Zillow Group (NASDAQ:Z) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Zillow Group (NASDAQ:Z) announced its earnings results on Wednesday. The financial services provider reported $0.52 EPS for the quarter, beating analysts’ consensus estimates of $0.45 by $0.07, FiscalAI reports. The company had revenue of $772.00 million during the quarter, compared to analysts’ expectations 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 Down 7.4%

NASDAQ Z traded down $2.67 on Thursday, hitting $33.43. 11,503,536 shares of the stock were exchanged, compared to its average volume of 4,249,885. Zillow Group has a fifty-two week low of $29.23 and a fifty-two week high of $93.88. The company has a market cap of $7.65 billion, a PE ratio of 133.72, a PEG ratio of 1.55 and a beta of 1.98. The company has a 50-day moving average price of $33.12 and a 200-day moving average price of $41.84.

Insider Activity

In other news, CFO Jeremy Hofmann sold 5,501 shares of the stock in a transaction dated Monday, May 18th. The stock was sold at an average price of $37.40, for a total value of $205,737.40. Following the transaction, the chief financial officer owned 68,315 shares in the company, valued at approximately $2,554,981. This represents a 7.45% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 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. Also, insider Errol G. Samuelson sold 2,939 shares of the firm’s stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $37.97, for a total value of $111,593.83. Following the sale, the insider directly owned 134,039 shares in the company, valued at $5,089,460.83. This trade represents a 2.15% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last quarter, insiders have sold 42,910 shares of company stock valued at $1,605,732. Insiders own 25.03% of the company’s stock.

Institutional Trading of Zillow Group

Several institutional investors have recently modified their holdings of Z. Empowered Funds LLC boosted its position in shares of Zillow Group by 4.7% during the first quarter. Empowered Funds LLC now owns 3,822 shares of the financial services provider’s stock worth $262,000 after buying an additional 171 shares during the period. Public Employees Retirement System of Ohio increased its position in Zillow Group by 0.5% in the 3rd quarter. Public Employees Retirement System of Ohio now owns 55,410 shares of the financial services provider’s stock valued at $4,269,000 after acquiring an additional 259 shares during the period. Daiwa Securities Group Inc. raised its stake in Zillow Group by 2.1% during the 2nd quarter. Daiwa Securities Group Inc. now owns 15,971 shares of the financial services provider’s stock valued at $1,119,000 after acquiring an additional 325 shares in the last quarter. American Century Companies Inc. raised its stake in Zillow Group by 1.6% during the 2nd quarter. American Century Companies Inc. now owns 23,064 shares of the financial services provider’s stock valued at $1,616,000 after acquiring an additional 362 shares in the last quarter. Finally, Wealthspire Advisors LLC boosted its position in Zillow Group by 8.9% during the 4th quarter. Wealthspire Advisors LLC now owns 4,460 shares of the financial services provider’s stock worth $304,000 after acquiring an additional 366 shares during the period. Hedge funds and other institutional investors own 71.01% of the company’s stock.

Analysts Set New Price Targets

Several research analysts have recently commented on Z shares. Weiss Ratings lowered shares of Zillow Group from a “sell (d+)” rating to a “sell (d)” rating in a research note on Friday, May 22nd. UBS Group cut their target price on shares of Zillow Group from $80.00 to $75.00 and set a “buy” rating on the stock in a research note on Tuesday, April 28th. JPMorgan Chase & Co. dropped their price target on shares of Zillow Group from $84.00 to $76.00 and set an “overweight” rating for the company in a research note on Thursday, May 7th. Deutsche Bank Aktiengesellschaft cut their price objective on Zillow Group from $80.00 to $68.00 and set a “buy” rating on the stock in a research report on Friday, May 8th. Finally, Zacks Research cut Zillow Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday. Two analysts have rated the stock with a Strong Buy rating, six have assigned a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Zillow Group has a consensus rating of “Moderate Buy” and an average price target of $71.00.

Zillow Group News Summary

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

Zillow Group Company Profile

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.