Seattle, November 4th / PRNewswire / -- Zillow Group, Inc. (Nasdaq ticker: Z and ZG) Today, the company announced its consolidated financial results for the three months ending September 30, 2026. The company stated that it is changing the way people buy, sell, rent, and finance homes.

The complete financial results for the third quarter, as well as the outlook for the fourth quarter of 2026 and the full year, can be found in the shareholder letter on the investor relations page of the Zillow Group website: https :// investors.zillowgroup.com / investors / financials / quarterly-results / default.aspx.

"The third quarter demonstrated the resilience of Zillow. In one of the most challenging housing markets of this generation, we achieved revenue growth and outperformed the real estate industry," said Jeremy Wacksman, CEO of Zillow. "This performance is thanks to our brand, audience engagement, the value we provide to our partners, and the strong growth levers in our diversified business. We are creating a faster, simpler, and more affordable moving experience for tenants, buyers, and sellers."

Recent highlights include:

• Third-quarter revenue increased by 7% year-on-year to $724 million, despite a housing environment that fell short of expectations. The company estimates that the issuance of mortgage loans for home purchases in the U.S. residential real estate industry decreased by 4% year-on-year in the third quarter.
• For Sale Revenue in the third quarter remained flat year-on-year, at $489 million.
• Residential Revenue in the third quarter decreased by 4% year-on-year to $419 million, due to mortgage loan rates higher than expected suppressing the volume of housing transactions.
• Mortgages Revenue in the third quarter increased by 32% year-on-year to $70 million, mainly due to a 55% year-on-year increase in mortgage loans issued, reaching $2 billion.
• Residential Revenue in the third quarter decreased by 4% year-on-year to $419 million, due to mortgage loan rates higher than expected suppressing the volume of housing transactions.
• Rentals Revenue in the third quarter increased by 26% year-on-year to $220 million, mainly driven by a 35% year-on-year increase in revenue from its multi-unit housing business.
• For Sale Revenue in the third quarter remained flat year-on-year, at $489 million.
• In the third quarter, there was a net loss of $158 million, with a net loss margin of 22%. The diluted net loss per share was $0.70, whereas in the third quarter of 2025, the diluted net income per share was $0.04.
• The adjusted net profit was $124 million, with an adjusted net profit per share of $0.55, which is an increase from $0.44 in the same period last year. The adjusted net profit and the adjusted EBITDA do not include the impact of the settlement of the Zillow Offers class action lawsuit (which amounts to $165 million after deducting expected insurance payouts).
• After adjustments in the third quarter, EBITDA amounted to 182 million US dollars, which is within the company's forecast range. The adjusted EBITDA profit margin was 25%.
• Cash and investments at the end of the third quarter amounted to $707 million.
• In the third quarter, Zillow Group mobile applications and website traffic decreased by 3% year-on-year, with an average of 215 million unique monthly users. The number of visits also decreased by 5% year-on-year to 2.3 billion. According to data from Comscore which tracks the growth trends in the residential real estate industry, Zillow attracted 77% of the average monthly unique visitors in the real estate category during the third quarter.

Financial Highlights of the Third Quarter of 2026

The following table highlights the financial achievements of Zillow Group during the specified period (unit: million US dollars; except for percentages, unaudited):

Teleconference and live webcast information

Zillow Group will hold a live webcast today at 2 p.m. Pacific Time (5 p.m. Eastern Time) to discuss the aforementioned financial results. Please register to participate in the live broadcast at https :// zillow-q3-26-financial-results.open-exchange.net. Links to the live and recorded broadcasts of the shareholder letter and the conference call can be found on the quarterly results page of the investor relations website at Zillow Group.

Forward-looking Statements

This press release contains forward-looking statements as defined by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which involve risks and uncertainties. These include, but are not limited to, statements regarding the company's business strategies, the implementation of these strategies, and their impact on consumers and real estate professionals. Statements containing the phrases “may”, “believe”, “anticipate”, “expect”, “intend”, “plan”, “project”, “predict”, “will”, “projections”, “continue”, “estimate”, “outlook”, “guidance”, “would”, “could”, “strive”, and similar expressions, all of which constitute forward-looking statements. These forward-looking statements are based on assumptions as of November 4, 2026. Although the company believes that the expectations reflected therein are reasonable, it cannot guarantee these results. Any differences between the actual results and those stated in the forward-looking statements may result from actions taken by Zillow Group itself or from risks and uncertainties beyond its control.

