Zillow Group Class C (Z) AI Stock Analysis

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Zillow Group Class C

(NASDAQ:Z)

Select Model

Neutral 66 (OpenAI - 4o)

Rating:66Neutral

Price Target:

$88.00

▲(13.18% Upside)

Zillow Group's strong revenue growth and cash flow management are significant positives, supported by strategic investments in technology and market leadership in Rentals. However, ongoing profitability challenges and valuation concerns weigh on the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.

Market Leadership in Rentals

Leading position in rentals traffic strengthens Zillow's competitive advantage and enhances its ability to attract advertisers and partners.

AI and Technology Innovation

Investment in AI and technology innovation positions Zillow for future growth by improving customer engagement and operational efficiency.

Negative Factors

Profitability Challenges

Ongoing profitability issues could limit reinvestment capacity and affect long-term financial stability if not addressed.

Variable Expenses

Rising expenses outpacing revenue growth may pressure margins and hinder profitability, impacting long-term financial performance.

Challenging Housing Market Conditions

A flat housing market could limit growth opportunities and revenue potential, affecting Zillow's ability to expand its market presence.

Zillow Group Class C (Z) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$19.49B

Dividend YieldN/A

Average Volume (3M)2.97M

Price to Earnings (P/E)―

Beta (1Y)1.24

Revenue Growth15.31%

EPS Growth56.19%

CountryUS

Employees6,819

SectorCommunication Services

Sector Strength97

IndustryInternet Content & Information

Share Statistics

EPS (TTM)0.40

Shares Outstanding185,964,750

10 Day Avg. Volume3,368,007

30 Day Avg. Volume2,965,307

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market Cap0.86

Enterprise Value/Revenue7.03

Enterprise Value/Gross Profit9.28

Enterprise Value/Ebitda71.16

Forecast

1Y Price Target

$85.86

Price Target Upside10.43% Upside

Rating ConsensusHold

Number of Analyst Covering9

Zillow Group Class C Business Overview & Revenue Model

Company DescriptionZillow 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 MoneyZillow Group generates revenue through multiple key streams. Primarily, it earns money through its Zillow Offers program, where it purchases homes directly from sellers, makes necessary repairs, and then resells them, capturing the profit margin. Additionally, the company earns revenue from advertising services provided to real estate agents and property managers, who pay to promote their listings on the Zillow platform. Zillow also offers rental listings and charges landlords for premium placement of their properties. Significant partnerships with real estate agents and brokerages, along with its expansive user base, further contribute to its earnings, allowing Zillow to monetize its extensive traffic effectively.

Zillow Group Class C Key Performance Indicators (KPIs)

Any

Average Unique Monthly Visitors

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.

Chart InsightsZillow's average unique monthly visitors have shown a steady upward trend since 2019, with notable resilience despite fluctuations in the housing market. The recent earnings call highlights strong revenue growth, particularly in the Rentals segment, which aligns with the increased visitor engagement. However, challenges in the broader housing market could impact future growth. Zillow's strategic focus on expanding its housing super app and enhancing services for buyers and sellers is expected to sustain visitor growth and improve market share, especially in the Rentals segment, despite anticipated higher expenses in the next quarter.

Data provided by:

Main Street Data

Zillow Group Class C Earnings Call Summary

Earnings Call Date:Aug 06, 2025

(Q2-2025)

% Change Since: |

Next Earnings Date:Oct 29, 2025

Earnings Call Sentiment Positive

The earnings call presented a positive outlook for Zillow with strong revenue growth, particularly in the Rentals and multifamily segments, and significant advancements in technology. However, challenges remain with a flat housing market and rising variable expenses.

Q2-2025 Updates

Positive Updates

Strong Q2 Revenue and Growth

Total revenue was up 15% year-over-year, exceeding expectations, with $655 million in Q2. For Sale revenue increased by 9%, and Rentals revenue growth accelerated to 36% year-over-year.

Zillow Home Loans Expansion

Mortgages revenue was up 41% year-over-year with purchase loan origination volume growing 48% to $1.1 billion in Q2.

Multifamily Segment Growth

Multifamily revenue grew by 56% year-over-year, with property count up 45% year-over-year to 64,000 at the end of Q2.

Market Leadership in Rentals

Zillow Rentals had 36 million average monthly rental unique visitors in Q2, maintaining the #1 position in rentals traffic.

AI and Technology Innovation

Rollout of AI-powered Smart Messages and SkyTour for enhanced customer and agent experience, indicating strong focus on technological innovation.

