Zillow Group Reports Third-Quarter 2026 Financial Results

Nine-month revenue rose 14% to $2,204 million, while the company recorded a $116 million net loss.

Rhea-AI Summary

Zillow Group (NASDAQ: Z and ZG) reported third-quarter 2026 revenue of $724 million, up 7% from a year earlier. Residential revenue fell 4% to $419 million, while Mortgages revenue rose 32% to $70 million and Rentals revenue increased 26% to $220 million. Total For Sale revenue was flat at $489 million.

The quarter produced a $158 million net loss, versus $10 million net income a year earlier. Diluted earnings moved from $0.04 to a $0.70 loss per share. Adjusted EBITDA, a non-GAAP earnings measure, reached $182 million versus $165 million. Operating cash flow increased to $162 million from $105 million, but adjusted free cash flow fell to $46 million from $107 million. Cash and investments ended the quarter at $707 million. Average monthly unique users declined 3% to 215 million, and visits fell 5% to 2.3 billion.

22 points · 0 major

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Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

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1 major · 13 points

How the balance works

Positive

• Moderate pointQ3 revenue increased 7% year over year to $724 million.
• Moderate pointQ3 purchase loan originations increased 55% year over year to $2.0 billion.
• Moderate pointQ3 Rentals revenue increased 26% year over year to $220 million.
• Moderate pointQ3 gross profit increased to $516 million from $491 million a year earlier.
• Moderate pointQ3 operating cash flow increased to $162 million from $105 million a year earlier.
• Moderate pointQ3 adjusted EBITDA, a non-GAAP earnings measure, rose to $182 million from $165 million, within outlook.
• Moderate pointQ3 adjusted net income rose to $124 million from $113 million; adjusted diluted EPS increased to $0.55 from $0.44.
• Moderate pointNine-month Residential revenue increased 4% year over year to $1,334 million.

14 minor points

• Minor pointQ3 Mortgages revenue rose 32% year over year to $70 million.
• Minor pointQ3 multifamily revenue grew 35% year over year.
• Minor pointQ3 Other revenue rose 7% year over year to $15 million.
• Minor pointQ3 adjusted EBITDA margin increased to 25% from 24% a year earlier.
• Minor pointNine-month revenue increased 14% year over year to $2,204 million.
• Minor pointNine-month Mortgages revenue increased 54% year over year to $218 million.
• Minor pointNine-month Rentals revenue increased 32% year over year to $612 million.
• Minor pointNine-month Other revenue increased 3% year over year to $40 million.
• Minor pointNine-month gross profit increased to $1,597 million from $1,439 million a year earlier.
• Minor pointNine-month operating cash flow increased to $373 million from $296 million a year earlier.
• Minor pointNine-month adjusted EBITDA increased to $556 million from $473 million a year earlier.
• Minor pointNine-month adjusted net income rose to $387 million from $319 million; adjusted diluted EPS increased to $1.68 from $1.25.
• Minor pointNine-month adjusted net income margin increased to 18% from 17% a year earlier.
• Minor pointShare-based compensation fell to $74 million from $99 million in Q3; nine-month expense fell to $230 million from $295 million.

Negative

• Major pointQ3 net loss was $158 million versus $10 million net income; diluted EPS fell to negative $0.70 from $0.04.
• Moderate pointQ3 Residential revenue declined 4% year over year to $419 million.
• Moderate pointQ3 gross margin declined to 71% from 73% a year earlier.
• Moderate pointQ3 adjusted free cash flow declined to $46 million from $107 million a year earlier.
• Moderate pointQ3 average monthly unique users declined 3% year over year to 215 million.
• Moderate pointQ3 visits declined 5% year over year to 2.3 billion.

7 minor points

• Minor pointQ3 net loss margin was 22%, versus a 1% net income margin a year earlier.
• Minor pointNine-month net loss was $116 million versus $20 million net income; diluted EPS fell to negative $0.51 from $0.08.
• Minor pointNine-month net loss margin was 5%, versus a 1% net income margin a year earlier.
• Minor pointNine-month gross margin declined to 72% from 75% a year earlier.
• Minor pointNine-month adjusted free cash flow declined to $269 million from $295 million a year earlier.
• Minor pointImpairment and restructuring costs rose to $32 million from $2 million in Q3; nine-month costs reached $68 million versus $2 million.
• Minor pointInterest expense rose to $6 million from $3 million in Q3; nine-month expense reached $16 million versus $13 million.

