Xiaohongshu Stock Option Grant Price Continuously Raised: Adjusted to $30 Four Times Since March 2025

Recently, insiders revealed that Xiaohongshu has made a new round of adjustments to its employee stock option grant prices, with the latest grant price rising to $30 per share. Based on the current exercise price of $2 per share, employees can earn a profit of $28 per share after exercising. This adjustment has sparked widespread market attention regarding Xiaohongshu’s internal incentive mechanisms and valuation changes.

According to internal sources, since March 2025, Xiaohongshu has raised its stock option grant prices four consecutive times. The first adjustment occurred in March, when the grant price was increased from the initial level to $13.50 per share. In June, this price was further raised to $18 per share. By October, the grant price had climbed again to $25 per share. After this latest adjustment, the $30 per share grant price has become a new high in the company’s history.

Industry analysts suggest that Xiaohongshu’s frequent increases in the option grant price may be related to the company’s rising valuation and strong business momentum. Adjustments to the grant price typically reflect changes in the company’s self-assessed value and also influence employee motivation. As the grant price increases, the cost for employees to exercise options rises, but the potential gains also grow, helping to attract and retain core talent.

It is worth noting that Xiaohongshu has not publicly disclosed the specific reasons for this adjustment. However, considering the company’s recent performance in business expansion and user growth, the market generally believes that this move is likely a decision to better align with its market position and growth prospects. How Xiaohongshu’s stock option incentive mechanism will evolve in the future remains to be seen.