UWM Holdings Corp Stock Compensation Disclosure
| For the year ended December 31, | |||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||
| Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||||||||||||
| Unvested - beginning of period | 19,997,692 | $ | 6.68 | 7,867,321 | $ | 5.89 | 4,005,801 | $ | 5.30 | ||||||||||||||||||||||||||
Granted 1 | 17,018,349 | 4.01 | 15,805,320 | 6.90 | 5,668,639 | 6.26 | |||||||||||||||||||||||||||||
| Vested | (1,684,223) | 5.51 | (2,685,345) | 5.73 | (1,358,083) | 6.07 | |||||||||||||||||||||||||||||
| Forfeited | (2,610,466) | 5.33 | (989,604) | 6.55 | (449,036) | 4.77 | |||||||||||||||||||||||||||||
| Unvested - end of period | 32,721,352 | $ | 5.46 | 19,997,692 | $ | 6.68 | 7,867,321 | $ | 5.89 | ||||||||||||||||||||||||||
1 The RSUs granted during the year ended December 31, 2025 had vesting terms ranging from immediate to 4 years from the grant date. | |||||||||||||||||||||||||||||||||||
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.