Financial Reporting will now include Profits Interest Units (PIUs) in all expense and disclosure reports. 

Why is this important?

Expense accounting is crucial for private companies because it's the only way to accurately measure profitability, ensure tax compliance, make informed business decisions, and secure funding.

How does Profit Interest support in Financial Reporting works?

• New Disclosure Table: The Minimum Disclosures report will now include a new "PIUs outstanding table" if the company has PIUs. This table includes a dedicated "Repurchased" line for greater clarity.
• Partial Repurchases: When a PIU is partially repurchased, the system cancels the original security and issues a new "balance" security. The report will reflect this (e.g., one grant canceled, one new grant issued). A footnote in the "Tranches" tab confirms that expense is not double-counted. 
• Fair Value Override: The report defaults to the Intrinsic Value method for PIU expense. The "Override Fair Value" is still available if there's any need to change it.

Where can I learn more about this?

• How do I use the Minimum Disclosures Report?
• Profits interests outstanding table

What's new

Performance conditions are now supported for three new security types: Profit Interests, certificates and RSAs.

How does it work?

In order to add a performance condition to a security, it first needs to be created via the Vesting and securities templates page.

Once there, navigate to the performance conditions tab, click Create performance condition and follow the workflow.

After the performance condition has been created, it can be attached to any option grant, RSU, certificate, RSA and profit interest unit via the draft workflow or by modifying the vesting schedule.

Once a performance condition has been achieved, it has to be recognized to affect the securities it is connected to.

After clicking the option to Recognize, the required fields have to be filled out to proceed.

If the performance condition was achieved with a payout percentage below 100%, unvested shares will either need to be forfeited or repurchased.

In these case, the original security will be canceled a new one will be issued with the vested shares.

How can I learn more about this topic?

• How to manage vesting and performance conditions

What's new?

A new self-service workflow that allows company administrators to manage equity plan pour overs directly within the platform. 

A pour over allows available shares from a prior equity plan to be moved into a new plan. This new feature provides a guided flow for admins to initiate, review, and execute the transfer of shares between plans without needing to contact support.

In order to create a pour over admins will navigate to Manage Equity > Equity Plans, where they will find a new Create pour over button. You need to have to active plans in order to be able to perform the action.

After clicking Create pour over, a modal will open explaining more about the tool and provides tips, such as to perform the pour over in sandbox first. This is as a great way to model the changes before doing it in the live account.

After clicking Let's get started, enter the pour over details. Awards issued and plan amendments after the pour over effective date should be zero for the pour over to be executed. Click Next: Review and confirm to move forward.

Review all the pour over details and click Confirm pour over to execute the action.

Who is this available for?

This feature is available to all Cap table clients. Users will need full access permission to perform these actions.

This support article offers a comprehensive step by step process of the workflow as well as frequently asked questions about the feature.

What's new?

Access to your Carta account can now be managed via SSO for cap table company admins.

What's important or valuable about this change?

You can link your identity management provider to Carta to ensure that access to Carta meets your company’s authentication security standards. Add, remove, and audit access to Carta in your identity management platform.

What do I need to do?

Reach out to Carta Support about adding Single Sign-On to your Carta plan. Once you’ve set up Carta SSO you’ll be able to securely and seamlessly manage access through your company’s identity provider (IdP). This helps your teams stay compliant, efficient, and confident that sensitive equity data is protected.

Learn more in our SSO Support articles. 

What's new?

To improve reporting related to ISO disqualification dates for holders of ISO option grants that were terminated, we have enhanced the logic used in Carta’s equity reporting suite.

Now an ISO grant will only show as disqualified in the reports if it reaches the statutory 3 month period following termination (or, in the case of a termination due to permanent and total disability or death, one year after the employee’s termination date). Users that require that an ISO grant disqualifies before these dates can enter a manual disqualification date via the modify workflow.

Carta's exercise flow already includes the disqualification logic above. This update affects only reporting. 

Why are we changing this?

Previously, there was a mismatch between the disqualification logic in Carta’s exercise flows and in the security modal versus in certain Carta reports in regards to the disqualification status for terminated ISOs. For example, if a stakeholder with an ISO grant with a PTEP of 1 year was terminated by the company, the grant would be shown as ISO disqualified before the statutory 3 months had passed in certain Carta reports. However, if the holder exercised that grant through Carta’s exercise flow within the initial 3 months post termination, the grant type, the tax treatment of the grant displayed to the holder, and the resulting records would reflect the exercise of an ISO in the Exercised and Settled Report.

