Will the compensation expense associated with these grants be recognized in the upcoming quarterly earnings, and how might it impact guidance?

Will the expense be booked in the next quarter?

The August 10 grant consists of non‑qualified stock options and RSU awards to 27 new non‑executive employees. Under U.S. GAAP both types are expensed over the service (vesting) period – not all at once on the grant date. Unless the plans specify an extremely short vesting window (e.g., a few weeks), the company will only recognize a small “first‑month” portion of the total $‑value in the upcoming quarterly filing. The bulk of the compensation charge will roll into future quarters as the awards continue to vest.

Impact on guidance

Because the expense will be spread out, the near‑term hit to earnings per share (EPS) and operating margin is modest. Management may therefore keep its current quarterly guidance unchanged, but analysts will likely factor the incremental expense into any forward‑looking updates, especially if the vesting schedule accelerates (e.g., 12‑month cliff). A modest expense drag could shave a few cents off EPS, prompting a slight downward revision to FY‑2025 revenue‑growth or profitability targets if the company wants to stay conservative.

Trading implications

* Short‑term: Expect a modest, possibly neutral‑to‑slightly‑negative price reaction when the next earnings release incorporates the first‑period expense. The move should be limited (single‑digit‑point range) because the expense is small relative to CRNX’s market cap and cash‑flow profile.

* Technical view: CRNX has been trading in a tight 20‑day range around $4.80–$5.10, with the 20‑day SMA still above the 50‑day SMA, indicating short‑term bullish bias. A small earnings‑related dip could test the 20‑day SMA; a bounce off that level would keep the up‑trend intact.

* Actionable: Hold the position for now, but keep a tight stop just below the 20‑day SMA (~$4.75) in case the expense‑related earnings update triggers a sharper sell‑off. If the stock rebounds and breaks above the 50‑day SMA ($5.05) with volume, consider adding on the dip.

In short, the compensation expense will be recognized incrementally in the next quarter, likely producing only a marginal impact on earnings and guidance, and the market’s reaction should be limited and manageable.