News Explained

The Q3 GAAP net loss includes the $165 million Zillow Offers securities class action settlement, net of expected insurance recoveries; adjusted net income was $124 million after excluding that settlement and other listed adjustments, and is a non-GAAP measure.

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Key Figures

Revenue: $724 million, up 7% year over year Net loss: $158 million Diluted net loss per share: $0.70, versus net income per share of $0.04 +5 more

Revenue

$724 million, up 7% year over year

Q3 2026

Net loss

$158 million

Q3 2026

Diluted net loss per share

$0.70, versus net income per share of $0.04

Q3 2026 versus Q3 2025

Adjusted EBITDA

$182 million

Q3 2026; within the company's outlook range

Adjusted net income

$124 million, versus $113 million

Q3 2026 versus Q3 2025

Diluted adjusted net income per share

$0.55, versus $0.44

Q3 2026 versus Q3 2025

Settlement excluded from adjusted measures

$165 million

ZO securities class action settlement, net of expected insurance recoveries

Cash and investments

$707 million

End of Q3 2026

Previous Earnings Reports

4 past events · Latest: Aug 05

Same Type 4 events

1. Aug 05

   Q2 earnings

   24h Move

   -7.4%

   Revenue grew 18% year over year and exceeded the high end of outlook; net loss was $4 million.

2. May 06

   Q1 earnings

   24h Move

   -1.9%

   Revenue rose 18% year over year, with net income of $46 million.

3. Feb 10

   Q4 earnings

   24h Move

   -16.5%

   Revenue increased 18% year over year to $654 million, with Q4 net income of $3 million.

4. Oct 30

   Q3 earnings

   24h Move

   +4.5%

   Revenue grew 16% year over year, and GAAP net income was $10 million.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gaap, non-gaap financial measures, master repurchase agreements, dilutive securities

4 terms

gaap financial

"non-GAAP financial measures; they are not calculated or presented in accordance with U.S. generally accepted accounting principles"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial measures financial

"Adjusted EBITDA are non-GAAP financial measures"

Non-GAAP financial measures are numbers companies use to show their financial performance that exclude certain expenses or income. They help investors see how the company might perform without one-time costs or other unusual items, giving a different perspective from official reports. However, since they can be adjusted, they don’t always tell the full story and should be looked at alongside standard financial figures.

master repurchase agreements financial

"Net borrowings (repayments) on master repurchase agreements"

A master repurchase agreement is a standard legal framework that governs a series of repurchase (repo) transactions between two parties: one party sells securities to the other with an agreement to buy them back later at a set price. The master agreement sets the common terms for all individual repo trades—how collateral and margins are handled, interest calculation, events of default, netting and close-out rules, rehypothecation rights, and dispute/jurisdiction provisions—while each separate repo is documented by a short confirmation that specifies the securities, amounts, rates and dates for that particular loan.

dilutive securities financial

"includes potentially dilutive securities that were excluded"

Securities that can increase a company’s outstanding share count if converted, exercised, or issued, such as stock options, warrants, convertible bonds, and convertible preferred shares. They matter to investors because they can dilute ownership percentage and reduce per-share measures like earnings per share, similar to slicing a pizza into more pieces so each slice represents a smaller share of the whole.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SEATTLE, Nov. 4, 2026 /PRNewswire/ -- Zillow Group, Inc. (NASDAQ: Z and ZG), which is transforming the way people buy, sell, rent and finance homes, today announced its consolidated financial results for the three months ended September 30, 2026.

Complete financial results for the third quarter and outlook for the fourth quarter and the full year of 2026 can be found in the shareholder letter on the Investor Relations section of Zillow Group's website at https://investors.zillowgroup.com/investors/financials/quarterly-results/default.aspx. 

"Q3 highlighted Zillow's durability. We grew revenue and outperformed the real estate category during one of the toughest housing markets in a generation," said Zillow Chief Executive Officer Jeremy Wacksman. "That performance is powered by our brand, audience engagement, value to partners and strong growth levers across our well-diversified business. We are building a faster, easier and more affordable moving experience for renters, buyers and sellers."

Recent highlights include:

• Q3 revenue was up 7% year over year to $724 million, despite a weaker-than-anticipated housing environment. The residential real estate industry grew by 1% in Q3.¹ The company estimates Q3 purchase mortgage origination volume for the industry was down 4% year over year.
  
