Zillow Group Reports First-Quarter 2026 Financial Results
Rhea-AI Summary
Zillow Group (NASDAQ: Z) reported Q1 2026 revenue of $708M, up 18% year‑over‑year, with For Sale revenue of $514M, Rentals $183M and Mortgages $64M. Net income was $46M (6% margin) and Adjusted EBITDA was $182M (26% margin). Cash and investments totaled $788M after $626M of share repurchases.
Traffic averaged 220M monthly unique users and visits were 2.3B in Q1. A webcast is scheduled today at 2:00 PM PT.
AI-generated analysis. Not financial advice.
Positive
- Revenue +18% YoY to $708M
- Mortgages revenue +56% YoY to $64M (purchase originations +96% to $1.5B)
- Adjusted EBITDA $182M with 26% margin
- Net income improved to $46M; diluted EPS $0.19
- Returned capital: $626M share repurchases in Q1
Negative
- Cash and investments down to $788M from $1.3B year-end 2025
- Traffic -3% YoY to 220M average monthly unique users
- Gross profit margin declined to 73% from 77%
News Market Reaction – ZG
On the day this news was published, ZG declined 1.76%, reflecting a mild negative market reaction. Argus tracked a trough of -11.7% from its starting point during tracking. Our momentum scanner triggered 9 alerts that day, indicating moderate trading interest and price volatility. This price movement removed approximately $184M from the company's valuation, bringing the market cap to $10.27B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Momentum data shows the sector moving higher, with peers like SNAP up about 0.33% and Z up about 5.39%. This suggests Zillow’s earnings landed against a generally supportive backdrop for internet content and information names.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 10 | Q4/FY25 earnings | Positive | -17.1% | Q4 and FY25 revenue up double digits with positive GAAP net income and strong EBITDA. |
| Oct 30 | Q3 2025 earnings | Positive | +4.0% | Q3 revenue up 16% YoY with profitable GAAP results and solid segment growth. |
| Aug 06 | Q2 2025 earnings | Positive | -0.5% | Q2 revenue beat guidance with positive net income and strong Adjusted EBITDA margin. |
| May 07 | Q1 2025 earnings | Positive | +0.5% | Q1 revenue beat expectations with return to profitability and strong segment growth. |
| Feb 11 | Q4/FY24 earnings | Positive | -10.7% | Q4 and FY24 revenue grew mid‑teens with improving losses and strong Rentals and Mortgages. |
Recent earnings reports have generally been positive on fundamentals but produced mixed to often negative price reactions, with an average move of -4.76% over the last five earnings events.
Over the past five earnings cycles, Zillow has delivered consistent revenue growth and improving profitability metrics. Q1–Q4 of 2024–2025 showed double‑digit revenue growth, expanding Adjusted EBITDA, and steadily improving net income, alongside rising Mortgages and Rentals revenue. Despite these strong fundamentals, three of the five earnings events saw negative next‑day price reactions, including moves of -10.7% and -17.13%. Today’s Q1 2026 report continues the pattern of solid revenue and margin performance.
Historical Comparison
Across the last five earnings releases, Zillow’s stock moved an average of -4.76% despite consistently growing revenue and improving profitability, highlighting a pattern of cautious market reactions to results.
Earnings since Q4 2024 show steady double‑digit revenue growth, rising Mortgages and Rentals contributions, and improved GAAP profitability, with Q1 2026 extending this multi‑quarter trend of higher revenue and stable Adjusted EBITDA margins.
Market Pulse Summary
This announcement details strong Q1 2026 performance, with revenue of $708 million, net income of $46 million, and Adjusted EBITDA of $182 million at a 26% margin. Mortgages and Rentals posted particularly rapid growth, while the company returned capital via 13.5 million share repurchases for $626 million, reducing cash to $788 million. Historically, earnings have produced mixed stock reactions despite similar fundamentals, so future updates on revenue growth, margins, and cash levels remain important watch points.
Key Terms
adjusted ebitda financial
non-gaap financial measures financial
adjusted free cash flow financial
AI-generated analysis. Not financial advice.
Complete financial results for the first quarter and outlook for the second 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.
"Zillow's integrated platform is delivering meaningful value for buyers, sellers, renters and real estate professionals alike," said Zillow Chief Executive Officer Jeremy Wacksman. "We're embedding AI throughout the real estate experience in ways that make Zillow increasingly indispensable, and we're innovating with speed and intention. Zillow's strong Q1 results reflect the consistency of our execution, the strength of our brand, our audience engagement, and the durability of our multi-year strategy."
Recent highlights include:
- Zillow Group reported strong first-quarter results.
- Q1 revenue was up
18% year over year to$708 million 2% in Q1, according to NAR.1 The company estimates Q1 purchase mortgage origination volume for the industry declined approximately1% year over year.- For Sale revenue was up
12% year over year to$514 million - Residential revenue was up
8% year over year in Q1 to$450 million - Mortgages revenue increased
56% year over year to$64 million 96% increase in purchase loan origination volume to$1.5 billion
- Residential revenue was up
- Rentals revenue increased
42% year over year to$183 million 57% year over year.
