Zillow Group, Inc. Class C
Zillow Group, Inc. (Z) is a digital real estate company providing an AI-native operating system for buying, selling, and renting homes across the U.S. Its Q2 20
Zillow Group, Inc. (Z) is a digital real estate company providing an AI-native operating system for buying, selling, and renting homes across the U.S. Its Q2 2026 revenue was primarily from For Sale services (~71%), including residential agent advertising and mortgages, and Rentals (~27%). Zillow serves consumers throughout their housing journey and provides software and marketing tools to real estate professionals and property managers. Zillow Home Loans is a top-25 purchase lender.
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Source Zillow is an 'AI native' company with a large workforce, including engineers, sales, and loan officers. The company recently eliminated approximately 7% of employees for cost savings.
Confidence: high
Not in registry
Source Zillow's technology infrastructure relies on various vendors for processing and storing sensitive data, hosting systems, and providing Software-as-a-Service (SaaS) offerings.
Confidence: high
Not in registry
Source Zillow incurs significant advertising spend to attract users and professionals. Q1 2026 earnings context mentioned $16 million in increased advertising spend in Q2.
Confidence: high
Not in registry
Source Zillow aggregates residential supply by ingesting data from Multiple Listing Services (MLSs), brokers, property managers, and new construction listings across the United States.
Confidence: high
Not in registry
Source Zillow reported $10 million in Sitzer litigation expenses in Q2 2026.
Confidence: high
Not in registry
Source Zillow utilizes and offers various software tools, such as Follow-up Boss, which had 138,000 monthly-active users in Q2.
Confidence: medium
Not in registry
Source Zillow Home Loans is a top-25 purchase lender, indicating significant transaction volume that would incur processing fees.
Confidence: medium
Not in registry
Source Essential for the operation of a digital real estate platform.
Confidence: medium
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Cadence weekly
Why it matters Primary determinant of housing affordability and buyer demand, directly influencing transaction volumes and Zillow Home Loans' business.
Signal to watch Declining rates are bullish; rising rates are bearish.
Confidence: low
Not in registry
Metric/field Existing Home Sales (Seasonally Adjusted Annual Rate)
Cadence monthly
Why it matters Directly measures transaction volume in the residential real estate market, a core driver of Zillow's For Sale revenue.
Signal to watch Accelerating growth is bullish; declining trends are bearish.
Confidence: high
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Metric/field Housing Starts: Total New Privately Owned Housing Units Started
Cadence monthly
Why it matters Indicates future housing supply and construction activity, impacting Zillow's new construction listings and overall market inventory.
Signal to watch Increasing starts are bullish; decreasing starts are bearish.
Confidence: high
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Metric/field CPIAUCSL (Consumer Price Index for All Urban Consumers: All Items in U.S. City Average)
Cadence monthly
Why it matters Measures inflation, which impacts housing affordability, consumer purchasing power, and the Federal Reserve's monetary policy decisions.
Signal to watch Declining or stable inflation is bullish; accelerating inflation is bearish.
Confidence: high
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Metric/field UNRATE (Unemployment Rate)
Cadence monthly
Why it matters A key indicator of overall economic health and consumer confidence, influencing job security and willingness to make large purchases like homes.
Signal to watch Decreasing unemployment is bullish; increasing unemployment is bearish.
Confidence: high
Not in registry
Metric/field relative search volume for 'Zillow Home Loans'
Cadence weekly
Why it matters Indicates consumer interest and demand for Zillow's mortgage offerings, a rapidly growing segment for the company.
Signal to watch Increasing search volume is bullish; decreasing is bearish.
Confidence: high
Not in registry
Metric/field number of new posts in r/realtors
Cadence daily
Why it matters Reflects real estate agent sentiment, discussion topics, and engagement with industry changes (e.g., NAR settlement, Zillow's agent tools like Follow-up Boss and Zillow Pro).
Signal to watch Increasing positive sentiment and discussion around Zillow's tools is bullish; negative sentiment or lack of engagement is bearish.
