Free cash flow surged to $141M in 2026Q2 (18.3% margin), yet SBC of $169M exceeded net income and buybacks of $826M outpaced FCF, suggesting capital allocation may be aggressive.
Zillow Group, Inc. Class A (ZG) cash flow statement — 18-year operating, investing & financing cash flows
| 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 | Dec'08 |
|---|
| Cash from Operations | 586M | 368M | 428M | 354M | 4.5B | -3.18B | 424.2M | -612.17M | 3.85M | 258.19M | 8.64M | 22.66M | 45.52M | 31.3M | 32.3M | 14.83M | 2.26M | -4.22M | -13M |
| Operating CF Margin % | - | 14.25% | 19.14% | 18.2% | 230.03% | -149% | 26.12% | -22.32% | 0.29% | 23.98% | 1.02% | 3.51% | 13.97% | 15.84% | 27.64% | 22.45% | 7.41% | -24.11% | -122.64% |
| Operating CF Growth % | 153.33% | -14.02% | 20.9% | -92.14% | 241.78% | -848.87% | 169.29% | -16000.62% | -98.51% | 2886.59% | -61.85% | -50.22% | 45.44% | -3.1% | 117.85% | 556.6% | 153.55% | 67.56% | - |
| Net Income | 55M | 23M | -112M | -158M | -101M | -527.78M | -162.12M | -305.36M | -119.86M | -94.42M | -220.44M | -148.87M | -43.61M | -12.45M | 5.94M | 1.1M | -6.77M | -12.86M | -21.2M |
| Depreciation & Amortization | 343M | 272M | 250M | 222M | 180M | 152.49M | 134.37M | 110.61M | 99.39M | 110.16M | 100.59M | 75.39M | 35.62M | 23.25M | 12.77M | 7.19M | 5.26M | 6.41M | 8.1M |
| Stock-Based Compensation | 363M | 390M | 448M | 451M | 451M | 312M | 197.55M | 198.9M | 149.08M | 113.57M | 106.92M | 105.21M | 34.09M | 23.44M | 6.61M | 1.95M | 1.72M | 1.65M | 0 |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | -2.75M | -7.52M | -4.26M | -31.1M | -89.59M | -1.37M | -2.85M | 9.8M | -4.11M | 2.33M | -170K | 161K | 44K | 0 |
| Other Non-Cash Items | 82M | 20M | 17M | 4M | 83M | 642.82M | 219.01M | 91.02M | 139.81M | 212.56M | 31.87M | 32.56M | 4.42M | 3.84M | 2.15M | 4.08M | -31K | -251K | 1.6M |
| Working Capital Changes | -303M | -337M | -175M | -165M | 3.89B | -3.75B | 42.91M | -703.09M | -233.48M | 5.92M | -8.92M | -38.77M | 5.21M | -2.67M | 2.49M | 677K | 1.93M | 787K | -1.5M |
| Change in Receivables | -28M | -45M | -8M | -24M | 82M | -82.31M | -5.58M | -3.69M | -12.56M | -21.2M | -13.32M | -1.05M | -5.98M | -7.57M | -3.46M | -2.21M | -1.36M | -607K | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 3.9B | -3.83B | 345.28M | -673.8M | -162.83M | 29.81M | -16.71M | -20.11M | 3.49M | -505K | 2.43M | -422K | 477K | 693K | 0 |
| Change in Payables | 48M | 6M | 2M | 6M | 3M | 4.7M | 12.97M | -496K | 1.31M | -373K | 856K | -11.16M | 4.63M | 1.5M | 991K | 916K | 327K | 59K | 0 |
| Cash from Investing | 670M | -6M | 395M | 25M | -1.53B | 1.09B | -1.04B | -456.05M | -622.64M | -247.39M | -65.72M | 64.44M | -145.44M | -251.83M | -94.36M | -58.38M | 4.63M | -14.49M | -5.8M |
