ZILLOW GROUP, INC.
For the period ended Jun 30, 2026. Filed Aug 5, 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.
Jun 30, 2026 · Filed Aug 5, 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 six months ended June 30, 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 | 4,681 | 43.24 | ||
| Exercised | (785) | 28.83 | ||
| Forfeited or canceled | (571) | 52.98 | ||
| Outstanding at June 30, 2026 | 30,628 | 49.27 | 5.9 | 1 |
| Vested and exercisable at June 30, 2026 | 22,798 | 48.43 | 4.9 | 1 |
The following assumptions were used to determine the fair value of option awards granted for the periods presented:
| Three Months EndedJune 30, | Six Months EndedJune 30, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| Expected volatility | 53% | 59% | 53% - 56% | 59% - 60% |
| Risk-free interest rate | 4.16% | 3.92% | 3.87% - 4.16% | 3.92% - 4.17% |
| Weighted-average expected life | 5.8 years | 5.5 years | 5.8 - 7.0 years | 5.3 - 6.8 years |
| Weighted-average fair value of options granted | $18.64 | $37.18 | $23.42 | $43.17 |
As of June 30, 2026, there was a total of $211 million in unrecognized compensation cost related to unvested option awards.
Restricted Stock Units
The following table summarizes activity for restricted stock units for the six months ended June 30, 2026:
| RestrictedStock Units (in thousands) | Weighted-Average Grant Date Fair Value | |
|---|---|---|
| Unvested outstanding at January 1, 2026 | 9,319 | $61.83 |
| Granted | 6,190 | 43.12 |
| Vested | (2,747) | 53.05 |
| Forfeited | (817) | 58.18 |
| Unvested outstanding at June 30, 2026 | 11,945 | $54.40 |
As of June 30, 2026, there was a total of $611 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 EndedJune 30, | Six Months EndedJune 30, | |||
|---|---|---|---|---|
| 2026 | 2025 | 2026 | 2025 | |
| Cost of revenue | $2 | $3 | $4 | $6 |
| Sales and marketing | 14 | 19 | 30 | 37 |
| Technology and development | 31 | 40 | 64 | 78 |
| General and administrative | 28 | 37 | 58 | 75 |
| Restructuring costs | 13 | — | 13 | — |
| Total share-based compensation | $88 | $99 | $169 | $196 |
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