Free cash flow margins have expanded from 9.7% in 2023Q4 to 23.2% in 2026Q1, reflecting improved conversion efficiency despite persistent working capital volatility.
| 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 | 462M | 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 % | 68.99% | -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 | 61M | 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 | 278M | 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 | 293M | 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 | 83M | 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 | -253M | -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 | -38M | -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 | 33M | 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 | 422M | -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 | -141M | -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 | 5.24% | 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 | -26M | -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 | -1.12B | -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) | -257M | -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) | -895M | -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 | -1.05B | -670M | -301M | -424M | -947M | -302M | 0 | 0 | 0 | -365K | -616K | -8.15M | 0 | 0 | 0 | 0 | 0 | 0 | 100K |
| Other Financing | 33M | 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 | -235M | -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 | 331M | 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 % | 12.29% | 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 % | 13.75% | -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 | 1.38 | 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) | 5.43x | 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 |
Housing market volume sensitivity
As reported in recent financial statements, Zillow's operating cash flow consistently dwarfs net income, with the OCF/NI ratio reaching an extreme 4.30x in 2026Q1, highlighting a persistent disconnect between accounting profitability and the actual cash-generative capacity of the company's core digital marketplace operations.
The significant gap between net income and operating cash flow suggests that non-cash charges, particularly stock-based compensation, continue to play a dominant role in the company's financial reporting. Investors should monitor this divergence, as it implies that reported earnings may not fully capture the economic reality of the business's cash-generating potential.
Based on the provided quarterly data, Zillow's free cash flow margin has demonstrated a clear upward trend, climbing from 9.7% in 2023Q4 to 23.2% in 2026Q1, which suggests that the company is successfully converting its top-line growth into meaningful, discretionary cash resources.
This trajectory indicates that the company's operating leverage is beginning to manifest in its cash flow profile. The ability to sustain these margins will likely depend on the company's success in managing its high fixed-cost base while scaling its housing super app initiatives.
According to historical cash flow filings, Zillow experienced significant working capital outflows in several recent quarters, including a $107 million drain in 2025Q4, which suggests that the company's cash conversion cycle remains sensitive to seasonal fluctuations and the timing of its transactional revenue recognition.
The recurring negative working capital changes appear to reflect the inherent friction in the real estate transaction stack. This volatility warrants further investigation to determine if it stems from temporary timing differences or structural inefficiencies in the company's evolving mortgage and title service offerings.
As indicated by the company's recent financial disclosures, Zillow has prioritized share repurchases, allocating $626 million in 2026Q1 alone, which suggests a management focus on offsetting dilution from stock-based compensation and returning capital to shareholders despite the ongoing investments in its long-term platform strategy.
The scale of these buybacks relative to free cash flow may indicate management's confidence in the company's long-term valuation. However, investors should monitor whether this capital allocation strategy remains sustainable if the housing market experiences a prolonged period of suppressed transaction volumes.
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.