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Zillow Group Class C
(NASDAQ:Z)
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Rating:65Neutral
Price Target:
$36.00
▼(-23.18% Downside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving fundamentals—strong free cash flow and a significantly de-risked balance sheet—supported by upbeat guidance and segment momentum from the latest earnings call. These positives are tempered by weak technical trend signals and a high P/E valuation, which raise downside risk if margin expansion or growth slows.
Positive Factors
Strong free cash flow generation
Sustained, material free cash flow provides durable financial flexibility to fund product development, rentals/mortgage expansion, and opportunistic buybacks or M&A. High-quality cash flow versus accounting earnings reduces refinancing risk and supports multi‑quarter investments even if transaction volumes soften.
Negative Factors
Thin reported profitability
Very slender margins and low ROE mean earnings are highly sensitive to small revenue swings or cost increases. Over a multi‑quarter horizon, margin compression from legal or variable spend could wipe out reported profits, limiting reinvestment capacity and making results volatile.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained, material free cash flow provides durable financial flexibility to fund product development, rentals/mortgage expansion, and opportunistic buybacks or M&A. High-quality cash flow versus accounting earnings reduces refinancing risk and supports multi‑quarter investments even if transaction volumes soften.
Read all positive factors
Zillow Group Class C Key Performance Indicators (KPIs)
Any
Average Unique Monthly Visitors
Measures the average number of distinct visitors to Zillow’s platforms each month, indicating the site’s popularity and potential for ad revenue growth.
Measures the average number of distinct visitors to Zillow’s platforms each month, indicating the site’s popularity and potential for ad revenue growth.
Data provided by:
The Fly
The FlyZillow Group Class C (Z) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.65B
Dividend YieldN/A
Average Volume (3M)5.11M
Price to Earnings (P/E)127.6
Beta (1Y)1.23
Revenue Growth16.83%
EPS GrowthN/A
CountryUS
Employees6,819
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.26
Shares Outstanding180,224,120
10 Day Avg. Volume5,494,478
30 Day Avg. Volume5,111,780
Financial Highlights & Ratios
PEG Ratio-5.99
Price to Book (P/B)3.38
Price to Sales (P/S)6.39
P/FCF Ratio70.23
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue2.79
Enterprise Value/Gross Profit3.80
Enterprise Value/Ebitda20.89
Forecast
1Y Price Target
$64.75Price Target Upside38.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.28
Revenue Forecast (FY)$2.98B
Zillow Group Class C Business Overview & Revenue Model
Company Description
Zillow Group, Inc. functions as a prominent digital real estate enterprise, offering a variety of real estate platforms accessible through mobile applications and websites throughout the United States. The company's operations are divided into thr...
How the Company Makes Money
Zillow Group primarily makes money by monetizing traffic on its real estate marketplaces through services sold to real estate professionals and property partners. Its key revenue streams include: (1) Premier Agent revenue, where real estate agents...
Zillow Group Class C Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call emphasized broad top-line growth (18% revenue growth), strong rental and mortgage momentum (rentals +42% YoY, mortgages revenue +56% YoY, purchase originations +96%), profitability progress (net income, adjusted EBITDA margin expansion ex-legal), and product/AI traction (Preview, Showcase, AI mode). Near-term headwinds include a flat housing market, softer residential activity, elevated legal costs, and intentional near-term increases in advertising and variable investments that pressure margins in H1. Management reiterated mid-teens full-year revenue growth and margin expansion in H2, and the positives on execution, cash generation, and clear growth levers outweigh the near-term challenges.Positive Updates
Strong Overall Revenue Growth
Total revenue of $708 million in Q1, up 18% year-over-year and near the high end of guidance.
Negative Updates
Challenging Housing Market & Seasonal Headwinds
Broader housing market described as essentially flat amid worse-than-expected winter weather and interest rate volatility; industry transaction trends roughly flat and estimated purchase mortgage origination volume down ~1% YoY, weighing on residential activity.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Overall Revenue Growth
Total revenue of $708 million in Q1, up 18% year-over-year and near the high end of guidance.
