ZILLOW GROUP, INC. (Z): Results of Operations and Financial Condition
ZILLOW GROUP, INC. (Z) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Contacts: Investors Brad Berning ir@zillowgroup.com Media Gina Cole press@zillow.com Zillow Group Reports Second-Quarter 2026 Financial Results SEATTLE, August 5, 2026 — Zillow Group, Inc. (NASDAQ: Z and ZG), which is transforming the way people buy, sell, rent and f
How this was made
The 30-second read
Why it matters
This is a primary-source earnings release disclosure with quantified financial performance and capital return (share repurchases), which can affect short-term positioning and forward estimate expectations.
Market read
Q2 revenue growth, adjusted profitability, and a $200M buyback are the main tradable takeaways, with traffic declines and GAAP net loss as key offsets.
What to watch
Mortgage revenue growth is tied to purchase origination volume, which may be cyclical with interest rates; traders may discount the durability of the mortgage-driven uplift.
Zillow Group Reports Second-Quarter 2026 Financial Results
Q2 revenue grew 18% year over year to $772 million, with growth across For Sale and Rentals, while Adjusted EBITDA of $176 million exceeded the high end of the company's outlook range. The quarter also included a $4 million net loss, lower gross-profit and Adjusted EBITDA percentages of revenue, and declining traffic and visits.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $772 million | – | 18% |
| Gross profitGAAP | $562 million | – | – |
| Gross profit percentage of revenueGAAP | 73% | – | – |
| Net income (loss)GAAP | $(4) million | – | – |
| Net income (loss) percentage of revenueGAAP | (1)% | – | – |
| Diluted net income (loss) per shareGAAP | $(0.02) | – | – |
| Net cash provided by operating activitiesGAAP | $11 million | – | – |
| Adjusted EBITDAnon-GAAP | $176 million | – | – |
| Adjusted EBITDA percentage of revenuenon-GAAP | 23% | – | – |
| Adjusted net incomenon-GAAP | $118 million | – | – |
| Adjusted net income percentage of revenuenon-GAAP | 15% | – | – |
| Diluted adjusted net income per sharenon-GAAP | $0.52 | – | – |
| Adjusted free cash flownon-GAAP | $96 million | – | – |
| Cash and investments at the end of Q2other | $682 million | – | – |
| Purchase loan origination volumeother | $2.2 billion | – | 95% |
| Average monthly unique usersother | 239 million | – | down 2% year over year |
| Visits during Q2other | 2.5 billion | – | down 2% year over year |
| Six months ended June 30, 2026 total revenueGAAP | $1,480 million | – | 18% |
| Six months ended June 30, 2026 gross profitGAAP | $1,081 million | – | – |
| Six months ended June 30, 2026 net income (loss)GAAP | $42 million | – | – |
| Six months ended June 30, 2026 diluted net income (loss) per shareGAAP | $0.18 | – | – |
| Six months ended June 30, 2026 net cash provided by operating activitiesGAAP | $211 million | – | – |
| Six months ended June 30, 2026 Adjusted EBITDAnon-GAAP | $374 million | – | – |
| Six months ended June 30, 2026 adjusted net incomenon-GAAP | $263 million | – | – |
| Six months ended June 30, 2026 diluted adjusted net income per sharenon-GAAP | $1.12 | – | – |
| Six months ended June 30, 2026 adjusted free cash flownon-GAAP | $223 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| For Sale revenueNot separately specified. | $549 million | – | 14% |
| ResidentialBenefiting from growth in Preferred, Zillow Showcase, New Construction and the company’s suite of agent software tools. | $465 million | – | 7% |
| MortgagesPrimarily due to a 95% increase in purchase loan origination volume to $2.2 billion. | $84 million | – | 75% |
| RentalsPrimarily driven by multifamily revenue growing 42% year over year. | $209 million | – | 31% |
| OtherNot separately specified. | $14 million | – | —% |
| For Sale revenue, six months ended June 30, 2026Not separately specified. | $1,063 million | – | 13% |
| Residential, six months ended June 30, 2026Not separately specified. | $915 million | – | 8% |
| Mortgages, six months ended June 30, 2026Not separately specified. | $148 million | – | 66% |
| Rentals, six months ended June 30, 2026Not separately specified. | $392 million | – | 36% |
| Other, six months ended June 30, 2026Not separately specified. | $25 million | – | —% |
Capital returns
- In Q2, the company repurchased 5.6 million shares for $200 million.
What drove it
- Q2 revenue was up 18% year over year to $772 million, while the residential real estate industry grew by 6% in Q2.
- Residential revenue benefited from growth in Preferred, Zillow Showcase, New Construction and the company’s suite of agent software tools.
- Mortgages revenue increased 75% year over year, primarily due to a 95% increase in purchase loan origination volume to $2.2 billion.
- Rentals revenue increased 31% year over year, primarily driven by multifamily revenue growing 42% year over year.
- Zillow stated that Adjusted EBITDA of $176 million was above the high end of its outlook range.
Concerns
- Net loss was $4 million in Q2, compared with net income of $2 million in Q2 2025.
- Gross profit percentage of revenue was 73%, compared with 75% in Q2 2025.
- Adjusted EBITDA percentage of revenue was 23%, compared with 24% in Q2 2025.
- Traffic to Zillow Group’s mobile apps and sites was down 2% year over year to 239 million average monthly unique users, and visits were down 2% year over year to 2.5 billion.