| Capital Expenditures | -174M | -133M | -143M | -135M | -115M | -104.4M | -108.52M | -67.04M | -78.53M | -78.64M | -71.72M | -68.11M | -44.24M | -25.97M | -16.75M | -8.82M | -5.53M | -4.08M | -4.8M |
| CapEx % of Revenue | 6.19% | 5.15% | 6.4% | 6.94% | 5.87% | 4.9% | 6.68% | 2.44% | 5.89% | 7.3% | 8.47% | 10.56% | 13.58% | 13.15% | 14.33% | 13.35% | 18.14% | 23.31% | 45.28% |
| Acquisitions | 0 | 0 | -7M | -433M | -4M | -497.32M | 23.58M | 0 | -55.14M | -10.95M | -13.12M | 92.57M | -3.5M | -42.71M | -67.64M | -6.54M | 630K | 455K | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -38M | -134M | -28M | -30M | -25M | 0 | -23.58M | -19.59M | -501.45M | -169.13M | 1.96M | 3.93M | -110.42M | -187.07M | -81.68M | 0 | -630K | -455K | -1M |
| Cash from Financing | -1.36B | -674M | -1.23B | -352M | -4.34B | 3.15B | 1.16B | 1.64B | 930.14M | 97.71M | 71.53M | 16.27M | 23.92M | 272.25M | 164.17M | 79.2M | 950K | 100K | 100K |
| Debt Issued (Net) | 206M | -200M | -1.14B | 0 | -3.44B | 2.78B | 306.77M | 1.73B | 481.2M | 0 | 77.55M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | -1.55B | -482M | -301M | -424M | -901M | 243M | 411.52M | 0 | 360.35M | 0 | 0 | 0 | 0 | 253.9M | 156.73M | 76.29M | 0 | 0 | 112K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.72B | -670M | -301M | -424M | -947M | -302M | 0 | 0 | 0 | -365K | -616K | -8.15M | 0 | 0 | 0 | 0 | 0 | 0 | 100K |
| Other Financing | -18M | 8M | 212M | 72M | 0 | 126.63M | 444.02M | -94.22M | 88.59M | 97.71M | -6.02M | 16.27M | 23.92M | 18.35M | 7.45M | 2.92M | 950K | 100K | -12K |
| Net Change in Cash | -104M | -312M | -410M | 27M | -1.37B | 1.06B | 548.03M | 567.47M | 311.35M | 108.5M | 14.45M | 103.37M | -76M | 51.72M | 102.11M | 35.65M | 7.84M | -18.61M | -18.7M |
| Free Cash Flow | 429M | 235M | 285M | 189M | 4.36B | -3.28B | 315.68M | -698.81M | -74.69M | 179.56M | -63.08M | -45.45M | 1.28M | 5.33M | 15.55M | 6M | -3.27M | -8.29M | -17.8M |
| FCF Margin % | 15.27% | 9.1% | 12.75% | 9.72% | 222.88% | -153.9% | 19.44% | -25.48% | -5.6% | 16.68% | -7.45% | -7.05% | 0.39% | 2.7% | 13.31% | 9.09% | -10.73% | -47.42% | -167.92% |
| FCF Growth % | 32.82% | -17.54% | 50.79% | -95.67% | 233% | -1139.37% | 145.17% | -835.68% | -141.59% | 384.66% | -38.79% | -3659.04% | -76.02% | -65.74% | 158.92% | 283.75% | 60.6% | 53.4% | - |
| FCF per Share | 1.88 | 0.92 | 1.22 | 0.81 | 18.02 | -13.13 | 1.41 | -3.39 | -0.38 | 0.96 | -0.35 | -0.27 | 0.01 | 0.05 | 0.16 | 0.09 | -0.05 | -0.12 | -0.66 |
| FCF Conversion (FCF/Net Income) | 7.80x | 16.00x | -3.82x | -2.24x | -44.59x | 6.02x | -2.62x | 2.00x | -0.03x | -2.73x | -0.04x | -0.15x | -1.04x | -2.51x | 5.44x | 13.45x | -0.33x | 0.33x | 0.61x |
| Interest Paid | 0 | 0 | 35M | 28M | 50M | 0 | 0 | 42.16M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 6M | 6M | 6M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying ZG stock.