Read all positive updates
Company Guidance
Zillow guided Q2 revenue of $750–765 million (implying ~16% YoY growth at the midpoint) with For Sale/residential growth in the mid‑single digits, mortgages growing at levels similar to Q1, and rentals growth of ~30% YoY; they expect Q2 EBITDA expenses of ~$600 million and EBITDA of $150–165 million (or ~$170–185 million excluding ~$20 million of incremental legal costs) and plan roughly $80 million of Q2 advertising (up from $64 million last year, +$16 million YoY). For full‑year 2026 the company reiterated mid‑teens total revenue growth, ~30% rentals revenue growth and continued EBITDA margin expansion (net income growing faster than revenue and EBITDA), updated share‑based compensation to be down >15% YoY, a fixed cost base of ≈$1.1 billion, variable cost pressure of >400 basis points to EBITDA in H1 trending toward neutral by year‑end, legal costs ~200 bps headwind in H1, modest overall ad spend growth, and pro forma liquidity of ~ $1.3 billion (cash & investments $788M plus $500M undrawn revolver) after $626M of buybacks in Q1.Zillow Group Class C Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.69B | 2.58B | 2.24B | 1.95B | 1.96B | 2.13B |
| Gross Profit | 1.98B | 1.92B | 1.71B | 1.52B | 1.59B | 1.81B |
| EBITDA | 359.00M | 336.00M | 179.00M | 125.00M | 130.00M | 382.00M |
| Net Income | 61.00M | 23.00M | -112.00M | -158.00M | -101.00M | -528.00M |
Balance Sheet | ||||||
| Total Assets | 5.23B | 5.68B | 5.83B | 6.65B | 6.56B | 10.70B |
| Cash, Cash Equivalents and Short-Term Investments | 783.00M | 1.29B | 1.86B | 2.81B | 3.36B | 2.83B |
| Total Debt | 429.00M | 536.00M | 743.00M | 1.83B | 1.87B | 1.60B |
| Total Liabilities | 818.00M | 801.00M | 981.00M | 2.13B | 2.08B | 5.35B |
| Stockholders Equity | 4.41B | 4.88B | 4.85B | 4.53B | 4.48B | 5.34B |
Cash Flow | ||||||
| Free Cash Flow | 431.00M | 235.00M | 285.00M | 189.00M | 4.36B | -3.28B |
| Operating Cash Flow | 462.00M | 368.00M | 428.00M | 354.00M | 4.50B | -3.18B |
| Investing Cash Flow | 422.00M | -6.00M | 395.00M | 25.00M | -1.53B | 1.09B |
| Financing Cash Flow | -1.12B | -674.00M | -1.23B | -352.00M | -4.34B | 3.15B |
Zillow Group Class C Technical Analysis
Positive
46.86
Price Trends
37.08
Negative
40.61
Negative
56.19
Negative
Market Momentum
-1.37
Negative
49.08
Neutral
71.61
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For Z, the sentiment is Positive. The current price of 46.86 is above the 20-day moving average (MA) of 32.54, above the 50-day MA of 37.08, and below the 200-day MA of 56.19, indicating a neutral trend. The MACD of -1.37 indicates Negative momentum. The RSI at 49.08 is Neutral, neither overbought nor oversold. The STOCH value of 71.61 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for Z.
Zillow Group Class C Risk Analysis
Zillow Group Class C disclosed 49 risk factors in its most recent earnings report. Zillow Group Class C reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Zillow Group Class C Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $3.27B | 23.38 | 41.93% | ― | 5.93% | 310.70% | |
65 Neutral | $7.65B | 127.56 | 1.28% | ― | 16.83% | ― | |
64 Neutral | $839.05M | ― | -10.32% | ― | 6.78% | 52.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
60 Neutral | $54.26B | 63.60 | 16.37% | ― | 443.93% | ― | |
60 Neutral | $7.65B | 127.56 | 1.28% | ― | 16.83% | ― |
* Communication Services Sector Average
Z
Zillow Group Class C
33.43
-38.96
-53.82%
NBIS
Nebius Group
215.62
167.78
350.71%
ZG
Zillow Group Class A
33.42
-37.01
-52.55%
CARG
CarGurus
36.24
2.92
8.76%
NXDR
Nextdoor Holdings
2.29
0.66
40.49%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.