- The company said leading indicators are pointing to a slower second half.
What to watch
- Whether Residential revenue continues to benefit from Preferred, Zillow Showcase, New Construction and agent software tools.
- Whether purchase loan origination volume continues to support Mortgages revenue growth.
- Whether multifamily revenue continues to drive Rentals growth.
- Traffic and visit trends after Q2 declines of 2% year over year.
- Gross profit percentage of revenue and Adjusted EBITDA percentage of revenue following year-over-year declines.
- Third-quarter and full-year 2026 numerical outlook, which was referenced as available in the shareholder letter but was not included in the provided filing text.
Balance sheet and cash flow
- Cash and investments at the end of Q2 were $682 million.
- Net cash provided by operating activities was $11 million in Q2, compared with $87 million in Q2 2025.
- Adjusted free cash flow was $96 million in Q2, compared with $100 million in Q2 2025.
- Net cash provided by operating activities was $211 million for the six months ended June 30, 2026, compared with $191 million in the prior-year period.
- Adjusted free cash flow was $223 million for the six months ended June 30, 2026, compared with $188 million in the prior-year period.
Analysis
Zillow reported Q2 revenue of $772 million, up 18% year over year from $655 million. The company said this exceeded the high end of its outlook range and outpaced 6% growth in the residential real estate industry. For the first six months of 2026, total revenue was $1,480 million, also up 18% year over year from $1,253 million.
Growth was broad based. For Sale revenue increased 14% to $549 million, consisting of Residential revenue of $465 million, up 7%, and Mortgages revenue of $84 million, up 75%. The company attributed Residential growth to Preferred, Zillow Showcase, New Construction and agent software tools, while mortgage growth was primarily tied to a 95% increase in purchase loan origination volume to $2.2 billion. Rentals was the fastest major revenue category, increasing 31% to $209 million, primarily driven by 42% multifamily revenue growth.
Profitability showed both earnings growth on an adjusted basis and pressure in reported margins. Gross profit was $562 million, but gross profit percentage of revenue declined to 73% from 75%. Adjusted EBITDA increased to $176 million from $155 million and was above the high end of the company's outlook range, while its percentage of revenue declined to 23% from 24%. Adjusted net income rose to $118 million from $101 million, and diluted adjusted net income per share increased to $0.52 from $0.40. GAAP results moved to a net loss of $4 million, or $(0.02) per diluted share, from net income of $2 million, or $0.01 per diluted share.
Cash generation was lower in the quarter despite higher revenue. Net cash provided by operating activities was $11 million versus $87 million in Q2 2025, and adjusted free cash flow was $96 million versus $100 million. Zillow ended Q2 with $682 million of cash and investments and repurchased 5.6 million shares for $200 million. For the six-month period, net cash provided by operating activities increased to $211 million from $191 million and adjusted free cash flow increased to $223 million from $188 million.
Audience measures weakened modestly, with average monthly unique users down 2% year over year to 239 million and visits down 2% to 2.5 billion. The company said Zillow outperformed the broader category, which saw a decline overall, and noted indicators pointing to a slower second half. The filing references third-quarter and full-year 2026 outlook in a shareholder letter, but the provided text does not contain the numerical guidance, preventing a direct assessment of the forward outlook or comparison with prior guidance.
Management, verbatim
Zillow delivered another quarter of strong results and consistent execution. We outperformed the broader housing market and our outlook, and we are on track toward our full-year goals.
Jeremy Wacksman, Zillow Chief Executive Officer
Zillow is the operating system for modern real estate, and we are building toward a future where getting home through the integrated experience on Zillow is the standard for renters, buyers, sellers and the industry professionals who guide them through it.
Jeremy Wacksman, Zillow Chief Executive Officer
Not in the filing
stated, not guessed- Numerical third-quarter 2026 guidance
- Numerical full-year 2026 guidance
- Prior-quarter comparisons for reported financial metrics
- Prior numerical guidance needed for metric-by-metric guidance comparison
- GAAP operating income or loss
- GAAP operating expenses
- Debt balance
- Dividend declaration or payment information
- CFO commentary
- Detailed gross margin guidance, operating-expense guidance and tax-rate guidance
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
The filing is an SEC Form 8-K with Exhibit 99.1 covering Zillow’s Q2 2026 results and related operational highlights.
Ticker impact
Zillow reported Q2 2026 results, including revenue up 18% to $772M, adjusted net income of $118M, and a $200M share repurchase.
Likely modest positive bias for the next session and into analyst revisions, assuming the market focuses on adjusted profitability and buyback pace.
The article provides multiple quantified performance metrics (revenue growth, adjusted net income, adjusted EBITDA) and a concrete repurchase amount, but it does not include explicit third-quarter or full-year guidance numbers in the provided excerpt.
Market effects
Read-across for online real estate marketplaces and mortgage-adjacent revenue streams, given the disclosed growth in For Sale and Mortgages revenue.
Primarily US housing-market demand sensitivity, via references to existing home sales and mortgage origination volume trends.
Limited, as the disclosure is company-specific and US housing-market oriented.
Counterpoint
Despite adjusted profitability, Zillow still posted a GAAP net loss in Q2, and traffic metrics (unique users and visits) declined year over year.
Key entities
- public_companyZillow Group, Inc.
Subject of the 8-K, reporting Q2 2026 financial results and operational highlights.
- executiveJeremy Wacksman
CEO quoted in the release discussing execution and outlook alignment.
