We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Zillow (ZG) Up 6.8% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Zillow Group (ZG - Free Report) . Shares have added about 6.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Zillow due for a pullback? Well, first let's take a quick look at its most recent 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 Q2 Earnings Surpass Estimates on Solid Revenue Growth
Zillow Group reported strong second-quarter 2026 results, with both adjusted earnings and revenues beating the Zacks Consensus Estimate.
The company reported an 18% year-over-year increase in total revenues, primarily driven by robust growth in the mortgages segment, supported by continued strength in the rentals business and steady momentum in the residential segment, reflecting sustained demand across its integrated real estate platform.
Net Income
On a GAAP basis, the company reported a net loss of $4 million or a loss of 2 cents per share against a net income of $2 million or 1 penny per share in the year-ago quarter. Higher costs and operating expenses pressured the bottom line during the quarter.
Non-GAAP net income in the reported quarter was $118 million or 52 cents per share compared with $101 million or 40 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 44 cents.
Revenues
Quarterly revenues increased to $772 million from $655 million in the year-ago quarter. Healthy growth in all segments boosted the top line. The top line beat the Zacks Consensus Estimate of $759.5 million.
Residential revenues increased 7% to $465 million, primarily driven by the expansion of Zillow Preferred through increased connections in its fully integrated experience, with additional contributions from Zillow Showcase, New Construction and agent software tools.
The mortgages segment generated $84 million in revenues compared with $48 million in the year-earlier quarter, mainly due to 95% growth in purchase loan origination as the company’s mortgage strategy is encouraging more buyers to use Zillow Home Loans.
Rental revenues rose 31% to $209 million, primarily driven by a 42% increase in multifamily revenues.
Other Details
During the quarter, the company recorded a gross profit of $562 million compared with $489 million in the prior-year quarter, with respective margins of 73% and 75%. The operating expenses during the quarter were $572 million, up from $500 million in the prior-year quarter.
Adjusted EBITDA was $176 million compared with $155 million a year ago, with respective margins of 23% and 24%.
Cash Flow & Liquidity
In the second quarter, Zillow generated $11 million in cash from operations compared with $87 million in the year-earlier quarter. During the first six months of 2026, the company generated $211 million in cash compared with $191 million in the year-ago period. As of June 30, 2026, it had $572 million in cash and cash equivalents, with $77 million of lease liabilities (net of current portion).
Outlook
For the third quarter of 2026, Zillow expects total revenues in the range of $745-$760 million. Total adjusted EBITDA is expected in the band of $180 million to $200 million. Management expects Mortgages’ revenues to grow more than 50% year over year. Residential revenue growth is projected to be flat, while rental revenues are expected to increase in the high 20% range.
For the fourth quarter of 2026, Zillow expects residential revenue growth to align with the purchase mortgage industry, while adjusted EBITDA is projected to be in the mid-single-digit range. For 2026, the company projects total revenues between $2.92 billion and $ 2.96 billion, and adjusted EBITDA is expected to be in the range of $730- $760 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -17.65% due to these changes.
VGM Scores
At this time, Zillow has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score 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. Notably, Zillow has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Zillow (ZG) Up 6.8% Since Last Earnings Report?
A month has gone by since the last earnings report for Zillow Group (ZG - Free Report) . Shares have added about 6.8% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Zillow due for a pullback? Well, first let's take a quick look at its most recent 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 Q2 Earnings Surpass Estimates on Solid Revenue Growth
Zillow Group reported strong second-quarter 2026 results, with both adjusted earnings and revenues beating the Zacks Consensus Estimate.
The company reported an 18% year-over-year increase in total revenues, primarily driven by robust growth in the mortgages segment, supported by continued strength in the rentals business and steady momentum in the residential segment, reflecting sustained demand across its integrated real estate platform.
Net Income
On a GAAP basis, the company reported a net loss of $4 million or a loss of 2 cents per share against a net income of $2 million or 1 penny per share in the year-ago quarter. Higher costs and operating expenses pressured the bottom line during the quarter.
Non-GAAP net income in the reported quarter was $118 million or 52 cents per share compared with $101 million or 40 cents per share in the prior-year quarter. The bottom line surpassed the Zacks Consensus Estimate of 44 cents.
Revenues
Quarterly revenues increased to $772 million from $655 million in the year-ago quarter. Healthy growth in all segments boosted the top line. The top line beat the Zacks Consensus Estimate of $759.5 million.
Residential revenues increased 7% to $465 million, primarily driven by the expansion of Zillow Preferred through increased connections in its fully integrated experience, with additional contributions from Zillow Showcase, New Construction and agent software tools.
The mortgages segment generated $84 million in revenues compared with $48 million in the year-earlier quarter, mainly due to 95% growth in purchase loan origination as the company’s mortgage strategy is encouraging more buyers to use Zillow Home Loans.
Rental revenues rose 31% to $209 million, primarily driven by a 42% increase in multifamily revenues.
Other Details
During the quarter, the company recorded a gross profit of $562 million compared with $489 million in the prior-year quarter, with respective margins of 73% and 75%. The operating expenses during the quarter were $572 million, up from $500 million in the prior-year quarter.
Adjusted EBITDA was $176 million compared with $155 million a year ago, with respective margins of 23% and 24%.
Cash Flow & Liquidity
In the second quarter, Zillow generated $11 million in cash from operations compared with $87 million in the year-earlier quarter. During the first six months of 2026, the company generated $211 million in cash compared with $191 million in the year-ago period. As of June 30, 2026, it had $572 million in cash and cash equivalents, with $77 million of lease liabilities (net of current portion).
Outlook
For the third quarter of 2026, Zillow expects total revenues in the range of $745-$760 million. Total adjusted EBITDA is expected in the band of $180 million to $200 million. Management expects Mortgages’ revenues to grow more than 50% year over year. Residential revenue growth is projected to be flat, while rental revenues are expected to increase in the high 20% range.
For the fourth quarter of 2026, Zillow expects residential revenue growth to align with the purchase mortgage industry, while adjusted EBITDA is projected to be in the mid-single-digit range. For 2026, the company projects total revenues between $2.92 billion and $ 2.96 billion, and adjusted EBITDA is expected to be in the range of $730- $760 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision have trended downward during the past month.
The consensus estimate has shifted -17.65% due to these changes.
VGM Scores
At this time, Zillow has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score 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. Notably, Zillow has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.