Zillow Group Reports Q3 2026 Financial Results

Seattle, November 4 /PRNewswire/ -- Zillow Group, Inc. (Nasdaq: Z and ZG) today announced its consolidated financial results for the three months ended September 30, 2026. The company stated that it is transforming the way people buy, sell, rent, and finance homes.

The complete third-quarter financial results, along with fourth-quarter and full-year 2026 guidance, can be found in the shareholder letter on the Investor Relations page of the Zillow Group website: https://investors.zillowgroup.com/investors/financials/quarterly-results/default.aspx.

The third quarter demonstrated Zillow’s resilience. Amid one of the most challenging housing markets in a generation, we achieved revenue growth and outperformed the real estate industry,” said Zillow CEO Jeremy Wacksman. “This performance was driven by our brand, audience engagement, value to partners, and strong growth levers across our diversified business. We are building a faster, simpler, and more affordable moving experience for renters, buyers, and sellers.”

Recent highlights include:

• Revenue for the third quarter increased 7% year-over-year to $724 million, despite a weaker-than-expected housing environment. The company estimates that mortgage originations for U.S. residential real estate declined 4% year-over-year in the third quarter.
• For Sale: Revenue for the third quarter remained flat year-over-year at $489 million.
• Residential revenue decreased 4% year-over-year in the third quarter to $419 million, due to higher-than-expected mortgage rates suppressing housing transaction volumes.
• Mortgage revenue increased 32% year-over-year in the third quarter to $700 million, primarily due to a 55% year-over-year increase in home loan originations to $2 billion.
• Residential revenue decreased 4% year-over-year in the third quarter to $419 million, due to higher-than-expected mortgage rates suppressing housing transaction volumes.
• Rental revenue increased 26% year-over-year in the third quarter to $220 million, primarily driven by a 35% year-over-year growth in multi-family business revenue.
• For Sale: Revenue for the third quarter remained flat year-over-year at $489 million.
• The net loss for the third quarter was $158 million, with a net loss margin of 22%. Diluted net loss per share was $0.70, compared to diluted net income per share of $0.04 in the third quarter of 2025.
• Adjusted net income was $124 million, with diluted adjusted earnings per share of $0.55, up from $0.44 in the same period last year. Adjusted net income and adjusted EBITDA exclude the impact of the Zillow Offers securities class action settlement, which amounted to $165 million after expected insurance reimbursements.
• Adjusted EBITDA for the third quarter was $182 million, within the company's guidance range, with an adjusted EBITDA margin of 25%.
• Cash and investments as of the end of the third quarter amounted to $707 million.
• In the third quarter, Zillow Group's mobile app and website traffic decreased by 3% year-over-year, with an average of 215 million monthly unique users. Visits declined by 5% year-over-year to 2.3 billion. According to Comscore data tracking growth trends in the residential real estate industry, Zillow attracted 77% of the average monthly unique visitors in the real estate category during the third quarter.

Q3 2026 Financial Highlights

The table below presents key financial highlights for Zillow Group for the periods shown (in millions of U.S. dollars, except percentages, unaudited):

Telephone conference and live stream information

Zillow Group will hold a webcast today at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time) to discuss the above results. Register for the webcast at https://zillow-q3-26-financial-results.open-exchange.net/. The shareholder letter, as well as live and replay links for the conference call, can be found on the Quarterly Earnings page of Zillow Group’s Investor Relations website.

Forward-looking statements

This press release contains forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve risks and uncertainties, including but not limited to statements regarding the company’s business strategies, the execution of these strategies, and their impact on consumers and real estate professionals. Statements containing words such as “may,” “believe,” “anticipate,” “expect,” “intend,” “plan,” “project,” “predict,” “will,” “projections,” “continue,” “estimate,” “outlook,” “guidance,” “would,” “could,” or “strive,” or similar expressions, constitute forward-looking statements. These forward-looking statements are based on assumptions as of November 4, 2026; although the company believes the expectations reflected herein are reasonable, it cannot guarantee these outcomes. Differences between actual results and those described in the forward-looking statements may arise from actions taken by Zillow Group or from risks and uncertainties beyond its control.

