Zillow Q3 2026 earnings review

Revenue rose 7% to $724M but missed consensus by 4%.

Zillow Group · Q3 2026 · Published Nov 4, 2026 · By DeepCell AI · Sources

Zillow Q3 2026 earnings review

Quarter ended September 30, 2026

For information only, not investment advice. No rating or price target.

Built with DeepCell / deepcell.net

1 · Zillow (Z) Q3 2026 earnings review

Revenue rose 7% to $724M but missed consensus by 4%

  1. 1.Total revenue of $724M was 4.0% below the Investing.com consensus
  2. 2.Adjusted EPS of $0.55 missed the $0.59 consensus
  3. 3.Rentals revenue rose 26%; Residential fell 4%
  4. 4.A $165M legal settlement drove a $158M net loss
  5. 5.Q4 revenue guide is $635M to $665M; EBITDA $100M to $135M
  6. 6.Shares fell 12.4% after hours from the $33.90 Nov 4 close

Note: After-hours price is at 4:28 PM ET, not a close. Consensus is from Investing.com and MarketBeat; no LSEG figure was found.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; Investing.com consensus, Nov 4, 2026; Yahoo Finance prices, Nov 3–4, 2026

2

2 · Executive summary

Q3 revenue missed consensus by 4.0% and adjusted EPS by 7%

Q3 2026 results vs. consensus (Investing.com; MarketBeat, Nov 4, 2026)

MetricActualConsensusVarianceResult
Revenue (Investing.com)$724M$754M-$30M / -4.0%Miss
Adjusted EPS (Investing.com)$0.55$0.59-$0.04 / -6.8%Miss
Revenue (MarketBeat)$724M$754M-$30M / -3.9%Miss
Adjusted EPS (MarketBeat)$0.55$0.58-$0.03 / -5.8%Miss

Share price, Nov 3–4, 2026 (Yahoo Finance)

Zillow (Nasdaq)Nov 3 closeNov 4 closeNov 4 after-hoursAfter-hours move
Z$30.98$33.90$29.70-12.4%

After-hours price at 4:28 PM ET, Nov 4: after-hours, not a close. Move is versus the Nov 4 close.

Note: Adjusted EPS is diluted adjusted net income per share. GAAP diluted EPS was a $0.70 loss.Source: Zillow Form 8-K, Nov 4, 2026; Investing.com, Nov 4, 2026; MarketBeat, Nov 4, 2026; Yahoo Finance prices

3

3 · Q3 results vs. consensus

Q4 Adjusted EBITDA guide midpoint of $118M is 21% below last year, a weak outlook

Q4 2026 outlook (shareholder letter, Nov 4, 2026)

MetricLowHighMidpointvs. Q3 2026
Total revenue ($M)$635M$665M$650M-10.2%
Adjusted EBITDA ($M)$100M$135M$118M-35.4%
Adjusted EBITDA expenses ($M)$530M$535M$533M-1.8%

Other outlook items

MetricOutlook
Q4 For Sale and Residential revenueDown about 9% to 15% YoY
Q4 Mortgages revenueDown low single digits YoY
FY 2026 total revenue growth10% to 11%
FY 2026 Adjusted EBITDA ($M)$655M to $690M

Note: Q4 2025 Adjusted EBITDA was $149M. No Q4 consensus was found, so guidance is not scored.Source: Zillow shareholder letter, Nov 4, 2026; analysis of company data

4

4 · Q4 2026 outlook

Adjusted EBITDA rose 10% to $182M, while GAAP swung to a loss

  1. Rentals led growthRentals revenue rose 26%, helped by 35% multifamily growth.
  2. For Sale was flatFor Sale revenue was $489M, as Residential fell 4%.
  3. Settlement hit GAAP profitGAAP net loss was $158M, against $10M of profit a year ago.

Key figures

$M unless notedQ3 2025Q3 2026YoY
Total revenue$676M$724M7.1%
Gross profit$491M$516M5.1%
Adjusted EBITDA$165M$182M10.3%
Adjusted net income$113M$124M9.7%
Diluted adjusted EPS$0.44$0.5525.0%

Note: Adjusted EBITDA and adjusted net income exclude the settlement, net of expected insurance.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

5

5 · Q3 key financials

Rentals revenue rose 26% and Mortgages rose 32%, the two growth lines

Revenue by category

$M unless noted, Q3 2025 vs. Q3 2026

CategoryQ3 2025Q3 2026YoY
Residential$435M$419M-3.7%
Mortgages$53M$70M+32.1%
For Sale total$488M$489M+0.2%
Rentals$174M$220M+26.4%
Total revenue$676M$724M+7.1%
Rentals reached 30% of revenueQ4 For Sale revenue is guided down about 9% to 15% YoY.

