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Why Is Zillow (ZG) Down 1.7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Zillow Group (ZG - Free Report) . Shares have lost about 1.7% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Zillow due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Zillow Group, Inc. before we dive into how investors and analysts have reacted as of late.
Zillow’s Q4 Earnings Miss Expectations, Revenues Increase Y/Y
Zillow Group reported relatively mixed fourth-quarter 2025 results, with revenues beating the Zacks Consensus Estimate but adjusted earnings missing the same.
The company registered strong revenue growth mainly in the rentals segment, especially multifamily listings, with significant increases in mortgage revenues from higher purchase loan origination volumes, and continued gains in its residential/agent-related services.
Net Income
On a GAAP basis, the company reported a net income of $3 million or 1 cent per share against a net loss of $52 million or a loss of 22 cents per share in the year-ago quarter. Solid top-line growth primarily boosted the net income.
Non-GAAP net income in the reported quarter was $98 million or 39 cents per share compared with $68 million or 27 cents per share in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate of 42 cents per share.
For 2025, Zillow reported GAAP net income of $23 million or 9 cents per share against a net loss of $112 million or a loss of 48 cents per share in 2024. Non-GAAP net income for 2025 was $417 million or $1.64 per share compared with $349 million or $1.38 per share in 2024.
Revenues
Quarterly revenues increased to $654 million from $554 million in the year-ago quarter. Healthy growth in all segments boosted the top line. The top line beat the Zacks Consensus Estimate of $650 million. For 2025, revenues increased to $2.58 billion from $2.24 billion in 2024.
Residential revenues increased 8% to $418 million, backed by solid growth in its agent and software offerings, which include Zillow Preferred, Market Based Pricing, Zillow Showcase, ShowingTime, DotLoop, and Follow Up Boss.
The Mortgages segment generated $57 million in revenues compared with $41 million in the year-earlier quarter. The growth was primarily driven by a 67% surge in purchase loan origination.
Rental revenues rose 45% to $168 million, primarily driven by 63% year-over-year growth of multifamily revenues.
Other Details
During the quarter, the company recorded a gross profit of $476 million compared with $420 million in the prior-year quarter, with respective margins of 73% and 76%. The operating expenses during the quarter were $487 million, down from $489 million in the prior-year quarter.
Adjusted EBITDA was $149 million compared with $112 million a year ago, with respective margins of 23% and 20%.
Cash Flow & Liquidity
In the fourth quarter, Zillow generated $72 million in cash from operations compared with $122 million in the year-earlier quarter. For 2025, the company generated $368 million of cash from operating activities compared with $428 million in 2024.
As of Dec. 31, 2025, it had $768 million in cash and cash equivalents, with $43 million of other long-term liabilities compared with respective tallies of $1.1 billion and $67 million a year ago.
Outlook
For the first quarter of 2026, Zillow expects total revenues in the range of $700-$710 million. Total adjusted EBITDA is expected in the band of $160 million to $175 million. Management expects Mortgages’ revenues to grow approximately 40% year over year. Residential revenues are projected to grow in the high single-digit range, while rental revenues are expected to rise more than 40% year over year.
For 2026, the company expects mid-teens revenue growth, with rental revenues up approximately 30% year over year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.25% due to these changes.
VGM Scores
At this time, Zillow has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Zillow has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Zillow (ZG) Down 1.7% Since Last Earnings Report?
It has been about a month since the last earnings report for Zillow Group (ZG - Free Report) . Shares have lost about 1.7% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Zillow due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Zillow Group, Inc. before we dive into how investors and analysts have reacted as of late.
Zillow’s Q4 Earnings Miss Expectations, Revenues Increase Y/Y
Zillow Group reported relatively mixed fourth-quarter 2025 results, with revenues beating the Zacks Consensus Estimate but adjusted earnings missing the same.
The company registered strong revenue growth mainly in the rentals segment, especially multifamily listings, with significant increases in mortgage revenues from higher purchase loan origination volumes, and continued gains in its residential/agent-related services.
Net Income
On a GAAP basis, the company reported a net income of $3 million or 1 cent per share against a net loss of $52 million or a loss of 22 cents per share in the year-ago quarter. Solid top-line growth primarily boosted the net income.
Non-GAAP net income in the reported quarter was $98 million or 39 cents per share compared with $68 million or 27 cents per share in the prior-year quarter. The bottom line missed the Zacks Consensus Estimate of 42 cents per share.
For 2025, Zillow reported GAAP net income of $23 million or 9 cents per share against a net loss of $112 million or a loss of 48 cents per share in 2024. Non-GAAP net income for 2025 was $417 million or $1.64 per share compared with $349 million or $1.38 per share in 2024.
Revenues
Quarterly revenues increased to $654 million from $554 million in the year-ago quarter. Healthy growth in all segments boosted the top line. The top line beat the Zacks Consensus Estimate of $650 million. For 2025, revenues increased to $2.58 billion from $2.24 billion in 2024.
Residential revenues increased 8% to $418 million, backed by solid growth in its agent and software offerings, which include Zillow Preferred, Market Based Pricing, Zillow Showcase, ShowingTime, DotLoop, and Follow Up Boss.
The Mortgages segment generated $57 million in revenues compared with $41 million in the year-earlier quarter. The growth was primarily driven by a 67% surge in purchase loan origination.
Rental revenues rose 45% to $168 million, primarily driven by 63% year-over-year growth of multifamily revenues.
Other Details
During the quarter, the company recorded a gross profit of $476 million compared with $420 million in the prior-year quarter, with respective margins of 73% and 76%. The operating expenses during the quarter were $487 million, down from $489 million in the prior-year quarter.
Adjusted EBITDA was $149 million compared with $112 million a year ago, with respective margins of 23% and 20%.
Cash Flow & Liquidity
In the fourth quarter, Zillow generated $72 million in cash from operations compared with $122 million in the year-earlier quarter. For 2025, the company generated $368 million of cash from operating activities compared with $428 million in 2024.
As of Dec. 31, 2025, it had $768 million in cash and cash equivalents, with $43 million of other long-term liabilities compared with respective tallies of $1.1 billion and $67 million a year ago.
Outlook
For the first quarter of 2026, Zillow expects total revenues in the range of $700-$710 million. Total adjusted EBITDA is expected in the band of $160 million to $175 million. Management expects Mortgages’ revenues to grow approximately 40% year over year. Residential revenues are projected to grow in the high single-digit range, while rental revenues are expected to rise more than 40% year over year.
For 2026, the company expects mid-teens revenue growth, with rental revenues up approximately 30% year over year.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
The consensus estimate has shifted -6.25% due to these changes.
VGM Scores
At this time, Zillow has a nice Growth Score of B, a grade with the same score on the momentum front. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Zillow has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.