Z

Zillow Group, Inc. Class C

Next est. report 2026-08-05 · AMC

Buying a House '26: Residential BrokeragesData Owners '25: Property, Mortgage & Real Estate DataHaveNots Longs '25: Mass Market Home & Auto Infra Built in ZIRP '25: RE & PropTech Rate Sensitivity '25: Consumer Lending

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Overview

Zillow Group, Inc. (Z) is a digital real estate company that provides platforms for buying, selling, and renting homes across the U.S. Its revenue primarily ste

Zillow Group, Inc. (Z) is a digital real estate company that provides platforms for buying, selling, and renting homes across the U.S. Its revenue primarily stems from For Sale services, including residential agent advertising and mortgages (72.6% in Q1 2026), and Rentals (25.8%). Zillow serves consumers throughout their housing journey and offers software and marketing tools to real estate professionals.

What They Do (Plain English & Analogies): Zillow Group is like a digital hub for everything related to moving homes. Imagine a single website or app where you can not only browse homes for sale or rent, but also get a loan, connect with a real estate agent, schedule a tour, apply for a rental, and even manage the closing paperwork. For people looking to move, it's a one-stop shop that guides them from their very first thought about a new home to getting the keys. For real estate professionals, it's like a powerful operating system that helps them manage clients, market properties, and streamline their daily tasks, making them more efficient.
Very Brief History: Zillow Group was established in 2004 and launched its website in February 2006. Over two decades, it has evolved from a disruptive data provider with its Zestimate to a comprehensive 'Housing Super App'. Key milestones include numerous acquisitions like Trulia in 2015, and more recently, Follow Up Boss at the end of 2023, expanding its integrated offerings for consumers and professionals.
"Street Stereotype": Zillow is widely perceived as the core residential-housing intent graph, being the most visited U.S. real estate app and website. Investors and analysts generally view it as a company that owns crucial consumer home-search data, listings, rentals, agent leads, and mortgage information. The market is cautiously bullish on Zillow, recognizing its strong brand, market penetration, and digital infrastructure built during periods of lower interest rates, positioning it well for the accelerating shift towards digital solutions in real estate.
Subsidiaries On Linked In*: Zillow Group — Parent company; LinkedIn: zillow-group
Zillow Rentals — LinkedIn: zillow-rentals
Trulia — LinkedIn: trulia
StreetEasy — LinkedIn: streeteasy
Zillow Closing Services — LinkedIn: zillow-closing-services
HotPads — LinkedIn: hotpads
Out East — LinkedIn: out-east
Follow Up Boss — LinkedIn: follow-up-boss
ShowingTime — LinkedIn: showingtime
dotloop — LinkedIn: dotloop
Zillow Home Loans — LinkedIn: zillow-home-loans
Customer Sectors & Example Clients: Zillow Group serves a dual audience: individual consumers and real estate professionals. Consumer segments include homebuyers (often dual-income households, college-educated professionals, median age ~36), sellers (homeowners aged 35-65 with higher net worth), and renters (largest audience by volume, ages 18-40, heavy Gen Z/Millennial representation). Professional customers include real estate agents and teams, brokerages, loan officers, and property managers. While specific client companies are not named in the transcript, Zillow works with "top agents in the country" who rely on Follow Up Boss, and has "enterprise-level agreements with some of the country's largest brokers and franchisors" for Zillow Showcase. Given its business model, likely clients would include major real estate brokerage firms (e.g., Anywhere Real Estate, RE/MAX, Keller Williams) and large multifamily property management companies (e.g., Greystar, Equity Residential).
New Customers / Segments They'Re Targeting: Zillow is actively targeting several new customer segments and deepening engagement with existing ones. For buyers, they are enhancing the experience for "co-shoppers" to collaborate in real-time on the platform. For sellers and agents, they are targeting those interested in pre-market exposure through "Zillow Preview," which has quickly gained over 60 brokerage partners. They are also expanding "Zillow Pro" to all agents nationwide, aiming to make it an indispensable operating system for real estate professionals, including those whose clients originate outside the Zillow ecosystem. In rentals, they are targeting multifamily property managers for broader marketing spend by demonstrating strong ROI and offering new tools like live analytics dashboards and paid social products.
Supply Chain And Sourcing Geographies: Zillow Group operates primarily as a digital real estate platform and does not have a traditional physical supply chain for manufacturing or sourcing components. Its 'supply chain' largely involves data acquisition and technology infrastructure. Zillow aggregates residential supply by ingesting data from Multiple Listing Services (MLSs), brokers, property managers, and new construction listings across the United States. Its technology infrastructure relies on various vendors for processing and storing sensitive data, hosting systems, and providing Software-as-a-Service (SaaS) offerings. Therefore, its sourcing is primarily digital data and cloud-based services, with no specific geographic sourcing for physical components mentioned.
Sales Geographies And Expansion Plans: Zillow Group currently sells its products and services primarily throughout the United States. Its platforms, including Zillow, Trulia, StreetEasy, and HotPads, provide comprehensive housing inventory across the country. While Zillow did briefly list Canadian properties through a partnership in 2018, the core focus and revenue generation remain within the U.S.. Management has not indicated plans to expand sales into new international geographies in the provided transcript or recent context.
How Key Themes May Help/Hurt: Zillow Group is a core member of the 'Data Owners '25: Property, Mortgage & Real Estate Data' theme, which is a long (bullish) position. This theme directly benefits Zillow by highlighting its strength as the dominant residential-housing intent graph and its extensive collection of listings, browsing, rentals, agent leads, mortgage, valuation, and consumer home-search data. The company's strategy of leveraging 'content, context, and integration' through AI directly aligns with and is enhanced by the buildout of this data ecosystem. The 'HaveNots Longs '25: Mass Market Home & Auto' theme, which is also bullish, suggests that an 'Inventory Thaw Driving Transactions' and 'Pent-Up Mobility Demand' would be tailwinds for Zillow, as it drives increased activity on its platforms. The 'Infra Built in ZIRP '25: RE & PropTech' theme, cautiously bullish, indicates Zillow benefited from low interest rates to expand its digital platforms and infrastructure, creating significant market penetration. The ongoing shift towards digital solutions in real estate provides continued growth opportunities.