Factors that may cause differences include, but are not limited to: changes in economic conditions and the health and stability of the U.S. residential real estate industry, including fluctuations in inflation, interest rates, housing supply and affordability, labor shortages, and supply chain issues; the company’s ability to manage advertising, product inventory, and pricing, as well as maintain relationships with real estate partners; the company’s ability to establish or maintain relationships with property and data providers, which affects traffic on its mobile app and website; changes in the company’s rights to access or timely availability of property data, or changes in the quality or quantity of such data; the company’s ability to comply with current and future rules and requirements of the National Association of Realtors, multiple listing services, or other real estate industry organizations or regulators, or decisions to repeal, amend, or fail to enforce such rules and requirements; the company’s ability to adapt to industry changes, including those arising from past, current, or future litigation, settlements, or government investigations that may not name the company as a defendant; uncertainty resulting from policy changes, shifts in enforcement priorities, or government shutdowns at the federal and state levels; the company’s ability to continuously innovate and compete to attract customers and real estate partners; the company’s ability to effectively allocate resources to advance new strategies, develop new products and services, and expand existing products and services into new markets; the company’s ability to operate and grow its Zillow Home Loans mortgage business, including obtaining or maintaining sufficient financing to support mortgage origination, meeting customer financing needs, consistently expanding origination volume, and reselling originated mortgages in the secondary market; the duration and impact of natural disasters, climate change, geopolitical events, and other catastrophic events (including public health crises) on the company’s operations, demand for its products or services, or overall economic conditions; the company’s public statements, disclosures, goals, and product features related to sustainability; the company’s ability—or the ability of third parties on which it relies—to maintain adequate security controls or technology systems to protect data integrity and the privacy of customers and other third parties; the company’s ability to respond to significant service outages affecting its mobile app, website, or network; the impact of past, current, or future litigation and other disputes or enforcement actions, which may include proceedings or investigations in which the company is not a party; the company’s ability to attract, motivate, and retain highly skilled employees; occurrences involving the company or its competitors such as mergers and acquisitions, investments, strategic partnerships, financing activities, or other corporate transactions or commitments; the company’s continued reliance on third-party services to support critical business functions; the company’s ability to protect and continue using its intellectual property and prevent others from copying, infringing upon, or developing similar intellectual property, including impacts arising from artificial intelligence; the company’s ability to comply with domestic and international laws, regulations, rules, contractual obligations, policies, and other duties, or to obtain and maintain licenses necessary to support its business and operations; the company’s ability to repay debt or raise additional capital on acceptable terms, or refinance debt—or its inability to do so at all; actual or expected fluctuations in quarterly and annual operating results and financial condition; actual or perceived inaccuracies in assumptions, estimates, and internal or third-party data used to calculate business, performance, and operational metrics; and volatility in the prices of Class A common stock and Class C capital stock.

The above list of risks and uncertainties is for illustrative purposes only and is not exhaustive. For additional factors that may affect Zillow Group’s business and financial results, refer to the “Risk Factors” section in Zillow Group’s publicly filed documents with the U.S. Securities and Exchange Commission. Except as required by law, Zillow Group does not intend to, and assumes no obligation to, update this information to reflect future events or circumstances.

Regarding Zillow Group, Inc.

Zillow Group, Inc. (Nasdaq: Z and ZG) is committed to reimagining real estate to help more people achieve the dream of homeownership.

As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers through innovative technology, trusted agents and loan officers, and seamless digital solutions. Equipped with industry-leading tools and resources, Zillow empowers real estate professionals to grow their businesses and deliver exceptional customer experiences. For renters and landlords, Zillow offers not only a robust marketplace but also a comprehensive suite of end-to-end products and services designed to streamline applications, leasing, payments, and more.

Zillow's ecosystem covers the entire housing journey—from dreaming and touring to renting, buying, selling, and financing.

Affiliates, subsidiaries, and brands of Zillow Group include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime®, dotloop®, and Zillow® Closing.

All trademarks mentioned herein are owned by MFTB Holdco, Inc., an affiliate of Zillow. Zillow Home Loans, LLC is an equal housing lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., an affiliate of Zillow.

Visit https://investors.zillowgroup.com, https://www.zillow.com/news, and https://www.linkedin.com/company/zillow for disclosures by Zillow Group regarding its company, financial information, and business matters that may be considered material.

The logos of Zillow Group and some of its core brands are available at https://zillow.com/news/logos/.

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Use of Non-GAAP Financial Metrics

To provide investors with additional information regarding financial performance and liquidity, this press release refers to adjusted EBITDA, adjusted net income, diluted adjusted earnings per share, and adjusted free cash flow, which are non-GAAP financial measures not calculated or presented in accordance with GAAP. Below are reconciliations of each non-GAAP measure to the most directly comparable GAAP measure.

Adjusted EBITDA

Adjusted EBITDA is a key metric used by management and the board to evaluate operating performance and trends, as well as to prepare and approve annual budgets. In particular, the company believes that excluding certain expenses when calculating adjusted EBITDA facilitates period-over-period comparisons of operating performance.

