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Zillow Group Class A
(NASDAQ:ZG)
Select Model
Select Model
Rating:66Neutral
Price Target:
$37.00
▲(20.60% Upside)
Action:Reiterated
Date:08/09/26
The score is driven primarily by improving financial performance (strong balance sheet and solid free cash flow) and a generally positive earnings outlook with reiterated full-year guidance and cost discipline. Offsetting these positives are a demanding valuation (very high P/E) and only neutral technicals with the stock still below longer-term moving averages.
Positive Factors
Strong balance sheet & low leverage
Very low leverage and a sizable equity base materially reduce financial risk and increase strategic optionality. This durable strength supports continued product investment, share repurchases, and the ability to withstand housing-cycle volatility without needing external financing over the next several quarters.
Negative Factors
Thin profitability & low returns
Modest net margins and very low ROE limit the company's ability to convert revenue into durable shareholder returns. After multiple loss years, profitability remains shallow, making earnings vulnerable to demand swings and cost pressures over the coming 2–6 months.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong balance sheet & low leverage
Very low leverage and a sizable equity base materially reduce financial risk and increase strategic optionality. This durable strength supports continued product investment, share repurchases, and the ability to withstand housing-cycle volatility without needing external financing over the next several quarters.
Read all positive factors
Zillow Group Class A (ZG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.68B
Dividend YieldN/A
Average Volume (3M)1.20M
Price to Earnings (P/E)143.3
Beta (1Y)1.16
Revenue Growth17.67%
EPS GrowthN/A
CountryUS
Employees7,058
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.23
Shares Outstanding41,402,073
10 Day Avg. Volume1,004,683
30 Day Avg. Volume1,195,868
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$45.59Price Target Upside48.59% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering18
EPS Forecast (FY)2.24
Revenue Forecast (FY)$2.95B
Zillow Group Class A Business Overview & Revenue Model
Company Description
Zillow Group, Inc. is a prominent digital real estate enterprise that manages a variety of property-related brands accessible via mobile applications and websites throughout the United States. Its operations are organized into three primary divisi...
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:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: strong top-line growth (18% YoY), solid EBITDA and adjusted net income, rapid mortgage and rentals acceleration, meaningful AI-driven engagement gains, and a clear strategic shift to an integrated preferred monetization model that is already increasing revenue per connection. Near-term headwinds are acknowledged — principally revenue mix and timing effects from migrating connections to preferred (shifting revenue into mortgages and delaying recognition), seasonal patterns that depress Q4 for-sale comparables, a softer mortgage origination market, restructuring costs and modest GAAP loss, plus ongoing legal/regulatory noise. Management framed these as expected, transitory impacts and emphasized improving unit economics at Zillow Home Loans, cost discipline, capital returns, and long-term margin targets. Overall, the positives around growth, margins, product engagement, and strategic direction materially outweigh the near-term timing and market challenges, though investors should model the multi-quarter recognition and seasonality effects when assessing near-term revenue trends.Positive Updates
Strong Quarterly Revenue and Growth
Total revenue of $772M in Q2, up 18% year-over-year and above outlook; for-sale revenue $549M, up 14% YoY.
Negative Updates
Near-Term Revenue Recognition Shift Headwinds
Transition to preferred/integrated model has shifted revenue from residential to mortgages: a 300-basis-point impact in 2025, ~500 bps in H1 2026, with an expected 600–700 bps shift in Q3 and 700–800 bps in Q4, creating a multi-quarter headwind to residential revenue growth and altering timing of recognition.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Quarterly Revenue and Growth
Total revenue of $772M in Q2, up 18% year-over-year and above outlook; for-sale revenue $549M, up 14% YoY.
