Stock Options

During the nine months ended September 30, 2025, the Company did not grant stock options to employees. During the nine months ended September 30, 2024, the Company granted stock options to employees to purchase 852,220 shares of the Company’s common stock. The weighted-average grant-date fair value of the employee stock options granted during the nine months ended September 30, 2024 was $4.96 per share. The Company expects to reduce the use of stock options as long-term equity awards for its executives.

Restricted Stock Units

During the nine months ended September 30, 2025 and 2024, the Company granted 3,127,114 and 3,370,462 restricted stock units ("RSUs"), respectively. The weighted average grant-date fair value of RSUs granted during the nine months ended September 30, 2025 and 2024 was $8.27 and $9.09 per share, respectively.

The Company generally grants performance-based restricted stock unit ("PSU") awards subject to market and service vesting conditions to certain executives under the Company's 2021 Incentive Award Plan. The actual number of PSUs that will vest at the end of the measurement period is generally determined based on the Company's total stockholder return ("TSR") ranking relative to the TSR of a published index of the Company's peers. The measurement period for its outstanding awards is generally three years. The grant date fair value of each target PSU award was determined using a Monte Carlo valuation model or the grant date fair value. Over the performance period, if the service vesting conditions are met, the actual number of PSUs earned may vary from zero, if performance thresholds are not met, to as much as 200% of target PSUs depending on the grant year.

During the nine months ended September 30, 2025 and 2024, the Company granted PSUs for 1,160,625 and 453,375 shares, respectively, at target performance levels. The weighted average grant-date fair value of the PSUs granted during the nine months ended September 30, 2025 and 2024 was $9.13 and $18.89 per share, respectively.

Share-based compensation expense is reflected in the Condensed Statements of Operations and Comprehensive Loss as follows (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
Cost of goods sold	$	130	$	91	$	327	$	272
Sales and marketing expense		1,669		1,764		5,116		5,052
Research and development expense		948		1,152		3,188		3,174
General and administrative expense		5,251		4,893		17,637		13,550
Total	$	7,998	$	7,900	$	26,268	$	22,048

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Stock Options

Performance Share Units

Share-Based Compensation Expense

TREACE MEDICAL CONCEPTS, INC. 10-Q