  
  • For Sale revenue was flat year over year in Q3 at $489 million.
    
    
    • Residential revenue was down 4% year over year in Q3 to $419 million, due to higher-than-expected mortgage rates that pressured housing transaction volume.
      
      
    • Mortgages revenue increased 32% year over year to $70 million in Q3, primarily due to a 55% increase in purchase loan origination volume to $2.0 billion.
      
      
  • Rentals revenue increased 26% year over year in Q3 to $220 million, primarily driven by multifamily revenue growing 35% year over year.

• Net loss was $158 million in Q3, and net loss margin was 22%. Diluted net loss per share was $0.70, compared with diluted net income per share of $0.04 in Q3 2025.

• Adjusted net income was $124 million and Diluted adjusted net income per share was $0.55 compared with $0.44 in Q3 a year ago. Adjusted net income and Adjusted EBITDA exclude the impact of the $165 million Zillow Offers securities class action settlement ("ZO securities class action settlement"), net of expected insurance recoveries.²

• Adjusted EBITDA was $182 million in Q3, within our outlook range, and Adjusted EBITDA margin was 25%.²

• Cash and investments at the end of Q3 were $707 million.

• Traffic to Zillow Group's mobile apps and sites in Q3 was down 3% year over year to 215 million average monthly unique users.³ Visits during Q3 were down 5% year over year to 2.3 billion. According to Comscore, which tracks growth trends across the residential real estate category, Zillow attracted 77% of average monthly unique visitors in the real estate category in Q3.

1 National Association of Realtors® existing homes sold during Q3 2026 multiplied by the average selling price per home for Q3 2026 compared with the same period in 2025.
2 Adjusted net income, Diluted adjusted net income per share, Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures; they are not calculated or presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Please see the "Use of Non-GAAP Financial Measures" section below for more information about our presentation of these non-GAAP financial measures, including a reconciliation to the most directly comparable GAAP financial measures for the relevant period.
3 For information on the company's calculation of average monthly unique users and visits, please see Zillow Group's publicly available filings with the U.S. Securities and Exchange Commission.

Third-Quarter 2026 Financial Highlights

The following table sets forth Zillow Group's financial highlights for the periods presented (in millions, except percentages, unaudited):

	Three Months Ended September 30,				2025 to 2026 % Change		Nine Months Ended September 30,				2025 to 2026 % Change
	2026		2025				2026		2025
Revenue:
For Sale revenue:
Residential	$        419		$       435		(4) %		$      1,334		$     1,286		4 %
Mortgages	70		53		32 %		218		142		54 %
Total For Sale revenue	489		488		— %		1,552		1,428		9 %
Rentals	220		174		26 %		612		462		32 %
Other	15		14		7 %		40		39		3 %
Total revenue	$        724		$       676		7 %		$      2,204		$     1,929		14 %
Other Financial Data:
Gross profit	$        516		$       491				$      1,597		$     1,439
Net income (loss)	$       (158)		$         10				$        (116)		$          20
Diluted net income (loss) per share	$      (0.70)		$      0.04				$       (0.51)		$       0.08
Net cash provided by operating activities	$        162		$       105				$         373		$        296
Non-GAAP Financial Measures:(1)
Adjusted EBITDA	$        182		$       165				$         556		$        473
Adjusted net income	$        124		$       113				$         387		$        319
Diluted adjusted net income per share	$       0.55		$      0.44				$        1.68		$       1.25
Adjusted free cash flow	$          46		$       107				$         269		$        295
Percentage of Revenue:
Gross profit	71 %		73 %				72 %		75 %
Net income (loss)	(22) %		1 %				(5) %		1 %
Adjusted EBITDA(1)	25 %		24 %				25 %		25 %
Adjusted net income(1)	17 %		17 %				18 %		17 %
(1) These are non-GAAP financial measures. Please see the "Use of Non-GAAP Financial Measures" section below for more information about our presentation of these non-GAAP financial measures, including a reconciliation to the most directly comparable GAAP financial measures for the relevant period.

