Zillow Group Inc Class C
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.75%.
Did Z Beat Earnings? Q1 2026 Results
Zillow Group posted a strong first quarter for fiscal 2026, with earnings per share of $0.53 beating the $0.46 consensus estimate by 15.52% and revenue of $708.00 million edging past the $705.15 million Wall Street expected, rising 18.4% year over year against a residential real estate industry that grew only 2%. The clearest engine behind the beat was Rentals, where revenue climbed 42% to $183.00 million, fueled by 57% multifamily revenue growth as the company reached 76,000 multifamily properties on platform. Net income swelled to $46.00 million from $8.00 million a year ago, while Adjusted EBITDA of $182.00 million exceeded the company's own outlook despite $11.00 million in incremental legal costs weighing on margins. Looking ahead, Zillow guided Q2 revenue to $750.00 million to $765.00 million and maintained full-year expectations for mid-teens revenue growth and approximately 30% Rentals expansion, with meaningful margin improvement anticipated in the back half as legal expenses moderate following an upcoming FTC trial.
- Expansion of Enhanced Markets connections to 49% of total, up from 44% in Q4
- 96% growth in purchase loan origination volume to $1.5 billion
- Multifamily revenue growing 57% year over year driving Rentals growth
- Growth across Zillow Preferred, Zillow Showcase, agent software tools, and New Construction marketplace
- Zillow Showcase on 4.3% of new listings in Q1, up from 3.7% in Q4
- 76,000 multifamily properties at end of Q1, up from 55,000 a year ago
- Lower-than-planned costs contributing to above-outlook Adjusted EBITDA
“Zillow's integrated platform is delivering meaningful value for buyers, sellers, renters and real estate professionals alike. We're embedding AI throughout the real estate experience in ways that make Zillow increasingly indispensable, and we're innovating with speed and intention. Zillow's strong Q1 results reflect the consistency of our execution, the strength of our brand, our audience engagement, and the durability of our multi-year strategy.”
Zillow Group CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2026, Zillow expects total revenue of $750 million to $765 million, with For Sale revenue growth similar to Q1 (Residential mid-single digits YoY, Mortgages growth similar to Q1), and Rentals revenue growth of approximately 30% YoY. Adjusted EBITDA expenses are expected at $600 million, with Adjusted EBITDA of $150 million to $165 million (excluding ~$20 million incremental legal costs, $170-$185 million). Advertising spend is planned at approximately $80 million in Q2. For full-year 2026, management continues to expect mid-teens total revenue growth, Rentals growth of approximately 30%, Adjusted EBITDA margin expansion year over year with meaningful margin expansion in the back half, and share-based compensation expense down more than 15% year over year (updated from down more than 10% previously). The company is planning for the macro housing environment to continue to bounce along the bottom of the cycle.
Z YoY Financials
Z Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.