3 Main Long-Term Bull Details

Integrated Housing Super App Strategy: Zillow's focus on creating a seamless, integrated experience across the entire housing journey, from shopping and touring to financing and closing, drives higher conversion rates for its preferred agents and Zillow Home Loans, leading to increased market share and revenue capture.
AI-Powered Platform with Unique Advantages: Leveraging two decades of data, Zillow's AI strategy capitalizes on its unparalleled content (most comprehensive inventory and rich media), context (deep understanding of user intent), and integration (spanning all transaction points) to deliver superior consumer and professional experiences, making its platform increasingly indispensable.
Strong and Diversified Growth in Rentals: The Rentals segment is a significant growth engine, with Q1 2026 revenue up 42% year-over-year and a clear path to $1 billion or more in annual revenue. This growth, driven by increasing multifamily property adoption and high ROI for property managers, expands Zillow's overall funnel and contributes to durable growth across the business.

3 Main Long-Term Bear Details

Housing Market Sensitivity: Despite outperforming, Zillow's business remains sensitive to broader housing market conditions, such as interest rate volatility and transaction volumes. A prolonged flat or declining market could temper growth, particularly in its For Sale segment.
Competitive and Regulatory Pressures: Zillow faces intense competition from other established real estate platforms and emerging PropTech solutions. Additionally, ongoing legal expenses and regulatory scrutiny, such as the FTC trial mentioned, pose a financial and operational headwind.
Mortgages Segment Profitability: While the mortgages business is growing rapidly, its lower margin profile compared to other segments means it will take time to reach scale and contribute meaningfully to overall margin expansion, potentially impacting near-term profitability.

