Non-cash compensation paid to employees in equity (stock, options, RSUs).
Real economic cost (dilutes shareholders) but reported as non-cash in cash flow statements. Tech companies often exclude SBC from "adjusted" earnings, controversially. SBC as % of revenue is a useful screening metric — above 15% warrants scrutiny.
Non-cash compensation paid to employees in equity (stock, options, RSUs). Real economic cost (dilutes shareholders) but reported as non-cash in cash flow statements. Tech companies often exclude SBC from "adjusted" earnings, controversially. SBC as % of revenue is a useful screening metric — above 15% warrants scrutiny.
In financial metrics, Stock-Based Compensation (SBC) is one of the building blocks investors use to compare opportunities and assess risk. Understanding it helps you read research notes, earnings reports, and market commentary without getting lost in jargon.
Real economic cost (dilutes shareholders) but reported as non-cash in cash flow statements. Tech companies often exclude SBC from "adjusted" earnings, controversially.
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