Confidence: medium
Not in registry
Metric/field 8-K filings for Zillow Group (CIK: 0001332521)
Cadence event_driven
Why it matters Provides timely updates on significant company events, legal developments (e.g., Sitzer litigation), and strategic changes.
Signal to watch Favorable announcements (e.g., new partnerships, positive legal outcomes) are bullish; adverse events (e.g., negative legal rulings, significant operational disruptions) are bearish.
Confidence: high
Not in registry
Metric/field Zillow app rank in 'Real Estate' category (US)
Cadence daily
Why it matters Indicates consumer engagement and Zillow's brand visibility and leadership in mobile real estate, where it has more than 2x daily active app users than its closest competitor.
Signal to watch Improving or stable high rankings are bullish; declining rankings are bearish.
Confidence: medium
Not in registry
Metric/field Total number of active for-sale and rental listings (US)
Cadence monthly
Why it matters Directly reflects the inventory available on Zillow's platform, which is a key driver for audience engagement and revenue in both For Sale and Rentals segments.
Signal to watch Increasing listing counts are bullish; decreasing counts are bearish.
Confidence: medium
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Metric/field Zillow Group (Z) Total Unique Visitors (Web & App, US)
Cadence monthly
Why it matters Measures Zillow's overall audience reach and engagement, a critical factor given 80% of its traffic comes directly to its apps and sites.
Signal to watch Increasing unique visitors is bullish; decreasing is bearish.
Confidence: high
Not in registry
Metric/field Zillow App Downloads (US) and Daily Active Users (DAU)
Cadence daily
Why it matters Provides granular insights into Zillow's mobile engagement and user acquisition, which is a core part of its 'housing super app' strategy.
Signal to watch Increasing downloads and DAU are bullish; decreasing are bearish.
Confidence: high
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Metric/field Agent Headcount (combined for Zillow Preferred Agents and Follow-up Boss users)
Cadence monthly
Why it matters Tracks the growth and retention of Zillow's professional network, crucial for the success of its preferred monetization model and agent software tools.
Signal to watch Increasing agent headcount is bullish; decreasing is bearish.
Confidence: medium
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Metric/field Residential Transaction Volume and Average Home Price (by key Zillow markets)
Cadence monthly
Why it matters Provides detailed, localized data on housing market activity and values, directly impacting Zillow's revenue potential and market outperformance claims.
Signal to watch Increasing transaction volume and home prices are bullish; decreasing are bearish.
Confidence: high
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Metric/field Zillow Group (Z) Digital Advertising Spend (US) and Share of Voice (Real Estate Category)
Cadence monthly
Why it matters Monitors Zillow's marketing investment and competitive positioning, especially relevant given its focus on direct traffic and outperforming competitors.
Signal to watch Efficient ad spend with stable or increasing share of voice is bullish; inefficient spend or declining share of voice is bearish.
Confidence: medium
Zillow Group (Z) remains a compelling long-term investment, dominating the U.S. residential real estate market through its integrated 'housing super app' strate
Zillow Group (Z) remains a compelling long-term investment, dominating the U.S. residential real estate market through its integrated 'housing super app' strategy. Leveraging AI across its platform, Zillow consistently outperforms a challenging market, driven by accelerated adoption of its high-monetization preferred model, robust growth in rentals, and rapidly scaling, profitable mortgages. This solidifies its position as a leading data and transaction platform. (Updated: 2026-10-22)
Zillow's integrated 'housing super app' strategy is driving consistent revenue growth (18% YoY in Q2 2026) and market outperformance. The accelerated transition to the preferred monetization model, targeting over 75% of connections by year-end 2026, is yielding significantly higher revenue per connection (35% expected in 2026), enhancing consumer and professional engagement.
Zillow is experiencing robust growth in its Rentals and Mortgages segments. Q2 Rentals revenue grew 31% year-over-year, with multifamily properties reaching an all-time high of 79,000, demonstrating strong ROI for property managers and a clear path to $1 billion+ annual revenue. Mortgages revenue accelerated 75% year-over-year, with Zillow Home Loans now a top-25 purchase lender with positive unit economics.
