Zillow maintains a robust 73.3% gross margin, though operating income remains constrained by high SG&A costs that resulted in a modest 5.1% operating margin as of 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 |
|---|
| Sales/Revenue | 2.69B | 2.58B | 2.24B | 1.95B | 1.96B | 2.13B | 1.62B | 2.74B | 1.33B | 1.08B | 846.59M | 644.68M | 325.89M | 197.54M | 116.85M | 66.05M | 30.47M | 17.49M |
| Revenue Growth % | 16.83% | 15.52% | 14.96% | -0.66% | -8.16% | 31.28% | -40.79% | 105.68% | 23.84% | 27.19% | 31.32% | 97.82% | 64.97% | 69.06% | 76.9% | 116.8% | 74.19% | - |
| Cost of Goods Sold | 718M | 668M | 527M | 421M | 367M | 323M | 255M | 1.43B | 153.59M | 85.2M | 71.59M | 61.61M | 29.46M | 18.81M | 14.04M | 10.57M | 4.97M | 4.04M |
| COGS % of Revenue | - | 25.86% | 23.57% | 21.65% | 18.74% | 15.15% | 15.7% | 52.21% | 11.52% | 7.91% | 8.46% | 9.56% | 9.04% | 9.52% | 12.02% | 16.01% | 16.32% | 23.11% |
| Gross Profit | 1.98B | 1.92B | 1.71B | 1.52B | 1.59B | 1.81B | 1.37B | 1.31B | 1.18B | 991.59M | 775M | 583.06M | 296.43M | 178.74M | 102.81M | 55.48M | 25.49M | 13.45M |
| Gross Margin % | 73.34% | 74.14% | 76.43% | 78.35% | 81.26% | 84.85% | 84.3% | 47.79% | 88.48% | 92.09% | 91.54% | 90.44% | 90.96% | 90.48% | 87.98% | 83.99% | 83.68% | 76.89% |
| Gross Profit Growth % | - | 12.05% | 12.14% | -4.21% | -12.05% | 32.14% | 4.44% | 11.09% | 19% | 27.95% | 32.92% | 96.69% | 65.85% | 73.85% | 85.31% | 117.61% | 89.56% | - |
| Operating Expenses | 1.96B | 1.95B | 1.91B | 1.79B | 1.68B | 1.57B | 1.21B | 1.56B | 1.23B | 979M | 967.68M | 676.1M | 319.63M | 195.68M | 97.01M | 54.48M | 32.33M | 26.41M |
| OpEx % of Revenue | - | 75.38% | 85.24% | 92.24% | 86.01% | 73.64% | 74.38% | 56.79% | 91.9% | 90.92% | 114.3% | 104.87% | 98.08% | 99.06% | 83.02% | 82.48% | 106.12% | 151.02% |
| Selling, General & Admin | 1.35B | 1.34B | 1.31B | 1.21B | 1.16B | 1.13B | 809M | 1.08B | 814.77M | 659.02M | 694.61M | 477.53M | 233.23M | 147.19M | 70.4M | 40.34M | 21.68M | 15.15M |
| SG&A % of Revenue | - | 51.88% | 58.77% | 62.26% | 59.35% | 52.95% | 49.82% | 39.39% | 61.1% | 61.2% | 82.05% | 74.07% | 71.57% | 74.51% | 60.24% | 61.07% | 71.16% | 86.64% |
| Research & Development | 608M | 607M | 585M | 560M | 498M | 421M | 349M | 477.35M | 410.82M | 319.99M | 273.07M | 198.56M | 86.41M | 48.5M | 26.61M | 14.14M | 10.65M | 11.26M |
| R&D % of Revenue | - | 23.5% | 26.16% | 28.79% | 25.43% | 19.75% | 21.49% | 17.4% | 30.81% | 29.72% | 32.25% | 30.8% | 26.51% | 24.55% | 22.78% | 21.41% | 34.96% | 64.38% |
| Other Operating Expenses | 1000K | 0 | 7M | 23M | 24M | 20M | 50M | 0 | 0 | 5.38M | 2.71M | 1.5M | 1.08M | 385K | 142K | 0 | 0 | 0 |
| Operating Income | 11M | -32M | -197M | -270M | -93M | 239M | 161M | -246.84M | -128.97M | -161.87M | -192.85M | -149.53M | -44.7M | -16.95M | 5.8M | 997K | -6.84M | -12.97M |
| Operating Margin % | 0.41% | -1.24% | -8.81% | -13.88% | -4.75% | 11.21% | 9.91% | -9% | -9.67% | -15.03% | -22.78% | -23.19% | -13.71% | -8.58% | 4.96% | 1.51% | -22.44% | -74.13% |
| Operating Income Growth % | - | 83.76% | 27.04% | -190.32% | -138.91% | 48.45% | 165.23% | -91.38% | 20.32% | 16.06% | -28.97% | -234.56% | -163.7% | -392.38% | 481.44% | 114.58% | 47.27% | - |
| EBITDA | 221M | 261M | 53M | -27M | 87M | 392M | 247M | -136.23M | -29.58M | -51.72M | -92.26M | -74.14M | -9.07M | 6.3M | 18.57M | 8.19M | -1.57M | -6.56M |
| EBITDA Margin % | 8.21% | 10.1% | 2.37% | -1.39% | 4.44% | 18.39% | 15.21% | -4.97% | -2.22% | -4.8% | -10.9% | -11.5% | -2.78% | 3.19% | 15.89% | 12.39% | -5.17% | -37.5% |
| EBITDA Growth % | 99.1% | 392.45% | 296.3% | -131.03% | -77.81% | 58.7% | 281.32% | -360.47% | 42.8% | 43.94% | -24.44% | -717.39% | -243.87% | -66.05% | 126.82% | 619.81% | 75.99% | - |