Competitors And Differentiation: Zillow's primary competitors include other online real estate marketplaces and brokerages such as Realtor.com (News Corp), Redfin, CoStar Group (especially with Apartments.com), and Opendoor. Zillow differentiates itself through several key advantages: a highly integrated 'housing super app' experience that connects the entire housing journey from shopping to closing; a massive and deeply engaged audience, with roughly 80% direct traffic and more than twice the daily active app users of its closest competitor; and a leadership position in AI, leveraging its unique content (most comprehensive and differentiated housing inventory with rich media), context (deep understanding of user intent across the transaction), and integration (spanning marketing, search, touring, financing, and agent collaboration). Specific product differentiators include 'Buyability' for loan affordability, 'Shop with pre-approval,' 'My Agent' for agent collaboration, 'Zillow Preview' for broad pre-market exposure, and 'Zillow Showcase' for immersive listings.
Recent Performance & What The Market'S Focused On: Zillow Group delivered strong Q1 2026 results, with total revenue up 18% year-over-year to $708 million, near the high end of its outlook. EBITDA exceeded expectations at $182 million, and net income was $46 million, with net income margin expanding over 500 basis points year-over-year. Free cash flow increased 44% to $127 million. For Sale revenue grew 12% to $514 million, driven by 8% growth in residential and 56% in mortgages. Rentals revenue surged 42% to $183 million, with multifamily up 57%. For Q2 2026, Zillow expects total revenue of $750 million to $765 million, implying approximately 16% year-over-year growth at the midpoint, with similar For Sale growth to Q1, mid-single-digit residential growth, and approximately 30% rentals growth. EBITDA is projected between $150 million and $165 million, factoring in incremental legal and advertising expenses. The market is focused on Zillow's continued execution of its integrated 'super app' strategy, particularly the adoption and impact of new products like Zillow Preview and AI mode. Key metrics being tracked include the scaling of the mortgages business, the sustained rapid growth of the rentals segment towards its $1 billion annual revenue target, and the company's ability to achieve meaningful EBITDA margin expansion in the second half of 2026 through cost leverage, decelerating variable expenses, and reduced legal headwinds.

Revenue Segments And Estimated Mix: For Sale — Mix: ~72.6%; Source: Q1 2026 transcript; Trend: Increased 12% year-over-year
Residential (within For Sale) — Mix: ~63.6% (of total revenue); Source: Q1 2026 transcript; Trend: Increased 8% year-over-year
Mortgages (within For Sale) — Mix: ~9.0% (of total revenue); Source: Q1 2026 transcript; Trend: Increased 56% year-over-year
Rentals — Mix: ~25.8%; Source: Q1 2026 transcript; Trend: Increased 42% year-over-year, driven by 57% growth in multifamily revenue
Product Brands: Zillow
Zillow Premier Agent
Zillow Home Loans
Zillow Rentals
Zillow New Construction
Trulia
StreetEasy
Out East
HotPads
Follow Up Boss
ShowingTime
dotloop
Zillow Closing Services
Zillow Preview
Zillow Showcase
Buyability
My Agent
AI Assist
SkyTour
Zillow 3D home tours
Zillow Pro

Bull / Bear Details

Zillow Group (Z) is a compelling long-term investment as it continues to dominate the U.S. residential real estate market. Its integrated 'housing super app' st

Thesis

Zillow Group (Z) is a compelling long-term investment as it continues to dominate the U.S. residential real estate market. Its integrated 'housing super app' strategy, leveraging AI across its platform, drives consistent outperformance against a flat market. Strong growth in high-ROI rentals and rapidly scaling mortgages, coupled with expanding agent solutions, solidifies its position as a leading data and transaction platform. (Updated: 2026-06-24)

Bull case

Zillow's integrated 'housing super app' strategy, connecting shopping, touring, financing, and agent collaboration, is driving consistent revenue growth (18% YoY in Q1 2026) and market outperformance despite a flat housing market. This approach enhances consumer and professional engagement, leading to higher conversion rates and deeper platform usage, as evidenced by expanding enhanced markets.
The company is experiencing robust growth in its Rentals and Mortgages segments. Rentals revenue surged 42% year-over-year in Q1 2026, with multifamily properties reaching an all-time high, demonstrating strong ROI for property managers and a clear path to $1 billion+ annual revenue. Mortgages revenue grew 56% year-over-year, with purchase loan originations up 96%, establishing Zillow Home Loans as a top 25 lender.
Zillow is strategically leveraging AI across its platform, from consumer-facing AI mode (showing deeper engagement) to agent tools like Follow Up Boss (becoming an AI-powered workflow engine), and internal operations (engineers shipping 40% more code). This AI integration enhances product capabilities, drives efficiency, and strengthens Zillow's competitive advantage as an 'AI-native company' in the real estate sector.

