Zillow Group Inc Class A (ZG)
NASDAQ:ZG
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Zillow Group Class A
(NASDAQ:ZG)
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Rating:68Neutral
Price Target:
$49.00
▲(4.23% Upside)
Action:ReiteratedDate:05/07/26
The score is driven mainly by strengthening fundamentals (improving profitability, solid cash generation, and a very low-leverage balance sheet) and a positive earnings outlook with continued growth and margin expansion. Offsetting these are a premium valuation (high P/E), longer-term technical weakness (below 100/200-day averages), and near-term cost/legal headwinds highlighted in guidance.
Positive Factors
Low Leverage / Strong Balance Sheet
Very low leverage and sizable equity provide durable financial flexibility: supports continued product investment, buybacks, and the ability to absorb cyclical housing shocks without forcing asset sales or heavy refinancing. This underpins multi‑quarter strategic optionality.
Negative Factors
Legal/FTC Trial Costs
Ongoing FTC litigation imposes recurring legal expense and operational distraction. The ~$20M near‑term hit and ~200bp EBITDA headwind could persist or increase pending outcomes, creating structural cost uncertainty that can compress margins and divert cash from growth initiatives.
Read all positive and negative factors
Positive Factors
Negative Factors
Low Leverage / Strong Balance Sheet
Very low leverage and sizable equity provide durable financial flexibility: supports continued product investment, buybacks, and the ability to absorb cyclical housing shocks without forcing asset sales or heavy refinancing. This underpins multi‑quarter strategic optionality.
Read all positive factors
Zillow Group Class A (ZG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.51B
Dividend YieldN/A
Average Volume (3M)999.69K
Price to Earnings (P/E)53.0
Beta (1Y)1.28
Revenue Growth16.83%
EPS GrowthN/A
CountryUS
Employees6,819
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.09
Shares Outstanding42,435,295
10 Day Avg. Volume834,199
30 Day Avg. Volume999,694
Financial Highlights & Ratios
PEG Ratio-5.99
Price to Book (P/B)3.38
Price to Sales (P/S)6.39
P/FCF Ratio70.24
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue3.68
Enterprise Value/Gross Profit4.96
Enterprise Value/Ebitda30.93
Forecast
1Y Price Target
$64.06Price Target Upside36.27% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)2.25
Revenue Forecast (FY)$2.98B
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 seg...
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 ...
Zillow Group Class A Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Positive
The call presents a strongly positive operational and financial picture: double-digit total revenue growth (18% YoY), robust rentals acceleration (+42% YoY), rapid mortgages expansion (+56% YoY) and margin/cash-flow improvements (net income margin +500+ bps, free cash flow +44%). Notable near-term headwinds include elevated legal costs tied to the FTC trial, incremental advertising and variable investments that pressure H1 margins, a flat housing market and a decline in market-based pricing revenue. Management expects these pressures to ease in the back half of 2026, with margin expansion and durable mid-teens revenue growth driven by rentals, For Sale integration and scaling Zillow Home Loans. Overall, the positive growth, profitability and product/AI momentum materially outweigh the highlighted near-term challenges.Positive Updates
Strong Top-Line Growth
Total revenue of $708 million, up 18% year-over-year and near the high end of guidance; Q2 revenue outlook of $750M-$765M (≈16% YoY at midpoint) and full-year target of mid-teens revenue growth.
Negative Updates
Legal Costs and FTC Trial Headwind
Incremental legal expenses of ~$11 million in Q1 and expected ~$20 million incremental legal costs in Q2 related to the FTC trial; company called legal a ~200 basis point headwind to EBITDA margins in the first half of 2026.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue of $708 million, up 18% year-over-year and near the high end of guidance; Q2 revenue outlook of $750M-$765M (≈16% YoY at midpoint) and full-year target of mid-teens revenue growth.
Read all positive updates
Company Guidance
Zillow guided Q2 revenue of $750–765 million (≈16% YoY at the midpoint) with EBITDA of $150–165 million and EBITDA expenses of about $600 million, noting roughly $20 million of incremental legal costs and ~$16 million of incremental advertising versus a year ago (Q2 advertising ~ $80M vs $64M LY); excluding the $20M legal headwind EBITDA would be ~$170–185M. For the full year 2026 the company reiterated mid‑teens total revenue growth, ~30% rentals growth, continued EBITDA margin expansion, share‑based compensation down >15% YoY, a fixed cost base of ~ $1.1B, and a plan for variable cost growth to decelerate (having been a >400‑bp EBITDA headwind in H1 and trending toward neutral by year‑end) while legal expenses (about a 200‑bp H1 headwind) and seasonally weighted advertising should ease in H2; liquidity is ~ $1.3B (cash & investments $788M plus a $500M undrawn revolver).Zillow Group Class A Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
86
Very Positive
Cash Flow
72
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 | 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
Neutral
47.01
Price Trends
44.36
Positive
56.24
Negative
65.96
Negative
Market Momentum
-0.50
Negative
61.94
Neutral
91.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZG, the sentiment is Neutral. The current price of 47.01 is above the 20-day moving average (MA) of 42.18, above the 50-day MA of 44.36, and below the 200-day MA of 65.96, indicating a neutral trend. The MACD of -0.50 indicates Negative momentum. The RSI at 61.94 is Neutral, neither overbought nor oversold. The STOCH value of 91.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for ZG.
Zillow Group Class A Risk Analysis
Zillow Group Class A disclosed 49 risk factors in its most recent earnings report. Zillow Group Class A 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 A Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.51B | 20.51 | 19.96% | ― | 2.09% | 4.03% | |
68 Neutral | $9.51B | 53.02 | 1.28% | ― | 16.83% | ― | |
67 Neutral | $9.51B | 53.00 | 0.47% | ― | 16.83% | ― | |
66 Neutral | $1.73B | -5.59 | 5.63% | ― | 26.61% | ― | |
61 Neutral | $762.82M | -11.86 | -10.32% | ― | 6.78% | 52.54% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
ZG
Zillow Group Class A
41.94
-24.84
-37.20%
YELP
Yelp
27.08
-11.90
-30.53%
Z
Zillow Group Class C
41.43
-26.50
-39.01%
TRVG
trivago
3.47
-1.43
-29.18%
NXDR
Nextdoor Holdings
2.02
0.66
48.53%
Zillow Group Class A Corporate Events
Business Operations and StrategyStock Buyback
Zillow Group Expands Share Repurchase Authorization for 2026
Positive
Mar 5, 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 compa...
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.