Financial Highlights
| Zillow Group, Inc. | |||||||||||
| Financial Highlights | |||||||||||
| (in millions, except percentages, unaudited) | |||||||||||
| Three Months Ended September 30, | 2025 to 2026 % Change | Nine Months Ended September 30, | 2025 to 2026 % Change | ||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Revenue: | |||||||||||
| For Sale revenue: | |||||||||||
| Residential | $ 419 | $ 435 | (4)% | $ 1,334 | $ 1,286 | 4 % | |||||
| Mortgages | 70 | 53 | 32 % | 218 | 142 | 54 % | |||||
| Total For Sale revenue | 489 | 488 | - % | 1,552 | 1,428 | 9 % | |||||
| Rentals | 220 | 174 | 26 % | 612 | 462 | 32 % | |||||
| Other | 15 | 14 | 7 % | 40 | 39 | 3 % | |||||
| Total revenue | $ 724 | $ 676 | 7 % | $ 2,204 | $ 1,929 | 15 % | |||||
| Other Financial Data: | |||||||||||
| Gross profit | $ 516 | $ 491 | $ 1,597 | $ 1,439 | |||||||
| Net income (loss) | $ (158) | $ 10 | $ (116) | $ 20 | |||||||
| Diluted net income (loss) per share | $ (0.70) | $ 0.04 | $ 0.51 | $ 0.08 | |||||||
| Net cash provided by operating activities | $ 162 | $ 105 | $ 373 | $ 296 | |||||||
| Non-GAAP Financial Measures:(1) | |||||||||||
| Adjusted EBITDA | $ 182 | $ 165 | $ 556 | $ 473 | |||||||
| Adjusted net income | $ 124 | $ 113 | $ 387 | $ 319 | |||||||
| Diluted adjusted net income per share | $ 0.55 | $ 0.44 | $ 1.68 | $ 1.25 | |||||||
| Adjusted free cash flow | $ 46 | $ 107 | $ 269 | $ 295 | |||||||
| Percentage of Revenue: | |||||||||||
| Gross profit | 71 % | 73 % | 72 % | 75 % | |||||||
| Net income (loss) | (22)% | 1 % | (5)% | 1 % | |||||||
| Adjusted EBITDA(1) | 25 % | 24 % | 25 % | 25 % | |||||||
| Adjusted net income(1) | 17 % | 17 % | 18 % | 17 % | |||||||
| (1) These measures are non-GAAP financial measures not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See Exhibit 99.1 to our Form 8-K filed on November 4, 2026 for more information regarding our presentation of these non-GAAP financial measures, including reconciliations of each measure to the most directly comparable GAAP financial measures, for each of the periods presented. |
Adjusted EBITDA
| Zillow Group, Inc. | |||||||
| Reconciliation of Adjusted EBITDA | |||||||
| (in millions, unaudited) | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2026 | 2025 | 2026 | 2025 | ||||
| Net income (loss) | $ (158) | $ 10 | $ (116) | $ 20 | |||
| Income taxes | 3 | 2 | 6 | 2 | |||
| Other income, net | (12) | (18) | (41) | (58) | |||
| Depreciation and amortization | 64 | 67 | 194 | 199 | |||
| Share-based compensation | 74 | 99 | 230 | 295 | |||
| Impairment and restructuring costs | 32 | 2 | 68 | 2 | |||
| FTC Matter litigation costs(1) | 8 | - | 34 | - | |||
| ZO securities class action settlement(2) | 165 | - | 165 | - | |||
| Interest expense | 6 | 3 | 16 | 13 | |||
| Adjusted EBITDA | $ 182 | $ 165 | $ 556 | $ 473 | |||
| (1) Beginning with the three months ended June 30, 2026, we calculate and report Adjusted EBITDA excluding litigation costs directly associated with the FTC Matter, which we have determined to be nonrecurring, infrequent, or unusual and outside the ordinary course of our business. We have revised Adjusted EBITDA for the three months ended March 31, 2026 to conform to the current period presentation. As a result of this revision, Adjusted EBITDA for the three months ended March 31, 2026 increased by $16 million, from $182 million as previously reported to $198 million. | |||||||
| (2) Beginning with the three months ended September 30, 2026, we calculate and report Adjusted EBITDA excluding the ZO securities class action settlement, net of expected insurance recoveries, which we do not believe is reflective of our ongoing operating performance. |
Adjusted NI
| Zillow Group, Inc. | |||||||
| Reconciliation of Adjusted Net Income | |||||||
