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Zillow Group Class C
(NASDAQ:Z)
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Rating:66Neutral
Price Target:
$36.00
▲(17.04% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by improving fundamentals (revenue growth, high gross margins, solid free cash flow) and a strong balance sheet with very low leverage, reinforced by constructive guidance and profitability expansion targets from the latest earnings call. These positives are tempered by a demanding valuation (very high P/E) and only neutral technicals with the stock still below longer-term moving averages, plus acknowledged near-term transition and cost headwinds.
Positive Factors
Diversified growth in rentals and mortgage
Strong growth in rentals and mortgage broadens Zillow’s monetization beyond residential advertising. This diversification can improve resilience across housing cycles while expanding the platform’s addressable revenue opportunities.
Negative Factors
Preferred-model transition creates revenue timing pressure
The transition changes revenue mix and delays recognition of some Zillow Home Loans economics. Although intended to improve long-term monetization, the shift can suppress reported growth and complicate execution over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified growth in rentals and mortgage
Strong growth in rentals and mortgage broadens Zillow’s monetization beyond residential advertising. This diversification can improve resilience across housing cycles while expanding the platform’s addressable revenue opportunities.
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
$8.26B
Dividend YieldN/A
Average Volume (3M)3.90M
Price to Earnings (P/E)156.5
Beta (1Y)1.19
Revenue Growth17.67%
EPS GrowthN/A
CountryUS
Employees7,068
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.23
Shares Outstanding177,255,430
10 Day Avg. Volume3,182,587
30 Day Avg. Volume3,896,765
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$51.20Price Target Upside66.45% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)2.24
Revenue Forecast (FY)$2.95B
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 generates revenue through its Internet, Media & Technology (IMT) segment, which monetizes traffic on its real estate websites and apps by selling advertising, lead generation, and related services to real estate professional...
Zillow Group Class C Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong underlying business momentum with broad-based revenue growth, meaningful AI-driven engagement gains, rapid progress in Zillow Home Loans, and disciplined cost actions. Management acknowledged near-term headwinds tied to an accelerated transition to a preferred, integrated transaction model (revenue mix shifts, timing/seasonality impacts) and recorded restructuring and litigation costs. Despite these transitional and macro risks, the company reported above-expectation results, expanded profitability metrics, clear product adoption signals, and reiterated medium-term margin targets, indicating confidence in the strategy.Positive Updates
Strong Total Revenue and Profitability
Total revenue of $772M in Q2, up 18% year-over-year and above guidance; EBITDA of $176M (23% margin) exceeded outlook; reported adjusted net income of $118M and diluted adjusted net income per share of $0.52 versus $0.40 a year ago.
Negative Updates
Transition to Preferred Model Causes Near-Term Revenue Headwinds
Accelerating connections to preferred creates a shift from residential revenue to mortgages and timing headwinds: a 300 bps shift in 2025, ~500 bps in H1 2026, and management expects 600–800 bps of shift in later quarters; the timing of Zillow Home Loans recognition (6–12 month lag) has created a ~200 bps headwind to for-sale revenue and Q4 is expected to face a 400–600 bps combined headwind to for-sale revenue YoY.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Total Revenue and Profitability
Total revenue of $772M in Q2, up 18% year-over-year and above guidance; EBITDA of $176M (23% margin) exceeded outlook; reported adjusted net income of $118M and diluted adjusted net income per share of $0.52 versus $0.40 a year ago.
