Zillow Group Class A (ZG) AI Stock Analysis

• Market Cap: $18.73B
• Dividend Yield: N/A
• Average Volume (3M): 675.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: 15.31%
• EPS Growth: 56.19%
• Country: US
• Employees: 6,819
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.40
• Shares Outstanding: 50,089,970
• 10 Day Avg. Volume: 525,644
• 30 Day Avg. Volume: 675,936
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 6.87
• Enterprise Value/Gross Profit: 9.07
• Enterprise Value/Ebitda: 69.50
• 1Y Price Target: $89.90
• Price Target Upside: 21.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 68 Neutral
• Price Target: $80.00 ▲(7.72% Upside)

Zillow Group's strong earnings call performance and solid financial health are offset by profitability challenges and mixed technical indicators. The company's growth potential is promising, but valuation concerns and market conditions pose risks.

Positive Factors

Revenue Growth

Zillow's strong revenue growth indicates robust demand and effective monetization strategies, positioning the company well for future expansion.

Innovative Product Developments

Continued innovation in product offerings enhances Zillow's competitive edge and customer engagement, supporting long-term growth.

Integration with ChatGPT

Integration with ChatGPT positions Zillow at the forefront of AI adoption, potentially increasing user base and engagement.

Negative Factors

Profitability Challenges

Persistent profitability issues could hinder long-term financial health and limit reinvestment opportunities for growth.

Legal Challenges

Ongoing legal battles may lead to financial penalties and operational disruptions, affecting Zillow's market position.

Increased Variable Expenses

Rising expenses without proportional revenue growth can pressure margins, affecting long-term profitability and cash flow.

Zillow Group Class A Business Overview & Revenue Model

Company Description

Zillow Group, Inc., a digital real estate company, operates real estate brands on mobile applications and Websites in the United States. The company operates through three segments: Homes; Internet, Media & Technology; and Mortgages. The Homes segment is involved in resale of homes; and title and escrow services to home buyers and sellers, including title search procedures for title insurance policies, escrow, and other closing services. The IMT segment offers premier agent, rentals, and new construction marketplaces, as well as dotloop, display, and other advertising, as well as business software solutions. The Mortgage segment provides home loans; and marketing products including custom quote and connect services. Its portfolio of brands includes Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads, and Out East. The company was incorporated in 2004 and is headquartered in Seattle, Washington.

How the Company Makes Money

Zillow Group generates revenue through multiple key streams. Primarily, it earns money through its Premier Agent program, where real estate agents pay for advertising and leads generated from Zillow's platform. Additionally, Zillow offers a variety of advertising services for property listings, where sellers and landlords can promote their homes. Another significant revenue source is its Zillow Offers program, which allows the company to buy homes directly from sellers, renovate them, and then sell them at a profit. Furthermore, Zillow earns revenue from mortgage origination through Zillow Home Loans, providing financing solutions to home buyers. Partnerships with real estate agencies and financial institutions also contribute to its earnings, enhancing its service offerings and market reach.

Zillow Group Class A Financial Statement Overview

Summary

Zillow Group shows moderate revenue growth and strong cost management, but struggles with profitability and decreasing free cash flow. The strong equity position and low leverage provide stability, yet profitability and cash flow sustainability need improvement.

Income Statement

Zillow Group's revenue shows a moderate growth trend with a 3.09% increase TTM over the previous year. However, the company is struggling with profitability, as indicated by negative EBIT and net income margins in the TTM period, although there's a slight improvement compared to the prior year. Gross profit margin remains strong at 76.45%, suggesting effective cost management in core operations.

Balance Sheet

The balance sheet of Zillow Group is solid with a low debt-to-equity ratio of 0.14, indicating financial stability and low leverage. Stockholders' equity constitutes a substantial 82.74% of total assets, reflecting a strong equity position. However, the company has negative net income, affecting its return on equity.

Cash Flow

The TTM cash flow shows positive free cash flow, though it has decreased compared to the previous report. The operating cash flow to net income ratio is robust, demonstrating efficient cash generation from operations despite negative net income. However, the decrease in free cash flow growth rate is a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39B	2.24B	1.95B	1.96B	2.13B	3.34B
Gross Profit	1.81B	1.71B	1.52B	1.59B	1.75B	1.51B
EBITDA	236.00M	198.00M	125.00M	123.00M	370.00M	119.96M
Net Income	-62.00M	-112.00M	-158.00M	-88.00M	-527.78M	-162.12M
Balance Sheet
Total Assets	5.42B	5.83B	6.65B	6.56B	10.70B	7.49B
Cash, Cash Equivalents and Short-Term Investments	1.16B	1.86B	2.81B	3.36B	2.83B	3.92B
Total Debt	328.00M	660.00M	1.83B	1.87B	1.60B	2.52B
Total Liabilities	670.00M	981.00M	2.13B	2.08B	5.35B	2.74B
Stockholders Equity	4.75B	4.85B	4.53B	4.48B	5.34B	4.74B
Cash Flow
Free Cash Flow	330.00M	285.00M	189.00M	4.36B	-3.28B	315.68M
Operating Cash Flow	484.00M	428.00M	354.00M	4.50B	-3.18B	424.20M
Investing Cash Flow	627.00M	395.00M	25.00M	-1.53B	1.09B	-1.04B
Financing Cash Flow	-1.70B	-1.23B	-352.00M	-4.34B	3.15B	1.16B

Zillow Group Class A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 74.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZG, the sentiment is Positive. The current price of 74.27 is above the 20-day moving average (MA) of 71.54, below the 50-day MA of 77.65, and above the 200-day MA of 72.87, indicating a neutral trend. The MACD of -1.17 indicates Negative momentum. The RSI at 51.63 is Neutral, neither overbought nor oversold. The STOCH value of 90.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ZG.

Zillow Group Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YELP	76 Outperform	$2.09B	14.95	20.13%	―	5.37%	13.08%
CARG	71 Outperform	$3.59B	29.64	29.24%	―	4.80%	―
ZG	68 Neutral	$18.73B	―	-1.34%	―	15.31%	56.19%
TWLO	68 Neutral	$16.79B	909.85	0.24%	―	11.56%	―
Z	67 Neutral	$18.58B	―	-1.34%	―	15.31%	56.19%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NXDR	45 Neutral	$762.90M	―	-14.27%	―	9.65%	56.50%

Zillow Group Class A Corporate Events

Zillow Finalizes Capped Call Transactions Unwind

On August 25, 2025, Zillow Group, Inc. will finalize agreements with major financial institutions to unwind and terminate certain capped call transactions originally entered into in September 2019. These transactions were linked to the company’s previously settled Convertible Senior Notes. The completion of these unwind transactions will result in Zillow receiving 3.1 million shares of its Class C capital stock and $38.2 million in cash, impacting its capital structure by reducing the outstanding Class C shares.

The most recent analyst rating on (ZG) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Zillow Group Class A stock, see the ZG Stock Forecast page.

Zillow Group Reports Strong Q2 2025 Earnings Growth

Zillow Group Inc Class A is a leading digital real estate company that offers a comprehensive suite of products and services aimed at simplifying the real estate transaction process for consumers and professionals alike. Operating primarily in the residential real estate sector, Zillow is renowned for its innovative technology and user-friendly platforms.