Zillow Group Inc - Class A
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 ZG 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 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.
ZG YoY Financials
ZG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.