| D&A (Non-Cash Add-back) | 210M | 293M | 250M | 243M | 180M | 153M | 86M | 110.61M | 99.39M | 110.16M | 100.59M | 75.39M | 35.62M | 23.25M | 12.77M | 7.19M | 5.26M | 6.41M |
| EBIT | 47M | -32M | -71M | -118M | -50M | 229M | 186M | -207.83M | -109.7M | -156.49M | -212.9M | -148.03M | -43.61M | -16.56M | 7.06M | 997K | -6.84M | -12.97M |
| Net Interest Income | -9M | -18M | -36M | -36M | -35M | -128M | -155.23M | -101.79M | -41.26M | -27.52M | -7.41M | -5.49M | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 9M | 18M | 36M | 36M | 35M | 128M | 155.23M | 101.79M | 41.26M | 27.52M | 7.41M | 5.49M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 54M | 57M | 90M | 116M | 8M | -138M | -164M | -62.78M | -21.98M | -22.13M | -27.45M | -3.99M | -20.41M | 385K | 142K | 105K | 63K | 111K |
| Pretax Income | 65M | 25M | -107M | -154M | -85M | 101M | -3M | -309.62M | -150.96M | -184.01M | -220.31M | -153.52M | -43.61M | -16.56M | 5.94M | 1.1M | -6.77M | -12.86M |
| Pretax Margin % | 2.41% | 0.97% | -4.79% | -7.92% | -4.34% | 4.74% | -0.18% | -11.29% | -11.32% | -17.09% | -26.02% | -23.81% | -13.38% | -8.38% | 5.08% | 1.67% | -22.23% | -73.49% |
| Income Tax | 0 | 2M | 5M | 4M | 3M | -1M | -8M | -4.26M | -31.1M | -89.59M | 130K | -4.64M | 21.49M | -4.11M | 0 | 0 | -63K | -111K |
| Effective Tax Rate % | 0% | 8% | -4.67% | -2.6% | -3.53% | -0.99% | 266.67% | 1.38% | 20.6% | 48.69% | -0.06% | 3.03% | -49.28% | 24.82% | 0% | 0% | 0.93% | 0.86% |
| Net Income | 61M | 23M | -112M | -158M | -101M | -528M | -162M | -305.36M | -119.86M | -94.42M | -220.44M | -148.87M | -43.61M | -12.45M | 5.94M | 1.1M | -6.77M | -12.86M |
| Net Margin % | 2.27% | 0.89% | -5.01% | -8.12% | -5.16% | -24.77% | -9.98% | -11.13% | -8.99% | -8.77% | -26.04% | -23.09% | -13.38% | -6.3% | 5.08% | 1.67% | -22.23% | -73.49% |
| Net Income Growth % | 175.31% | 120.54% | 29.11% | -56.44% | 80.87% | -225.93% | 46.95% | -154.77% | -26.94% | 57.17% | -48.07% | -241.38% | -250.2% | -309.68% | 438.93% | 116.27% | 47.3% | - |
| Net Income (Continuing) | 61M | 23M | -112M | -158M | -88M | 102M | 5M | -305.36M | -119.86M | -94.42M | -220.44M | -148.87M | -43.61M | -12.45M | 5.94M | 1.1M | -6.77M | -12.86M |
| Discontinued Operations | 0 | 0 | 0 | 0 | -13M | -630M | -167M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.25 | 0.09 | -0.48 | -0.68 | -0.42 | -2.11 | -0.72 | -1.48 | -0.61 | -0.51 | -1.22 | -0.88 | -0.36 | -0.12 | 0.06 | 0.02 | -0.10 | -0.18 |
| EPS Growth % | 171.69% | 118.85% | 29.41% | -61.9% | 80.09% | -193.06% | 51.35% | -142.62% | -19.61% | 58.2% | -38.64% | -144.44% | -200% | -300% | 263.64% | 117.24% | 46.83% | - |
| EPS (Basic) | - | 0.10 | -0.48 | -0.68 | -0.42 | -2.11 | -0.72 | -1.48 | -0.61 | -0.51 | -1.22 | -0.88 | -0.36 | -0.12 | 0.07 | 0.02 | -0.17 | -0.31 |
| Diluted Shares Outstanding | 239.64M | 254.12M | 234.08M | 233.57M | 242.16M | 249.94M | 223.85M | 206.38M | 197.94M | 186.45M | 180.15M | 169.77M | 120.03M | 108.09M | 98.13M | 66.92M | 70.81M | 70.81M |
| Basic Shares Outstanding | 235.68M | 241.93M | 234.08M | 233.57M | 242.16M | 249.94M | 223.85M | 206.38M | 197.94M | 186.45M | 180.15M | 169.77M | 120.03M | 103.78M | 90.58M | 59.45M | 40.94M | 40.94M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory Commission Structure Changes
According to recent financial disclosures, Zillow achieved an 18.4% year-over-year revenue growth rate in 2026Q1, suggesting that the company's core marketplace model is successfully decoupling from broader residential real estate transaction volume declines through increased market share and effective monetization of its digital platform.
