Zillow Group Class A (ZG) AI Stock Analysis

• Market Cap: $15.92B
• Dividend Yield: N/A
• Average Volume (3M): 675.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.26
• 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: 500,068
• 30 Day Avg. Volume: 675,927
• 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: 0.93
• Enterprise Value/Revenue: 5.94
• Enterprise Value/Gross Profit: 7.93
• Enterprise Value/Ebitda: 54.22
• 1Y Price Target: $86.18
• Price Target Upside: 38.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: $68.00 ▲(9.25% Upside)

The score is anchored by mixed financial performance (growth and strong margins but still pressured profitability and cash flow) and weak technical momentum (below major moving averages with negative MACD). These are partially offset by a strong, optimistic earnings call (re-accelerating revenue, positive net income, and margin expansion) and a liquidity-supportive new credit facility, while valuation metrics remain a notable headwind due to the negative P/E and lack of dividend yield.

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

Mixed fundamentals: modest TTM revenue growth and a strong gross margin, supported by a low-leverage balance sheet. Offsetting this are ongoing profitability issues (negative margins/ROE) and weakening free cash flow growth.

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: Negative
• Last Price: 62.24
• 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 Negative. The current price of 62.24 is below the 20-day moving average (MA) of 66.72, below the 50-day MA of 68.64, and below the 200-day MA of 71.66, indicating a bearish trend. The MACD of -0.81 indicates Positive momentum. The RSI at 42.90 is Neutral, neither overbought nor oversold. The STOCH value of 30.01 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	77 Outperform	$1.69B	12.13	20.37%	―	5.35%	33.74%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
ZG	60 Neutral	$15.92B	-459.87	-0.66%	―	15.17%	75.90%
Z	58 Neutral	$15.92B	-466.57	-0.66%	―	15.17%	75.90%
NXDR	58 Neutral	$764.61M	-11.90	-14.07%	―	6.65%	50.32%
TRUE	57 Neutral	$225.91M	-11.88	-15.37%	―	6.18%	28.04%
TRVG	55 Neutral	$199.04M	73.83	1.22%	―	17.38%	―

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.