Keurig Dr Pepper Inc.
For the period ended Sep 30, 2025. Filed Oct 28, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 28, 2025
Extracted filing text, with the paragraph anchors used by the comparison.
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Stock-Based Compensation
- Stock-Based Compensation
The components of stock-based compensation expense are presented below:
| Third Quarter | First Nine Months | |||
|---|---|---|---|---|
| (in millions) | 2025 | 2024 | 2025 | 2024 |
| Total stock-based compensation expense | $25 | $24 | $70 | $76 |
| Income tax benefit | (5) | (4) | (13) | (12) |
| Stock-based compensation expense, net of tax | $20 | $20 | $57 | $64 |
RESTRICTED SHARE UNITS
The table below summarizes RSU activity:
| RSUs | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in millions) | |
|---|---|---|---|---|
| Outstanding as of December 31, 2024 | 12,488,799 | $29.70 | 2.0 | $401 |
| Granted(1) | 3,569,889 | 30.65 | ||
| Vested and released | (2,762,065) | 30.53 | 92 | |
| Forfeited | (1,176,777) | 29.89 | ||
| Outstanding as of September 30, 2025 | 12,119,846 | $29.77 | 1.9 | $309 |
(1)Beginning in 2025, new RSUs granted vest ratably over 4 years.
As of September 30, 2025, there was $178 million of unrecognized compensation cost related to unvested RSUs that is expected to be recognized over a weighted average period of 3.0 years.
PERFORMANCE SHARE UNITS
In March 2025, the Remuneration & Nomination Committee of the Board approved PSU grants. Each PSU represents the right to receive one share of our common stock. The PSUs vest 3 years from the grant date, to the extent that the performance metrics are achieved during a predetermined performance period. The performance metrics include net sales growth and adjusted diluted EPS growth, as defined in the respective grant agreement, and are measured on a constant currency basis. The payout percentage for all PSUs granted ranges from 0% to 200%. Beginning in 2025, the fair value of PSUs is determined based on the number of units granted and the grant date price of common stock.
The table below summarizes PSU activity:
| PSUs | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in millions) | |
|---|---|---|---|---|
| Balance as of December 31, 2024 | — | $— | 0.0 | $— |
| Granted | 464,354 | 30.61 | ||
| Forfeited or expired | (2,628) | 30.71 | ||
| Balance as of September 30, 2025 | 461,726 | $30.61 | 2.4 | $12 |
As of September 30, 2025, there was $9 million of unrecognized compensation cost related to unvested PSUs that is expected to be recognized over a weighted average period of 2.4 years.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.