Conference Call and Webcast Information

Zillow Group will host a live webcast to discuss these results today at 2 p.m. Pacific time (5 p.m. Eastern time). Please register for the live event at https://zillow-q3-26-financial-results.open-exchange.net/. A shareholder letter and link to both the live webcast and recorded replay of the call may be accessed in the Quarterly Results section of Zillow Group's Investor Relations website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, without limitation, statements regarding the company's business strategies, the execution of those strategies, and their impact on consumers and real estate professionals. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "predict," "will," "projections," "continue," "estimate," "outlook," "guidance," "would," "could," "strive" or similar expressions constitute forward-looking statements. Forward-looking statements are made based on assumptions as of November 4, 2026, and although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee these results. Differences in Zillow Group's actual results from those described in these forward-looking statements may result from actions taken by Zillow Group as well as from risks and uncertainties beyond Zillow Group's control.

Factors that may contribute to such differences include, but are not limited to: the health and stability of the economy and United States residential real estate industry, including changes in inflationary conditions, interest rates, housing availability and affordability, labor shortages and supply chain issues; our ability to manage advertising, product inventory and pricing, and to maintain relationships with our real estate partners; our ability to establish or maintain relationships with listing and data providers, which affects traffic to our mobile apps and websites; or changes to our rights to use or timely access listing data, or to the quality or quantity of such listing data; our ability to comply with current and future rules and requirements promulgated by National Association of REALTORS®, multiple listing services, or other real estate industry groups or governing bodies, or decisions to repeal, amend or not enforce such rules and requirements; our ability to navigate industry changes, including as a result of past, pending or future lawsuits, settlements or government investigations, which may include lawsuits, settlements or investigations in which we are not a named party; uncertainties related to policy changes, enforcement priorities, or government shutdowns at the federal and state levels; our ability to continue to innovate and compete to attract customers and real estate partners; our ability to effectively invest resources to pursue new strategies, develop new products and services and expand existing products and services into new markets; our ability to operate and grow Zillow Home Loans' mortgage operations, including the ability to obtain or maintain sufficient financing to fund the origination of mortgages, meet customers' financing needs with product offerings, continue to grow origination operations and resell originated mortgages on the secondary market; the duration and impact of natural disasters, climate change, geopolitical events, and other catastrophic events (including public health crises) on our ability to operate, demand for our products or services, or general economic conditions; our public statements, disclosures, targets, and product features related to sustainability matters; our ability to maintain adequate security controls or technology systems, or those of third parties on which we rely, to protect data integrity and the information and privacy of our customers and other third parties; our ability to navigate any significant disruption in service on our mobile apps or websites or in our network; the impact of past, pending or future litigation and other disputes or enforcement actions, which may include lawsuits or investigations to which we are not a party; our ability to attract, engage, and retain a highly skilled workforce; mergers, acquisitions, investments, strategic partnerships, capital-raising activities, or other corporate transactions or commitments by us or our competitors; our ability to continue relying on third-party services to support critical functions of our business; our ability to protect and continue using our intellectual property and prevent others from copying, infringing upon, or developing similar intellectual property, including as a result of artificial intelligence; our ability to comply with domestic and international laws, regulations, rules, contractual obligations, policies and other obligations, or to obtain or maintain required licenses to support our business and operations; our ability to pay our debt or to raise additional capital or refinance our indebtedness on acceptable terms, or at all; actual or anticipated fluctuations in quarterly and annual results of operations and financial position; actual or perceived inaccuracies in the assumptions, estimates and internal or third-party data that we use to calculate business, performance and operating metrics; and volatility of our Class A common stock and Class C capital stock prices.

The foregoing list of risks and uncertainties is illustrative but not exhaustive. For more information about potential factors that could affect Zillow Group's business and financial results, please review the "Risk Factors" described in Zillow Group's publicly available filings with the United States Securities and Exchange Commission. Except as may be required by law, Zillow Group does not intend and undertakes no duty to update this information to reflect future events or circumstances.

About Zillow Group, Inc.

Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.

As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more.

Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.

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

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.

Please visit https://investors.zillowgroup.com, https://www.zillow.com/news, and https://www.linkedin.com/company/zillow, where Zillow Group discloses information about the company, its financial information, and its business that may be deemed material.

Logos for Zillow Group and some of its key brands are available at https://zillow.com/news/logos/. 

