Plan your Abnormal Security NSO exercise

Calculator · free · no signup · pre-IPO

Abnormal Security is pre-IPO. Plan your NSO exercise tax (federal, state, FICA) at any expected valuation.

Beta · invite-only · AlphaLatitude Inc. · Free Tools

Your grant

Seeded from secondary-market data, as of Jun 9, 2026

Tax inputs

Hold strategy

1 yr
20%
20%
10.0%
Pre-IPO assumption: Expected sale price assumes a liquid market at year N. In reality, pre-IPO shares clear via tender offers (priced at a discount to the 409A or last preferred round, on the company's calendar) or at IPO (subject to lockups). Use the haircut to reflect that uncertainty.

Best after-tax payout — at year 1

$57,295

Hold 1 yr wins by $41,680 over Sell + invest.

Estimates only. Not financial advice.

Your NSO exercise pushes your top federal rate from 24% to 32%. Hover the Federal value below for the bracket-by-bracket slicing.

Sell + invest

Bargain element (sale − strike)$25,600
Federal
State
Medicare$371
Additional Medicare$230
Market gain over 1 yr at 10.0%$1,457
LTCG on diversified gain (fed + state + NIIT)$409
Net at year 1$15,615

Sell every share immediately; invest the after-tax cash at the market return for 1 yr, then liquidate. Diversified — no single-stock concentration risk.

Exercise + hold 1 yr

Best payout
Sale proceeds (year 1)
LTCG tax (federal + state + NIIT)$16,699
Net at year 1$57,295

Sold 4,037 shares at exercise to cover strike + tax; 963 shares held 1 yr for LTCG.

Social Security + Medicare are payroll taxes (collectively called FICA) — they apply because you're exercising as a current employee.

Both columns are stated in year-1 dollars: sell-now proceeds compound at the market return and pay LTCG on the gain at year 1; any cash paid out of pocket on the hold side carries the same opportunity cost.

Net at year N — by hold period

Sell + investExercise + hold
$0$4K$8K$13K$17KYr 1Yr 2

Estimates only. Excludes AMT (NSOs do not trigger AMT), state-AMT, multi-state moves, and disqualifying-disposition edge cases. Not financial advice.

You calculated one NSO decision. The beta plans NSOs alongside RSUs and ISOs in a single multi-year tax plan.

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About Abnormal Security

Abnormal Security is a privately held Cybersecurity company, incorporated in Delaware and headquartered in San Francisco, CA.

Last reported secondary-market price: $15.12 per share (as of 2026-06-09). Your own 409A may differ.

Email security.

Equity grants at Abnormal Security typically include incentive stock options (ISOs) and non-qualified stock options (NSOs).

Evan Reiser and Sanjay Jeyakumar founded Abnormal Security in San Francisco in 2018 to detect email attacks, including business email compromise, phishing, and vendor fraud, by modeling the behavioral baseline of every employee and vendor relationship rather than relying on signatures or rules. By mid-2024 the company had reached $200 million in annual recurring revenue with over 3,000 customers. In August 2024 Abnormal closed a $250 million Series D led by Wellington Management at a $5.1 billion valuation. The company rebranded as Abnormal AI in April 2025.

Sources: cnbc.com · news.crunchbase.com

Equity comp at Abnormal Security

  • Pre-IPO cybersecurity company founded 2018 by Evan Reiser and Sanjay Jeyakumar (ex-Twitter); AI-powered email security platform. $250M Series D at $5.1B valuation (September 2024) led by Wellington Management. Standard pre-IPO double-trigger RSU structure (time-based vesting plus liquidity event) applies given private status and IPO trajectory.

Sources: news.crunchbase.com · cnbc.com

Researched 2026-05-11.

OptionsAhoy is an independent tool and is not affiliated with, endorsed by, or sponsored by Abnormal Security.

Abnormal Security NSO exercise creates ordinary income on the bargain element (federal, state, and FICA) at the price on the day you exercise. The calculator works at any valuation, so you can model your exercise cost at the current 409A FMV, an expected IPO price, or post-IPO scenarios.

Example: at Abnormal Security's last reported price of $15.12, exercising 5,000 NSOs with a $4.54 strike creates a $52,900 bargain element, taxed as ordinary income on the day you exercise. Combined federal + state + FICA on that bargain typically lands between $14,283 and $23,805 depending on your bracket and state. The calculator above computes the exact figure for your situation and compares selling now vs. holding through the long-term capital-gains threshold.

All Abnormal Security tools → · Use the generic NSO Exercise Calculator for any company.

Abnormal Security equity questions

How is a Abnormal Security NSO exercise taxed?
Exercising a non-qualified stock option (NSO) creates ordinary income on the bargain element (the price on the day you exercise minus your strike), subject to federal income tax, state income tax, and FICA. The calculator above computes that tax for your Abnormal Security grant and compares selling the shares now against holding past the one-year mark for long-term capital-gains treatment.
Does Abnormal Security grant ISOs, NSOs, or RSUs?
Equity compensation at Abnormal Security typically takes the form of incentive stock options (ISOs) and non-qualified stock options (NSOs). Incentive stock options can trigger the alternative minimum tax (AMT) when you exercise.
Are Abnormal Security shares eligible for QSBS?
They might be. Qualified small business stock (QSBS) under Internal Revenue Code Section 1202 can exclude federal tax on much of the gain when shares were acquired at original issuance from a C-corporation while its gross assets were under $50 million, and held at least five years. Whether your Abnormal Security shares qualify turns on when you acquired them and the company's asset size at that time.
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