Read all positive updates
Company Guidance
Zillow's guidance called for Q3 revenue of $745–760M (~+11% YoY at the midpoint), for‑sale growth of 5–7% with residential expected to be flat and mortgages >50% YoY, rentals growth in the high‑20% range, Q3 EBITDA expenses of $560–565M and EBITDA of $180–200M (~25% margin at the midpoint). For full‑year 2026 management reiterated mid‑teens total revenue growth with a $2.92–2.96B revenue range, ~30% rentals growth, and EBITDA of $730–760M, and said share‑based compensation should be down >15% year‑over‑year. They will accelerate preferred connections to >75% by year‑end (from 61%), which drives higher revenue per connection but creates mix/timing headwinds to for‑sale revenue (a ~200‑bp timing headwind and Q4 headwinds of roughly 400–600bps; Q3 headwind from timing estimated 200–300bps; 700–800bps shift from residential into mortgages over time). Cost actions include ~7% workforce reductions, $36M of restructuring recorded in Q2 with an additional $23–28M expected in Q3, and $75M of annualized EBITDA savings (aggregate $140M including prior planned reductions). Financial position highlights tied to the outlook: cash & investments $682M, ~$1.2B total liquidity (including a $500M undrawn line), YTD free cash flow $223M (+19% YoY), and $200M repurchased in Q2 ($826M YTD).Zillow Group Class A Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
82
Very Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.81B | 2.58B | 2.24B | 1.95B | 1.96B | 2.13B |
| Gross Profit | 2.05B | 1.92B | 1.71B | 1.52B | 1.59B | 1.81B |
| EBITDA | 353.00M | 336.00M | 179.00M | 104.00M | 130.00M | 382.00M |
| Net Income | 55.00M | 23.00M | -112.00M | -158.00M | -101.00M | -528.00M |
Balance Sheet | ||||||
| Total Assets | 5.30B | 5.68B | 5.83B | 6.65B | 6.56B | 10.70B |
| Cash, Cash Equivalents and Short-Term Investments | 682.00M | 1.29B | 1.86B | 2.81B | 3.36B | 2.83B |
| Total Debt | 558.00M | 536.00M | 660.00M | 1.83B | 1.87B | 1.60B |
| Total Liabilities | 997.00M | 801.00M | 981.00M | 2.13B | 2.08B | 5.35B |
| Stockholders Equity | 4.31B | 4.88B | 4.85B | 4.53B | 4.48B | 5.34B |
Cash Flow | ||||||
| Free Cash Flow | 265.00M | 235.00M | 285.00M | 189.00M | 4.36B | -3.28B |
| Operating Cash Flow | 388.00M | 368.00M | 428.00M | 354.00M | 4.50B | -3.18B |
| Investing Cash Flow | 294.00M | -6.00M | 395.00M | 25.00M | -1.53B | 1.09B |
| Financing Cash Flow | -696.00M | -674.00M | -1.23B | -352.00M | -4.34B | 3.15B |
Zillow Group Class A Technical Analysis
Negative
30.68
Price Trends
33.21
Positive
37.46
Negative
49.76
Negative
Market Momentum
0.45
Negative
52.13
Neutral
50.20
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 30.68 is below the 20-day moving average (MA) of 33.61, below the 50-day MA of 33.21, and below the 200-day MA of 49.76, indicating a neutral trend. The MACD of 0.45 indicates Negative momentum. The RSI at 52.13 is Neutral, neither overbought nor oversold. The STOCH value of 50.20 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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.28B | 11.20 | 18.61% | ― | 1.50% | -6.82% | |
70 Outperform | $2.61B | 23.98 | 5.70% | ― | 26.55% | ― | |
66 Neutral | $7.68B | 143.30 | 1.18% | ― | 17.67% | ― | |
66 Neutral | $7.68B | 143.30 | 1.18% | ― | 17.67% | ― | |
66 Neutral | $1.03B | -32.44 | -7.27% | ― | 9.79% | 53.33% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% |
* Communication Services Sector Average
ZG
Zillow Group Class A
33.49
-47.78
-58.79%
YELP
Yelp
23.64
-8.37
-26.15%
Z
Zillow Group Class C
33.26
-51.58
-60.80%
TRVG
trivago
5.20
1.74
50.29%
NXDR
Nextdoor Holdings
2.55
0.65
34.21%
Zillow Group Class A Corporate Events
Business Operations and StrategyExecutive/Board ChangesStock BuybackFinancial Disclosures
Zillow reshapes leadership amid strong Q2 performance
Positive
Aug 5, 2026
On August 5, 2026, Zillow announced a reshuffle of its executive ranks and reported second-quarter 2026 results that showed it continuing to outperform a sluggish housing market. Jeremy Hofmann was elevated to Chief Operating Officer while retaini...
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.