Stock-Based Compensation SBC
Pay given to employees in the form of stock or options rather than cash, recorded as an expense even though no cash leaves the company.
What it is
Stock-based compensation is the value of equity — such as restricted stock units or stock options — that a company grants to employees and executives instead of cash. It is a real expense on the income statement, but because no cash changes hands it is added back in the operating section of the cash flow statement. Over time it dilutes existing shareholders as new shares are issued.
Why it matters
SBC is a genuine economic cost that some companies downplay by excluding it from adjusted earnings, which can flatter profitability. Because it is added back to compute operating cash flow and free cash flow, those metrics can overstate the cash truly available to shareholders. The clearest way to see its impact is through share-count growth and dilution over time.
How it's calculated
It is the fair value of equity awards recognized as expense over the period, reported as a line on the income statement and added back as a non-cash item on the cash flow statement.
How Quintarthai uses it
Stock-based compensation shows up as a non-cash add-back in the operating section of the 10-year cash-flow statement under the Financials tab on each company page, where you can also track share-count changes over time.