Zillow Group (NASDAQ:Z) Announces Earnings Results

Zillow Group (NASDAQ:Z) issued its quarterly earnings results on Wednesday. The financial services provider reported $0.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.45 by $0.07, FiscalAI reports. The company had revenue of $772.00 million for the quarter, compared to the consensus estimate of $758.10 million. Zillow Group had a return on equity of 1.41% and a net margin of 2.27%.

Here are the key takeaways from Zillow Group’s conference call:

• Q2 results exceeded expectations: Revenue rose 18% year over year to $772 million, EBITDA reached $176 million, and adjusted net income was $118 million. Zillow generated $223 million in year-to-date free cash flow and raised no changes to its full-year revenue outlook of $2.92 billion to $2.96 billion.
• AI and integrated experiences are driving engagement: Users of Zillow AI mode spend more than three times as long on the platform and contact agents at nearly three times the rate of non-users; AI mode is now available to about 20% of signed-in users. Zillow also reported that Zillow Preferred generates 23% more revenue per connection than its legacy model, with the premium expected to reach 35% by year-end.
• Rentals and mortgages delivered strong growth: Rentals revenue increased 31%, multifamily revenue rose 42%, and multifamily properties on the platform grew to 79,000. Mortgages revenue jumped 75%, while purchase loan origination volume increased 95% year over year.
• The Preferred transition will create near-term revenue headwinds: Zillow expects more than 75% of connections to flow through Preferred by the end of 2026, but the shift in revenue recognition, mortgage origination timing, and seasonality is expected to pressure fourth-quarter For Sale revenue growth by 400–600 basis points. Residential revenue is expected to be flat in Q3 and roughly in line with purchase-mortgage industry growth for the full year.
• Zillow eliminated approximately 7% of its workforce, expecting $75 million in annualized EBITDA savings and $140 million including previously planned hiring reductions. The company said the restructuring is intended to improve efficiency without affecting its core growth initiatives, while also consolidating the COO and CFO roles under Jeremy Hofmann.

Zillow Group Trading Down 7.4%

Z stock traded down $2.67 during trading on Thursday, reaching $33.43. 11,500,317 shares of the stock were exchanged, compared to its average volume of 4,249,842. Zillow Group has a twelve month low of $29.23 and a twelve month high of $93.88. The company has a market capitalization of $7.65 billion, a P/E ratio of 133.72, a price-to-earnings-growth ratio of 1.55 and a beta of 1.98. The stock has a 50 day simple moving average of $33.12 and a 200-day simple moving average of $41.84.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the company. Zacks Research downgraded Zillow Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Wall Street Zen raised Zillow Group from a “hold” rating to a “buy” rating in a research report on Saturday, May 9th. Deutsche Bank Aktiengesellschaft cut their price target on Zillow Group from $80.00 to $68.00 and set a “buy” rating for the company in a report on Friday, May 8th. JPMorgan Chase & Co. reduced their price objective on Zillow Group from $84.00 to $76.00 and set an “overweight” rating for the company in a research report on Thursday, May 7th. Finally, Keefe, Bruyette & Woods lowered their price objective on shares of Zillow Group from $50.00 to $37.00 and set a “market perform” rating on the stock in a research note on Monday, July 13th. Two investment analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $71.00.

Trending Headlines about Zillow Group

Here are the key news stories impacting Zillow Group this week:

• Positive Sentiment: Zillow exceeded second-quarter expectations, reporting adjusted earnings of $0.52 per share versus the $0.45 consensus estimate and revenue of $772 million versus $758.1 million expected. Revenue increased approximately 18% year over year. Zillow Q2 earnings report
• Positive Sentiment: The company announced leadership promotions, including expanding CFO Jeremy Hofmann’s role to chief operating officer and appointing Cassandra Knight as chief legal and policy officer. Management said the changes are intended to support its integrated housing “super app” strategy. Zillow leadership changes
• Neutral Sentiment: Zillow’s July market report showed home sales up 7% year over year, the strongest annual increase of 2026 so far. However, the gain primarily reflected offers accepted in June, while newly pending sales dropped sharply as mortgage rates reached a one-year high, pointing to a potentially weaker second half. Zillow July market report
• Negative Sentiment: Zillow issued third-quarter revenue guidance of $745 million to $760 million, below the roughly $772.3 million analyst consensus, and full-year revenue guidance of $2.9 billion to $3.0 billion, around or below expectations. The soft forecast is the main reason the earnings beat failed to reassure investors.
• Negative Sentiment: Zillow reported a $4 million net loss because $36 million in restructuring costs outweighed stronger revenue. The company is also eliminating just over 500 positions, or about 7% of its workforce, highlighting cost pressures and a flat housing market. Zillow layoffs report
• Negative Sentiment: Zillow is facing multiple securities-fraud class-action notices related to alleged misrepresentations about an anticompetitive agreement. The August 10 lead-plaintiff deadline adds legal and reputational risk, although the allegations have not been proven. Zillow securities litigation notice

Insider Transactions at Zillow Group

In other news, CFO Jeremy Hofmann sold 5,501 shares of Zillow Group stock in a transaction that occurred on Monday, May 18th. The stock was sold at an average price of $37.40, for a total transaction of $205,737.40. Following the sale, the chief financial officer owned 68,315 shares of the company’s stock, valued at approximately $2,554,981. This trade represents a 7.45% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel Bradley D. Owens sold 3,364 shares of the firm’s stock in a transaction on Friday, May 15th. The stock was sold at an average price of $37.23, for a total value of $125,241.72. Following the completion of the transaction, the general counsel directly owned 65,245 shares of the company’s stock, valued at approximately $2,429,071.35. This trade represents a 4.90% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders have sold 42,910 shares of company stock worth $1,605,732. 25.03% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Zillow Group

Hedge funds have recently made changes to their positions in the business. IFC & Insurance Marketing Inc. acquired a new stake in shares of Zillow Group during the 4th quarter valued at about $68,000. Advisory Services Network LLC acquired a new position in Zillow Group in the third quarter worth about $99,000. Northwestern Mutual Wealth Management Co. raised its position in Zillow Group by 186.3% in the second quarter. Northwestern Mutual Wealth Management Co. now owns 1,678 shares of the financial services provider’s stock worth $118,000 after purchasing an additional 1,092 shares in the last quarter. Kestra Advisory Services LLC bought a new position in Zillow Group during the fourth quarter worth about $153,000. Finally, EFG International AG acquired a new stake in Zillow Group during the fourth quarter valued at approximately $196,000. Institutional investors and hedge funds own 71.01% of the company’s stock.

About Zillow Group

Zillow Group, Inc is an online real estate marketplace company that operates a portfolio of consumer-facing websites and mobile apps designed to connect buyers, sellers, renters, homeowners and real estate professionals. The company’s platforms aggregate property listings, rental listings, and related information to help users search for homes, estimate property values and connect with agents and service providers. Zillow generates revenue primarily through advertising and lead-generation services for real estate professionals, property managers and mortgage lenders.

Key products and services include the Zillow and Trulia consumer websites and apps, which provide searchable listings, photos, neighborhood data and the company’s automated home valuation tool known as the “Zestimate.” Zillow also offers a rentals marketplace, a mortgage marketplace and tools for home buying and selling such as Zillow Premier Agent for agent advertising and leads, as well as ancillary services designed to support transactions, including closing and title-related offerings.