With this update, for the example above, up until the initial 3 months pass, the grant will not reflect ISO disqualification in Carta reports. It will reflect an ISO disqualification date in Carta reports only once the 3 months statutory period is over.

Where can I learn more?

For more information on Carta's equity reporting suite, refer to our dedicated support article.

We know navigating complex ASC 718 or IFRS reports is critical. 

In order to help make that process seamless, we’ve added new ways to connect with our experts directly from Carta’s Financial Reporting tool.

There are three ways to get support:

• Message Us: This is the recommended method for any question. This new form allows users to categorize their questions, which automatically routes the case to the correct team and improves response time. The form also includes the ability to add attachments, which can be used to send expense reports to Carta's Support Team
• Schedule a Video Call: Customers can now easily book a meeting with an analyst, which is recommended for complex topics like first-time setup or understanding report calculations.
• Online AI Support: For general questions, customers can still access 24/7 online AI support.

This support article offers the steps on how to find the new contact us modal for Financial Reporting.

With H.R. 1, the “One Big Beautiful Bill Act” (OBBB) now in effect, we’ve updated Carta’s Qualified Small Business Stock (QSBS) Attestation to help you and your shareholders track eligibility and take full advantage of the new benefits.

What’s new?

Support for shorter holding periods: for shares issued on or after July 4, 2025, Carta now tracks eligibility for a partial QSBS exclusion after three years (50%) and four years (75%), with full 100% exclusion available after 5 years.

Support for the new $75M asset cap: Carta automatically checks if newly issued shares qualify under the updated $75M aggregate gross asset limit—so you can confidently verify QSBS eligibility at the time of grant.

Expanded individual gain exclusion: Shareholder letters and eligibility summaries now reflect the increased $15M per-person gain exclusion, unlocking even greater potential tax savings.

Updated dashboard indicators: Carta dashboards and reports now show eligibility based on new QSBS rules and issuance windows. This makes it easier for companies and shareholders to understand their status at a glance.

Why is this valuable?

The new QSBS rules offer significant opportunities for tax savings—but only if companies can accurately track and prove eligibility. Carta’s updates simplify this process. By automating complex eligibility checks and updating shareholder documentation in real time, companies can:

• Maximize potential QSBS tax exclusions across new and existing grants
• Confidently communicate eligibility status to founders, employees, and investors
• Maintain audit-ready records with less manual effort

These upgrades ensure every eligible shareholder is in a position to receive the full benefits of the new law, with built-in transparency and peace of mind.

How do I access the updated attestation?

No action needed, these updates have already been applied to all active QSBS Attestations and portfolios holding QSBS-eligible shares. If you have questions or would like a walkthrough, reach out to your Customer Success team or visit our Help Center.

Anything else to know?

Our team is closely monitoring policy changes and will proactively revisit your company’s QSBS analysis to help you unlock new shareholder opportunities and ensure your audit records remain up to date.

What’s new?

All equity awards are now tracked via the Equity awards exceeds equity plan size health check.

When is the health check flagged?

The health check is triggered whenever an issuer has more shares issued from their equity plan than shares available at any given date. Each row in the health check indicates the dates when one or more equity award was issued and overdrew the equity plan.

To check which awards are triggering the health check navigate to Essentials > Run Reports, search for the Equity Plan Report, and review awards issued on the overdraw dates to identify contributing securities.

How can I fix the health check?

There are two ways to fix the health check:

1. Modify the security that triggered the health check to be so its issue date matches a time when the company has enough available shares in the equity plan.

2. Amend your equity plan to increase the number of shares available at the overdrawn dates. 

What’s new?

We've made general UI/UX improvements to the hiring plan tool that is part of the Manage Employees experience. We've also added the ability to save and delete individual hiring plans that can then be incorporated into the Equity Pool Forecast for your company.

How do I create and save a hiring plan?

1. Navigate to Manage Employees
2. Click on "Launch Hiring Planner"
3. Click "New Hiring Plan", type in a name for your plan, and click "Create New Plan"

Once you've created a hiring plan you can add/delete potential hires, rename the plan, or delete the plan.

How do I incorporate a hiring plan into my equity pool forecast?

When you have added all potential hires to your hiring plan, click on "View Detailed Forecast" in the banner below the hiring plan

On the equity pool forecast page, select the hiring plan that you'd like to include in the forecast

Questions?

If you have any questions or feedback about the hiring planner or equity pool forecast, please reach out to your Customer Success Manager.