Zillow Group Class C (Z)
NASDAQ:Z
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Zillow Group Class C
(NASDAQ:Z)
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Rating:62Neutral
Price Target:
$58.00
▲(40.00% Upside)
Action:ReiteratedDate:02/12/26
The score is driven primarily by improving financial performance (strong balance sheet, positive cash generation, return to GAAP profitability) and a constructive earnings outlook with continued growth and margin expansion. Offsetting these positives are very weak technicals (downtrend with bearish momentum) and a demanding valuation (very high P/E with no dividend yield provided).
Positive Factors
Balance sheet strength
Extremely low leverage and sizable equity provide durable financial flexibility: supports continued product investment, share repurchases, and a $500M revolver cushion. A conservative balance sheet reduces financing risk through cycles and underpins strategic optionality over months.
Negative Factors
Operating profitability inconsistency
While GAAP net income turned positive, persistent negative EBIT indicates reliance on non‑operational items or timing effects. Sustainable earnings depend on consistent operating income; until EBIT consistently turns positive, profitability durability and earnings quality remain uncertain over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Extremely low leverage and sizable equity provide durable financial flexibility: supports continued product investment, share repurchases, and a $500M revolver cushion. A conservative balance sheet reduces financing risk through cycles and underpins strategic optionality over months.
Read all positive factors
Zillow Group Class C (Z) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.95B
Dividend YieldN/A
Average Volume (3M)4.15M
Price to Earnings (P/E)717.6
Beta (1Y)1.32
Revenue Growth15.17%
EPS Growth75.90%
CountryUS
Employees6,819
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.39
Shares Outstanding187,816,990
10 Day Avg. Volume3,233,442
30 Day Avg. Volume4,154,687
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 Cap0.96
Enterprise Value/Revenue3.72
Enterprise Value/Gross Profit5.01
Enterprise Value/Ebitda31.88
Forecast
1Y Price Target
$80.25Price Target Upside93.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)2.2
Revenue Forecast (FY)$2.98B
Zillow Group Class C Business Overview & Revenue Model
Company Description
Zillow Group, Inc., a digital real estate company, operates real estate brands on mobile applications and Websites in the United States. The company operates through three segments: Homes; Internet, Media & Technology; and Mortgages. The Homes seg...
How the Company Makes Money
Zillow Group generates revenue through multiple key streams. Primarily, it earns money through its Zillow Offers program, where it purchases homes directly from sellers, makes necessary repairs, and then resells them, capturing the profit margin. ...
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 Earnings Call Summary
Earnings Call Date:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call presents a decidedly positive operational and financial picture: strong revenue growth across both for‑sale and rentals, meaningful margin expansion, GAAP profitability, robust free cash flow, share buybacks, and clear product traction (enhanced markets, rentals, Showcase, Follow‑up Boss). Near‑term challenges center on elevated legal expenses, deliberate investments that increase variable costs, and a housing market that remains subdued, which temper the pace of margin expansion in early 2026. Overall, the strength and breadth of growth and profitability achievements outweigh the lowlights and planned investments.Positive Updates
Strong Top-Line Growth
Q4 2025 revenue grew 18% year over year to $654 million and full-year 2025 revenue grew 16% year over year, consistent with mid‑teens growth guidance.
Negative Updates
Elevated Legal Expenses and Ongoing Litigation
Legal expenses were higher than expected in Q4, pushing EBITDA expenses above outlook. Management expects elevated legal costs through 2026, causing an estimated ~200 basis points headwind to Q1 EBITDA margins and ~100 basis points headwind for the full year.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Q4 2025 revenue grew 18% year over year to $654 million and full-year 2025 revenue grew 16% year over year, consistent with mid‑teens growth guidance.
Read all positive updates
Company Guidance
Guidance for Q1 and full-year 2026 was: Q1 revenue $700–710M (implying ~18% YoY at the midpoint), Q1 EBITDA $160–175M (≈24% margin at the midpoint) with legal expenses creating roughly a 200‑basis‑point EBITDA headwind in Q1; Q1 rentals growth ~40% YoY, Q1 mortgages growth ≈40% and residential growth in the high single digits. For full‑year 2026 the company expects mid‑teens revenue growth, ~30% rentals revenue growth, continued EBITDA margin expansion (despite an estimated ~100‑basis‑point legal drag for the year), a fixed cost base of about $1.0B, share‑based compensation down >10% YoY, variable costs to grow ahead of revenue early in the year then trend toward in line later, and continued share repurchases, with consensus EBITDA characterized as reasonable.Zillow Group Class C Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
73
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.58B | 2.24B | 1.95B | 1.96B | 2.13B |
| Gross Profit | 1.92B | 1.71B | 1.52B | 1.59B | 1.81B |
| EBITDA | 261.00M | 179.00M | 125.00M | 130.00M | 382.00M |
| Net Income | 23.00M | -112.00M | -158.00M | -101.00M | -528.00M |
Balance Sheet | |||||
| Total Assets | 5.68B | 5.83B | 6.65B | 6.56B | 10.70B |
| Cash, Cash Equivalents and Short-Term Investments | 1.29B | 1.86B | 2.81B | 3.36B | 2.83B |
| Total Debt | 536.00M | 743.00M | 1.83B | 1.87B | 1.60B |
| Total Liabilities | 801.00M | 981.00M | 2.13B | 2.08B | 5.35B |
| Stockholders Equity | 4.88B | 4.85B | 4.53B | 4.48B | 5.34B |
Cash Flow | |||||
| Free Cash Flow | 235.00M | 285.00M | 189.00M | 4.36B | -3.28B |
| Operating Cash Flow | 368.00M | 428.00M | 354.00M | 4.50B | -3.18B |
| Investing Cash Flow | -6.00M | 395.00M | 25.00M | -1.53B | 1.09B |
| Financing Cash Flow | -674.00M | -1.23B | -352.00M | -4.34B | 3.15B |
Zillow Group Class C Technical Analysis
Negative
41.43
Price Trends
47.32
Negative
58.69
Negative
68.65
Negative
Market Momentum
-1.87
Negative
41.33
Neutral
33.77
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For Z, the sentiment is Negative. The current price of 41.43 is below the 20-day moving average (MA) of 42.78, below the 50-day MA of 47.32, and below the 200-day MA of 68.65, indicating a bearish trend. The MACD of -1.87 indicates Negative momentum. The RSI at 41.33 is Neutral, neither overbought nor oversold. The STOCH value of 33.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $9.95B | 717.69 | 0.47% | ― | 15.17% | 75.90% | |
66 Neutral | $3.29B | 23.44 | 39.29% | ― | 4.21% | ― | |
62 Neutral | $9.95B | 717.59 | 0.47% | ― | 15.17% | 75.90% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
56 Neutral | $31.46B | 208.29 | 2.48% | ― | -87.55% | 336.73% | |
51 Neutral | $3.03B | -29.16 | -2.17% | ― | -29.40% | -529.81% | |
51 Neutral | $562.20M | -14.97 | -12.56% | ― | 6.65% | 50.32% |
* Communication Services Sector Average
Z
Zillow Group Class C
40.63
-21.18
-34.27%
NBIS
Nebius Group
136.33
115.29
547.96%
ZG
Zillow Group Class A
40.65
-20.19
-33.19%
CARG
CarGurus
34.40
7.83
29.47%
IAC
IAC/InteractiveCorp.
40.87
6.55
19.09%
NXDR
Nextdoor Holdings
1.42
-0.05
-3.40%
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.