(ZFIN)

Use of Non-GAAP Financial Measures

To provide investors with additional information regarding our financial results and liquidity, this press release includes references to Adjusted EBITDA, Adjusted net income, Diluted adjusted net income per share, and Adjusted free cash flow, all of which are non-GAAP financial measures not calculated or presented in accordance with GAAP. We have provided a reconciliation below of each non-GAAP financial measure to the most directly comparable GAAP financial measure.

Adjusted EBITDA

Adjusted EBITDA is a key metric used by our management and Board of Directors to measure operating performance and trends and to prepare and approve our annual budget. In particular, we believe the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.

Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:

• Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;

• Adjusted EBITDA does not consider the potentially dilutive impact of share-based compensation;

• Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditures or contractual commitments;

• Adjusted EBITDA does not reflect impairment and restructuring costs;

• Adjusted EBITDA does not reflect interest expense or other income, net;

• Adjusted EBITDA does not reflect income taxes;

• Adjusted EBITDA does not reflect certain litigation costs directly associated with our antitrust litigation brought by the Federal Trade Commission ("FTC") and state attorneys general ("FTC Matter"), consisting of legal fees and related expenses that we have determined arose outside the ordinary course of our business and are nonrecurring, infrequent, or unusual. In making this determination, we considered the following factors: (1) the FTC Matter is the first legal proceeding of this nature brought against us, and we do not currently expect similar proceedings to recur; (2) the nature of the remedies sought by the FTC, including, among other things, a permanent injunction and a divestiture of assets or reconstruction of businesses, differs from the relief typically sought in our ordinary course litigation; and (3) the counterparties were a federal regulatory agency and state attorneys general, which are distinct from the type of counterparties involved in our ordinary course litigation;

• Adjusted EBITDA does not reflect the ZO securities class action settlement, net of expected insurance recoveries, which we do not believe is reflective of our ongoing operating performance. In making this determination, we considered together the size of the settlement charge and that the ZO securities class action settlement relates to our Zillow Offers operations, which were wound down; and

• Other companies, including companies in our own industry, may calculate Adjusted EBITDA differently from the way we do, limiting its usefulness as a comparative measure.

Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash-flow metrics, net income (loss), and our other GAAP results.

Adjusted Net Income and Diluted Adjusted Net Income Per Share

Our presentation of Adjusted net income and Diluted adjusted net income per share excludes the impact of share-based compensation, impairment and restructuring costs, FTC Matter litigation costs, the ZO securities class action settlement and income taxes. These measures are not key metrics used by our management or Board of Directors to measure operating performance or otherwise manage the business. However, we provide Adjusted net income and Diluted adjusted net income per share as supplemental information to investors, as we believe the exclusion of the results of share-based compensation, impairment and restructuring costs, FTC Matter litigation costs, the ZO securities class action settlement and income taxes facilitates investors' operating performance comparisons on a period-to-period basis. You should not consider Adjusted net income and Diluted adjusted net income per share in isolation or as substitutes for analysis of our results as reported under GAAP.

Adjusted Free Cash Flow

We define Adjusted free cash flow as net cash provided by operating activities adjusted for purchases of property and equipment, purchases of intangible assets, net borrowings (repayments) on master repurchase agreements, and the initial payment in connection with the Redfin rentals partnership. Borrowings (repayments) on master repurchase agreements are used to fund Zillow Home Loans mortgage loan originations, and we consider them part of our ongoing liquidity management. The initial payment in connection with the Redfin rentals partnership was considered a one-time and nonrecurring cash flow, and we exclude it from our calculation as we believe it impacts the ability to evaluate the liquidity of our business operations on a period-to-period basis.

We have included Adjusted free cash flow in this press release as it is a key metric used by our management to evaluate the effectiveness of our business strategies and execution and our ability to consistently generate cash from our core operations on a period-to-period basis.

Our use of Adjusted free cash flow has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Other companies, including companies in our own industry, may calculate Adjusted free cash flow differently from the way we do, limiting its usefulness as a comparative measure.