| (in millions, except per share data, unaudited) | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2026 | 2025 | 2026 | 2025 | ||||
| Net income (loss) | $ (158) | $ 10 | $ (116) | $ 20 | |||
| Share-based compensation | 74 | 99 | 230 | 295 | |||
| Impairment and restructuring costs | 32 | 2 | 68 | 2 | |||
| FTC Matter litigation costs(1) | 8 | - | 34 | - | |||
| ZO securities class action settlement(2) | 165 | - | 165 | - | |||
| Income taxes | 3 | 2 | 6 | 2 | |||
| Adjusted net income | $ 124 | $ 113 | $ 387 | $ 319 | |||
| Diluted net income (loss) per share | $ (0.70) | $ 0.04 | $ (0.51) | $ 0.08 | |||
| Diluted adjusted net income per share | $ 0.55 | $ 0.44 | $ 1.68 | $ 1.25 | |||
| (1) Beginning with the three months ended June 30, 2026, we calculate and report Adjusted net income and Diluted adjusted net income per share excluding litigation costs directly associated with the FTC Matter, which we have determined to be nonrecurring, infrequent, or unusual and outside the ordinary course of our business. We have revised Adjusted net income and Diluted adjusted net income per share for the three months ended March 31, 2026 to conform to the current period presentation. As a result of this revision, Adjusted net income for the three months ended March 31, 2026 increased by $16 million, from $129 million as previously reported to $145 million, and Diluted adjusted net income per share increased by $0.07, from $0.53 as previously reported to $0.60. | |||||||
| (2) Beginning with the three months ended September 30, 2026, we calculate and report Adjusted net income and Diluted adjusted net income per share excluding the ZO securities class action settlement, net of expected insurance recoveries, which we do not believe is reflective of our ongoing operating performance. | |||||||
| The following table reconciles the denominators used in the Diluted net income (loss) per share and Diluted adjusted net income per share calculations (in thousands, unaudited): | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2026 | 2025 | 2026 | 2025 | ||||
| Diluted weighted-average shares outstanding | 225,305 | 256,243 | 229,589 | 254,700 | |||
| Effect of dilutive securities: | |||||||
| Option awards | 33 | - | 602 | - | |||
| Unvested restricted stock units | 83 | - | 290 | - | |||
| Adjusted diluted weighted-average shares outstanding | 225,421 | 256,243 | 230,481 | 254,700 |
Adjusted FCF
| Zillow Group, Inc. | |||||||
| Reconciliation of Adjusted Free Cash Flow | |||||||
| (in millions, unaudited) | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2026 | 2025 | 2026 | 2025 | ||||
| Net cash provided by operating activities | $ 162 | $ 105 | $ 373 | $ 296 | |||
| Purchases of property and equipment | (34) | (32) | (104) | (105) | |||
| Purchases of intangible assets | (9) | (8) | (28) | (123) | |||
| Net borrowings (repayments) on master repurchase agreements | (73) | 42 | 28 | 127 | |||
| Initial payment in connection with Redfin rentals partnership | - | - | - | 100 | |||
| Adjusted free cash flow | $ 46 | $ 107 | $ 269 | $ 295 |
Balance Sheets
| ZILLOW GROUP, INC. | |||
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||
| (in millions) | |||
| September 30, 2026 | December 31, 2025 | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents | $ 602 | $ 768 | |
| Short-term investments | 105 | 527 | |
| Accounts receivable, net | 181 | 149 | |
| Mortgage loans held for sale | 423 | 386 | |
| Prepaid expenses and other current assets | 459 | 287 | |
| Restricted cash | 6 | 5 | |
| Total current assets | 1,776 | 2,122 | |
| Contract cost assets | 26 | 27 | |
| Property and equipment, net | 355 | 350 | |
| Right of use assets | 56 | 56 | |
| Goodwill | 2,823 | 2,823 | |
| Intangible assets, net | 254 | 279 | |
| Other assets | 37 | 28 | |
| Total assets | $ 5,327 | $ 5,685 | |
