Zillow Group Class A (ZG) AI Stock Analysis

• Market Cap: $17.17B
• Dividend Yield: N/A
• Average Volume (3M): 692.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.38
• 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): 0.44
• Shares Outstanding: 49,633,034
• 10 Day Avg. Volume: 849,867
• 30 Day Avg. Volume: 692,506
• PEG Ratio: 5.03
• Price to Book (P/B): 3.42
• Price to Sales (P/S): 7.42
• P/FCF Ratio: 58.19
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 7.27
• Enterprise Value/Gross Profit: 9.71
• Enterprise Value/Ebitda: 66.35
• 1Y Price Target: $88.71
• Price Target Upside: 26.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 1.65
• Revenue Forecast (FY): $2.58B

• Rating: 62 Neutral
• Price Target: $76.00 ▲(8.60% Upside)

Zillow Group's overall stock score reflects a combination of strong earnings call performance and significant challenges in financial performance and valuation. The company's revenue growth and technological innovations are promising, but profitability issues and a negative P/E ratio weigh heavily on the score. Technical analysis suggests a neutral to bearish trend, further impacting the overall assessment.

Positive Factors

Revenue Growth

Zillow's strong revenue growth reflects its expanding market presence and effective business strategies, ensuring long-term sustainability.

Innovations in AI and Technology

Technological advancements in AI enhance Zillow's competitive edge, driving user engagement and operational efficiency.

Rentals Revenue Surge

The significant growth in rentals revenue, especially in multifamily, indicates strong demand and potential for future expansion.

Negative Factors

Profitability Challenges

Persistent profitability issues may hinder Zillow's ability to reinvest in growth and maintain financial health over time.

Negative Free Cash Flow Growth

Declining free cash flow limits Zillow's capacity to fund operations and strategic initiatives, affecting long-term growth.

Challenging Housing Market

A sluggish housing market could constrain Zillow's growth potential and impact its revenue streams in the near to medium term.

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 generates revenue through several key streams. Primarily, it earns money from its Premier Agent program, where real estate agents pay for advertising and leads generated from Zillow's platform. Additionally, Zillow's Zillow Offers segment allows the company to buy and sell homes directly, earning revenue through home sales and related services. The company also generates income from its rental marketplace, where property managers and landlords pay to list rental properties. Furthermore, Zillow provides mortgage services and earns revenue through its mortgage origination and refinancing services. Significant partnerships with real estate agents, brokerages, and mortgage lenders contribute to its earnings, enhancing its network and service offerings.

Zillow Group Class A Financial Statement Overview

Summary

Zillow Group's financial statements present a mixed picture. The company shows revenue growth and a strong gross profit margin, but struggles with profitability and cash flow generation. The balance sheet is solid with low leverage, but negative returns on equity highlight profitability challenges. Overall, while the company is financially stable, it needs to focus on enhancing profitability and cash flow to improve its financial health.

Income Statement

Zillow Group's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate is positive at 3.98%, indicating a recovery from previous declines. However, the company struggles with profitability, as evidenced by negative net profit and EBIT margins. The gross profit margin remains strong at 74.87%, suggesting efficient cost management. Overall, while revenue is growing, the company needs to address its profitability issues.

Balance Sheet

The balance sheet reflects a strong equity position with a low debt-to-equity ratio of 0.019 in the TTM, indicating minimal leverage. However, the return on equity is negative, highlighting challenges in generating returns for shareholders. The equity ratio is solid, suggesting financial stability. Overall, the balance sheet is robust, but improving profitability is crucial for enhancing shareholder returns.

Cash Flow

Cash flow analysis reveals some concerns. The TTM free cash flow growth rate is negative, indicating a decline in cash generation. The operating cash flow to net income ratio is healthy at 0.72, but the free cash flow to net income ratio is lower at 0.65, suggesting limited cash flow relative to earnings. While operating cash flow remains positive, the company needs to focus on improving free cash flow generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.48B	2.24B	1.95B	1.96B	2.13B	1.62B
Gross Profit	1.86B	1.71B	1.52B	1.59B	1.81B	1.37B
EBITDA	272.00M	179.00M	104.00M	130.00M	382.00M	272.00M
Net Income	-32.00M	-112.00M	-158.00M	-101.00M	-528.00M	-162.00M
Balance Sheet
Total Assets	5.70B	5.83B	6.65B	6.56B	10.70B	7.49B
Cash, Cash Equivalents and Short-Term Investments	1.39B	1.86B	2.81B	3.36B	2.83B	3.92B
Total Debt	367.00M	660.00M	1.83B	1.87B	1.60B	2.52B
Total Liabilities	706.00M	981.00M	2.13B	2.08B	5.35B	2.74B
Stockholders Equity	4.99B	4.85B	4.53B	4.48B	5.34B	4.74B
Cash Flow
Free Cash Flow	265.00M	285.00M	189.00M	4.36B	-3.28B	315.68M
Operating Cash Flow	418.00M	428.00M	354.00M	4.50B	-3.18B	424.20M
Investing Cash Flow	318.00M	395.00M	25.00M	-1.53B	1.09B	-1.04B
Financing Cash Flow	-932.00M	-1.23B	-352.00M	-4.34B	3.15B	1.16B

Zillow Group Class A Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 69.98 is above the 20-day moving average (MA) of 69.61, below the 50-day MA of 72.65, and below the 200-day MA of 72.20, indicating a neutral trend. The MACD of -1.46 indicates Positive momentum. The RSI at 49.79 is Neutral, neither overbought nor oversold. The STOCH value of 29.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	70 Outperform	$1.77B	12.70	20.37%	―	5.35%	33.74%
TWLO	70 Neutral	$18.28B	289.21	0.83%	―	12.84%	―
CARG	68 Neutral	$3.30B	23.45	35.39%	―	4.21%	―
ZG	62 Neutral	$17.17B	―	-0.66%	―	15.17%	75.90%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
Z	58 Neutral	$17.17B	―	-0.66%	―	15.17%	75.90%
NXDR	51 Neutral	$662.66M	―	-14.07%	―	6.65%	50.32%

Zillow Group Class A Corporate Events

Zillow Group Reports Strong Q3 2025 Financial Results

Zillow Group, Inc., a leading player in the real estate sector, is revolutionizing the way people buy, sell, rent, and finance homes through its digital solutions and partnerships with real estate professionals.

Zillow Finalizes Capped Call Transactions Unwind

On August 25, 2025, Zillow Group, Inc. will finalize agreements with major financial institutions to unwind and terminate certain capped call transactions originally entered into in September 2019. These transactions were linked to the company’s previously settled Convertible Senior Notes. The completion of these unwind transactions will result in Zillow receiving 3.1 million shares of its Class C capital stock and $38.2 million in cash, impacting its capital structure by reducing the outstanding Class C shares.

The most recent analyst rating on (ZG) stock is a Buy with a $94.00 price target. To see the full list of analyst forecasts on Zillow Group Class A stock, see the ZG Stock Forecast page.

Zillow Group Reports Strong Q2 2025 Earnings Growth

Zillow Group Inc Class A is a leading digital real estate company that offers a comprehensive suite of products and services aimed at simplifying the real estate transaction process for consumers and professionals alike. Operating primarily in the residential real estate sector, Zillow is renowned for its innovative technology and user-friendly platforms.