Zillow Group (Z) Earnings Date & Reports

Key Takeaways

• Total revenue rose 7% year over year to $724 million, coming in below the roughly $755 million that analysts had forecast.
• Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reached $182 million, a 25% margin, landing within the company's guidance range.
• GAAP net loss was $158 million, or $0.70 per share, driven largely by a $165 million Zillow Offers securities class action settlement, net of expected insurance recoveries.
• Adjusted (non-GAAP) earnings per share came in at $0.55, up from $0.44 in the same quarter a year earlier.
• Mortgages revenue climbed 32% to $70 million as purchase loan originations jumped 55% to $2 billion, while Rentals revenue grew 26% to $220 million.
• Residential revenue slipped 4% to $419 million, reflecting a housing market pressured by higher-than-expected mortgage rates.
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Earnings Context and Why It Matters

Zillow Group's third-quarter report offers a timely read on the U.S. housing market at a difficult moment. With mortgage rates running above expectations and transaction volumes under pressure, investors are watching closely whether Zillow's diversified model — spanning residential listings, rentals, and mortgages — can keep growing even as the broader real estate sector contracts. The company has spent years shifting from its discontinued home-flipping business toward a marketplace built on traffic, partner revenue, and financing. This quarter's results help clarify whether that strategy can sustain revenue growth and profitability in a slowing market, making it a key signal for both Zillow shareholders and those tracking housing-sensitive stocks more broadly.

Reported Results

Zillow Group reported third-quarter 2026 revenue of $724 million, a 7% increase from $676 million a year earlier, though below the consensus estimate near $755 million. Growth was led by the Mortgages segment, where revenue rose 32% to $70 million, supported by a 55% jump in purchase loan originations to $2 billion. Rentals revenue grew 26% to $220 million, while Residential revenue declined 4% to $419 million and For Sale revenue was roughly flat at $489 million.

On the bottom line, Zillow posted a GAAP (Generally Accepted Accounting Principles) net loss of $158 million, or $0.70 per diluted share, compared with a small profit of $0.04 per share in the prior-year quarter. The loss was heavily influenced by a $165 million Zillow Offers securities class action settlement, net of expected insurance recoveries. Excluding that item and other non-recurring costs, adjusted net income was $124 million, with diluted adjusted EPS (earnings per share) of $0.55, up from $0.44 a year ago but slightly below the consensus estimate near $0.58. Adjusted EBITDA was $182 million, a 25% margin, within the company's outlook range.

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Market Reaction and Investor Sentiment

Investor reaction to Zillow's report was shaped by two competing narratives: solid adjusted profitability and a revenue figure that fell short of expectations. The 7% revenue growth, while respectable, undershot the consensus near $755 million, and adjusted EPS of $0.55 came in slightly below estimates near $0.58. The headline GAAP loss of $0.70 per share — driven by the class action settlement — added noise for investors focused on reported results. Sentiment was further tempered by declining engagement metrics, with average monthly unique visitors down 3% year over year to 215 million and total visits down 5% to 2.3 billion, even as Zillow retained a dominant 77% share of average monthly unique visitors in the real estate category, according to Comscore.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will focus on how Zillow navigates a housing market that remains constrained by elevated mortgage rates and soft transaction volumes. Management's fourth-quarter and full-year outlook, detailed in the shareholder letter, will be a key reference point for gauging whether revenue growth can accelerate or merely hold steady.

One area to watch is the Mortgages business. Purchase loan originations surged 55%, suggesting Zillow is gaining traction in financing even as overall industry purchase-mortgage origination fell an estimated 4% year over year. Sustaining that momentum could help offset softness in the core residential marketplace.

Engagement trends also matter. While Zillow still commands a dominant share of real estate traffic, the decline in unique users and visits signals that demand remains subdued. Any recovery in housing activity — driven by a potential decline in mortgage rates or improved affordability — could reverse this trend and support partner and advertising revenue.

Finally, investors should monitor cost discipline and litigation-related items. Management continues to exclude certain FTC (Federal Trade Commission) matter litigation costs and the class action settlement from adjusted metrics, so clarity on ongoing legal expenses and their impact on reported profitability will be important for interpreting future results.

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