| Liabilities and shareholders' equity | |||
| Current liabilities: | |||
| Accounts payable | $ 73 | $ 36 | |
| Accrued expenses and other current liabilities | 393 | 134 | |
| Accrued compensation and benefits | 83 | 62 | |
| Borrowings under master repurchase agreements | 392 | 364 | |
| Deferred revenue | 53 | 69 | |
| Lease liabilities, current portion | 16 | 14 | |
| Total current liabilities | 1,010 | 679 | |
| Lease liabilities, net of current portion | 72 | 79 | |
| Other long-term liabilities | 16 | 43 | |
| Total liabilities | 1,098 | 801 | |
| Shareholders' equity: | |||
| Preferred stock | - | - | |
| Class A common stock | - | - | |
| Class B common stock | - | - | |
| Class C capital stock | - | - | |
| Additional paid-in capital | 6,206 | 6,741 | |
| Accumulated other comprehensive income (loss) | (2) | 2 | |
| Accumulated deficit | (1,975) | (1,859) | |
| Total shareholders' equity | 4,229 | 4,884 | |
| Total liabilities and shareholders' equity | $ 5,327 | $ 5,685 |
Statements of Operations
| ZILLOW GROUP, INC. | |||||||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (in millions, except share data which are presented in thousands, and per share data) | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2026 | 2025 | 2026 | 2025 | ||||
| Revenue | $ 724 | $ 676 | $ 2,204 | $ 1,929 | |||
| Cost of revenue (1) | 208 | 185 | 607 | 490 | |||
| Gross profit | 516 | 491 | 1,597 | 1,439 | |||
| Operating expenses: | |||||||
| Sales and marketing (1) | 216 | 214 | 675 | 638 | |||
| Technology and development (1) | 150 | 151 | 456 | 453 | |||
| General and administrative (1) | 279 | 127 | 533 | 369 | |||
| Impairment and restructuring costs (1) | 32 | 2 | 68 | 2 | |||
| Total operating expenses | 677 | 494 | 1,732 | 1,462 | |||
| Loss from operations | (161) | (3) | (135) | (23) | |||
| Other income, net | 12 | 18 | 41 | 58 | |||
| Interest expense | (6) | (3) | (16) | (13) | |||
| Income (loss) before income taxes | (155) | 12 | (110) | 22 | |||
| Income tax expense | (3) | (2) | (6) | (2) | |||
| Net income (loss) | $ (158) | $ 10 | $ (116) | $ 20 | |||
| Net income (loss) per share: | |||||||
| Basic | $ (0.70) | $ 0.04 | $ (0.51) | $ 0.08 | |||
| Diluted | $ (0.70) | $ 0.04 | $ (0.51) | $ 0.08 | |||
| Weighted-average shares outstanding: | |||||||
| Basic | 225,305 | 242,326 | 229,589 | 241,889 | |||
| Diluted | 225,305 | 256,243 | 229,589 | 254,700 | |||
| (1) Includes share-based compensation expense as follows: | |||||||
| Cost of revenue | $ 2 | $ 3 | $ 6 | $ 9 | |||
| Sales and marketing | 13 | 18 | 43 | 55 | |||
| Technology and development | 33 | 41 | 97 | 119 | |||
| General and administrative | 26 | 37 | 84 | 112 | |||
| Impairment and restructuring costs | 12 | - | 25 | - | |||
| Total share-based compensation | $ 86 | $ 99 | $ 255 | $ 295 | |||
| Adjusted EBITDA (2) | $ 182 | $ 165 | $ 556 | $ 473 | |||
| (2) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See Exhibit 99.1 to our Form 8-K filed on November 4, 2026 for more information regarding our presentation of Adjusted EBITDA and for a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure, for each of the periods presented. |
WASO
| Zillow Group, Inc. | |||||||
| Weighted Average Shares Outstanding | |||||||
| (in millions) | |||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||
| 2026 | 2025 | 2026 | 2025 | ||||
| Shares outstanding - beginning of period | 225 | 241 | 240 | 242 | |||
| Issuance of Class C capital stock upon exercise of stock options | - | 2 | 1 | 2 | |||
| Vesting of restricted stock units | - | - | 2 | 2 | |||
| Settlement of capped call transactions | - | (1) | - | - | |||
| Repurchases of Class A common stock and Class C capital stock | - | - | (13) | (4) | |||
| Weighted-average shares outstanding - basic | 225 | 242 | 230 | 242 | |||
| Effect of dilutive securities: | |||||||