Zillow's strategic leverage of AI across its platform is a significant advantage. AI Mode, now live for 20% of signed-in users, drives substantially deeper engagement, with users spending 3x longer on Zillow and contacting agents at nearly 3x the rate. AI-powered tools like Smart messages and Likely to List enhance agent productivity, while internal AI adoption enables engineers to ship 30-40% more code, reinforcing Zillow's 'AI-native' competitive edge.
The broader housing market faces persistent macroeconomic headwinds, with rising mortgage rates and affordability challenges impacting buyer demand. Zillow revised its outlook for the purchase mortgage originations market to be down low to mid-single digits for H2 2026. While Zillow has outperformed, a prolonged stagnant environment could limit overall growth potential and negatively affect residential revenue.
Zillow is incurring significant near-term restructuring costs, with $36 million recorded in Q2 2026 and an additional $23 million to $28 million expected in Q3 2026, impacting short-term profitability. While these actions aim for long-term efficiency and $75 million in annualized EBITDA savings, they create immediate headwinds to EBITDA margins.
The accelerated transition to the preferred monetization model introduces near-term revenue complexities. This includes a significant shift of revenue recognition from the residential to the mortgages category, a 6-12 month lag in Zillow Home Loans revenue recognition, and different seasonal patterns for preferred revenue. These factors are expected to create headwinds to for-sale revenue growth through Q4 2026 and into H1 2027.
| Key Factor | Why It Matters | What To Watch | What It Signals | Where/How To Track | Free Alt Data | Paid Alt Data |
|---|---|---|---|---|---|---|
| Acceleration of Preferred Monetization Model | The accelerated transition to the preferred model is central to Zillow's strategy, driving higher revenue per connection and enhancing consumer and professional engagement, which is crucial for long-term growth and profitability. | Monitor the percentage of connections in the preferred model, targeting over 75% by the end of 2026 (up from 61% in Q2 2026). Also, track the reported revenue per connection uplift, with a target of 35% higher in 2026 compared to the legacy model. | Bullish if the percentage of connections in preferred continues to increase steadily towards or beyond 75% by year-end 2026, and if revenue per connection uplift meets or exceeds the 35% target. Bearish if the transition slows or revenue per connection uplift falls short. | Company earnings calls and shareholder letters (next expected Q3 2026 earnings in early November 2026). | [] | [] |
| Rentals Multifamily Properties and Revenue Growth | The Rentals segment is a key growth engine for Zillow, with strong performance demonstrating success in expanding its two-sided marketplace and capturing wallet share from property managers, with a clear path to $1 billion+ annual revenue. | Monitor the total number of multifamily properties on the platform (Q2 2026 was 79,000, up 23% year-over-year) and year-over-year rentals revenue growth (Q2 2026 was 31%, multifamily revenue up 42%). Watch for Q3 2026 rentals revenue growth in the high 20% range year-over-year. | Bullish if multifamily properties continue to grow significantly above Q2's 23% year-over-year rate and rentals revenue growth remains strong (e.g., high 20% range as guided for Q3). Bearish if growth decelerates below expectations. | Company earnings calls and shareholder letters (next expected Q3 2026 earnings in early November 2026). | [] | [] |
| Zillow Home Loans Purchase Loan Origination Volume | The growth in Zillow Home Loans' origination volume is a direct indicator of the success of Zillow's integrated transaction strategy and its ability to capture a larger share of the mortgage market, contributing significantly to overall For Sale revenue. | Track quarterly purchase loan origination volume (Q2 2026 volume grew 95% year-over-year) and Zillow Home Loans' ranking among purchase lenders (currently top-25). Watch for Q3 2026 mortgages revenue growth, guided to be over 50% year-over-year. | Bullish if purchase loan origination volume continues to grow at or above Q2's 95% year-over-year rate, if Zillow Home Loans improves its ranking among purchase lenders, and if Q3 mortgages revenue growth meets or exceeds the over 50% target. Bearish if growth decelerates significantly or if Q4 conversion rates are materially impacted by higher mortgage rates. | Company earnings calls and shareholder letters (next expected Q3 2026 earnings in early November 2026). | 1. Freddie Mac — Primary Mortgage Market SurveyMatchedfred · access=api · map_only Metric/field FRED/MORTGAGE30US Cadence monthly Why it matters Primary determinant of housing affordability and buyer demand, influencing transaction volumes for brokerages and Zillow Home Loans. Declining rates are bullish; rising rates are bearish for the theme. Signal to watch Declining rates are bullish; rising rates are bearish. | [] |
