	0%

The expected option life assumption is estimated based on the simplified method as the Company’s history is not indicative of future expected lives. Accordingly, the Company has utilized the average of the contractual term of the options and the weighted average vesting period for all options to calculate the expected option term. The risk-free interest rate assumption is based upon observed interest rates appropriate for the expected term of our employee stock options. The expected volatility is based on the average of the historical volatility and the implied volatility of our stock commensurate with the expected life of the stock-based award. We do not anticipate paying dividends on the common stock in the foreseeable future.

We recognize stock-based compensation cost on a straight-line basis over the vesting period. Stock-based compensation expense is recognized only for those awards that ultimately vest. Forfeitures are recorded when recognized.

Total stock-based compensation expense related to all of our share-based payment awards is comprised of the following (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Cost of revenue	$	445	$	616	$	1,428	$	1,850
Selling, general and administrative		1,878		3,121		5,602		10,018
Engineering and development		203		319		605		1,055
	$	2,526	$	4,056	$	7,635	$	12,923

A summary of stock option activity is as follows:


				Weighted-
		Weighted-		Average
		Average		Remaining	Aggregate
	Number of	Exercise		Contractual	Intrinsic
	Shares	Price/Share		Term (Years)	Value (1)
Outstanding — December 31, 2024	6,802,474	$	16.38	—		—
Granted (weighted-average fair value of $4.13 per share)	510,864		6.87	—		—
Exercised	(888,307)		4.47	—		—
Forfeited	(275,620)		25.52	—		—
Expired	(304,834)		18.20	—		—
Outstanding — September 30, 2025	5,844,577	$	16.83	3.7	$	7,083
Vested (exercisable) — September 30, 2025	5,127,641	$	17.52	3.4	$	5,923
Expected to vest after September 30, 2025 (unexercisable)	716,936	$	11.91	5.9	$	1,160

(1)	Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of the Company’s common stock on September 30, 2025 (the last trading day of the quarter), which was $9.48 per share.

Total intrinsic value of options exercised during the nine months ended September 30, 2025 and 2024 was $2.3 million and $1.1 million, respectively.

As of September 30, 2025, there was unrecognized compensation expense of $4.7 million related to unvested stock options, which we expect to recognize over a weighted average period of 1.9 years.

As of September 30, 2025, the Company had 2,271,955 shares available for future awards under the Cryoport Inc. 2018 Omnibus Equity Incentive Plan.

Restricted Stock Units

A summary of our restricted stock unit activity is as follows:


		Weighted Average
	Number of Restricted	Fair Value per
	Stock Units	Share
Outstanding — December 31, 2024	1,039,091	$	21.75
Granted	678,330		6.46
Share issuance	(383,957)		25.79
Forfeited	(214,625)		18.11
Expired	(4,019)		6.41
Outstanding — September 30, 2025	1,114,820	$	11.58

For the three months ended September 30, 2025 and 2024, we recorded stock-based compensation expense on our issued restricted stock units of $1.6 million and $2.7 million, respectively. For the nine months ended September 30, 2025 and 2024, we recorded stock-based compensation expense on our issued restricted stock units of $5.2 million and $8.1 million, respectively. As of September 30, 2025, there was unrecognized compensation expense of $9.9 million related to unvested restricted stock units, which we expect to recognize over a weighted average period of 2.3 years.

Cryoport, Inc. 10-Q