| Option awards | - | 10 | - | 9 | |||
| Unvested restricted stock units | - | 4 | - | 4 | |||
| Weighted-average shares outstanding - diluted* | 225 | 256 | 230 | 255 | |||
| *In periods of net loss, all potentially dilutive securities are considered antidilutive. |
Statements of Cash Flows
| ZILLOW GROUP, INC. | |||
| UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
| (in millions) | |||
| Nine Months Ended September 30, | |||
| 2026 | 2025 | ||
| Operating activities | |||
| Net income (loss) | $ (116) | $ 20 | |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
| Depreciation and amortization | 194 | 199 | |
| Share-based compensation | 255 | 295 | |
| Amortization of right of use assets | 7 | 6 | |
| Amortization of contract cost assets | 19 | 16 | |
| Other adjustments to reconcile net income to net cash provided by operating activities | (14) | (10) | |
| Changes in operating assets and liabilities: | |||
| Accounts receivable | (32) | (53) | |
| Mortgage loans held for sale | (37) | (132) | |
| Prepaid expenses and other assets | (163) | (67) | |
| Contract cost assets | (18) | (18) | |
| Lease liabilities | (12) | (9) | |
| Accounts payable | 38 | 8 | |
| Accrued expenses and other current liabilities | 246 | 32 | |
| Accrued compensation and benefits | 21 | 2 | |
| Deferred revenue | (16) | 7 | |
| Other long-term liabilities | 1 | - | |
| Net cash provided by operating activities | 373 | 296 | |
| Investing activities | |||
| Proceeds from maturities of investments | 108 | 338 | |
| Proceeds from sales of investments | 391 | 61 | |
| Purchases of investments | (82) | (127) | |
| Purchases of property and equipment | (104) | (105) | |
| Purchases of intangible assets | (28) | (123) | |
| Net cash provided by investing activities | 285 | 44 | |
| Financing activities | |||
| Net borrowings on master repurchase agreements | 28 | 127 | |
| Repurchases of Class A common stock and Class C capital stock | (846) | (438) | |
| Settlement of 2025 Notes | - | (419) | |
| Proceeds from settlement of capped call transactions | - | 38 | |
| Payments for debt issuance costs | (2) | - | |
| Proceeds from exercise of stock options | 24 | 176 | |
| Payment of contingent consideration for acquisition | (27) | (30) | |
| Net cash used in financing activities | (823) | (546) | |
| Net decrease in cash, cash equivalents and restricted cash during period | (165) | (206) | |
| Cash, cash equivalents and restricted cash at beginning of period | 773 | 1,085 | |
| Cash, cash equivalents and restricted cash at end of period | $ 608 | $ 879 | |
| Supplemental disclosures of cash flow information | |||
| Noncash transactions: | |||
| Write-off of fully depreciated property and equipment | $ 138 | $ 116 | |
| Capitalized share-based compensation | 40 | 48 | |
| Write-off of fully amortized intangible assets | 30 | 58 |
Key Metrics
| Zillow Group, Inc. | |||||||||||
| Key Metrics | |||||||||||
| (in millions, except percentages, unaudited) | |||||||||||
| The following table presents our visits and average monthly unique users for the periods presented: | |||||||||||
| Three Months Ended September 30, | 2025 to 2026 % Change | Nine Months Ended September 30, | 2025 to 2026 % Change | ||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Visits (1) | 2,308 | 2,425 | (5)% | 6,931 | 7,166 | (3)% | |||||
| Average monthly unique users (2) | 215 | 222 | (3)% | 213 | 216 | (1)% | |||||
| (1) Visits includes groups of interactions by users with the Zillow, Trulia and StreetEasy apps and websites. Zillow and StreetEasy measure visits with an internal measurement tool and Trulia measures visits with Adobe Analytics. | |||||||||||
| (2) Zillow, StreetEasy and HotPads measure unique users with an internal measurement tool and Trulia measures unique users with Adobe Analytics. | |||||||||||
