Zillow Group Class A (ZG) AI Stock Analysis

• Market Cap: $10.53B
• Dividend Yield: N/A
• Average Volume (3M): 1.46M
• Price to Earnings (P/E): 717.7
• Beta (1Y): 1.32
• Revenue Growth: 15.17%
• EPS Growth: 75.90%
• Country: US
• Employees: 6,819
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): 0.39
• Shares Outstanding: 45,893,776
• 10 Day Avg. Volume: 1,211,076
• 30 Day Avg. Volume: 1,461,777
• PEG Ratio: -5.99
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 6.39
• P/FCF Ratio: 70.24
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 3.99
• Enterprise Value/Gross Profit: 5.38
• Enterprise Value/Ebitda: 33.53
• 1Y Price Target: $73.21
• Price Target Upside: 68.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 2.2
• Revenue Forecast (FY): $2.98B

• Rating: 66 Neutral
• Price Target: $46.00 ▲(5.67% Upside)
• Action: Reiterated Date: 03/05/26
• Date: Action: Reiterated 03/05/26

The score is supported by improving financial performance and a strong earnings outlook with continued margin expansion, reinforced by positive capital return and liquidity actions. These positives are tempered by clearly bearish technical momentum and a very high P/E that elevates valuation risk.

Positive Factors

Improving profitability

Revenue growth resumed and EBITDA turned positive, signaling that core marketplace economics are scaling. This indicates durable operating leverage potential: as user engagement and monetization grow, profits can expand even if housing markets remain uneven, supporting sustainable earnings improvements.

High-growth Rentals franchise

Rentals is a durable growth engine: strong revenue growth, rapid share gains and 2.5M monthly rental listings show structural market share capture. A dominant rentals position strengthens recurring monetization and diversification away from cyclical for‑sale transaction volatility.

Strong balance sheet and liquidity flexibility

Low leverage, sizable equity and a fresh $500M revolving facility provide financial flexibility for investment, M&A or buybacks without stressing operations. Robust liquidity supports multi-year product investments and capital returns while cushioning housing-market cyclicality.

Negative Factors

Persistent legal expense headwind

Elevated and recurring legal costs reduce margin conversion and create earnings unpredictability. Persistent legal expense pressure can materially erode the operating‑margin gains from core growth initiatives and complicate planning for multi‑year margin targets.

Operating profit not yet consistently positive

Although EBITDA is positive, operating profit and ROE are only marginally improved and remain fragile. This implies earnings durability is not fully established; a weaker housing cycle or higher costs could push results back into losses, delaying sustainable return generation.

Cash flow volatility and FCF decline

FFO/FCF showed recent improvement but declined year‑over‑year and historical cash conversion has been uneven. Volatile free cash flow can constrain consistent reinvestment, dividends or buybacks and raises execution risk if market conditions worsen or working capital swings recur.

Zillow Group Class A 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 segment is involved in resale of homes; and title and escrow services to home buyers and sellers, including title search procedures for title insurance policies, escrow, and other closing services. The IMT segment offers premier agent, rentals, and new construction marketplaces, as well as dotloop, display, and other advertising, as well as business software solutions. The Mortgage segment provides home loans; and marketing products including custom quote and connect services. Its portfolio of brands includes Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads, and Out East. The company was incorporated in 2004 and is headquartered in Seattle, Washington.

How the Company Makes Money

Zillow Group primarily generates revenue by monetizing consumer traffic and user engagement across its real estate marketplace platforms. The company’s key revenue streams include: (1) IMT advertising and lead-generation: Zillow sells advertising products and customer acquisition services to real estate agents, teams, and brokerages, allowing them to promote their services and receive connections (leads) from home shoppers on Zillow’s platforms. Revenue in this area is driven by demand from real estate professionals, pricing of advertising/lead products, and the volume and intent of consumer traffic. (2) Rentals revenue: Zillow earns revenue from landlords and property managers through rental listings and related products that help market available rental units to prospective tenants and manage demand. This includes paid placement, subscriptions, and other listing-based monetization offerings tied to rental marketplace activity. (3) Mortgage-related revenue: Zillow offers marketplace tools that connect consumers with mortgage lenders and may earn revenue through advertising and lead/referral arrangements with participating lenders. (4) Other marketplace and ancillary revenue: Zillow may earn additional revenue from services that support transactions (for example, partner referrals or marketing arrangements connected to moving, home services, or other housing-adjacent offerings) where such products are available on its platforms. Zillow’s earnings are influenced by residential real estate and rental market conditions (transaction volumes, housing demand, interest rates), the effectiveness of its consumer-to-professional matching products, and relationships with real estate professionals, landlords/property managers, and lending partners that participate in its marketplaces.