| Restructuring Costs and Annualized EBITDA Savings | The restructuring aims to drive operational efficiency and achieve a more sustainable cost structure, which is critical for expanding EBITDA margins and achieving full-year profitability targets, despite near-term costs. | Monitor reported restructuring costs in Q3 2026 (expected $23 million to $28 million). Track progress towards $75 million of annualized EBITDA cost savings from Q2 run rates and an aggregate of $140 million including previously planned headcount growth reductions. | Bullish if Q3 restructuring costs are within or below the guided range, and if the company reaffirms or provides updates indicating it is on track to achieve the annualized EBITDA cost savings targets. Bearish if restructuring costs exceed expectations or if the company signals delays or reductions in expected savings. | Company earnings calls and shareholder letters (next expected Q3 2026 earnings in early November 2026). | [] | 1. Revelio Labs — Workforce IntelligenceMatched (medium)revelio_labs_employee_workforce_profiles · access=file · map_only Metric/field Employee Headcount (Zillow Group) Cadence monthly Why it matters Provides an independent measure of workforce changes, reflecting the impact of restructuring and headcount reductions on Zillow's operational efficiency. Signal to watch Decreasing headcount in line with announced restructuring plans is bullish for cost savings. |
| AI Mode User Engagement and Rollout | AI Mode is a critical component of Zillow's 'AI-native' strategy, driving deeper consumer engagement and providing proprietary data advantages that enhance the overall platform experience and differentiate Zillow from competitors. | Monitor the percentage of signed-in users with AI Mode access (currently 20%). Track qualitative and quantitative metrics on user engagement, such as time spent on Zillow, homes viewed, searches run, and agent contact rates (currently 3x higher for AI Mode users). | Bullish if Zillow announces significant expansion of AI Mode access beyond 20% and reports continued strong positive early signals on user engagement (e.g., 3x engagement rates sustained or improved). Bearish if rollout slows or engagement metrics decline. | Company earnings calls and shareholder letters (next expected Q3 2026 earnings in early November 2026). | 1. Google Trends — Web Search InterestNot in registry Metric/field relative search volume for 'Zillow AI Mode' (US) Cadence weekly Why it matters Indicates growing consumer awareness and interest in Zillow's AI-powered features, serving as a proxy for early adoption and engagement. Signal to watch Increasing search volume is bullish. | 1. Sensor Tower — App Usage DataNot in registry Metric/field Daily Active Users (DAU) and Session Duration for Zillow App (US) Cadence daily/weekly Why it matters Directly measures user engagement and time spent within the Zillow app, which would reflect the impact of AI Mode adoption on overall app usage. Signal to watch Sustained or increasing DAU and session duration is bullish. |
This metric directly reflects the progress of Zillow's accelerated preferred monetization model, which drives higher revenue per connection and better customer
| Key reported metrics | ||
|---|---|---|
| Metric | Last period | Why it matters |
| Percentage of Connections in Preferred | 61% | This metric directly reflects the progress of Zillow's accelerated preferred monetization model, which drives higher revenue per connection and better customer outcomes. Reaching the >75% target by year-end is critical for future monetization. |
| Rentals Revenue | 31% | Rentals Revenue is a key growth engine for Zillow, with a clear path to $1 billion in annual revenue. Strong performance here demonstrates success in expanding its two-sided marketplace and capturing wallet share from property managers. |
| Mortgages Revenue | 75% | Mortgages Revenue is crucial as Zillow accelerates its integrated transaction strategy, with Zillow Home Loans becoming a top lender. Its rapid growth indicates successful capture of the transaction funnel and increasing adoption of the preferred model. |
| 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. |
Given the revised, more challenging outlook for the purchase mortgage market and the significant revenue recognition timing and seasonality headwinds from the a
Given the revised, more challenging outlook for the purchase mortgage market and the significant revenue recognition timing and seasonality headwinds from the accelerated preferred model, can Zillow still achieve its Q3 2026 revenue and EBITDA guidance and remain on track for its full-year 2026 targets?
