Zillow Group Class A (ZG) Q3 2026 Earnings Report
MX:ZG Q3 2026 EPS Results
- Actual EPS
- MXN 10.21
- Consensus EPS
- MXN 10.82
- Beat/Miss
- Missed by -MXN 0.61
- One Year Ago EPS
- MXN 8.16
MX:ZG Q3 2026 Revenue Results
- Actual Revenue
- MXN 13.43B
- Expected Revenue
- MXN 13.98B
- Beat/Miss
- Missed by -MXN 550.30M
- YoY Revenue Growth
- +7.10%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 11/04/2026
- Time
- After Close
- Conference Call
- Wednesday, November 4, 2026
Zillow Group Class A's next earnings date is estimated for February 16, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
No slide deck is available for this earnings event.
Q3 2026 Earnings Call Summary
The call was predominantly positive. Zillow delivered revenue growth, expanding margins, strong Rentals performance, continued mortgage and Preferred momentum, record consumer reach, growing AI engagement, disciplined cost management, and substantial liquidity despite a sharply deteriorating housing and mortgage environment. The main negatives were weak housing demand, higher mortgage rates, declining industry purchase volume, Residential revenue pressure, and a roughly flat Q4 revenue outlook. Management remained confident in its structural growth drivers and ability to outperform the market.
For Q4 2026, Zillow expects total revenue of $635 million to $665 million, roughly flat year-over-year, including a decline in year-over-year mortgage industry purchase origination volumes of 10% to 15%; For Sale and Residential revenue are expected to decline roughly 9% to 15% year-over-year, with 400 to 500 basis points of headwind to For Sale revenue growth and 900 to 1,000 basis points of headwind to Residential revenue growth, while For Sale is expected to show similar 600 basis points relative underlying outperformance and mortgages revenue is expected to decline low single-digits year-over-year at the mid-point, with origination volume up high-single-digits and Preferred program origination volume up mid-20% year-over-year; Rentals revenue growth is expected to be similar to the 26% year-over-year growth in Q3, EBITDA expenses are expected to be $530 million to $535 million, EBITDA is expected to be $100 million to $135 million, implying 18% margins at the mid-point, and EBITDA expenses imply 5% growth year-over-year; for full-year 2026, Zillow expects approximately 10% to 11% revenue growth, including approximately 30% growth in rentals revenue, flat EBITDA margins, EBITDA of $655 million to $690 million, share-based compensation expense down more than 20% year-over-year, the housing market to be flat, and the purchase mortgage industry to be down mid-single-digits, while Preferred is expected to represent more than 75% of connections by year-end and reach 100% in the first half of 2027.
- Q3 Revenue Growth and Margin ExpansionQ3 total revenue increased 7% year-over-year to $724 million. EBITDA was $182 million, within expectations, while EBITDA margin expanded 70 basis points year-over-year to 25%.
- Strong Rentals PerformanceRentals revenue increased 26% year-over-year to $220 million, primarily driven by multi-family revenue growth of 35%. Rentals represented 30% of total revenue, up from 21% two years ago.
- Record Multifamily Property GrowthA record 81,000 multifamily properties were advertised on Zillow at the end of Q3, up 17% year-over-year. Higher property counts and revenue per property drove multifamily revenue growth, while Zillow stated that Rentals has a clear path to more than $1 billion in annual revenue.
- Rental Demand and Marketplace PositionRental demand increased nearly 20% year-over-year in September and Q3. Zillow Rentals was identified as the first-choice brand for 43% of renters, more than twice the preference rate of the next closest brand.
- Outperformance in For SaleFor Sale revenue was flat year-over-year at $489 million, 400 basis points stronger than the purchase mortgage industry. After adjusting for the expected 200 basis point impact from the Preferred transition, underlying For Sale revenue outperformed industry purchase mortgage origination volume by 600 basis points.
- Mortgage Origination GrowthMortgage revenue increased 32% year-over-year to $70 million in Q3, while purchase loan origination volume grew 55%. Zillow Home Loans purchase mortgage originations grew 53% in 2025, and the company expects them to grow more than 50% again in 2026.
- Progress on Preferred TransitionTwo-thirds of buyer connections went to Preferred agent partners in Q3, up from about one-third a year ago. Zillow expects more than 75% of connections to go to Preferred partners by year-end and 100% in the first half of 2027. Preferred connections generate 35% more revenue per connection than the legacy advertising model.