Note: For Sale revenue is Residential plus Mortgages, as Zillow reports it.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

6

6 · Revenue by category

Rentals added $46M of revenue, nearly all of the $48M rise

Total revenue bridge by category

$M, Q3 2025 to Q3 2026

$M · Q3 2025: $676M$M · Residential: -$16M$M · Mortgages: $17M$M · Rentals: $46M$M · Other: $1M$M · Q3 2026: $724MQ3 2025ResidentialMortgagesRentalsOtherQ3 2026$600M$650M$700M$760M$676M-$16M$17M$46M$1M$724M
Residential revenue fell by $16M

Note: Steps are each category’s revenue change. Totals are reported revenue.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

7

7 · Revenue bridge

Monthly unique users fell 3% to 215M, a softer audience

Key operating metrics

Q3 2026

MetricQ3 2026YoY
Average monthly unique users (M)215-3.0%
Visits (B)2.3-5.0%
Purchase loan originations ($B)2.0+55.0%
Multifamily properties (thousands)81+17.0%
Multifamily revenue+35.0%
Zillow drew 77% of category visitors, per Comscore

Note: Prior-year values for these metrics are given only as growth rates in the release.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

8

8 · Traffic and marketplace

The $165M settlement explains the $158M net loss

Net loss to Adjusted EBITDA

$M, Q3 2026

$M · Net loss: -$158M$M · ZO settlement: $165M$M · Share-based pay: $74M$M · D&A: $64M$M · Other items: $37M$M · Adj. EBITDA: $182MNet lossZOsettlementShare-basedpayD&AOther itemsAdj. EBITDA-$200M-$100M$0M$100M$200M$250M-$158M$165M$74M$64M$37M$182M
Share-based pay fell to $74M from $99M

Note: Other items are taxes, interest, impairment, restructuring and FTC litigation, less other income.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

9

9 · Net loss to EBITDA

Adjusted EBITDA margin rose 73 bps to 25.1%, a small gain

Margins to revenue

%, Q3 2025 vs. Q3 2026

Gross margin · Q3 2025: 72.6%Gross margin · Q3 2026: 71.3%Adjusted EBITDA margin · Q3 2025: 24.4%Adjusted EBITDA margin · Q3 2026: 25.1%Adjusted net income margin · Q3 2025: 16.7%Adjusted net income margin · Q3 2026: 17.1%Q3 2025Q3 20260%25%50%80%72.6%71.3%24.4%25.1%16.7%17.1%
Gross margin fell 136 bps to 71.3%

Note: Adjusted EBITDA margin is Adjusted EBITDA divided by total revenue.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

10

10 · Margin analysis

Adjusted free cash flow fell 57% to $46M, a weak cash quarter

Operating cash flow to Adjusted free cash flow

$M, Q3 2026

$M · Operating cash flow: $162M$M · Property, equipment: -$34M$M · Intangibles: -$9M$M · Repurchase lines: -$73M$M · Adjusted FCF: $46MOperating cashflowProperty,equipmentIntangiblesRepurchaselinesAdjusted FCF$0M$50M$100M$150M$200M$162M-$34M-$9M-$73M$46M
Repurchase line repayments took $73M

Note: Repurchase lines fund Zillow Home Loans originations, as Zillow defines Adjusted FCF.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

11

11 · Free cash flow

G&A rose to 39% of revenue from 19%, on the settlement

Operating expense lines to revenue

%, Q3 2025 vs. Q3 2026

Sales and marketing · Q3 2025: 31.7%Sales and marketing · Q3 2026: 29.8%Technology, development · Q3 2025: 22.3%Technology, development · Q3 2026: 20.7%General, administrative · Q3 2025: 18.8%General, administrative · Q3 2026: 38.5%Q3 2025Q3 20260%10%20%30%40%50%31.7%29.8%22.3%20.7%18.8%38.5%
Sales and marketing fell to 30% of revenue

Note: G&A includes the $165M settlement, net of expected insurance recoveries.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

12

12 · Operating cost ratios

Cash and investments rose $25M to $707M, a solid position

Liquidity and capital

$M

$MJun 30, 2026Sep 30, 2026
Cash and investments$682M$707M
Undrawn revolving credit facility$500M
Total liquidity, about$1.2B
Repurchase authorization left, about$1.1B
Q3 buybacks were $20M for 0.5M shares

Note: The Q3 balance sheet is not in the 8-K; the 10-Q was not yet filed.Source: Zillow shareholder letter, Nov 4, 2026; analysis of company data

13

13 · Liquidity and capital

Q4 guidance implies a 18% EBITDA margin, down from 25% in Q3

Indicator
What to watch
Implication
Latest reading
Mortgage rates
Transaction volume
Industry purchase originations seen down 10% to 15% in Q4
-4.0% in Q3, company estimate
Traffic
Lead volume
Visits fell 5%
215M monthly users
Legal costs
GAAP profit
$8M FTC costs in Q3
$165M settlement
Rentals growth
Revenue mix
Q4 growth seen similar to Q3
+26.4% in Q3

