Zillow Group Inc Class C
Q2 2026 Earnings
GAAP net loss includes $36 million in impairment and restructuring costs and $10 million in FTC Matter litigation costs, both excluded from adjusted EPS
Market Reaction
Did Z Beat Earnings? Q2 2026 Results
Zillow Group posted a strong second quarter, with revenue of $772.00 million growing 17.9% year over year and adjusted EPS of $0.52 beating the $0.45 consensus estimate by 14.82%, as the company gained meaningful share against a purchase mortgage market that was roughly flat. The standout driver was the mortgage business, where revenue jumped 75% to $84.00 million on a 95% surge in purchase loan origination volume to $2.20 billion, while Rentals revenue climbed 31% to $209.00 million and For Sale revenue rose 14% to $549.00 million. On a GAAP basis, Zillow reported a net loss of $4.00 million, reflecting $36.00 million in restructuring costs and $10.00 million in FTC-related litigation expenses, both excluded from non-GAAP results; a securities class action related to that FTC matter adds to the legal backdrop. Looking ahead, the company guided Q3 revenue of $745.00 million to $760.00 million and full-year revenue of $2.92 billion to $2.96 billion, though management now expects industry mortgage originations to decline low- to mid-single digits for the remainder of 2026, a softer backdrop than previously assumed.
- 18% total revenue growth versus 6% residential real estate industry growth and flat purchase mortgage market
- 95% increase in purchase loan origination volume to $2.2 billion driving 75% Mortgages revenue growth
- Multifamily revenue grew 42% YoY driving Rentals growth
- Preferred model generating 23% more revenue per connection than legacy advertising model
- Integrated experience now accounts for 61% of connections across Zillow
- Zillow Showcase on approximately 5% of all new listings
- Follow Up Boss reached 138,000 monthly active users, up 21% YoY
- For Sale revenue per Total Transaction Value improved to 8.8 basis points from 8.2 basis points YoY on trailing 12-month basis
“Zillow delivered another quarter of strong results and consistent execution. We outperformed the broader housing market and our outlook, and we are on track toward our full-year goals.”
Zillow Group CEO, on the earnings call
Forward Guidance & Outlook
For Q3 2026, Zillow expects total revenue of $745 million to $760 million, with For Sale revenue growth of 5%-7% year over year, Residential revenue flat year over year, Mortgages revenue growth of more than 50%, and Rentals revenue growth in the high 20% range. Q3 Adjusted EBITDA is expected at $180 million to $200 million, implying 25% margin at mid-point (100 bps expansion YoY). Adjusted EBITDA expenses are expected at $560 million to $565 million. For Q4, seasonality and the Preferred transition are expected to create 400-600 basis points of headwind to For Sale revenue. For full year 2026, the company expects total revenue of $2.92 billion to $2.96 billion (mid-teens growth), Rentals revenue growth of approximately 30%, Adjusted EBITDA of $730 million to $760 million (26% margin at mid-point, 200 bps expansion YoY), and share-based compensation expense down more than 15% YoY. Management now expects industry purchase mortgage origination volume to decline low- to mid-single digits for the rest of 2026 and the full year, down from prior expectation of flat.
Z YoY Financials
Z Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.