Bear case

The broader housing market remains largely flat due to persistent interest rate volatility and other macro factors, impacting residential revenue growth (mid-single digits expected for Q2 2026). While Zillow has outperformed the market, a prolonged stagnant environment could limit overall growth potential and negatively affect agent sentiment, particularly for market-based pricing.
Zillow faces ongoing legal expenses, with an anticipated $20 million incremental year-over-year legal cost in Q2 2026, creating a near-term headwind to EBITDA margins. Additionally, continued strategic investments in the rapidly growing rentals and Zillow Home Loans segments contribute to variable cost growth in the first half of 2026, potentially delaying margin expansion.
Despite strong initial adoption of new products like Zillow Preview, the competitive landscape in real estate remains dynamic. The transition from market-based pricing to preferred partners, while strategic, has led to declining market-based pricing revenue. Sustaining broad agent adoption and proving the long-term ROI of new tools like Zillow Pro will be crucial for continued growth and market share.

Bull / Bear Case

Bear Case: The broader housing market remains largely flat due to persistent interest rate volatility and other macro factors, impacting residential revenue growth (mid-single digits expected for Q2 2026). While Zillow has outperformed the market, a prolonged stagnant environment could limit overall growth potential and negatively affect agent sentiment, particularly for market-based pricing. Zillow faces ongoing legal expenses, with an anticipated $20 million incremental year-over-year legal cost in Q2 2026, creating a near-term headwind to EBITDA margins. Additionally, continued strategic investments in the rapidly growing rentals and Zillow Home Loans segments contribute to variable cost growth in the first half of 2026, potentially delaying margin expansion. The stock has also significantly underperformed, hitting a 52-week low.
Bull Case: Zillow's integrated 'housing super app' strategy, leveraging AI across its platform, is driving consistent revenue growth (18% YoY in Q1 2026) and market outperformance despite a flat housing market. This approach enhances consumer and professional engagement, leading to higher conversion rates and deeper platform usage, as evidenced by expanding enhanced markets. The company is experiencing robust growth in its Rentals (42% YoY) and Mortgages (56% YoY) segments, diversifying revenue and demonstrating strong ROI for property managers, with a clear path to $1 billion+ annual rentals revenue. AI integration, from consumer-facing AI mode to agent tools like Follow Up Boss, enhances product capabilities, drives efficiency, and strengthens Zillow's competitive advantage as an 'AI-native company' in the real estate sector.
More Compelling & Why: Bear. The stock's significant underperformance, hitting a 52-week low, indicates the market is heavily weighing the persistent flat housing market and near-term margin pressures from legal and variable costs. The trailing P/E ratio of over 120x appears stretched given the subdued residential growth outlook. My view would flip if Zillow demonstrates a clear acceleration in residential revenue growth beyond mid-single digits, signaling a stronger housing market recovery or superior execution, and if the valuation becomes more attractive.

