Zillow Group (NASDAQ:Z) Announces Earnings Results, Misses Expectations By $0.03 EPS

Zillow Group (NASDAQ:Z) issued its quarterly earnings data on Tuesday. The financial services provider reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.42 by ($0.03), FiscalAI reports. Zillow Group had a negative net margin of 1.29% and a negative return on equity of 0.56%. The business had revenue of $654.00 million during the quarter, compared to the consensus estimate of $650.40 million.

Here are the key takeaways from Zillow Group’s conference call:

• Delivered strong financials with Q4 revenue +18% YoY and FY revenue +16%, achieved full-year GAAP profitability ($23M net income), expanded EBITDA margins, generated $420M free cash flow, and repurchased $670M of shares in 2025.
• For‑Sale and mortgage businesses accelerated — For‑Sale revenue reached $1.9B in 2025 and mortgages revenue grew 39% in Q4 with purchase originations up sharply (67% YoY in Q4), driven by increasing Zillow Home Loans adoption and higher loan‑officer productivity.
• Rentals remains a major growth engine, with Q4 rentals revenue +45% YoY (39% for the year), multifamily properties up 44% to 72,000, ~2.5M average monthly rental listings, and management targeting a >$1B annual rentals opportunity.
• Elevated legal expenses pressured Q4 results and are expected to be a near‑term headwind (≈200bps to Q1 EBITDA margin and ≈100bps for full‑year 2026), increasing expense volatility despite management saying the cases won’t materially change long‑term strategy.
• Strategic product rollouts continue — Enhanced Markets now represent 44% of connections (goal >75%) and Zillow Pro is in beta with planned nationwide expansion in H2, but both are early-stage contributors to revenue and will require time to scale.

Zillow Group Stock Down 18.1%

Shares of Z stock traded down $9.88 during trading hours on Wednesday, hitting $44.83. 4,797,325 shares of the company’s stock traded hands, compared to its average volume of 3,535,955. The stock has a market cap of $10.85 billion, a PE ratio of -320.83, a price-to-earnings-growth ratio of 3.15 and a beta of 2.08. The stock’s 50 day simple moving average is $67.47 and its 200 day simple moving average is $74.58. Zillow Group has a 12 month low of $44.70 and a 12 month high of $93.88.

Analyst Ratings Changes

Z has been the topic of a number of research reports. Weiss Ratings reiterated a “sell (d-)” rating on shares of Zillow Group in a research report on Wednesday, January 21st. Barclays upgraded Zillow Group from a “strong sell” rating to a “hold” rating in a research report on Thursday, January 29th. Keefe, Bruyette & Woods dropped their target price on Zillow Group from $80.00 to $65.00 and set a “market perform” rating for the company in a research report on Monday. Mizuho cut Zillow Group from a “strong-buy” rating to a “hold” rating in a report on Thursday, January 8th. Finally, JPMorgan Chase & Co. boosted their price objective on Zillow Group from $94.00 to $95.00 and gave the stock an “overweight” rating in a report on Friday, October 31st. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, eight have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $90.60.

More Zillow Group News

Here are the key news stories impacting Zillow Group this week:

• Positive Sentiment: Zillow reported Q4 revenue of $654M, up ~18% year‑over‑year and slightly above consensus, showing top‑line strength across mortgage and rentals. Read More.
• Positive Sentiment: The company returned to GAAP profitability for 2025 (reported quarterly profit and a profitable full year), a structural positive for investor sentiment. Read More.
• Positive Sentiment: Zillow raised Q1 revenue guidance to about $700M–$710M, above consensus (~$690M), suggesting revenue momentum into 2026. Read More.
• Neutral Sentiment: Some analysts maintain interest in the long‑term story: coverage pieces note that investors still see growth potential as the housing market improves and Zillow leans into AI and services. Read More.
• Neutral Sentiment: Needham reaffirmed a “hold” rating, reflecting cautious stance despite mixed results. Read More.
• Negative Sentiment: Zillow missed EPS expectations materially — the transcript/prints show reported EPS near $0.01 versus street estimates around $0.42 — a headline driver of selling pressure. Read More.
• Negative Sentiment: Management commentary and some analyst notes flagged softer EBITDA/margin outlook despite revenue strength, which increases near‑term profitability risk. Read More.
• Negative Sentiment: Keefe, Bruyette & Woods cut its price target to $65, signaling reduced near‑term valuation support from at least one coverage shop. Read More.

Insider Buying and Selling

In related news, CFO Jeremy Hofmann sold 7,865 shares of Zillow Group stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of $69.53, for a total value of $546,853.45. Following the transaction, the chief financial officer directly owned 70,811 shares of the company’s stock, valued at $4,923,488.83. The trade was a 10.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Jeremy Wacksman sold 10,855 shares of the firm’s stock in a transaction that occurred on Friday, November 14th. The stock was sold at an average price of $69.99, for a total transaction of $759,741.45. Following the transaction, the chief executive officer owned 134,712 shares of the company’s stock, valued at approximately $9,428,492.88. The trade was a 7.46% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 28,103 shares of company stock valued at $1,956,109. Corporate insiders own 23.76% of the company’s stock.

Institutional Trading of Zillow Group

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Empowered Funds LLC increased its position in Zillow Group by 4.7% in the first quarter. Empowered Funds LLC now owns 3,822 shares of the financial services provider’s stock worth $262,000 after buying an additional 171 shares during the last quarter. Intech Investment Management LLC raised its holdings in Zillow Group by 21.7% during the 1st quarter. Intech Investment Management LLC now owns 20,518 shares of the financial services provider’s stock valued at $1,407,000 after buying an additional 3,653 shares during the last quarter. American Century Companies Inc. increased its position in Zillow Group by 1.6% during the 2nd quarter. American Century Companies Inc. now owns 23,064 shares of the financial services provider’s stock valued at $1,616,000 after purchasing an additional 362 shares during the period. Northwestern Mutual Wealth Management Co. raised its holdings in Zillow Group by 186.3% in the 2nd quarter. Northwestern Mutual Wealth Management Co. now owns 1,678 shares of the financial services provider’s stock worth $118,000 after purchasing an additional 1,092 shares in the last quarter. Finally, First Trust Advisors LP boosted its stake in shares of Zillow Group by 1,895.4% during the 2nd quarter. First Trust Advisors LP now owns 128,362 shares of the financial services provider’s stock valued at $8,992,000 after purchasing an additional 121,929 shares in the last quarter. 71.01% of the stock is owned by institutional investors.

About Zillow Group

Zillow Group, Inc is an online real estate marketplace company that operates a portfolio of consumer-facing websites and mobile apps designed to connect buyers, sellers, renters, homeowners and real estate professionals. The company’s platforms aggregate property listings, rental listings, and related information to help users search for homes, estimate property values and connect with agents and service providers. Zillow generates revenue primarily through advertising and lead-generation services for real estate professionals, property managers and mortgage lenders.

Key products and services include the Zillow and Trulia consumer websites and apps, which provide searchable listings, photos, neighborhood data and the company’s automated home valuation tool known as the “Zestimate.” Zillow also offers a rentals marketplace, a mortgage marketplace and tools for home buying and selling such as Zillow Premier Agent for agent advertising and leads, as well as ancillary services designed to support transactions, including closing and title-related offerings.