As Zillow accelerates its transition to the preferred monetization model (targeting >75% of connections by year-end 2026), will the expected 35% higher revenue per connection and continued strong growth in Rentals and Mortgages outweigh the near-term revenue recognition and seasonality headwinds, demonstrating successful execution of its integrated strategy?
Will the strong early engagement and adoption metrics for Zillow's AI-powered features (e.g., AI Mode, Smart messages, Likely to List) and integrated products (e.g., Zillow Pro, Showcase) continue to scale and translate into tangible improvements in conversion rates and overall monetization, validating the 'AI-native' and 'housing super app' strategy?
| 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 |
|---|---|---|---|---|
| 3 Things Management Is Most Focused On1. Accelerating the integrated transaction strategy and preferred monetization model: Management is focused on moving faster to transition more connections to the preferred model, aiming for over 75% by the end of 2026, as it drives higher revenue per connection and better customer outcomes. 2. Leveraging AI to enhance consumer and agent experiences: Zillow is investing in AI Mode for consumers, which shows significantly higher engagement, and AI-powered tools like Smart messages and Likely to List for agents within Follow-up Boss, to deepen engagement and drive transactions. 3. Driving operational efficiency and disciplined cost structure: Management announced a restructuring to eliminate roles, aiming for $75 million in annualized EBITDA cost savings, to ensure the company can move faster, operate more efficiently, and achieve a more sustainable cost structure without impacting growth bets. | Call Takeaway & ToneThe overall takeaway of the call is that Zillow Group delivered strong Q2 2026 results, outperforming a flat housing market through consistent execution of its integrated 'housing super app' strategy. Management is confidently accelerating the transition to its preferred monetization model, leveraging AI across its platform, and implementing disciplined cost management to drive future growth and profitability. The tone was confident and positive, emphasizing the durability of their business model, significant growth opportunities in rentals and mortgages, and strategic advantages gained through AI integration, despite macroeconomic headwinds and ongoing legal considerations. | Prior Quarter'S Y/Y Growth By SegmentIn Q1 2026, 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. | 3 Things Analysts Most Pressed On (And Mgmt Responses)1. Leadership changes (Jeremy Hofmann as COO and CFO) and broader strategy implications: Management responded that there is 'no change in strategy' and it's about strengthening the leadership team for the road ahead, leveraging Jeremy Hofmann's deep involvement in strategy and operations over the past nine years to move with greater coordination and speed. 2. Elimination of roles/restructuring and its timing/impact on growth bets: Management stated that they 'do not expect any impact to our growth bets' and the actions were taken to find opportunities to move faster and for continued cost discipline, aiming to get leaner and operate with more efficiency. 3. Impact of Google's local service advertising product and ongoing legal cases: Management responded that they are 'not seeing any impact' from Google due to Zillow's direct audience (80% of traffic) and differentiated experience, and that legal cases are 'not impacting our business either' because they are focused on delivering products and services consumers and professionals want. | Revenue SegmentsTotal revenue grew 18% year over year to $772 million. For Sale revenue increased 14% year over year to $549 million. Within For Sale, residential revenue grew 7% year over year to $465 million. Mortgages revenue accelerated to 75% year over year growth to $84 million. Rentals revenue was up 31% year over year to $209 million, driven by 42% growth in multifamily revenue. |
| 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 |
|---|---|---|---|---|
| 3 Things Management Is Most Focused On1. **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. | Call Takeaway & ToneThe 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. | Prior Quarter'S Y/Y Growth By SegmentIn 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. | 3 Things Analysts Most Pressed On (And Mgmt Responses)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. | Revenue SegmentsTotal 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. |
| 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 |
|---|---|---|---|---|---|---|---|---|
