v3.26.1
SEGMENT INFORMATION (Tables)
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Schedule of Reportable Segment’s Expenses and Net Loss
The table below highlights the Company’s reportable segment’s expenses and net loss for the three and six months ended June 30, 2026 and 2025 (in millions):
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
Revenue$883 $1,567 $1,603 $2,720 
Less:
Cost of revenue(797)(1,439)(1,445)(2,493)
Direct selling costs(1)
(29)(43)(52)(72)
Holding costs(2)
(11)(23)(23)(40)
Advertising and other marketing expense(3)
(5)(7)(24)(31)
Operations(4)
(14)(15)(26)(31)
Fixed operating expense(5)
(35)(31)(68)(70)
CEO make-whole provision(6)
(4)— (9)— 
Stock-based compensation(19)(13)(34)(27)
Stock-based compensation for market condition RSUs
(100)— (205)— 
Interest expense(29)(36)(52)(69)
Interest income8 9 18 14 
Other(7)
(10)2 (18)(15)
Net loss$(162)$(29)$(335)$(114)
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(1)Represents selling costs incurred related to homes sold in the relevant period. This primarily includes broker commissions, external title and escrow-related fees and transfer taxes and are included in Sales, marketing and operations.
(2)Represents holding costs incurred both in the period presented and in prior periods on homes sold in the period presented (“Resale Cohort Holding Costs”). Holding costs include mainly property taxes, insurance, utilities, homeowners association dues, cleaning and maintenance costs. Holding costs are included in Sales, marketing and operations in the period in which they are incurred (“GAAP Holding Costs”).
(3)Advertising expenses are included in Sales, marketing and operations. Other marketing expenses include non-advertising marketing expenses such as acquisition leads and referrals and public relations services and are included in Sales, marketing and operations.
(4)Represents operating expenses that are generally related to the volume of homes transacted during the period and tend to be variable in nature. Primarily includes workforce expenses in support of sales, and real estate operations.
(5)Represents operating expenses that are not directly correlated with home transaction volumes. These expenses generally include costs related to salaries and benefits for our executive, finance, technology, human resources, legal, marketing and administrative personnel, as well as third-party professional services fees, rent expense and third-party software.
(6)In connection with the appointment of the Company's new Chief Executive Officer in September 2025, the Company granted two make-whole awards related to compensation forfeited from his former employer. The awards consist of (i) a $15 million cash award and (ii) a restricted stock unit award with a grant date value of $15 million. Both awards vest nine months after his start date, contingent upon his continued service as Chief Executive Officer through the vesting date, and are expensed over the requisite service period. The CEO make-whole provision adjustment reflects only the expense associated with the cash make-whole award. The expense associated with the restricted stock unit make-whole award is included in the stock-based compensation line item presented separately in the reconciliation above.
(7)Other segment income (expenses) are primarily made up of depreciation and amortization, restructuring, and amortization of stock-based compensation capitalized to internally developed software. This also includes the elimination of holding costs incurred in prior periods on homes sold in the periods presented, and includes holding costs incurred in the current period on homes remaining in inventory at period end.