- Zillow Home Loans Adoption OpportunityZillow Home Loans adoption rates are roughly 20% in markets where Zillow Home Loans and Zillow Preferred have been integrated the longest, while adoption is in the double digits across Preferred markets. Buyers using both a Preferred agent partner and Zillow Home Loans transact at nearly twice the rate and close faster than buyers using a different lender.
- Record Consumer Reach and EngagementZillow attracted 77% of average monthly unique visitors in the real estate category in Q3, an all-time high. Zillow's unique visitors increased 1% year-over-year even as category traffic declined 10%, and approximately 80% of Zillow traffic continued to come directly to the platform.
- AI Mode Adoption and EngagementFrom March through September, more than 2.5 million people used Zillow AI mode and asked 8.5 million questions. AI mode users spent nearly three times as long on Zillow, ran more searches, viewed more homes, and requested more tours than non-users. AI mode became available to 100% of signed-in users.
- AI-Enabled Product and Employee ProductivityZillow is embedding agentic AI into consumer and professional products, including Follow Up Boss. Engineers were shipping 60% more changes to production than in 2024, while management stated that quality had improved significantly.
- Growth in Seller SolutionsZillow expects Zillow Showcase, listing media, and sellers transacting with Zillow agent partners to contribute more than $300 million to 2026 revenue. Showcase appeared on 5.4% of all new U.S. listings, and agents using Showcase on the majority of their listings won 35% more listings than peers who did not.
- Expansion of Listing Media and PreviewZillow's rich media appeared on nearly 12% of new For Sale listings nationwide. Zillow Preview had more than 800 brokerage partnerships, its listings were shared with Realtor.com, and the majority of agents who used Preview used it again on future listings.
- Scale of Professional SoftwareShowingTime enables in-person tours on more than 90% of homes for sale in the country, while Dotloop facilitates closings for nearly half of all real estate transactions nationwide. Follow Up Boss had about 141,000 monthly active users in Q3, up 16% year-over-year.
- Cost Management and Cash GenerationQ3 EBITDA expenses were $542 million, below the expected range of $560 million to $565 million. Fixed expenses excluding one-time items declined 8% year-over-year, adjusted net income was $124 million, diluted adjusted net income per share increased to $0.55 from $0.44, and year-to-date free cash flow was $269 million.
- Share Repurchases and LiquidityZillow repurchased $20 million of stock in Q3 and $846 million year-to-date. Shares outstanding declined to 226 million at the end of Q3 from 240 million at the beginning of 2026. The company had approximately $1.1 billion remaining under existing share repurchase authorizations, $707 million of cash and investments, and $1.2 billion of total liquidity.
- Reduced Share-Based CompensationShare-based compensation expense declined 25% year-over-year in Q3, and Zillow expects full-year 2026 share-based compensation expense to decline more than 20%, better than its previous expectation of a decline greater than 15%.
- Legal Cost NormalizationZillow stated that it resolved several legal matters during the year, including matters with outsized one-time costs, and expects legal costs to be normalized from Q4 onward. Management said the matters were not impacting the company's business, growth, or strategy.
- Full-Year Growth OutlookZillow expects approximately 10% to 11% revenue growth for full-year 2026, including approximately 30% Rentals revenue growth. The company expects full-year EBITDA of $655 million to $690 million, with flat EBITDA margins.
MX:ZG Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 16, 2027 | 2026 (Q4) | 6.53- | 7.24 | ― | ― |
| Nov 04, 2026 | 2026 (Q3) | 10.8210.21 | 8.16 | 25.00% (+2.04) | |
| Aug 05, 2026 | 2026 (Q2) | 8.299.65 | 7.42 | 30.00% (+2.23) | |
| May 06, 2026 | 2026 (Q1) | 8.469.83 | 7.61 | 29.27% (+2.23) | |
| Feb 10, 2026 | 2025 (Q4) | 7.487.24 | 5.01 | 44.44% (+2.23) | |
| Oct 30, 2025 | 2025 (Q3) | 7.948.16 | 7.22 | 13.11% (+0.95) | |
| Aug 06, 2025 | 2025 (Q2) | 7.817.42 | 7.68 | -3.38% (-0.26) | |
| May 07, 2025 | 2025 (Q1) | 6.797.61 | 6.68 | 13.89% (+0.93) | |
| Feb 11, 2025 | 2024 (Q4) | 4.905.01 | 3.71 | 35.00% (+1.30) | |
| Nov 06, 2024 | 2024 (Q3) | 5.207.22 | 6.53 | 10.51% (+0.69) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
