# Dallas Startup Valuation Soars

> A Dallas startup's valuation jumped 33% to $6.4 billion, but stock options can drastically alter Social Security benefits.
- Title: Dallas Startup Valuation Soars · 24/7 Wall St. | Shortify
- Summary: A Dallas startup's valuation jumped 33% to $6.4 billion, but stock options can drastically alter Social Security benefits. Exercising nonqualified stock…
- Keywords: dallas, island, social security, stock options, nqso, iso, wage cap, earnings test, Startup, Valuation, Soars, 24/7 Wall St.
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/social-security/2026/10/08/a-dallas-startups-valuation-just-jumped-33-to-6-4-billion-two-stock-options-can-produce-completely-different-social-security-results
- Author: Gerelyn Terzo
- Published: 2026-10-09T01:00:06+00:00
- Read time: 1 min
- Topics: dallas, island, social security, stock options, nqso, iso, wage cap, earnings test
## Dallas Startup Valuation Jump
Dallas cybersecurity startup Island just raised another $400 million, lifting its valuation to $6.4 billion.
## Two Stock Options Create Different Outcomes
Exercising stock options before full retirement age can either leave Social Security checks untouched or wipe them out for the rest of the year.
## Incentive vs Nonqualified Stock Options
A 63-year-old employee holds two grants: an incentive stock option (ISO) and a nonqualified stock option (NQSO).
## Same $200,000 Gain, Opposite Results
Both grants use the same numbers: 5,000 shares, a $10 exercise price and a $50 current value.
## ISOs Don't Add to Social Security Wages
Exercising an ISO generally doesn't create regular income at the moment of exercise.
## NQSOs Add to Social Security Wages
Exercising an NQSO makes the spread become compensation income, reported on Form W-2 in Box 1 and Box 3.
## Why Age 63 Matters
He was born in 1960 or later, so his full retirement age is 67. Until then, Social Security's earnings test applies.
## Wage Cap Limits Impact
If he exercises the NQSO, his wages rise to $220,000. Social Security could keep back about $97,760 in benefits.
## Mistake That Wipes Checks
Exercising an NQSO earned in the current year while collecting Social Security before FRA without checking how the compensation will be counted can stop checks for the rest of the year.
## Key takeaway

Exercising nonqualified stock options before full retirement age can wipe Social Security checks for the year, while incentive stock options leave them untouched.