Zillow Group Inc Class A (ZG)
NASDAQ:ZG
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Zillow Group Class A
(NASDAQ:ZG)
Select Model
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Rating:65Neutral
Price Target:
$38.00
▼(-19.17% Downside)
Action:Reiterated
Date:05/09/26
The score is driven mainly by solid financial footing (low leverage and improving free cash flow) and a constructive earnings outlook with continued growth and margin expansion plans. This is tempered by weak technical momentum and a relatively expensive valuation (high P/E with no dividend yield provided).
Positive Factors
Balance sheet strength
Extremely low leverage and a sizable equity base provide durable financial flexibility. This reduces refinancing risk, supports continued investment in product and talent, and allows the company to pursue share repurchases or M&A without stressing liquidity across economic cycles.
Negative Factors
Thin operating profitability
Margins remain near break‑even which makes earnings and cash flow sensitive to incremental costs or volume weakness. Low returns on equity indicate limited current profitability leverage, meaning slower margin improvement could compress capital returns and reinvestment capacity.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
Extremely low leverage and a sizable equity base provide durable financial flexibility. This reduces refinancing risk, supports continued investment in product and talent, and allows the company to pursue share repurchases or M&A without stressing liquidity across economic cycles.
Read all positive factors
Zillow Group Class A (ZG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.04B
Dividend YieldN/A
Average Volume (3M)1.19M
Price to Earnings (P/E)136.7
Beta (1Y)1.23
Revenue Growth16.83%
EPS GrowthN/A
CountryUS
Employees6,819
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.26
Shares Outstanding42,360,250
10 Day Avg. Volume1,155,489
30 Day Avg. Volume1,185,303
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 Cap1.03
Enterprise Value/Revenue3.06
Enterprise Value/Gross Profit4.18
Enterprise Value/Ebitda24.55
Forecast
1Y Price Target
$63.35Price Target Upside34.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)2.28
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 traffic and consumer leads across its real estate websites and apps. A major revenue stream comes from selling advertising and lead-generation services to real estate professionals—most notabl...
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
58
Neutral
Balance Sheet
84
Very Positive
Cash Flow
72
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.69B | 2.58B | 2.24B | 1.95B | 1.96B | 2.13B |
| Gross Profit | 1.98B | 1.92B | 1.71B | 1.52B | 1.59B | 1.81B |
| EBITDA | 336.00M | 261.00M | 179.00M | 104.00M | 130.00M | 382.00M |
| Net Income | 61.00M | 23.00M | -112.00M | -158.00M | -101.00M | -528.00M |
Balance Sheet | ||||||
| Total Assets | 5.23B | 5.68B | 5.83B | 6.65B | 6.56B | 10.70B |
| Cash, Cash Equivalents and Short-Term Investments | 783.00M | 1.29B | 1.86B | 2.81B | 3.36B | 2.83B |
| Total Debt | 429.00M | 536.00M | 660.00M | 1.83B | 1.87B | 1.60B |
| Total Liabilities | 818.00M | 801.00M | 981.00M | 2.13B | 2.08B | 5.35B |
| Stockholders Equity | 4.41B | 4.88B | 4.85B | 4.53B | 4.48B | 5.34B |
Cash Flow | ||||||
| Free Cash Flow | 331.00M | 235.00M | 285.00M | 189.00M | 4.36B | -3.28B |
| Operating Cash Flow | 462.00M | 368.00M | 428.00M | 354.00M | 4.50B | -3.18B |
| Investing Cash Flow | 422.00M | -6.00M | 395.00M | 25.00M | -1.53B | 1.09B |
| Financing Cash Flow | -1.12B | -674.00M | -1.23B | -352.00M | -4.34B | 3.15B |
Zillow Group Class A Technical Analysis
Negative
47.01
Price Trends
40.88
Negative
46.33
Negative
59.82
Negative
Market Momentum
-1.80
Negative
33.52
Neutral
28.22
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 47.01 is above the 20-day moving average (MA) of 37.30, above the 50-day MA of 40.88, and below the 200-day MA of 59.82, indicating a bearish trend. The MACD of -1.80 indicates Negative momentum. The RSI at 33.52 is Neutral, neither overbought nor oversold. The STOCH value of 28.22 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 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.28B | 9.84 | 19.70% | ― | 2.09% | 4.03% | |
69 Neutral | $2.14B | 22.93 | 5.70% | ― | 26.61% | ― | |
65 Neutral | $8.04B | 136.73 | 1.28% | ― | 16.83% | ― | |
65 Neutral | $8.04B | 136.73 | 1.28% | ― | 16.83% | ― | |
64 Neutral | $789.47M | ― | -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
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-49.01%
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Zillow Group Class A Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackShareholder Meetings
Zillow Updates Share Repurchase Program to Limit Control
Neutral
Jun 3, 2026
On June 2, 2026, Zillow Group, Inc. held its 2026 Annual Meeting of Shareholders, at which investors re-elected Class III directors Amy C. Bohutinsky, Jay C. Hoag, and Gregory B. Maffei to serve until the 2029 annual meeting. Shareholders also rat...
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.