- For Sale revenue was up
- Net income was
$46 million 6% , a 520-basis-point increase year over year. Diluted net income per share was$0.19 $0.03 - Q1 Adjusted EBITDA was
$182 million 26% , flat year over year despite a 160-basis-point headwind from incremental legal expenses.2 Excluding$11 million $193 million 27% margin. - Cash and investments3 at the end of Q1 were
$788 million $1.3 billion $626 million - Traffic to Zillow Group's mobile apps and sites in Q1 was down
3% year over year to 220 million average monthly unique users.4 Visits during Q1 were down3% year over year to 2.3 billion. According to Comscore, which tracks growth trends across the category, average monthly unique visitors to Zillow Group's mobile apps and sites in Q1 were up12% year over year to 127 million, and Zillow is the only large company in its category to increase the amount of the real estate audience it reached over the past six quarters.
1 | National Association of Realtors® existing homes sold during Q1 2026 multiplied by the average selling price per home for Q1 2026 compared with the same period in 2025 | |||||
2 | Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures; they are not calculated or presented in accordance with | |||||
3 | Cash and investments includes Cash and cash equivalents, Restricted cash and Short-term investments. | |||||
4 | The company counts a unique user the first time an individual accesses one of the company's mobile apps using a mobile device during a calendar month and the first time an individual accesses one of the company's websites using a web browser during a calendar month. If an individual accesses the company's mobile apps using different mobile devices within a given month, the first instance of access by each such mobile device is counted as a separate unique user. If an individual accesses the company's websites using different web browsers within a given month, the first access by each such web browser is counted as a separate unique user. | |||||
First-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 March 31, | 2025 to 2026 % Change | ||||
2026 | 2025 | ||||
Revenue: | |||||
For Sale revenue: | |||||
Residential | $ 450 | $ 417 | 8 % | ||
Mortgages | 64 | 41 | 56 % | ||
Total For Sale revenue | 514 | 458 | 12 % | ||
Rentals | 183 | 129 | 42 % | ||
Other | 11 | 11 | — % | ||
Total revenue | $ 708 | $ 598 | 18 % | ||
Other Financial Data: | |||||
Gross profit | $ 519 | $ 459 | |||
Net income | $ 46 | $ 8 | |||
Diluted net income per share | $ 0.19 | $ 0.03 | |||
Net cash provided by operating activities | $ 200 | $ 104 | |||
Non-GAAP Financial Measures:(1) | |||||
Adjusted EBITDA | $ 182 | $ 153 | |||
Adjusted net income | $ 129 | $ 105 | |||
Diluted adjusted net income per share | $ 0.53 | $ 0.41 | |||
Adjusted free cash flow | $ 127 | $ 88 | |||
Percentage of Revenue: | |||||
Gross profit | 73 % | 77 % | |||
Net income | 6 % | 1 % | |||
Adjusted EBITDA(1) | 26 % | 26 % | |||
Adjusted net income(1) | 18 % | 18 % | |||
(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-q1-26-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 May 6, 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
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
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, www.zillow.com/news, www.x.com/zillowgroup, and 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 interest expense or other income, net;
- Adjusted EBITDA does not reflect income taxes; 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, 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 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 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 for each of the periods presented (in millions, unaudited):
Three Months Ended | |||
2026 | 2025 | ||
Net income | $ 46 | $ 8 | |
Income taxes | 2 | — | |
Other income, net | (16) | (22) | |
Depreciation and amortization | 65 | 65 | |
Share-based compensation | 81 | 97 | |
Interest expense | 4 | 5 | |
Adjusted EBITDA | $ 182 | $ 153 | |
The following table presents a reconciliation of Adjusted net income to net income and associated per-share metrics for each of the periods presented (in millions, except per-share data, unaudited):
Three Months Ended March 31, | |||
2026 | 2025 | ||
Net income | $ 46 | $ 8 | |
Share-based compensation | 81 | 97 | |
Income taxes | 2 | — | |
Adjusted net income | $ 129 | $ 105 | |
Diluted net income per share | $ 0.19 | $ 0.03 | |
Diluted adjusted net income per share | $ 0.53 | $ 0.41 | |
The following table provides a reconciliation of Adjusted free cash flow to net cash provided by operating activities for the periods presented (in millions, unaudited):
Three Months Ended | |||
2026 | 2025 | ||
Net cash provided by operating activities | $ 200 | $ 104 | |
Purchases of property and equipment | (34) | (36) | |
Purchases of intangible assets | (10) | (108) | |
Net borrowings (repayments) on master repurchase agreements | (29) | 28 | |
Initial payment in connection with Redfin rentals partnership | — | 100 | |
Adjusted free cash flow | $ 127 | $ 88 | |
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SOURCE Zillow Group, Inc.