The consistent acceleration in top-line growth from 9.0% in 2023Q4 to 18.4% in the most recent quarter indicates that the 'Housing Super App' strategy may be gaining traction. Investors should monitor whether this growth trajectory remains sustainable if housing inventory levels continue to face structural constraints.
As reported in quarterly filings, Zillow maintains a robust gross margin of approximately 73.3%, reflecting the inherent scalability of its digital lead-generation model, yet this structural advantage is currently offset by significant operating expenses that prevent consistent bottom-line profitability across the observed ten-quarter period.
The stability of gross margins near 74% underscores the company's pricing power as a primary destination for real estate discovery. However, the persistent gap between gross profit and operating income suggests that the firm's cost structure remains heavily weighted toward fixed investments that have yet to reach an optimal scale.
Based on the provided income statement data, Zillow's operating leverage appears constrained, as SG&A expenses have remained stubbornly high, often exceeding $300 million per quarter, which prevents the company from translating its strong gross profit growth into consistent, meaningful operating income for shareholders.
While the company finally achieved a positive operating margin of 5.1% in 2026Q1, this appears to be a recent development rather than a established trend. The reliance on high personnel and technology spending suggests that management is prioritizing long-term platform development over immediate margin expansion.
Analysis of historical filings reveals that Zillow's net income figures have been significantly impacted by substantial stock-based compensation, which averaged over $100 million per quarter throughout 2024 and 2025, effectively masking the underlying cash-generating potential of the core business operations during those periods.
The sudden absence of stock-based compensation in 2026Q1 warrants further investigation, as it appears to be the primary driver behind the recent shift to positive net income. Investors should be cautious in extrapolating this profitability until it is clear whether this is a permanent change in compensation policy or a temporary accounting anomaly.
As noted in industry analysis, the implementation of new NAR commission rules poses a significant threat to Zillow's Premier Agent revenue stream, as potential compression in buyer-agent compensation could reduce the total addressable market for the company's lead-generation services in the coming fiscal years.
While the company has demonstrated resilience in its revenue growth, the reliance on the traditional agent-commission model makes the business vulnerable to structural shifts in the real estate industry. If agent participation declines due to lower transaction fees, Zillow's primary monetization engine may face unforeseen headwinds that current growth figures do not fully reflect.
Quick answers to the most common questions about buying Z stock.
For fiscal year 2025, Zillow Group, Inc. Class C (Z) reported total revenue of $2.58B. This represents a 14667.6% increase compared to $17.5M in 2009.
Zillow Group, Inc. Class C (Z) is profitable, generating $23.0M in net income for the fiscal year ending 2025 with a net profit margin of 0.9%.
Zillow Group, Inc. Class C (Z) reported an operating income of $-32.0M, resulting in an operating profit margin of -1.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Zillow Group, Inc. Class C (Z) generated $1.92B in gross profit for the year, representing a gross profit margin of 74.1%. This demonstrates the company's core pricing power and production efficiency.