10.Stock-based compensation

Stock-based compensation expense is measured on the grant date based on the fair value of the award. Stock-based compensation expense is recognized on a straight-line basis over the requisite service period for awards expected to vest. The estimated grant date fair value of stock options was determined using a Black-Scholes valuation model using the following weighted-average assumptions for the periods indicated:

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The expected volatility is based on the historical volatility of the Company’s common stock. The risk-free interest rate is based on the United States Treasury yield curve in effect on the date of grant for the respective expected life of the option. The expected life represents the time the options granted are expected to be outstanding. The expected life of options granted is derived from historical data on Ulta Beauty stock option exercises. Forfeitures of stock options are estimated at the grant date based on historical rates of stock option activity and reduce the stock-based compensation expense recognized. The Company does not currently pay a regular dividend.

The Company granted 134 and 56 stock options during the 26 weeks ended August 2, 2025 and August 3, 2024, respectively. Stock-based compensation expense for stock options was $2,011 and $1,506 for the 13 weeks ended August 2, 2025 and August 3, 2024, respectively. Stock-based compensation expense for stock options was $5,050 and $3,185 for the 26 weeks ended August 2, 2025 and August 3, 2024, respectively. The weighted-average grant date fair value of these stock options was $109.39 and $157.66 for the 26 weeks ended August 2, 2025 and August 3, 2024, respectively. At August 2, 2025, there was approximately $16,480 of unrecognized stock-based compensation expense related to unvested stock options.

There were 106 and 51 restricted stock units issued during the 26 weeks ended August 2, 2025 and August 3, 2024, respectively. Stock-based compensation expense for restricted stock units was $5,626 and $4,997 for the 13 weeks ended August 2, 2025 and August 3, 2024, respectively. Stock-based compensation expense for restricted stock units was $10,972 and $9,385 for the 26 weeks ended August 2, 2025 and August 3, 2024, respectively. At August 2, 2025, there was approximately $48,603 of unrecognized stock-based compensation expense related to restricted stock units.

There were no performance-based restricted stock units issued during the 26 weeks ended August 2, 2025. There were 71 performance-based restricted stock units issued during the 26 weeks ended August 3, 2024. Stock-based compensation expense for performance-based restricted stock units was $1,283 and $2,687 for the 13 weeks ended August 2, 2025 and August 3, 2024, respectively. Stock-based compensation expense for performance-based restricted stock units was $4,316 and $6,702 for the 26 weeks ended August 2, 2025 and August 3, 2024, respectively. At August 2, 2025, there was approximately $4,752 of unrecognized stock-based compensation expense related to performance-based restricted stock units.