Note: These are analytical watch points, not company targets.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

14

14 · Key risks to guidance

15 · Appendix: Traffic

Appendix: profit and non-GAAP detail

ClaimEvidenceCalculation
Gross margin fell72.6% to 71.3%Gross profit to revenue
Net margin fell1.5% to (21.8%)Net income to revenue
GAAP diluted EPS fell$0.04 to ($0.70)Financial highlights
Adjusted net income rose$113M to $124MNon-GAAP reconciliation
Share-based pay fell$99M to $74MNon-GAAP reconciliation
Impairment and restructuring rose$2M to $32MNon-GAAP reconciliation

Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

16

16 · Appendix: Profit detail

17 · Appendix: Revenue detail

18 · Appendix: Capital and shares

Appendix: operating expense and Adjusted EBITDA detail

Select operating expenses and cost of revenue, $M and YoY %

$M unless notedQ3 2025Q3 2026YoY
Cost of revenue$185M$208M12.4%
Sales and marketing$214M$216M0.9%
Technology and development$151M$150M(0.7%)
General and administrative$127M$279M119.7%
Total$677M$853M26.0%

Net income (loss) to Adjusted EBITDA, $M

$MQ3 2025Q3 2026
Net income (loss)$10M($158M)
ZO settlement, net$0M$165M
Share-based compensation$99M$74M
Depreciation and amortization$67M$64M
Other items-$11M$37M
Adjusted EBITDA$165M$182M

Note: ZO is Zillow Offers. Other items are taxes, interest, impairment, restructuring and FTC costs, less other income.Source: Zillow Form 8-K, Nov 4, 2026; Zillow shareholder letter, Nov 4, 2026; analysis of company data

19

19 · Appendix: Opex and EBITDA

Appendix: sources

  • Filing: Zillow Form 8-K, Nov 4, 2026 (accepted 4:06 PM ET) — https://www.sec.gov/Archives/edgar/data/1617640/000161764026000068/0001617640-26-000068-index.htm
  • Earnings release, Q3 2026 (Ex. 99.1) — https://www.sec.gov/Archives/edgar/data/1617640/000161764026000068/q32026991.htm
  • Shareholder letter, Q3 2026 (Ex. 99.2) — https://www.sec.gov/Archives/edgar/data/1617640/000161764026000068/exhibit992.htm
  • Q3 consensus: Investing.com, Nov 4, 2026, 12:10 PM ET — https://www.investing.com/news/earnings/investors-brace-for-zillow-earnings-as-housing-market-cools-93CH-5000724
  • Q3 consensus check: MarketBeat, Nov 4, 2026 — https://www.marketbeat.com/earnings/reports/2026-11-4-zillow-group-inc-stock-1/
  • Share price: Yahoo Finance Z, Nov 3 and Nov 4 closes; Nov 4 after-hours at 4:28 PM ET — https://finance.yahoo.com/quote/Z/
  • No LSEG consensus and no Q4 consensus were found. The Q3 balance sheet awaits the 10-Q.
  • Times are US Eastern. The after-hours price is not a close.

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20 · Sources

Important disclosures and disclaimer

For information only. This presentation is provided for information only. It is not investment, legal, tax or accounting advice, and it is not an offer, or a solicitation of an offer, to buy or sell any security.

No recommendation. It carries no rating, price target or buy, sell or hold view, and it was prepared without regard to any reader's investment objectives, financial situation or needs.

Sources and accuracy. Company figures come from Zillow Group's Form 8-K of November 4, 2026 (Exhibits 99.1 and 99.2). Consensus estimates (Investing.com, MarketBeat) and share prices (Yahoo Finance) are third-party data, credited on the sources page. We have not independently verified third-party data.

Basis of presentation. Figures are as reported for the quarters ended September 30, 2026 and 2025, in US dollars.

Forward-looking statements. Company guidance, consensus estimates and the watch items in this deck are forward-looking. They rest on assumptions that may prove wrong, and actual results may differ materially.

Non-GAAP measures. Adjusted EBITDA, adjusted net income, adjusted EPS and Adjusted free cash flow follow Zillow's own definitions and are reconciled to GAAP in its release. They may not be comparable with other companies' measures.

No liability. No liability is accepted for any direct or indirect loss arising from the use of this presentation or its contents.

No affiliation. This presentation is not affiliated with, reviewed or endorsed by Zillow Group, Inc. Company and brand names belong to their owners.

How it was made. The deck was built with DeepCell, with figures linked to a model in the file. Readers should check the figures against the original filings.

Date of analysis. The analysis reflects information available shortly after the November 4, 2026 release. The after-hours price is not a close.

Built with DeepCell / deepcell.net

21

21 · Disclosures

Sources

Not investment advice; no rating or price target.

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