Zillow's top-line momentum is undeniable, with revenue growth accelerating to 17.9% YoY in 2026Q2, reaching $772M, driven by continued strength in its residential and rental marketplaces. However, the company's inability to translate this growth into consisten...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth accelerated to 17.9% YoY in 2026Q2, reaching $772M, but gross margin compressed 450 bps to 72.8% since 2024Q2, and operating income remained negative at -$10M, indicating cost growth outpaces gross profit.
Zillow is the most visited real estate app and website in the U.S., connecting millions of consumers with innovative technology and trusted agents.
Zillow increased its equity buyback authorization by $1.25 billion, signaling strong financial health and management's confidence in long-term growth.
The Zillow app has over 50 million downloads, indicating widespread adoption and engagement with its real estate tools and listings.
Trailing total returns as of 9/24/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q3 2026Latest Aug 5, 2026 | $0.52+16.6% vs $0.45 | $772M+1.8% vs $758M |
Q2 2026 May 6, 2026 | $0.53+23.3% vs $0.43 | $708M+0.4% vs $705M |
Q1 2026 Feb 10, 2026 | $0.39-7.1% vs $0.42 | $654M+0.5% vs $650M |
Q4 2025 Oct 30, 2025 | $0.44+2.8% vs $0.43 | $676M+0.8% vs $671M |
In all 50 major U.S. metros, typical rent is less than the typical monthly cost of homeownership, giving renters a financial cushion According to the Zillow Observed Rent Index, the typical U.S. rent is $1,948 a month. The typical new home buyer's monthly payment is $3,014, a difference of $1,066 a month or $12,792 a year.
Opendoor Technologies (NASDAQ:OPEN) stock is falling 4% to $2.68 in Tuesday morning trading as rising Treasury yields and expectations for tighter monetary policy weigh on housing-related shares. Offerpad Solutions (NYSE:OPAD) stock is essentially unchanged at $3.
With permitting at a post-pandemic low, the housing shortage at the root of today's affordability crisis could deepen Residential building permits fell 1.7% in the year ending July 2026 and are now running a record 19.4% below the pre-pandemic trend line. Detached single-family home completions dropped 2.5% in 2025 to about 817,000, the third consecutive annual decline and the lowest total since 2020.
Zillow is shifting to an integrated transaction platform, driving higher revenue per connection and improved monetization despite a challenging housing market. While this is dragging on revenue recognition at the moment, and there remains uncertainty about profits, I would argue the model is working. Looking past the weak housing market and concerns regarding jostling between competitors, Zillow's valuation appears far too low given the quality of the company.
Benchmark Z against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Zillow Group, Inc. Class C (Z)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $28.65 | $6.88B | 316.57 | 15.52% | 0.89% | 0.47% | — | |
| $2.58 | $2.49B | -1.52 | -15.18% | -46.74% | -165.15% | — | |
| $17.64 | $1.98B | -15.34 | 0.99% | -2.18% | -8.37% | — | |
| $5.32 | $847.31M | -38.00 | 4.48% | -0.35% | -6.78% | — | |
| $9.16 | $5.57B | -91.60 | 23.67% | 0.63% | 3.62% | — | |
| $11.42 | $28.62M | -42.30 | -57.26% | -623.49% | -9.67% | — |
Zillow Group, Inc. Class C (Z) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
Zillow Group, Inc. Class C (Z) SEC filings — annual & quarterly reports (10-K, 10-Q)
Aug 5, 2026·SEC
May 6, 2026·SEC
Mar 5, 2026·SEC
Feb 11, 2026·SEC
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Zillow Group, Inc. Class C (Z) stock FAQ — growth, dividends, profitability & financials explained
Zillow Group, Inc. Class C (Z) reported $2.81B in revenue for fiscal year 2025. This represents a 15965% increase from $17.5M in 2009.
Zillow Group, Inc. Class C (Z) grew revenue by 15.5% over the past year. This is strong growth.
Yes, Zillow Group, Inc. Class C (Z) is profitable, generating $55.0M in net income for fiscal year 2025 (0.9% net margin).
Zillow Group, Inc. Class C (Z) has a return on equity (ROE) of 0.5%. This is below average, suggesting room for improvement.
Zillow Group, Inc. Class C (Z) generated $414.0M in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
