Zillow Group Q2 2026 earnings: revenue up 18%, outlook cools for Q3
Zillow's quarterly revenue grew 18% from a year ago on strength in mortgages and rentals, but the company posted a small per-share loss and its outlook for the next quarter points to slower growth ahead.
| Q2 2026 | Reported |
|---|---|
| EPS | -$0.02 |
| Revenue | $772.0M |
Figures as reported by the company to the SEC for the quarter ended June 30, 2026. Analyst estimates are not part of a filing, so no comparison to expectations is shown.
Key takeaways
- Total revenue reached $772 million, up 18% from the same quarter last year. Growth was broad-based: Mortgages jumped 75% as purchase-loan volume nearly doubled, Rentals climbed 31% (helped by a 42% jump in multifamily/apartment listings revenue), and the core Residential home-buying/selling business grew a steadier 7%.
- Despite the revenue growth, Zillow reported a small net loss for the quarter (about 2 cents per share). The company’s own adjusted profitability measure, adjusted EBITDA, came in at $176 million, a 23% margin — a yardstick Zillow uses that strips out items like stock-based compensation and taxes.
- Looking at trailing 12-month trends, Zillow’s operating and net profit margins remain thin (under 2.5%), even as revenue over that period grew nearly 17% and return on equity stayed low at about 1.3% — a sign the company is still converting fast growth into only modest bottom-line profit.
- Management highlighted early traction for “AI Mode,” a newer search experience: users of it reportedly spend over three times longer on the site, view more than twice as many homes, and contact agents at roughly three times the rate of users who don’t use it.
- For the third quarter, Zillow guided to revenue of $745 million to $760 million, roughly 11% year-over-year growth at the midpoint — a slower pace than the 18% just reported. It also guided to adjusted EBITDA of $180 million to $200 million for the quarter.
- For the full 2026 year, Zillow guided to revenue of $2.92 billion to $2.96 billion.
- Within the Q3 outlook, management pointed to continued strength in mortgages (guided above 50% growth) and rentals (high-20% growth), with more modest growth guided for the core for-sale real estate business (5% to 7%).
- Shares fell in after-hours trading following the release, with coverage attributing the move to the softer sequential growth rate implied by the third-quarter guidance.
Q2 2026 in context
| Metric | Jun 2026 | Jun 2025 | Change |
|---|---|---|---|
| Revenue | $772M | $655M | +17.9% |
| Net income | -$4M | $2M | -300.0% |
| Free cash flow | -$25M | $50M | -150.0% |
| Diluted EPS | -$0.02 | $0.01 | -300.0% |
| Gross margin | 72.8% | 74.7% | -1.9 pts |
| Operating margin | -1.3% | -1.7% | +0.4 pts |
| Net margin | -0.5% | 0.3% | -0.8 pts |
Figures for the quarter ended Jun 2026 and the quarter ended Jun 2025, as reported to the SEC.
How the stock took it
Zillow Group Inc closed at $37.03 on Aug 4, 2026, the last session before the report, and at $33.76 on Aug 6, 2026, the first session after it — -8.8% across the report.
| Earlier report | Close before | Close after | Change |
|---|---|---|---|
| May 6, 2026 | $43.88 | $44.04 | +0.4% |
| Oct 30, 2025 | $68.87 | $71.53 | +3.9% |
Closes from the market's daily record. Each figure spans the report date — from the last session that closed before it to the first that closed after — because a company may report before the open or after the close.
Fundamentals
| Metric | Value | Period |
|---|---|---|
| Gross margin | 73.3% | Trailing 12 months |
| Operating margin | 0.4% | Trailing 12 months |
| Net profit margin | 2.3% | Trailing 12 months |
| Pretax margin | 2.4% | Trailing 12 months |
| EPS | $0.25 | Trailing 12 months |
| Revenue growth (YoY) | 16.8% | Trailing 12 months |
| EPS growth (YoY) | 515.4% | Latest quarter |
| Return on equity | 1.3% | Trailing 12 months |
Sources: company report · earnings call · Benzinga