ZILLOW GROUP, INC.

Note 12. Revenue and Contract Balances

We recognize revenue when or as we satisfy our performance obligations by transferring control of the promised products or services to our customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those products or services. See Note 2 in the Notes to the Consolidated Financial Statements in Part II, Item 8 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025 for additional information on our revenue from contracts with customers and contract balances.

Contract Balances

Contract assets included in prepaid expenses and other current assets in our condensed consolidated balance sheets totaled $268 million and $212 million as of March 31, 2026 and December 31, 2025, respectively. Contract assets included in other assets in our condensed consolidated balance sheets totaled $23 million and $18 million as of March 31, 2026 and December 31, 2025, respectively. As of March 31, 2026, the average remaining recognition period for our contract assets related to our Zillow Preferred offering wasfive months.

For the three months ended March 31, 2026, the opening balance of deferred revenue was $69 million, of which $47 million was recognized as revenue during the period. For the three months ended March 31, 2025, the opening balance of deferred revenue was $62 million, of which $46 million was recognized as revenue during the period.