ZILLOW GROUP, INC.
For the period ended Mar 31, 2026. Filed May 6, 2026.
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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.
Mar 31, 2026 · Filed May 6, 2026
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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 11 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.
Option Awards
The following table summarizes option award activity for the three months ended March 31, 2026:
| Numberof SharesSubject toExistingOptions (in thousands) | Weighted-AverageExercisePrice PerShare | Weighted-AverageRemainingContractualLife (in years) | AggregateIntrinsicValue(in millions) | |
|---|---|---|---|---|
| Outstanding at January 1, 2026 | 27,303 | $49.79 | 5.7 | $565 |
| Granted | 4,487 | 43.61 | ||
| Exercised | (658) | 27.26 | ||
| Forfeited or canceled | (168) | 56.65 | ||
| Outstanding at March 31, 2026 | 30,964 | 49.34 | 6.1 | 26 |
| Vested and exercisable at March 31, 2026 | 22,189 | 48.28 | 5.0 | 24 |
The following assumptions were used to determine the fair value of option awards granted for the periods presented:
| Three Months EndedMarch 31, | ||
|---|---|---|
| 2026 | 2025 | |
| Expected volatility | 54% - 56% | 59% - 60% |
| Risk-free interest rate | 3.87% - 3.98% | 4.16% - 4.17% |
| Weighted-average expected life | 5.8 - 7.0 years | 5.3 - 6.8 years |
| Weighted-average fair value of options granted | $23.62 | $43.41 |
As of March 31, 2026, there was a total of $240 million in unrecognized compensation cost related to unvested option awards.
Restricted Stock Units
The following table summarizes activity for restricted stock units for the three months ended March 31, 2026:
| RestrictedStock Units (in thousands) | Weighted-Average Grant Date Fair Value | |
|---|---|---|
| Unvested outstanding at January 1, 2026 | 9,319 | $61.83 |
| Granted | 5,660 | 43.70 |
| Vested | (1,456) | 52.54 |
| Forfeited | (426) | 59.91 |
| Unvested outstanding at March 31, 2026 | 13,097 | $55.09 |
As of March 31, 2026, there was a total of $683 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 EndedMarch 31, | ||
|---|---|---|
| 2026 | 2025 | |
| Cost of revenue | $2 | $3 |
| Sales and marketing | 16 | 18 |
| Technology and development | 33 | 38 |
| General and administrative | 30 | 38 |
| Total share-based compensation | $81 | $97 |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.