| About Expanding Eligible MarketZillow is the only large company in its category to consistently expand its reach with the real estate audience over the past 7 quarters. Zillow's AI Mode is now live for about 20% of signed-in users, and a new personalized moving hub was launched earlier this summer. Zillow Home Loans has become a top-25 purchase lender in the country. The company is expanding its product suite with Zillow Preview, which now has over 100 brokerage partnerships and will be syndicated to realtor.com. Zillow Showcase is now on about 5% of all new listings. Follow-up Boss, a CRM, saw 138,000 monthly-active users in Q2, up 21% year-over-year. Zillow Pro, a new premium membership, was launched nationwide last month. In rentals, Zillow reached an all-time high of 79,000 multi-family properties and 2.8 million average monthly active rental listings in Q2. Zillow Rentals became the only real estate platform in Google's Gemini Connected Apps ecosystem. The company is accelerating its transition to the preferred monetization model, aiming for more than 75% of connections in preferred by the end of 2026, up from 44% at the end of 2025 and 21% at the end of 2024. | About CompetitionZillow maintains a strong competitive position with more than 2x as many daily active app users as its next closest competitor, and 80% of its traffic comes directly to its apps and sites. Zillow is the only large company in the category to consistently expand its reach with the real estate audience over the past 7 quarters. The company's proprietary data advantage from repeated engagement is difficult to replicate and differentiates it from horizontal LLMs and other real estate companies. Zillow Preview listings will be syndicated to realtor.com, the second most visited real estate platform. Property managers report that Zillow delivers the highest return on marketing investment in the rentals category, outperforming other rental platforms, search, and social media. Zillow has not seen any impact from Google's expanded local service advertising product in real estate, attributing this to its direct audience and differentiated experience. | About The Broader IndustryThe broader housing market saw a decline overall in Q2 amid rising mortgage rates, with the purchase mortgage market being flat compared to a year ago. Zillow consistently outperformed industry total transaction volume for three consecutive years, even as industry growth remained essentially flat. The company's Q2 for sale revenue growth of 14% year-over-year outperformed the estimated flat industry purchase mortgage origination volume and the 6% real estate total transaction value growth, despite a 600-basis-point headwind from the purchase mortgage industry. Affordability challenges continue to disproportionately impact mortgage buyers compared to cash buyers. Zillow now anticipates the purchase mortgage originations market will be down low to mid-single digits for the second half of 2026, a revision from its prior expectation of flat, due to continued pressure on affordability and rising interest rates. | Where Things Are HeadedZillow is on track to achieve its full-year goals for 2026, aiming for mid-teens total revenue growth and continued EBITDA margin expansion, with a range of $2.92 billion to $2.96 billion in total revenue and $730 million to $760 million in EBITDA. The company expects to launch instant floor plans later this year, aiming to make rich media the future standard for listings. Zillow Home Loans economics are expected to generate profits similar to preferred agent partner referral fees. The company expects that nearly all connections will be serviced by preferred partners over time, with a target of over 75% by year-end 2026. Zillow aims to generate $75 million of annualized EBITDA cost savings from Q2 run rates, and an aggregate of $140 million when including reductions from previously planned headcount growth. The full-year outlook implies year-over-year EBITDA cost growth in Q4 to be in the mid-single digits, setting up for margin expansion in Q4 and 2027. Zillow has designs to be one of the biggest purchase lenders in the country. | Updates On ThemeResidential | Broader Themes EmergingA broader theme emerging is the rapid adoption and integration of AI to transform internal company operations and enhance productivity, with Zillow's engineers shipping 30% to 40% more code per engineer at the same or higher quality, indicating increased efficiency and velocity in product development. | Bullish-Leaning Quotes (Short)Q2 was another quarter of strong results that demonstrate our consistent execution and the durability of our strategy. Zillow is the only large company in the category to consistently expand its reach with the real estate audience over the past 7 quarters. Zillow Home Loans is now a top-25 purchase lender in the country. Rentals is 1 of our most compelling growth opportunities with a clear path to a $1 billion and beyond in annual rentals revenue. We are on track to hit our 2026 and mid cycle targets, underpinned by