Zillow Group Inc Class A (ZG)
NASDAQ:ZG
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Zillow Group Class A
(NASDAQ:ZG)
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Rating:66Neutral
Price Target:
$45.00
▲(11.36% Upside)
Action:ReiteratedDate: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 and revenue growth
Zillow has resumed revenue growth and moved EBITDA into solid positive territory, with GAAP profitability returning for 2025. This shift signals stabilization of the core marketplace economics and a durable path toward consistent operating profitability and sustained cash generation over coming quarters.
Negative Factors
Elevated legal expenses dragging margins
Sustained higher legal spending is a structural margin headwind that reduces operating leverage and free cash flow. Because litigation costs are unpredictable and recurring here, they can meaningfully compress reported and adjusted margins over multiple quarters, limiting durable margin expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Improving profitability and revenue growth
Zillow has resumed revenue growth and moved EBITDA into solid positive territory, with GAAP profitability returning for 2025. This shift signals stabilization of the core marketplace economics and a durable path toward consistent operating profitability and sustained cash generation over coming quarters.
Read all positive factors
Zillow Group Class A (ZG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.70B
Dividend YieldN/A
Average Volume (3M)1.36M
Price to Earnings (P/E)717.7
Beta (1Y)1.32
Revenue Growth15.17%
EPS Growth75.90%
CountryUS
Employees6,819
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)0.39
Shares Outstanding45,893,776
10 Day Avg. Volume1,258,965
30 Day Avg. Volume1,363,789
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 Cap0.98
Enterprise Value/Revenue3.69
Enterprise Value/Gross Profit4.98
Enterprise Value/Ebitda31.07
Forecast
1Y Price Target
$73.58Price Target Upside82.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
EPS Forecast (FY)2.2
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:Feb 10, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
Overall, the call emphasized strong execution and growth: top-line acceleration (Q4 +18%, FY +16%), significant momentum in Rentals and mortgages, EBITDA and GAAP profitability, robust free cash flow and active capital return. Near‑term headwinds include elevated legal expenses, deliberate variable investments and a still‑subdued housing market, and some newer products (e.g., Zillow Pro) are early-stage with limited immediate revenue contribution. On balance, the substantial positive operational and financial progress outweighs the manageable near‑term challenges.Positive Updates
Strong Top-Line Growth
Q4 2025 revenue of $654 million, up 18% year-over-year and near the top of outlook; full-year 2025 revenue grew 16% year-over-year, consistent with mid‑teens guidance.
Negative Updates
Elevated Legal Expenses
Legal costs were higher-than-expected in Q4 (contributed to Q4 EBITDA expenses being slightly above outlook) and management expects elevated legal expense to persist in 2026, creating an approximate 200 basis point EBITDA margin headwind in Q1 and ~100 basis points for the full year.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Q4 2025 revenue of $654 million, up 18% year-over-year and near the top of outlook; full-year 2025 revenue grew 16% year-over-year, consistent with mid‑teens guidance.
Read all positive updates
Company Guidance
Zillow guided Q1 2026 revenue of $700–710M (≈+18% YoY at the midpoint) with For Sale growth expected in line to slightly better than Q4 (residential growth in the high single‑digits and mortgages revenue ≈+40%) and Rentals revenue ≈+40% YoY; Q1 EBITDA is guided to $160–175M (~24% margin at the midpoint), implying EBITDA expenses of $535–540M (up from $505M in Q4) with an estimated ~200 bps legal‑expense headwind in Q1 and roughly a 100 bps legal drag for the full year; for full year 2026 Zillow expects mid‑teens revenue growth, about 30% Rentals growth, continued EBITDA margin expansion (consensus implies ~200 bps of expansion), a fixed‑cost base of ~$1B, variable costs to grow ahead of revenue in H1 then trend toward in‑line in H2, share‑based compensation down >10% YoY, and it reiterated its mid‑cycle targets of $5B revenue and ~45% EBITDA margins in a normalized housing market.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
Negative
40.41
Price Trends
51.27
Negative
60.37
Negative
67.97
Negative
Market Momentum
-1.84
Negative
38.29
Neutral
41.17
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 40.41 is below the 20-day moving average (MA) of 44.30, below the 50-day MA of 51.27, and below the 200-day MA of 67.97, indicating a bearish trend. The MACD of -1.84 indicates Negative momentum. The RSI at 38.29 is Neutral, neither overbought nor oversold. The STOCH value of 41.17 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.45B | 13.22 | 19.96% | ― | 5.35% | 33.74% | |
66 Neutral | $9.70B | 717.69 | 0.47% | ― | 15.17% | 75.90% | |
64 Neutral | $1.36B | 15.50 | 5.63% | ― | 17.38% | ― | |
62 Neutral | $9.70B | 717.59 | 0.47% | ― | 15.17% | 75.90% | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
51 Neutral | $527.31M | -14.97 | -12.56% | ― | 6.65% | 50.32% |
* Communication Services Sector Average
ZG
Zillow Group Class A
40.41
-26.79
-39.87%
YELP
Yelp
24.36
-12.85
-34.53%
Z
Zillow Group Class C
40.44
-28.30
-41.17%
TRVG
trivago
2.74
-1.99
-42.07%
NXDR
Nextdoor Holdings
1.36
-0.20
-12.82%
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...
Business Operations and StrategyPrivate Placements and Financing
Zillow Group Secures New $500 Million Credit Facility
Positive
Jan 30, 2026
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 matu...
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.