Negative Updates

Challenging Housing Market Conditions

The broader housing and mortgage market remained essentially flat, with macro uncertainties continuing to pose challenges.

Variable Expenses Outpacing Revenue Growth

Variable expenses have been growing ahead of revenue, driven by investments in Rentals and Zillow Home Loans.

Company Guidance

During Zillow Group's second-quarter financial results call for fiscal year 2025, the company announced strong performance metrics, including a 15% year-over-year increase in total revenue, reaching $655 million, and an adjusted EBITDA of $155 million, with a margin of 24%. Zillow reported 243 million average monthly unique users across its platforms and noted that its Rentals revenue grew by 36% year-over-year with multifamily revenue up by 56%. The company maintained its leading position in both For Sale and Rentals traffic, with 36 million average monthly unique visitors for Rentals. Zillow's For Sale revenue increased by 9% year-over-year, with a significant contribution from its mortgages segment, which surged by 41%. The company highlighted the success of its Enhanced Markets strategy, which aims to connect high-intent movers with high-performing professionals, and noted that 27% of connections now come through this experience. Zillow also emphasized its commitment to innovation and technology, particularly with AI features, and reiterated its expectation for mid-teens revenue growth for the full year 2025.

Zillow Group Class C Financial Statement Overview

Summary

Zillow Group shows positive revenue growth and strong cash flow management with a healthy balance sheet. However, challenges remain in achieving profitability, as indicated by negative net income and return on equity.

Income Statement

Positive

Zillow Group's revenue has shown a modest growth of 3.6% in the TTM, indicating a positive trend after previous fluctuations. The gross profit margin remains strong at 75.8%, reflecting efficient cost management. However, the company is still facing challenges with profitability, as evidenced by a negative net profit margin of -2.6% and negative EBIT margin. The EBITDA margin is positive at 9.7%, suggesting some operational efficiency improvements.

Balance Sheet

Positive

The balance sheet shows a healthy debt-to-equity ratio of 0.07, indicating low leverage and financial stability. However, the return on equity is negative at -1.3%, reflecting ongoing challenges in generating returns for shareholders. The equity ratio is strong, suggesting a solid capital structure with a significant portion of assets financed by equity.

Cash Flow

Positive

Zillow Group's cash flow statement highlights a significant improvement in free cash flow growth at 72.1%, indicating better cash management. The operating cash flow to net income ratio is strong at 0.89, showing efficient cash generation relative to net income. The free cash flow to net income ratio of 0.73 further supports the company's ability to generate cash despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.39B	2.24B	1.95B	1.96B	8.15B	3.34B
Gross Profit	1.81B	1.71B	1.52B	1.59B	1.75B	1.58B
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	351.00M	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 C Technical Analysis

Technical Analysis Sentiment

Negative

Last Price77.75

Price Trends

50DMA

83.36

Negative

100DMA

76.73

Positive

200DMA

75.45

Positive

Market Momentum

MACD

-0.67

Positive

RSI

36.81

Neutral

STOCH

1.84

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For Z, the sentiment is Negative. The current price of 77.75 is below the 20-day moving average (MA) of 85.30, below the 50-day MA of 83.36, and above the 200-day MA of 75.45, indicating a neutral trend. The MACD of -0.67 indicates Positive momentum. The RSI at 36.81 is Neutral, neither overbought nor oversold. The STOCH value of 1.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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

Overall Rating

UnderperformOutperform

Sector (60)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CARG	73 Outperform	3.76B	29.82	29.80%	―	4.80%	―
ZG	67 Neutral	19.01B	-282.77	-1.31%	―	15.31%	56.19%
Z	66 Neutral	$19.49B	―	-1.34%	―	15.31%	56.19%
NBIS	60 Neutral	28.25B	117.44	-0.18%	―	-95.06%	1.92%
IAC	54 Neutral	2.78B	-6.49	-9.12%	―	-23.79%	-138.59%
NXDR	54 Neutral	836.48M	-12.59	-14.98%	―	9.65%	56.50%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%

* Communication Services Sector Average

Performance Comparison

Zillow Group Class C

77.75

12.27

18.74%

NBIS

Nebius Group

107.94

89.00

469.90%

Zillow Group Class A

75.47

11.99

18.89%

CARG

CarGurus

37.02

7.33

24.69%

IAC

IAC/InteractiveCorp.

34.40

-10.66

-23.66%

NXDR

Nextdoor Holdings

2.12

-0.39

-15.54%

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.Date of analysis: Sep 23, 2025