a strong growth strategy and a disciplined cost structure that allows us to grow profits faster than revenue. | Bearish-Leaning Quotes (Short)The broader housing market, which saw a decline overall amid the rise in mortgage rates. Affordability challenges continue to have a larger impact on mortgage buyers than cash buyers. We are assuming the purchase mortgage originations market will be down low to mid single digits. We see continued pressure on affordability having a larger impact on mortgage buyers than the overall market, as interest rates have continued to rise since their lows in early Mark. We recorded $36 million of restructuring costs in Q2, and we expect to record an additional $23 million to $28 million of restructuring costs in Q3 associated with these actions. | HiringZillow restructured parts of its organization and eliminated approximately 7% of employees to move faster, operate more efficiently, and achieve a more sustainable cost structure. This action is expected to generate $75 million of annualized EBITDA cost savings from Q2 run rates, and an aggregate of $140 million when including reductions from previously planned headcount growth. The company recorded $36 million of restructuring costs in Q2 and expects an additional $23 million to $28 million in Q3 associated with these actions. Jeremy Hofmann was appointed to an expanded role as Chief Operating Officer and Chief Financial Officer, and Sandy Knight joined as Chief Legal and Policy Officer. |
| 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 |
|---|---|---|---|---|---|---|---|---|
| About Expanding Eligible MarketZillow 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. | About CompetitionZillow 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. | About The Broader IndustryThe 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. | Where Things Are HeadedZillow 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. | Updates On ThemeZillow's | Broader Themes EmergingA 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. | Bullish-Leaning Quotes (Short)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. | Bearish-Leaning Quotes (Short)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. | HiringZillow 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. |
| Date | Comment | Comment Type | Comment Sentiment | Link | Price Reaction |
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| 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%) | |
| 2026-08-05 | Zillow reported strong Q2 2026 results with 18% revenue growth, driven by accelerated preferred model adoption and robust Rentals/Mortgages. AI integration is deepening engagement. Despite reaffirmed full-year guidance, the stock fell 7.86% (underperforming SPY). This negative market reaction likely stemmed from a revised macro outlook, near-term revenue recognition headwinds from the preferred transition, and restructuring costs, contradicting the company's positive messaging. | Earnings Transcript | Mixed | -7.86% (vs SPY: -8.28%) |
| Catalyst ID | Estimated Timing | Estimated Date Start | Estimated Date End | Catalyst | Why It Matters | Ticker Or Theme Specific | Transcript Date | Source Type |
|---|---|---|---|---|---|---|---|---|
| Z_fbe2150e | in Q1 2027 | 2027-01-01 | 2027-03-31 | The seasonality trend impacting preferred revenue is expected to reverse in Q1 2027. | This indicates a potential alleviation of the Q4 2026 headwinds, suggesting improved revenue trends for the preferred model and overall for-sale revenue in early 2027. | Ticker | 2026-08-05 | earnings_transcript |
| Z_968413c8 | in Q1 2027 | 2027-01-01 | 2027-03-31 | Reversal of the seasonal decline in preferred revenue. | This will turn a Q4 2026 headwind into a positive impact on year-over-year for-sale revenue growth in Q1 2027, improving reported financial performance. | Ticker | 2026-08-05 | earnings_transcript |
| Z_ce56d761 | In Q4 | 2026-10-01 | 2026-12-31 | Zillow anticipates a 400 to 600-basis-point headwind to for-sale revenue growth in Q4 2026 due to the combination of seasonality and the timing of revenue recognition for Zillow Home Loans. | This represents a significant near-term financial headwind to for-sale revenue, impacting short-term profitability as the company accelerates its transition to the preferred monetization model. | Ticker | 2026-08-05 | earnings_transcript |
| Z_f472416b | Later this year | 2026-10-01 | 2026-12-31 | Zillow expects to launch instant floor plans, allowing photographers, sellers, and agents to capture a 3D floor plan directly from their smartphone. | This innovation removes friction and lowers the cost of rich media, aiming to expand the use of 3D floor plans and make them a future standard on every listing, thereby driving a better buyer experience and engagement. | Ticker | 2026-08-05 | earnings_transcript |
Prior earnings scorecards