| See "Selected Historical Data" tab for further discussion regarding our visits and average monthly unique users metric as well as the recast of these metrics for certain historical periods. | |||||||||||
| The following table presents our For Sale revenue per Total Transaction Value ("TTV") for the periods presented: | |||||||||||
| Twelve Months Ended September 30, | 2025 to 2026 % Change | ||||||||||
| 2026 | 2025 | ||||||||||
| For Sale revenue (in millions) | $ 2,033 | $ 1,856 | 10 % | ||||||||
| Total Transaction Value (in trillions)(1) | $ 2.3 | $ 2.2 | 3 % | ||||||||
| For Sale revenue per Total Transaction Value (in basis points) | 8.8 | 8.3 | 6 % | ||||||||
| (1) TTV is calculated as the number of existing residential homes sold during the relevant period multiplied by the average sales price of existing residential homes sold during the same period according to the National Association of Realtors ("NAR"). | |||||||||||
| The following table presents loan origination volume by purpose and in total for Zillow Home Loans for the periods presented: | |||||||||||
| Three Months Ended September 30, | 2025 to 2026 % Change | Nine Months Ended September 30, | 2025 to 2026 % Change | ||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||
| Purchase loan origination volume | $ 1,972 | $ 1,276 | 55 % | $ 5,694 | $ 3,183 | 79 % | |||||
| Refinance loan origination volume | 4 | 5 | (20)% | 33 | 20 | 65 % | |||||
| Total loan origination volume | $ 1,976 | $ 1,281 | 54 % | $ 5,727 | $ 3,203 | 79 % |
Selected Historical Data
| Zillow Group, Inc. | |||||||||||||||||||
| Selected Historical Data | |||||||||||||||||||
| (in millions, unaudited) | |||||||||||||||||||
| Beginning with the three months ended September 30, 2026, we enhanced our methodology for identifying and excluding from visits and unique users any activity that we identify as generated by automated programs rather than consumers ("automated traffic"), such as programs that access our websites to index or collect content. Previously, we excluded self-identified automated traffic and estimated and excluded other automated traffic through monitoring of traffic patterns. Because the volume and sophistication of automated traffic have increased in recent periods, including traffic designed to resemble consumer activity, we now identify and exclude automated traffic at the individual instance of access. Our methodology considers, among other factors, whether a user is signed in, the level of interaction during the instance of access, the traffic source and indicators of atypical network activity. We believe excluding automated traffic at the individual instance of access provides a more accurate indicator of consumers' engagement and traffic to our mobile apps and websites and improves the comparability of visits and unique users across periods. We have recast prior period visits and average monthly unique users to conform with the current period methodology, which identifies and excludes automated traffic at the individual instance of access, using the indicators of automated traffic available for each period. | |||||||||||||||||||
| The following tables present the recast of our visits and average monthly unique users for the periods presented: | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | June 30, 2025 | September 30, 2025 | December 31, 2025 | March 31, 2026 | June 30, 2026 | ||||||||||
| Visits | 2,231 | 2,410 | 2,353 | 1,969 | 2,246 | 2,496 | 2,425 | 1,999 | 2,206 | 2,417 | |||||||||
| Average monthly unique users | 200 | 216 | 217 | 185 | 204 | 222 | 222 | 198 | 209 | 216 | |||||||||
| Twelve Months Ended | |||||||||||||||||||
| December 31, 2024 | December 31, 2025 | ||||||||||||||||||
| Visits | 8,963 | 9,166 | |||||||||||||||||
| Average monthly unique users | 204 | 211 |