Zillow Group Class A (ZG) AI Stock Analysis

• Market Cap: $10.45B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 485.0
• 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): 0.39
• Shares Outstanding: 45,893,776
• 10 Day Avg. Volume: 1,296,830
• 30 Day Avg. Volume: 1,238,186
• PEG Ratio: -5.99
• Price to Book (P/B): 3.38
• Price to Sales (P/S): 6.39
• P/FCF Ratio: 70.24
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 4.16
• Enterprise Value/Gross Profit: 5.61
• Enterprise Value/Ebitda: 35.01
• 1Y Price Target: $74.80
• Price Target Upside: 71.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): 2.22
• Revenue Forecast (FY): $2.98B

• Rating: 68 Neutral
• Price Target: $59.00 ▲(35.01% Upside)
• Action: Reiterated Date: 02/11/26
• Date: Action: Reiterated 02/11/26

The score is driven primarily by improving financial performance and a strong balance sheet, reinforced by upbeat earnings-call guidance and continued margin expansion expectations. These positives are tempered by weak technical momentum (clear downtrend despite oversold readings) and limited/unfavorable valuation signals from a negative P/E and no dividend yield.

Positive Factors

Balance Sheet Strength

Zillow’s very low leverage and sizable equity provide durable financial flexibility: ample headroom to fund growth, weather housing cycles, and absorb legal or investment spending without forced asset sales. This reduces refinancing risk and supports sustained operational investment.

Rentals Market Share & Growth

High Rentals growth and a rising listings share signal a durable network effect and platform moat in the rental market. Scale with 2.5M monthly listings improves landlord demand for paid products and strengthens recurring revenue potential across multifamily and property manager segments.

Improving Profitability & Cash Generation

Material FCF generation, positive GAAP net income and expanding EBITDA margins show the business is converting revenue into cash and profits. This supports reinvestment, buybacks and deleveraging, and indicates improving unit economics that can sustain long-term margin expansion if execution continues.

Negative Factors

Elevated Legal Expenses

Persistent, elevated legal spending is a structural margin headwind that reduces free cash flow predictability and can consume capital that would otherwise fund growth or buybacks. Ongoing litigation risk also creates earnings volatility and multi-year cash outflow uncertainty.

Near-Term Margin Pressure from Investment Ramp

Deliberate ramp of variable costs and heavy hiring compresses margins until new hires scale productivity. Sales and loan officer ramp risks can delay payback and temporarily dilute margins, making near-term margin delivery contingent on successful sales productivity and cost leverage timing.

Execution Risk for New Product (Zillow Pro)

Zillow Pro’s beta status creates execution and adoption risk for product-led diversification. Slow uptake would limit expected long-term revenue expansion from agent tools, leaving growth dependent on existing segments and increasing uncertainty about the pace of new monetization streams.

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

Financials are improving with revenue growth and a return to (near) profitability, plus healthy operating and free cash flow. The balance sheet is a major strength with very low leverage and substantial equity, though EBIT remains slightly negative and free cash flow declined year over year, indicating profitability and cash generation are not yet fully consistent.

Income Statement

TTM (Trailing-Twelve-Months) revenue rose strongly versus the prior year (about +4%), and profitability is clearly improving: EBITDA turned solidly positive and losses narrowed materially from 2024, with a small return to net income. That said, operating profit remains slightly negative and net margin is still around breakeven, indicating the earnings profile is not yet consistently durable.

Balance Sheet

Leverage is very low in TTM (Trailing-Twelve-Months) with a modest debt load relative to equity, a meaningful improvement versus prior years when debt levels were higher. Equity remains sizable versus total assets, providing balance-sheet flexibility. The main weak point is that returns on equity are still slightly negative in TTM (Trailing-Twelve-Months), reflecting that profitability is only recently stabilizing.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is healthy, with positive operating cash flow and positive free cash flow. However, free cash flow declined versus the prior year (roughly -11%), and cash conversion is not consistently strong across years (including a notably weak/negative operating cash flow year in 2021), suggesting some volatility in underlying cash dynamics despite the recent improvement.

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

• Technical Analysis Sentiment: Negative
• Last Price: 43.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: 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 43.7 is below the 20-day moving average (MA) of 48.64, below the 50-day MA of 59.71, and below the 200-day MA of 70.01, indicating a bearish trend. The MACD of -4.87 indicates Negative momentum. The RSI at 29.73 is Positive, neither overbought nor oversold. The STOCH value of 58.07 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 Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
YELP	71 Outperform	$1.35B	10.02	20.02%	―	5.35%	33.74%
ZG	68 Neutral	$10.45B	485.02	0.47%	―	15.17%	75.90%
TRVG	64 Neutral	$1.45B	14.48	6.23%	―	17.38%	―
Z	62 Neutral	$10.45B	483.24	0.47%	―	15.17%	75.90%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
NXDR	51 Neutral	$659.13M	-12.07	-12.25%	―	6.65%	50.32%

Zillow Group Class A Corporate Events

Zillow Group Secures New $500 Million Credit Facility

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 maturity date of January 30, 2031. The facility, which had no outstanding borrowings as of its signing, can be drawn, repaid and redrawn without penalty and will bear interest at either a base rate plus 0.25%–0.75% or SOFR plus 1.25%–1.75%, depending on Zillow’s total net leverage, and is subject to a 0.25% commitment fee on unused amounts. The agreement includes customary covenants and a financial leverage cap of 3.75:1.00, with a temporary step-up allowed following qualifying acquisitions, as well as standard events of default that could trigger acceleration of obligations. The credit line is guaranteed by Zillow Group, MFTB Holdco, Inc. and certain subsidiaries, secured by a first-priority lien on substantially all of their assets, and is intended to provide added financial flexibility for general corporate purposes, potentially strengthening Zillow’s liquidity position and balance sheet resilience.

The most recent analyst rating on (ZG) stock is a Hold with a $72.00 price target. To see the full list of analyst forecasts on Zillow Group Class A stock, see the ZG Stock Forecast page.