Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

Share-Based Payment Arrangement, Expensed and Capitalized, Amount

For the year ended December 31, 2025, 2024, and 2023 the Company recorded stock compensation costs totaling:


	Year Ended December 31,
	2025		2024		2023
Reduction in revenue (1)	$	—	$	151	$	1,323
Selling, general & administrative expenses	$	10,843	$	8,771	$	7,805
Total stock compensation expense	$	10,843	$	8,922	$	9,128

(1) The cost recognized as a reduction in revenue is related to the RSUs previously granted to a major customer based on guidance in ASC 606 as a stock-based sales incentive. These awards are shares of restricted Common Stock valued at $3,000 granted at the time of the IPO to an entity affiliated with a significant customer, at $15.00 per share, or 200,000 restricted shares, in connection with an amendment to extend the distributor agreement term to June 10, 2026. Since the distribution agreement had not been terminated by either party for cause as of March 31, 2023, 50% of the shares were released on March 31, 2023. The remaining 50% were released on March 31, 2024.

Summary of Stock Option Activity

The following table summarizes the service-based stock option activity during the year ended December 31, 2025:


	Number of Stock Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
		(per option)		(in years)	(in thousands)
Outstanding—December 31, 2024	3,054,060	$	13.14
Granted	201,100	$	32.95
Exercised	356,321	$	10.46
Forfeited or expired	25,443	$	15.35
Outstanding—December 31, 2025	2,873,396	$	14.78	5.5	$	111,319
Exercisable—December 31, 2025	2,378,997	$	12.51	5.0	$	96,360

The following table summarizes the stock option activity during the year ended December 31, 2025:


	Number of Stock Options	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value
		(per option)		(in years)	(in thousands)
Outstanding—December 31, 2024	1,144,436	$	12.60
Granted	—	—
Exercised	—	—
Forfeited or expired	—	—
Outstanding—December 31, 2025	1,144,436	$	12.60	5.1	$	46,243
Exercisable—December 31, 2025	709,346	$	10.18	3.9	$	30,383

Summary of Weighted Average Assumptions Used in The Black-Scholes Option-pricing Model

The weighted average assumptions used in the Black-Scholes option-pricing model were as follows:


	2025		2024
Weighted average expected term	6.25 years		6.25 years
Weighted average expected volatility	31	%	32	%
Weighted average risk-free interest rate	4.10	%	4.00	%
Weighted average expected dividend yield	0	%	0	%

Summary of Restricted Stock and Restricted Stock Unit Activity

The following table summarizes the restricted stock and RSU activity for the year ended December 31, 2025:


	Number of service based Restricted Stock or RSU Awards	Weighted Average Grant Date Fair Value (service based)		Number of performance based Restricted Stock or RSU Awards	Weighted Average Grant Date Fair Value (performance based)

Non-vested - December 31, 2024	634,803	$	19.99	74,579	$	23.97
Granted	214,468	33.66		71,140	32.89
Vested	216,411	19.17		—	—
Forfeited/Cancelled	24,657	23.69		1,528	26.18
Non-vested - December 31, 2025	608,203	$	24.95	144,191	$	28.35

Vita Coco Company, Inc. 10-K