Monitor Q4 revenue trajectory given the guided decline and the impact of rising mortgage rates on housing transaction volume. The transition to Preferred agent partners creates a near-term headwind to reported Residential revenue but is expected to improve conversion and revenue per connection over time. Rentals growth remains a bright spot, with a path to $1B+ annual revenue.
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Executive Summary
Zillow Group reported Q3 2026 revenue of $724M (+7% YoY), below the $754.3M consensus, and GAAP net loss of $158M (diluted EPS -$0.70) vs. consensus EPS of $0.60. Adjusted diluted EPS was $0.55, also below the Street estimate of $0.60. Residential revenue declined 4% YoY due to higher mortgage rates pressuring transaction volume, while Rentals revenue grew 26% YoY. The company guided Q4 revenue of $635M-$665M, implying a year-over-year decline, and full-year 2026 Adjusted EBITDA of $655M-$690M. The results reflect a tough housing market and a $165M Zillow Offers securities class action settlement charge.
Key Financial Metrics
Key Facts
- Q3 2026 revenue $724M, up 7% YoY but below $754.3M consensus
- GAAP net loss $158M, diluted EPS -$0.70 vs. consensus $0.60
- Adjusted diluted EPS $0.55 vs. $0.44 a year ago, below $0.60 consensus
- Residential revenue declined 4% YoY to $419M due to higher mortgage rates
- Rentals revenue grew 26% YoY to $220M, multifamily up 35%
- Mortgages revenue up 32% YoY to $70M, purchase loan origination volume $2.0B (+55%)
- Adjusted EBITDA $182M, margin 25%, within outlook range
- Q4 2026 revenue guidance $635M-$665M, implying YoY decline
- Full-year 2026 revenue growth ~10-11%, Adjusted EBITDA $655M-$690M
- Recorded $165M Zillow Offers securities class action settlement charge
- Cash and investments $707M at quarter end; $1.1B remaining on buyback authorization
Financial Impact
Revenue miss of ~$30M vs consensus; GAAP net loss of $158M including $165M settlement charge; Q4 guidance implies revenue decline of roughly 6-10% YoY at midpoint
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Residential | $419.0M | -4.0% |
| Mortgages | $70.0M | +32.0% |
| Rentals | $220.0M | +26.0% |
| Other | $15.0M | +7.0% |
Risk Factors
- Higher mortgage rates continue to pressure housing transaction volumes and Residential revenue
- Q4 guidance implies year-over-year revenue decline, signaling ongoing macro headwinds
- The $165M Zillow Offers settlement and ongoing FTC litigation create legal and financial uncertainty
- Transition to Preferred agent model creates near-term revenue headwinds before benefits materialize
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001617640-26-000068 |
| Exhibit: exhibit992.htm | 0001617640-26-000068 |
| Document: z-20261104.htm | 0001617640-26-000068 |
| Document: 0001617640-26-000068-index-headers.html | 0001617640-26-000068 |
| Document: 0001617640-26-000068-index.html | 0001617640-26-000068 |
| Document: 0001617640-26-000068.txt | 0001617640-26-000068 |
| 8-K Data (Synthetic) | 0001617640-26-000068 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 4, 2026 1d ago | 8-K | $29.23 | awaiting T+20 | awaiting T+20 | $31.21 (−6.77%) |
Oct 28, 2026 8d ago | 8-K | $32.10 | awaiting T+20 | awaiting T+20 | $31.21 (−2.77%) |
Oct 15, 2026 21d ago | Institutional Cluster | $32.43 | awaiting T+20 | awaiting T+20 | $31.21 (−3.76%) |
Sep 3, 2026 9w ago | 144 | $35.32 $28.13 | ▼ −20.36% | ▼ −20.96% | $31.21 (−11.64%) |
Aug 24, 2026 10w ago | 8-K | $37.95 $31.59 | ▼ −16.76% | ▼ −18.07% | $31.21 (−17.76%) |
Aug 17, 2026 11w ago | Insider Cluster | $35.28 $32.00 | ▲ +9.30% | ▲ +7.99% | $31.21 (+11.54%) |
Aug 17, 2026 11w ago | Insider Cluster | $35.28 $32.77 | ▼ −7.11% | ▼ −6.12% | $31.21 (−11.54%) |
May 26, 2026 23w ago | Insider Cluster | $36.37 $29.14 | ▼ −19.88% | ▼ −17.73% | $31.21 (−14.19%) |
May 18, 2026 24w ago | Insider Cluster | $36.42 $32.25 | ▼ −11.45% | ▼ −12.44% | $31.21 (−14.31%) |
May 15, 2026 24w ago | Insider Cluster | No price | awaiting T+20 | awaiting T+20 | No price |
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