Key Factors5 rows

Key Factor	Why It Matters	What To Watch	What It Signals	Where/How To Track	Free Alt Data	Paid Alt Data
Zillow Preview & Showcase Adoption Rates	These products are crucial for enhancing Zillow's "For Sale" offering, attracting agents, and driving residential revenue. Strong adoption signals increased agent and seller engagement with Zillow's premium marketing tools, supporting long-term revenue growth.	Number of brokerage partners adopting Zillow Preview (currently over 60), and the percentage of new listings using Zillow Showcase (Q1 2026 was 4.3%).	Bullish if Preview continues rapid brokerage/agent onboarding and Showcase penetration exceeds 4.3% of new listings, indicating strong agent and seller demand for premium marketing.	Zillow Group's quarterly earnings calls, press releases, and investor presentations. Industry news and real estate agent forums.	Real estate industry news sites (e.g., Inman, HousingWire) for announcements on brokerage partnerships; Zillow.com for observing Showcase listings.	Similarweb: Zillow.com traffic patterns related to new listing types; Thinknum: Job postings for real estate agents mentioning Zillow tools.
Enhanced Markets Expansion & Connection Conversion	The expansion of enhanced markets is central to Zillow's integrated transaction experience. It drives higher conversion rates for preferred partners, directly impacting residential revenue and demonstrating the effectiveness of Zillow's platform strategy.	Percentage of connections in enhanced markets, with a target of at least 75%. Q1 2026 was 49%, up from 44% in Q4 2025.	Bullish if the percentage of connections in enhanced markets continues to increase steadily towards or beyond the 75% target, indicating successful integration and improved monetization.	Zillow Group's quarterly earnings reports and investor presentations.	N/A (internal metric).	N/A (internal metric, but could be indirectly inferred by agent sentiment surveys by third parties).
Zillow Home Loans Purchase Loan Origination Volume & Buyability User Growth	Directly reflects the success of Zillow's integrated "For Sale" strategy and the value proposition of Zillow Home Loans, driving mortgage revenue and higher-intent buyers, which is crucial for overall financial performance and market leadership.	Q2 2026 and subsequent quarterly purchase loan origination volume, and the number of Buyability users. Q1 2026 volume was $1.5 billion, and Buyability users were 4.3 million.	Bullish if purchase loan origination volume continues to grow at or above Q1's 96% YoY rate and Buyability users exceed 4.3 million, indicating strong adoption and conversion.	Zillow Group's quarterly earnings reports and investor relations website. Next earnings call will cover Q2 2026 results.	MBA Mortgage Applications Survey (purchase index), Google Trends for "Zillow Home Loans" or "Buyability".	CoreLogic: Mortgage origination data by lender; Earnest Research: Consumer spending data on mortgage services.
AI Mode User Engagement & Broader Rollout	AI is a foundational capability for Zillow, expected to drive deeper consumer engagement, higher intent, and increased efficiency for professionals. Successful rollout and adoption position Zillow for future growth and competitive advantage in the real estate tech space.	Expansion of AI mode access beyond the current 5% of the audience, and qualitative/quantitative metrics on user engagement (e.g., conversation depth, actionable engagement).	Bullish if Zillow announces significant expansion of AI mode access and reports continued positive early signals on user engagement, indicating successful product development and adoption.	Zillow Group's quarterly earnings calls, investor presentations, and product announcements.	Tech news outlets covering AI in real estate; social media sentiment analysis on Zillow's AI features.	Sensor Tower/Similarweb: Zillow app engagement metrics (session duration, features used) for AI mode users vs. non-AI mode users.
Rentals Multifamily Properties on Platform & Revenue Growth	Rentals is a key growth engine for Zillow, with a clear path to $1 billion+ annual revenue. Increased property count drives revenue and strengthens the two-sided marketplace, indicating strong market share gains and monetization potential.	Total number of multifamily properties on the platform, and year-over-year rentals revenue growth. Q1 2026 saw 76,000 multifamily properties and 42% YoY rentals revenue growth.	Bullish if multifamily properties continue to grow significantly above Q1's 38% YoY rate and rentals revenue growth remains strong, indicating market share gains and effective monetization.	Zillow Group's quarterly earnings reports and investor relations website.	Industry reports on multifamily property listings (e.g., NMHC, NAA), Zillow Rentals website/app for observed listing count.	CoStar: Multifamily property data and market share; Placer.ai: Zillow Rentals app usage and engagement.

Key Reported Metrics, Reratings Triggers & Results3 rows

Mortgages Revenue is crucial for Zillow's integrated 'housing super app' strategy. Its rapid growth, driven by purchase loan originations, signifies increasing

Key reported metrics
Metric	Last period	Why it matters
Mortgages Revenue	56%	Mortgages Revenue is crucial for Zillow's integrated 'housing super app' strategy. Its rapid growth, driven by purchase loan originations, signifies increasing adoption of Zillow Home Loans and the platform's ability to capture more of the transaction funnel.
Rentals Revenue	42%	Rentals Revenue is a key growth engine, with a clear path to $1 billion in annual revenue. Its strong performance highlights Zillow's success in expanding its two-sided marketplace and capturing wallet share from property managers.
Total Revenue	18%	Total Revenue indicates Zillow's overall business health and growth trajectory. Given the flat housing market, sustained mid-teens growth demonstrates the effectiveness of its diversified strategy and integrated platform.

Key Questions

Can Zillow deliver on its full-year EBITDA margin expansion and mid-teens revenue growth targets, particularly as variable costs decelerate and legal expenses d

Can Zillow deliver on its full-year EBITDA margin expansion and mid-teens revenue growth targets, particularly as variable costs decelerate and legal expenses decrease in the second half of 2026, despite a flat housing market?

Question 2: Will Zillow continue to gain significant market share and sustain rapid revenue growth in its Rentals and Mortgages segments, particularly with the expansion of Zillow Preview and enhanced markets, to drive overall business outperformance?
Question 3: How effectively will Zillow's new AI-powered features (e.g., AI mode, Follow Up Boss enhancements) and integrated products (e.g., Zillow Pro, Showcase) translate into higher consumer engagement, agent productivity, and ultimately, improved monetization and conversion rates?