Read all positive updates
Company Guidance
Zillow guided Q3 revenue of $745–760M (≈11% YoY at the midpoint), with for‑sale growth of 5–7% (residential flat, mortgages >50% YoY) and rentals up in the high‑20% range; Q3 EBITDA expenses of $560–565M and EBITDA of $180–200M (≈25% margin at the midpoint). For full‑year 2026 management reiterated mid‑teens total revenue growth to $2.92–2.96B, ~30% rentals growth, EBITDA $730–760M and continued margin expansion, while targeting >75% of connections to preferred by year‑end and a 35%+ revenue‑per‑connection premium vs. the legacy model. Other key metrics: Q2 adjusted net income $118M and diluted adjusted EPS $0.52, Q2 EBITDA $176M (23% margin), Q2 for‑sale revenue $549M (+14% YoY: residential $465M +7%, mortgages $84M +75%, purchase origination volume +95%), Q2 rentals $209M (+31%, multifamily +42%) with 2.8M average monthly rental listings and 79k multifamily properties, AI Mode live to ~20% of signed‑in users and driving 2–3x engagement/contact rates, Follow‑up Boss 138k MAU (+21% YoY), $682M cash & investments (total liquidity ≈$1.2B), Q2 repurchases $200M (YTD $826M; 225M shares outstanding), and restructuring actions expected to deliver ~$75M annualized EBITDA savings (Q2 charges $36M; additional $23–28M expected in Q3) while full‑year share‑based comp is expected down >15% YoY.Zillow Group Class C Financial Statement Overview
Summary
Income Statement
63
Positive
Balance Sheet
82
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.81B | 2.58B | 2.24B | 1.95B | 1.96B | 2.13B |
| Gross Profit | 2.05B | 1.92B | 1.71B | 1.52B | 1.59B | 1.81B |
| EBITDA | 349.00M | 336.00M | 179.00M | 125.00M | 130.00M | 382.00M |
| Net Income | 55.00M | 23.00M | -112.00M | -158.00M | -101.00M | -528.00M |
Balance Sheet | ||||||
| Total Assets | 5.30B | 5.68B | 5.83B | 6.65B | 6.56B | 10.70B |
| Cash, Cash Equivalents and Short-Term Investments | 682.00M | 1.29B | 1.86B | 2.81B | 3.36B | 2.83B |
| Total Debt | 558.00M | 536.00M | 743.00M | 1.83B | 1.87B | 1.60B |
| Total Liabilities | 997.00M | 801.00M | 981.00M | 2.13B | 2.08B | 5.35B |
| Stockholders Equity | 4.31B | 4.88B | 4.85B | 4.53B | 4.48B | 5.34B |
Cash Flow | ||||||
| Free Cash Flow | 250.00M | 235.00M | 285.00M | 189.00M | 4.36B | -3.28B |
| Operating Cash Flow | 388.00M | 368.00M | 428.00M | 354.00M | 4.50B | -3.18B |
| Investing Cash Flow | 294.00M | -6.00M | 395.00M | 25.00M | -1.53B | 1.09B |
| Financing Cash Flow | -696.00M | -674.00M | -1.23B | -352.00M | -4.34B | 3.15B |
Zillow Group Class C Technical Analysis
Positive
30.76
Price Trends
33.00
Positive
36.72
Negative
48.83
Negative
Market Momentum
0.58
Negative
55.92
Neutral
73.86
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 30.76 is below the 20-day moving average (MA) of 34.26, below the 50-day MA of 33.00, and below the 200-day MA of 48.83, indicating a neutral trend. The MACD of 0.58 indicates Negative momentum. The RSI at 55.92 is Neutral, neither overbought nor oversold. The STOCH value of 73.86 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.30B | 19.73 | 56.25% | ― | 6.01% | 47.62% | |
66 Neutral | $8.26B | 156.48 | 1.18% | ― | 17.67% | ― | |
66 Neutral | $8.26B | 156.48 | 1.18% | ― | 17.67% | ― | |
66 Neutral | $947.78M | -30.41 | -7.27% | ― | 9.79% | 53.33% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
55 Neutral | $60.87B | 846.58 | 0.91% | ― | 460.89% | -71.23% |
* Communication Services Sector Average
Z
Zillow Group Class C
35.72
-45.68
-56.12%
NBIS
Nebius Group
220.11
153.93
232.59%
ZG
Zillow Group Class A
36.57
-41.32
-53.05%
CARG
CarGurus
36.89
4.69
14.57%
NXDR
Nextdoor Holdings
2.39
0.48
25.13%
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.