(6) Stock-Based Compensation

Pursuant to the GCI Liberty, Inc. 2025 Omnibus Incentive Plan (the “2025 Plan”), the Company may grant to certain of its directors, employees and employees of its subsidiaries, restricted stock units (“RSUs”) and stock options to purchase a maximum of 5.0 million shares of GCI Group common stock (collectively, “Awards”).

The Company measures the cost of employee services received in exchange for an equity classified award (such as RSUs) based on the grant-date fair value (“GDFV”) of the Award, and recognizes that cost over the period during which the employee is required to provide service (usually the vesting period of the Award). The Company measures the cost of employee services received in exchange for a liability classified Award based on the current fair value of the Award, and re-measures the fair value of the Award at each reporting date.

Included in selling, general and administrative expense in the accompanying condensed consolidated statements of operations are $8 million and $2 million of stock-based compensation during the three months ended March 31, 2026 and 2025, respectively.

​

Grants of Awards

RSUs granted during the three months ended March 31, 2026 are summarized as follows:

​

​

​

Performance objectives, which are subjective, are considered in determining the timing and amount of the compensation expense recognized. As the satisfaction of the performance objectives becomes probable, the Company records compensation expense. The value of the grant is re-measured at each reporting period.

The Company did not grant any options to purchase shares of GLIBA, GLIBB or GLIBK during the three months ended March 31, 2026.

The Company calculates the GDFV for all of its equity classified options and the subsequent remeasurement of its liability classified options using the Black-Scholes Model.  The Company estimates the expected term of the options based on historical exercise and forfeiture data. The volatility used in the calculation for options is based on the historical volatility of the corresponding series of its predecessor Liberty Broadband common stock and, when available, the implied volatility of publicly traded GCI Liberty options. The Company uses a zero-dividend rate and the risk-free rate for Treasury Bonds with a term similar to that of the subject options.

​

Outstanding Awards

The following table presents the number and weighted average exercise price (“WAEP”) of options to purchase GLIBK granted to certain employees and directors of the Company, as well as the weighted average remaining life and aggregate intrinsic value of the options.

​

​

The following table presents the number and weighted average GDFV of RSUs granted to employees of the Company.

​

​

As of March 31, 2026, there were no outstanding options to purchase shares of GLIBA or GLIBB.  

As of March 31, 2026, the total unrecognized compensation cost related to unvested Awards was approximately $28 million. Such amount will be recognized in the Company’s consolidated statements of operations over a weighted average period of 1.8 years.

As of March 31, 2026, GCI Liberty reserved approximately 1 million shares of GLIBK for issuance under exercise privileges of outstanding stock options.