Earnings Transcript SummaryTable

2026-05-06 · 2026Q1 Earnings Call

3 Things Management Is Most Focused On	Call Takeaway & Tone	Prior Quarter'S Y/Y Growth By Segment	3 Things Analysts Most Pressed On (And Mgmt Responses)	Revenue Segments
1. Connecting the entire housing journey into one integrated experience: Management is focused on making moving easier for consumers and professionals by integrating shopping, touring, financing, agent collaboration, and closing for For Sale, and search, tours, applications, leases, and payments for rentals. This integration is seen as the driver for better outcomes and growth. 2. Leveraging AI to accelerate strategy: Zillow is emphasizing its unique position to lead real estate in the AI era due to its advantages in content (comprehensive housing inventory, rich media), context (deep consumer intent data across the transaction lifecycle), and integration (spanning the core of the transaction). They are embedding AI throughout consumer products, professional tools, and internal operations to drive efficiency and innovation. 3. Driving sustainable profitability and outperforming the market: Management highlighted consistent execution, revenue growth, net income, and margin expansion, even against a flat housing market. They are focused on achieving full-year goals, with structural drivers and cost levers in place to accelerate margins in the back half of 2026, demonstrating the durability of their multi-year strategy.	The overall takeaway of the call is that Zillow Group delivered strong Q1 2026 results, outperforming a flat housing market through consistent execution of its integrated 'housing super app' strategy. The tone was confident and positive, emphasizing the durability of their business model, the significant growth opportunities in rentals and mortgages, and the strategic advantage gained through AI integration across their platform. Management expressed conviction in achieving full-year goals and continued margin expansion, highlighting their control over their path despite macro conditions.	In Q4 2025, total revenue grew 18% year-over-year. For Sale revenue increased 11% year-over-year. Residential revenue grew 8% year-over-year. Mortgages revenue increased 39% year-over-year. Rentals revenue surged 45% year-over-year, with multifamily revenue growing 63% year-over-year.	1. Zillow Preview and Realtor.com collaboration: Analysts inquired about early learnings, reception, and the strategy behind the Realtor.com partnership. Management responded that the response to Preview has exceeded expectations, with over 60 brokerage partners in two months, and that the Realtor.com collaboration is a 'win-win' extending visibility to two of the most visited platforms, increasing value for sellers, buyers, and agents. 2. EBITDA guidance and confidence in back-half margin ramp: Analysts pressed on the Q2 EBITDA guidance and the factors supporting confidence in margin expansion later in the year. Management explained that Q2 includes $20 million in incremental legal costs and $16 million in increased advertising spend. For the back half, they are confident due to structural revenue drivers, leveraging fixed costs, decelerating variable expense growth (as rentals investment slows), reduced legal expenses post-FTC trial, and a more typical seasonal advertising spend pattern. 3. Rentals growth outlook and competitive environment: Analysts asked about the continued strength in rentals, especially multifamily, given tougher comps in the back half, and the broader competitive landscape. Management stated they expect continued strong growth, with full-year rentals revenue growth of approximately 30% even after lapping Redfin-related acceleration. They emphasized the differentiated strategy of aggregating supply (multifamily and long-tail rentals), the compelling value proposition for consumers and advertisers, and the significant ROI for property managers, seeing green lights ahead for growth beyond the $1 billion target.	Total revenue increased 18% year-over-year. For Sale revenue grew 12% year-over-year. Residential revenue (within For Sale) grew 8% year-over-year. Mortgages revenue (within For Sale) increased 56% year-over-year. Rentals revenue was up 42% year-over-year, driven by 57% growth in multifamily revenue.

