ZILLOW GROUP, INC.

Note 14. Restructuring Costs

On August 4, 2026, Zillow Group announced a plan to reduce its headcount by approximately 7% of its employees. This headcount reduction is designed to allow the Company to move faster and operate more efficiently, including with a more sustainable cost structure. During the three and nine months ended September 30, 2026, we recorded $32 million and $68 million, respectively, in restructuring costs related to employee termination costs. These employee termination costs are included within impairment and restructuring costs in our condensed consolidated statements of operations. During the three and nine months ended September 30, 2026, $20 million and $43 million, respectively, of the restructuring costs related to cash expenditures associated with severance payments, and the remainder related to accelerated share-based compensation expense. We do not expect to incur additional restructuring costs associated with this headcount reduction.

As of June 30, 2026, we had accrued $23 million for future cash severance payments. During the three months ended September 30, 2026, we accrued an additional $20 million of future cash severance payments and paid $32 million of cash severance. As of September 30, 2026, we have $11 million accrued for future cash severance payments, which will primarily be paid out during the three months ending December 31, 2026.