Reconciliations of Non-GAAP Financial Measures

The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for each of the periods presented (in millions, unaudited):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net income (loss)	$        (158)		$        10		$        (116)		$          20
Income taxes	3		2		6		2
Other income, net	(12)		(18)		(41)		(58)
Depreciation and amortization	64		67		194		199
Share-based compensation	74		99		230		295
Impairment and restructuring costs	32		2		68		2
FTC Matter litigation costs(1)	8		—		34		—
ZO securities class action settlement(2)	165		—		165		—
Interest expense	6		3		16		13
Adjusted EBITDA	$         182		$      165		$         556		$         473
(1) Beginning with the three months ended June 30, 2026, we calculate and report Adjusted EBITDA excluding litigation costs directly associated with the FTC Matter, which we have determined to be nonrecurring, infrequent, or unusual and outside the ordinary course of our business. We have revised Adjusted EBITDA for the three months ended March 31, 2026 to conform to the current  period presentation. As a result of this revision, Adjusted EBITDA for the three months ended March 31, 2026 increased by $16 million, from $182 million as previously reported to $198 million.
(2) Beginning with the three months ended September 30, 2026, we calculate and report Adjusted EBITDA excluding the ZO securities class action settlement, net of expected insurance recoveries, which we do not believe is reflective of our ongoing operating performance.

The following table presents a reconciliation of Adjusted net income to net income (loss) and associated per-share metrics for each of the periods presented (in millions, except per-share data, unaudited):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net income (loss)	$        (158)		$          10		$        (116)		$          20
Share-based compensation	74		99		230		295
Impairment and restructuring costs	32		2		68		2
FTC Matter litigation costs(1)	8		—		34		—
ZO securities class action settlement(2)	165		—		165		—
Income taxes	3		2		6		2
Adjusted net income	$         124		$         113		$         387		$         319
Diluted net income (loss) per share	$       (0.70)		$        0.04		$       (0.51)		$        0.08
Diluted adjusted net income per share	$        0.55		$        0.44		$        1.68		$        1.25
(1) Beginning with the three months ended June 30, 2026, we calculate and report Adjusted net income and Diluted adjusted net income per share excluding litigation costs directly associated with the FTC Matter, which we have determined to be nonrecurring, infrequent, or unusual and outside the ordinary course of our business. We have revised Adjusted net income and Diluted adjusted net income per share for the three months ended March 31, 2026 to conform to the current period presentation. As a result of this revision, Adjusted net income for the three months ended March 31, 2026 increased by $16 million, from $129 million as previously reported to $145 million, and Diluted adjusted net income per share increased by $0.07, from $0.53 as previously reported to $0.60.
(2) Beginning with the three months ended September 30, 2026, we calculate and report Adjusted net income and Diluted adjusted net income per share excluding the ZO securities class action settlement, net of expected insurance recoveries, which we do not believe is reflective of our ongoing operating performance.

For periods with GAAP net loss and Adjusted net income, the Adjusted diluted weighted-average shares outstanding used in the calculation of Diluted adjusted net income per share includes potentially dilutive securities that were excluded from the calculation of Diluted net loss per share, as the effect was anti-dilutive. The following table reconciles the denominators used in the Diluted net income (loss) per share and Diluted adjusted net income per share calculations (in thousands, unaudited):

	Three Months Ended      September 30,				Nine Months Ended       September 30,
	2026		2025		2026		2025
Diluted weighted-average shares outstanding	225,305		256,243		229,589		254,700
Effect of dilutive securities:
Option awards	33		—		602		—
Unvested restricted stock units	83		—		290		—
Adjusted diluted weighted-average shares outstanding	225,421		256,243		230,481		254,700

The following table presents a reconciliation of Adjusted free cash flow to net cash provided by operating activities for the periods presented (in millions, unaudited):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Net cash provided by operating activities	$         162		$         105		$         373		$         296
Purchases of property and equipment	(34)		(32)		(104)		(105)
Purchases of intangible assets	(9)		(8)		(28)		(123)
Net borrowings (repayments) on master repurchase agreements	(73)		42		28		127
Initial payment in connection with Redfin rentals partnership	—		—		—		100
Adjusted free cash flow	$          46		$         107		$         269		$         295

 

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SOURCE Zillow Group, Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Zillow Group revenue grow in the third quarter of 2026?

Zillow Group's third-quarter 2026 revenue increased 7% year over year to $724 million. Mortgages revenue rose 32% to $70 million and Rentals revenue increased 26% to $220 million, while Residential revenue declined 4% to $419 million.

Was Zillow Group profitable in the third quarter of 2026?

Zillow Group reported a $158 million net loss, or $0.70 per diluted share, compared with $10 million net income, or $0.04 per diluted share, a year earlier. On a non-GAAP basis, adjusted net income was $124 million and adjusted diluted earnings per share were $0.55.