Transcript TidbitsTable

2026-05-06

About Expanding Eligible Market	About Competition	About The Broader Industry	Where Things Are Headed	Updates On Theme	Broader Themes Emerging	Bullish-Leaning Quotes (Short)	Bearish-Leaning Quotes (Short)	Hiring
Zillow is expanding its eligible market by integrating the entire housing journey, supporting both consumers and professionals. This includes connecting shopping, touring, financing, agent collaboration, and closing for consumers, as well as providing agent software tools. In rentals, it spans search, tours, applications, leases, and payments. The company is expanding its enhanced markets, which accounted for 49% of connections in Q1, up from 44% in Q4, targeting at least 75%. Zillow Preview, a new pre-market listing product, has expanded from 5 initial brokerage partners to over 60, and a collaboration with realtor.com extends its visibility across the two most visited real estate platforms. Zillow Pro, a connected system for agents, is in beta with over 12,000 agents and is on track for a broader nationwide rollout in the second half of the year. In rentals, Zillow reached an all-time high of 76,000 multifamily properties, up from 55,000 a year ago, and had 2.7 million average monthly active rental listings in Q1.	Zillow maintains a strong competitive position, with roughly 80% of its traffic coming directly and more than twice the daily active app users of its next closest competitor. The company is the only large player in its category that has increased its real estate audience reach over the past six quarters, according to Comscore. The Zillow Preview collaboration with realtor.com extends visibility across the two most visited real estate platforms, increasing value and demand for Preview listings. Property managers view Zillow as delivering the highest return on marketing investment in the rentals category, surpassing other rental platforms, search, and social options.	The broader housing market remained essentially flat in Q1 2026, impacted by worse-than-expected weather and interest rate volatility. The real estate industry grew 2% as reported by NAR, with purchase mortgage origination volume declining 1% year-over-year. Zillow anticipates the housing market will continue to be effectively flat. The industry is characterized by structural complexity, high-dollar, high-stakes, and personal transactions, involving hundreds of thousands of brokers across several hundred MLSs and 1.5 million real estate agents.	Zillow is on track to achieve its full-year goals for 2026, aiming for mid-teens total revenue growth, approximately 30% growth in rentals revenue, and continued EBITDA margin expansion. The company plans to expand access to its consumer-facing AI mode experience this year. Rich media, including Zillow 3D home tours and interactive floor plans, is expected to become the standard for listings. Follow Up Boss is evolving into an AI-powered workflow engine for agents. Zillow Pro is slated for a broader nationwide rollout in the second half of the year, reinforcing Zillow's role as a long-term partner for real estate professionals. The company has a clear path toward an incremental mid-cycle revenue target of $1 billion or more in annual rentals revenue. Zillow Home Loans aims to become one of the biggest purchase mortgage originators in the country. Legal expenses are expected to be less of a headwind to margins in the second half of the year as the FTC trial progresses.	Zillow's	A broader theme emerging is the rapid adoption and integration of AI to transform internal company operations and enhance productivity. Zillow is rapidly becoming an 'AI-native company,' with engineers shipping 40% more code per engineer at the same or higher quality, and product and design teams prototyping faster. Employees are using AI to reinvent and streamline workflows, channeling productivity gains into building more and faster.	Q1 was another quarter of consistent execution and continued momentum across our business. We once again outperformed the broader housing market, which stayed essentially flat. Our revenue has consistently outperformed industry total transaction value for more than 3 years now. Zillow Home Loans is now a top 25 purchase lender. Rentals continues to be one of our most exciting growth stories. Our engineers are shipping 40% more code per engineer at the same or higher quality. We are on track toward achieving our full year goals, and we are in control of our own path.	broader housing market, which stayed essentially flat amid worse-than-expected weather and interest rate volatility. Market-based pricing revenue continues to decline as we transition the majority of our agent-related activity to our preferred partners. legal expenses will be an approximately 200 basis point headwind to EBITDA margins in the first half of 2026. MVP lags a bit because of that agent sentiment.	Zillow is continuing to invest in loan officers for Zillow Home Loans during the first half of 2026, having grown loan officer count by about 40% in the previous year while improving productivity by 11%. The company is also investing in rentals during the first half of 2026, with a slower pace expected in the second half. Internally, Zillow is becoming an AI-native company, with engineers shipping 40% more code per engineer at the same or higher quality, and product and design teams prototyping faster. Employees are using AI to reinvent and streamline their workflows, channeling productivity gains directly back into building more and faster.

NotesTable

Date	Comment	Comment Type	Comment Sentiment	Link	Price Reaction
2026-05-06	Zillow's Q1 2026 revenue rose 18% and EBITDA beat expectations, driven by strong rentals and mortgages, and AI integration. Despite positive results and reaffirmed full-year guidance, the stock fell 4.85% (t+2 days). This market skepticism likely stemmed from Q2 EBITDA guidance missing analyst expectations due to higher legal and advertising costs, overshadowing the strong Q1 performance.	Earnings Transcript	Negative		-4.85% (vs SPY: -6.76%)