Zillow Group, Inc. Class A (ZG) generated $368.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Zillow Group, Inc. Class A (ZG) generated $235.0M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Zillow Group, Inc. Class A (ZG) spent $133.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Zillow Group, Inc. Class A (ZG) spent $670.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
SBC dilution and margin volatility
Metrics are mathematically derived from official filings.
Cash Conversion Diverges from GAAP Losses
Despite net losses in most quarters, operating cash flow remained positive, averaging $120M per quarter over the last year, as reported in financial statements, indicating non-cash charges like D&A and SBC are masking underlying cash generation.
The OCF/NI ratio is negative in loss quarters, but the absolute magnitude of OCF is consistently positive, suggesting that reported net income understates the company's cash-generating ability. The gap between net income and OCF is primarily driven by large non-cash charges, particularly SBC and D&A, which together exceeded $200M in 2026Q2. This implies that while GAAP profitability is elusive, the core business is generating cash, though the quality of earnings is heavily reliant on non-cash adjustments.
Free Cash Flow Momentum Builds
Free cash flow improved from $11M in 2024Q2 to $141M in 2026Q2, with FCF margin expanding from 1.9% to 18.3%, according to recent SEC filings, signaling a strong upward trajectory despite modest net income.
The FCF trajectory shows a clear upward trend, with the most recent quarter's FCF margin of 18.3% significantly above the prior year's levels. This improvement is driven by both revenue growth and stable capex, which has remained below 10% of revenue. The positive FCF generation, despite net losses, suggests that the company's operational cash flow is robust and may indicate improving efficiency in converting revenue to cash.
Capital Expenditures Remain Disciplined
Capital expenditures have stayed between 4% and 9% of revenue over the past ten quarters, with the latest quarter at 9.1%, as per financial statements, indicating a controlled investment phase relative to revenue growth.
Capex intensity has been relatively stable, with a slight uptick in 2026Q2 to 9.1% of revenue, possibly reflecting increased investment in technology or infrastructure. However, the absolute capex amounts are modest, and the company is generating substantial FCF after these investments. This suggests that the capital expenditure is likely maintenance-oriented rather than aggressive expansion, which may support sustainable cash flow generation.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes have been consistently negative, averaging -$63M per quarter over the last year, as reported in financial statements, indicating that cash is being tied up in operations, yet OCF remains positive.
The persistent negative working capital changes, particularly in 2026Q2 at -$134M, suggest that Zillow is experiencing cash outflows from changes in receivables, payables, or inventory. This could be due to timing of collections or payments, but the consistent negative trend may indicate a structural drag on cash flow. Despite this, OCF has remained positive, implying that the core earnings power is strong enough to overcome these working capital headwinds.
Aggressive Buybacks Outpace Cash Generation
Share repurchases totaled $826M in 2026Q2, far exceeding quarterly FCF of $141M, according to recent filings, suggesting the company is deploying significant capital to buybacks, potentially funded by existing cash reserves.
The scale of buybacks, which have been substantial in recent quarters, indicates a strategic focus on returning capital to shareholders. However, the buyback amount in 2026Q2 is nearly six times the quarter's FCF, implying that the company is using its balance sheet to fund these repurchases. This may signal confidence in the business, but it also raises questions about the sustainability of such aggressive buybacks if cash generation does not keep pace.
SBC Distorts True Cash Flow Picture
Stock-based compensation reached $169M in 2026Q2, exceeding net income and representing a significant non-cash expense, as per financial statements, which may overstate the company's cash-generating ability when added back to OCF.
While SBC is a non-cash charge, it represents real dilution to shareholders. The large SBC amounts, which have been consistently above $100M per quarter, suggest that a significant portion of operating cash flow is effectively used to offset dilution from employee compensation. Investors should monitor the gap between reported OCF and cash flow adjusted for SBC, as the latter may be considerably lower, indicating that the true cash generation is weaker than it appears.