ZILLOW GROUP, INC.
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
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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 30, 2025
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Share-Based Awards
Note 9. Share-Based Awards
In connection with the annual review cycle, option awards and restricted stock units are granted under the Zillow Group, Inc. 2020 Incentive Plan during the first quarter of each year and typically vest quarterly over four years. For additional information regarding our share-based awards, see Note 13 in the Notes to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended December 31, 2024.
Option Awards
The following table summarizes option award activity for the nine months ended September 30, 2025:
| Numberof SharesSubject toExistingOptions (in thousands) | Weighted-AverageExercisePrice PerShare | Weighted-AverageRemainingContractualLife (in years) | AggregateIntrinsicValue(in millions) | |
|---|---|---|---|---|
| Outstanding at January 1, 2025 | 29,941 | $46.58 | 6.3 | $861 |
| Granted | 2,299 | 76.44 | ||
| Exercised | (4,193) | 41.74 | ||
| Forfeited or canceled | (422) | 52.66 | ||
| Outstanding at September 30, 2025 | 27,625 | 49.71 | 6.0 | 793 |
| Vested and exercisable at September 30, 2025 | 20,839 | 47.32 | 5.3 | 656 |
The following assumptions were used to determine the fair value of option awards granted for the periods presented:
| Three Months EndedSeptember 30, | Nine Months EndedSeptember 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Expected volatility | 54% | 55% | 54% - 60% | 55% - 61% |
| Risk-free interest rate | 3.82% | 3.74% | 3.82% - 4.17% | 3.74% - 4.50% |
| Weighted-average expected life | 5.3 years | 5.5 years | 5.3 - 6.8 years | 5.5 - 6.8 years |
| Weighted-average fair value of options granted | $46.43 | $30.96 | $43.34 | $31.80 |
As of September 30, 2025, there was a total of $197 million in unrecognized compensation cost related to unvested option awards.
Restricted Stock Units
The following table summarizes activity for restricted stock units for the nine months ended September 30, 2025:
| RestrictedStock Units (in thousands) | Weighted-Average Grant Date Fair Value | |
|---|---|---|
| Unvested outstanding at January 1, 2025 | 11,729 | $50.31 |
| Granted | 4,568 | 76.32 |
| Vested | (4,551) | 51.45 |
| Forfeited | (849) | 54.06 |
| Unvested outstanding at September 30, 2025 | 10,897 | $60.43 |
As of September 30, 2025, there was a total of $608 million in unrecognized compensation cost related to unvested restricted stock units.
Share-Based Compensation Expense
The following table presents the effects of share-based compensation expense in our condensed consolidated statements of operations during the periods presented (in millions):
| Three Months EndedSeptember 30, | Nine Months EndedSeptember 30, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Cost of revenue | $3 | $3 | $9 | $11 |
| Sales and marketing | 18 | 19 | 55 | 57 |
| Technology and development | 41 | 40 | 119 | 124 |
| General and administrative | 37 | 46 | 112 | 137 |
| Total share-based compensation | $99 | $108 | $295 | $329 |
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