Share-Based Payments

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

The Company has various stock compensation plans, which are more fully described in Part II, Item 8 "Financial Statements and Supplementary Data—Note 13 to the Consolidated Financial Statements—Equity-Based Compensation" in the Company’s 2022 Annual Report on Form 10-K. Under the Beauty Health Company 2021 Incentive Award Plan, the Company may grant stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalents, other stock or cash-based awards to eligible service providers. Additionally, the Company maintains the Employee Stock Purchase Plan for employees located in the United States, whereby eligible employees can have up to 10% of their earnings withheld, subject to certain maximums, to be used to purchase shares of the Company’s Class A Common Stock at certain purchase dates.

Share-based compensation expense, which is primarily recorded within selling and marketing and general and administrative expenses, was as follows for the periods indicated:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2023		2022		2023		2022
Stock options	$	1,289	$	2,254	$	2,546	$	5,473
Restricted stock units	5,758		2,951		9,174		5,466
Performance-based restricted stock units	1,384		1,078		190		2,279
Employee stock purchase plan	93		95		191		209
	$	8,524	$	6,378	$	12,101	$	13,427

Performance-based restricted stock unit expense includes reversal of expense related to the forfeiture of unvested awards during the three months ended March 31, 2023.

As of June 30, 2023, total unrecognized compensation expense related to unvested share-based compensation totaled $79.1 million and is expected to be recognized over a weighted-average period of 2.2 years.