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Zillow Group Reports Third-Quarter Financial Results for 2026

Zillow Group, Inc. (NASDAQ: Z and ZG), a major player in real estate technology, shared its financial outcomes for the third quarter of 2026, underscoring the company's strength in a difficult housing market. Despite challenges, Zillow managed to increase its revenue, demonstrating resilience and adaptability.

Financial Overview

During the last quarter, Zillow reported a consolidated revenue of $724 million, marking a 7% increase compared to the previous year. This achievement is notable given that the overall residential real estate market experienced only a 1% growth during the same period. CEO Jeremy Wacksman remarked, "Q3 highlighted Zillow's durability. We grew revenue and outperformed the real estate category during one of the toughest housing markets in a generation."

Key Revenue Streams

• - Residential Real Estate Revenue: Down 4% year-over-year, reflecting the impact of rising mortgage rates. Revenue stood at $419 million.
• - For Sale Revenue: Remained stable at $489 million.
• - Mortgages Revenue: Increased significantly by 32% year-over-year to reach $70 million, largely due to a 55% increase in purchase loan origination volume, totaling $2.0 billion.
• - Rentals Revenue: Gained a 26% boost, resulting in $220 million, primarily driven by growth in multifamily rentals, which saw a 35% rise.

Zillow's diversified business model, leveraging its brand strength and high audience engagement, has played a crucial role in maintaining revenue levels amid widespread market fluctuations.

Profitability and Losses

Despite these positive revenue trends, Zillow reported a net loss of $158 million for Q3, with a loss margin of 22%. This translates to a diluted net loss per share of $0.70, contrasting sharply with a diluted net income per share of $0.04 for the same quarter last year. However, adjusted net income stood at $124 million, reflecting the company’s operational adjustments and commitment to profitability in the long run.

Gross Profit and Cash Flow

The gross profit achieved during the third quarter totaled $516 million, amounting to 71% of revenue, indicating a solid operational structure. Cash reserves and investments were reported to be $707 million at the end of Q3, positioning Zillow well for future investments and growth opportunities.

Audience Engagement

While Zillow's traffic to its mobile apps and websites decreased by 3% year-over-year to 215 million monthly unique users, it still commanded a significant 77% share of the unique visitors within the real estate category. Company visits fell 5% to 2.3 billion. The brand continues to leverage its dominant market position to remain at the forefront of consumers’ minds when it comes to real estate decisions.

Future Outlook

Zillow Group is committed to creating streamlined and affordable moving experiences for buyers, renters, and sellers alike. The company emphasized its goals for technological improvements and service expansions that will enhance user experiences and empower real estate professionals. The Q3 report indicates a robust plan ahead, keeping innovation as a core focus area.

In summary, despite facing a challenging backdrop in the housing market, Zillow Group demonstrated its operational resilience with notable revenue growth and strong strategic positioning. Stakeholders can anticipate further developments as the company adapts its strategies and continuously aims for enhanced performance in the upcoming quarters.