The company's use of adjusted EBITDA also has limitations, and investors should not view this metric in isolation or as a substitute for analyzing GAAP results. Some of these limitations include:

• Adjusted EBITDA does not reflect changes in working capital requirements or the cash needed to meet those requirements;
• Adjusted EBITDA does not account for potential dilution from stock-based compensation;
• Although depreciation and amortization are non-cash expenses, the related assets may need to be replaced in the future, and adjusted EBITDA does not reflect the cash capital expenditures required for such replacements, capital expenditures, or contractual commitments;
• Adjusted EBITDA does not reflect impairments and restructuring costs;
• Adjusted EBITDA does not reflect interest expenses or net other income;
• Adjusted EBITDA does not reflect income taxes;
• Adjusted EBITDA does not reflect certain litigation costs directly related to antitrust lawsuits filed by the U.S. Federal Trade Commission (FTC) and state attorneys general (the “FTC Matter”), including legal fees and associated expenses, which the company considers to be outside the normal course of business and non-recurring, infrequent, or unusual items. In making this determination, the company considered the following factors: (1) the FTC Matter represents the first such legal proceeding brought against the company, and the company does not currently anticipate similar proceedings will occur again; (2) the nature of the relief sought by the FTC, including but not limited to permanent injunctions and asset divestitures or business restructurings, differs from the relief typically sought in the company’s ordinary litigation; (3) the opposing parties are federal regulatory agencies and state attorneys general, which differ from the typical counterparties in the company’s routine litigation;
• Adjusted EBITDA does not reflect the impact of the Zillow Offers securities class action settlement (net of expected insurance proceeds), which the company believes is not indicative of ongoing operating performance. In making this determination, the company considered the magnitude of the settlement costs and the fact that the settlement relates to the discontinued Zillow Offers business;
• Other companies, including industry peers, may calculate adjusted EBITDA differently, which limits its usefulness as a comparable metric.

Due to these limitations, investors should consider adjusted EBITDA alongside other financial performance metrics, including various cash flow measures, net income (loss), and other GAAP results.

Adjusted net profit and diluted adjusted earnings per share

The company's adjusted net income and diluted adjusted net income per share exclude the effects of stock-based compensation, impairment and restructuring costs, FTC-related litigation costs, the Zillow Offers securities class action settlement, and income taxes. These metrics are not key indicators used by management or the board to evaluate operating performance or manage the business. However, the company provides adjusted net income and diluted adjusted net income per share as supplementary information to investors, as it believes that excluding the effects of stock-based compensation, impairment and restructuring costs, FTC-related litigation costs, the Zillow Offers securities class action settlement, and income taxes helps investors compare operating performance on a period-over-period basis. Investors should not view these metrics in isolation or as substitutes for analysis of GAAP results.

Adjusted free cash flow

The company defines adjusted free cash flow as net cash generated from operating activities, adjusted for purchases of property and equipment, purchases of intangible assets, net borrowings (repayments) under the master repurchase agreement, and initial payments related to the Redfin leasing partnership. Borrowings (repayments) under the master repurchase agreement are used to fund mortgage originations for Zillow Home Loans, which the company considers part of its routine liquidity management. Initial payments related to the Redfin leasing partnership are viewed as one-time and non-recurring cash flows; therefore, the company excludes them from its calculation, as it believes these payments could impair its ability to assess the underlying liquidity of its ongoing business operations.

The company presents adjusted free cash flow in this press release because this metric is used by management to evaluate the effectiveness of business strategies and execution, as well as the company’s ability to consistently generate cash from core operations.

The use of adjusted free cash flow also has limitations, and investors should not view it in isolation or as a substitute for analyzing GAAP results. Adjusted free cash flow does not represent the remaining cash flow available for discretionary spending. Other companies, including industry peers, may calculate adjusted free cash flow differently, which limits its usefulness as a comparable metric.

Non-GAAP Financial Metrics Reconciliation Table

The table below reconciles adjusted EBITDA to net income (loss) for the periods presented (in millions of U.S. dollars, unaudited):

The table below reconciles adjusted net income to net income (loss) and related per-share metrics for the periods presented (amounts in millions of U.S. dollars, except per-share data, unaudited):

For periods with a GAAP net loss but adjusted net income, the adjusted weighted average diluted shares used in the calculation of adjusted diluted net income per share include potentially dilutive securities that were excluded from the calculation of diluted net loss per share because their effect was anti-dilutive. The table below reconciles the denominators used in the calculation of diluted net income (loss) per share and adjusted diluted net income per share (in thousands, unaudited):

The table below reconciles adjusted free cash flow to net cash provided by operating activities for the periods presented (in millions of U.S. dollars, unaudited):