Zillow Group (NASDAQ:Z) Posts Earnings Results, Beats Estimates By $0.07 EPS

Zillow Group (NASDAQ:Z) released its quarterly earnings results on Wednesday. The financial services provider reported $0.52 earnings per share 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 analyst estimates 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 Stock Performance

Shares of NASDAQ:Z traded down $2.67 during midday trading on Thursday, reaching $33.43. 11,503,536 shares of the company’s stock traded hands, compared to its average volume of 4,249,885. Zillow Group has a one year low of $29.23 and a one year high of $93.88. The company has a market cap of $7.65 billion, a price-to-earnings ratio of 133.72, a P/E/G ratio of 1.55 and a beta of 1.98. The stock has a 50 day moving average of $33.12 and a 200 day moving average of $41.84.

Insider Activity at Zillow Group

In other Zillow Group news, insider Errol G. Samuelson sold 2,939 shares of the business’s stock in a transaction on Thursday, May 14th. The shares were sold at an average price of $37.97, for a total transaction of $111,593.83. Following the completion of the sale, the insider directly owned 134,039 shares in the company, valued at approximately $5,089,460.83. The trade was a 2.15% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Dan Spaulding sold 3,078 shares of the stock in a transaction dated Monday, May 18th. The shares were sold at an average price of $37.40, for a total value of $115,117.20. Following the completion of the transaction, the insider directly owned 49,696 shares in the company, valued at approximately $1,858,630.40. This represents a 5.83% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 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. Insiders have sold 42,910 shares of company stock valued at $1,605,732 over the last quarter. 25.03% of the stock is owned by company insiders.

Hedge Funds Weigh In On Zillow Group

A number of hedge funds have recently made changes to their positions in Z. IFC & Insurance Marketing Inc. bought a new position in Zillow Group during the fourth quarter valued at $68,000. Advisory Services Network LLC bought a new stake in shares of Zillow Group in the 3rd quarter worth about $99,000. Northwestern Mutual Wealth Management Co. raised its position in shares of Zillow Group by 186.3% during the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,678 shares of the financial services provider’s stock valued at $118,000 after buying an additional 1,092 shares in the last quarter. Kestra Advisory Services LLC purchased a new stake in shares of Zillow Group during the 4th quarter valued at about $153,000. Finally, EFG International AG purchased a new stake in Zillow Group during the fourth quarter valued at approximately $196,000. Institutional investors own 71.01% of the company’s stock.

Key Headlines Impacting Zillow Group

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

• Positive Sentiment: Second-quarter results exceeded estimates. Zillow reported adjusted EPS of $0.52 versus the $0.45 consensus and revenue of $772 million versus expectations of $758.1 million. Revenue increased 18% year over year, providing evidence of continued demand for the company’s services. Zillow Surpasses Q2 Earnings and Revenue Estimates
• Neutral Sentiment: Management is reshaping its leadership structure. CFO Jeremy Hofmann will also become chief operating officer, while Cassandra Knight becomes Zillow’s first chief legal and policy officer. The changes could improve execution, but they also highlight a period of significant organizational change. Zillow Strengthens Executive Leadership Team
• Negative Sentiment: Forward guidance came in below analyst expectations. Zillow forecast third-quarter revenue of $745 million to $760 million, below the $772.3 million consensus, and full-year revenue of $2.9 billion to $3.0 billion, roughly below or at the low end of the $3.0 billion estimate. The soft outlook drove after-hours selling. Zillow Stock Slides on Soft Outlook
• Negative Sentiment: Restructuring costs pushed Zillow to a loss. The company posted a $4 million net loss despite higher revenue, as $36 million in restructuring expenses weighed on results. Zillow also plans to eliminate just over 500 jobs, or about 7% of its workforce, underscoring management’s concern about a flat housing market. Zillow Layoffs Amid Flat Housing Market
• Negative Sentiment: Housing indicators point to a slower second half. July home sales rose 7% year over year, but sharply lower newly pending sales and higher mortgage rates suggest the improvement may not persist. Zacks also downgraded Zillow from “strong buy” to “hold.” Zillow July Market Report
• Negative Sentiment: Several law firms are promoting a securities-fraud class action involving investors who purchased Zillow shares between February 11, 2025 and May 7, 2026. The August 10 lead-plaintiff deadline adds reputational and potential legal-risk overhang, although the allegations have not been proven. Zillow Securities Class Action Deadline

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Weiss Ratings cut shares of Zillow Group from a “sell (d+)” rating to a “sell (d)” rating in a report on Friday, May 22nd. Royal Bank Of Canada cut their price objective on shares of Zillow Group from $95.00 to $70.00 and set an “outperform” rating on the stock in a report on Wednesday, June 10th. Jefferies Financial Group lowered their target price on shares of Zillow Group from $75.00 to $60.00 and set a “buy” rating for the company in a report on Tuesday, July 14th. Morgan Stanley set a $60.00 price target on Zillow Group in a research note on Thursday. Finally, Wall Street Zen upgraded Zillow Group from a “hold” rating to a “buy” rating in a research note on Saturday, May 9th. Two research analysts have rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus price target of $71.00.

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.