Zillow Group Class A Financial Statement Overview

Summary

Fundamentals are improving: revenue growth resumed, EBITDA turned solidly positive, and net losses narrowed to near breakeven/positive. Balance sheet strength (low leverage and sizable equity) supports resilience, though EBIT is still slightly negative and free cash flow declined year over year, indicating the earnings/cash profile is not fully consistent yet.

Income Statement

TTM (Trailing-Twelve-Months) revenue rose strongly versus the prior year (about +4%), and profitability is clearly improving: EBITDA turned solidly positive and losses narrowed materially from 2024, with a small return to net income. That said, operating profit remains slightly negative and net margin is still around breakeven, indicating the earnings profile is not yet consistently durable.

Balance Sheet

Leverage is very low in TTM (Trailing-Twelve-Months) with a modest debt load relative to equity, a meaningful improvement versus prior years when debt levels were higher. Equity remains sizable versus total assets, providing balance-sheet flexibility. The main weak point is that returns on equity are still slightly negative in TTM (Trailing-Twelve-Months), reflecting that profitability is only recently stabilizing.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is healthy, with positive operating cash flow and positive free cash flow. However, free cash flow declined versus the prior year (roughly -11%), and cash conversion is not consistently strong across years (including a notably weak/negative operating cash flow year in 2021), suggesting some volatility in underlying cash dynamics despite the recent improvement.

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	104.00M	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	660.00M	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 A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 43.53
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZG, the sentiment is Negative. The current price of 43.53 is below the 20-day moving average (MA) of 44.47, below the 50-day MA of 53.17, and below the 200-day MA of 68.48, indicating a bearish trend. The MACD of -2.24 indicates Negative momentum. The RSI at 40.69 is Neutral, neither overbought nor oversold. The STOCH value of 72.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZG.

Zillow Group Class A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YELP	71 Outperform	$1.46B	13.22	19.96%	―	5.35%	33.74%
ZG	66 Neutral	$10.53B	717.69	0.47%	―	15.17%	75.90%
TRVG	64 Neutral	$1.35B	15.50	5.63%	―	17.38%	―
Z	62 Neutral	$10.53B	717.59	0.47%	―	15.17%	75.90%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NXDR	51 Neutral	$554.45M	-14.97	-12.56%	―	6.65%	50.32%

Zillow Group Class A Corporate Events

Zillow Group Expands Share Repurchase Authorization for 2026

Zillow Group has expanded its capital return efforts, with the board on March 4, 2026 authorizing the repurchase of up to an additional $1.25 billion of its Class A common stock and Class C capital stock. From January 1 to March 4, 2026, the company bought back 3.8 million Class A shares at an average of $47.84 and 9.7 million Class C shares at an average of $45.92, spending $626 million and leaving $1.3 billion in remaining repurchase capacity as of March 4, 2026.

The company also reiterated that investors should monitor its investor relations website, news blog and social media accounts as key channels for potentially material disclosures alongside traditional SEC filings and earnings communications. These steps highlight Zillow Group’s active balance-sheet management and evolving investor communication strategy, with implications for shareholder returns and transparency in how the company shares financial and corporate updates.

The most recent analyst rating on (ZG) stock is a Hold with a $46.10 price target. To see the full list of analyst forecasts on Zillow Group Class A stock, see the ZG Stock Forecast page.

Zillow Group Secures New $500 Million Credit Facility

On January 30, 2026, Zillow Group, Inc. entered into a new Credit Agreement establishing a secured, $500 million revolving credit facility for subsidiary Zillow, Inc., with the option to expand the facility by an additional $250 million and a maturity date of January 30, 2031. The facility, which had no outstanding borrowings as of its signing, can be drawn, repaid and redrawn without penalty and will bear interest at either a base rate plus 0.25%–0.75% or SOFR plus 1.25%–1.75%, depending on Zillow’s total net leverage, and is subject to a 0.25% commitment fee on unused amounts. The agreement includes customary covenants and a financial leverage cap of 3.75:1.00, with a temporary step-up allowed following qualifying acquisitions, as well as standard events of default that could trigger acceleration of obligations. The credit line is guaranteed by Zillow Group, MFTB Holdco, Inc. and certain subsidiaries, secured by a first-priority lien on substantially all of their assets, and is intended to provide added financial flexibility for general corporate purposes, potentially strengthening Zillow’s liquidity position and balance sheet resilience.

The most recent analyst rating on (ZG) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on Zillow Group Class A stock, see the ZG Stock Forecast page.