Factors that may lead to differences include, but are not limited to: the economic condition and stability of the U.S. residential real estate industry, including changes in inflation, interest rates, housing supply and affordability, labor shortages, and supply chain issues; the company's management of advertising, product inventory, and pricing, as well as its ability to maintain relationships with real estate partners; the company's ability to establish or maintain relationships with property providers and data suppliers, which can affect mobile app and website traffic; changes in the company's access to property data or the quality and quantity of such data; the company's compliance with current and future rules and requirements of the National Association of Real Estate Brokers, multiple listing services, or other real estate industry organizations or regulatory agencies, or decisions to repeal, revise, or not enforce these rules and requirements; the company's ability to respond to industry changes, including those resulting from past, current, or future lawsuits, settlements, or government investigations, which may not involve the company as a defendant; changes in federal and state policies, changes in law enforcement priorities, or uncertainties arising from government shutdowns; the company's ability to continuously innovate and compete to attract customers and real estate partners; the company's ability to effectively invest resources to advance new strategies, develop new products and services, and expand existing products and services to new markets; the company's ability to operate and develop its Zillow Home Loans mortgage lending business, including obtaining or maintaining sufficient financing to support mortgage loans, meeting customer financing needs, continuously expanding the lending business, and reselling issued mortgages in the secondary market; the duration and impact of natural disasters, climate change, geopolitical events, and other catastrophic events (including public health crises) on the company's operations, demand for products or services, or the overall economic situation; the company's public statements, disclosures, goals, and product features related to sustainable development; the company's ability to maintain adequate security controls or technical systems.The ability to rely on third parties to maintain sufficient security controls or technical systems to protect the integrity of data as well as the information and privacy of customers and other third parties; the company's ability to cope with major service interruptions in mobile applications, websites, or networks; the impact of past, current, or future litigation and other disputes or law enforcement actions, which may include litigation or investigations in which the company is not a party; the company's ability to attract, motivate, and retain highly skilled employees; situations where the company or its competitors engage in mergers and acquisitions, investments, strategic collaborations, financing activities, or other corporate transactions or commitments; the company's ability to continue relying on third-party services to support critical business functions; the company's ability to protect and continue to use intellectual property, and to prevent others from copying, infringing upon, or developing similar intellectual property, including the impact of artificial intelligence; the company's ability to comply with domestic and international laws, regulations, rules, contractual obligations, policies, and other requirements, or to obtain and maintain the necessary licenses to support business and operations; the company's ability to repay debts or to raise additional capital under acceptable conditions, or the inability to do so at all; actual or expected fluctuations in quarterly and annual operating results and financial conditions; inaccuracies in assumptions, estimates, and internal or third-party data used to calculate business, performance, and operational indicators; and the volatility of the prices of Class A common stock and Class C capital stock.

The above list of risks and uncertainties is for illustrative purposes only and is not exhaustive. For more factors that may affect the business and financial results of Zillow Group, please refer to the "Risk Factors" section in the documents submitted by Zillow Group to the U.S. Securities and Exchange Commission. Except as required by law, Zillow Group has no intention of and does not assume any obligation to update this information to reflect future events or circumstances.

Regarding Zillow Group, Inc.

Zillow Group, Inc. (Nasdaq: Z and ZG) are committed to reinventing real estate to help more people realize their dream of having a home.

As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers through innovative technology, trusted agents and loan specialists, as well as seamless digital solutions. With industry-leading tools and resources, Zillow empowers real estate professionals to expand their businesses and provide an excellent customer experience. For tenants and housing providers, Zillow not only offers a powerful marketplace but also provides a full suite of end-to-end products and services to simplify processes such as applications, rentals, and payments.

The ecosystem of Zillow covers the entire housing journey – from dreaming about it, viewing properties, to renting, buying, selling, and financing.

The affiliated companies, subsidiaries, and brands of Zillow Group include Zillow ®, Zillow Premier Agent ®, Zillow Home Loans ®, Zillow Rentals ®, Zillow ®, New Construction ®, Trulia ®, StreetEasy ®, Out East ®, HotPads ®, Follow Up Boss ®, ShowingTime ®, dotloop ®, and Zillow ®, as well as Closing.

All trademarks mentioned in this text are owned by Zillow's affiliated companies: MFTB Holdco and Inc. Zillow Home Loans and LLC are equal housing loan institutions, and NMLS is #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco and Inc, Zillow affiliated companies.

Please visit https :// investors.zillowgroup.com, https :// www.zillow.com / news and https :// www.linkedin.com / company / zillow. Zillow Group will disclose its company information, financial details, as well as business content that may be considered significant on these pages.

The logo of Zillow Group and some of its core brands can be obtained at https :// zillow.com / news / logos.

(ZFIN)

Use of non-GAAP financial indicators

To provide investors with more information regarding financial performance and liquidity, this press release mentions adjusted EBITDA, adjusted net profit, diluted adjusted earnings per share, and adjusted free cash flow. These are all non-GAAP financial indicators that are not calculated or presented on a GAAP basis. The following table provides a reconciliation of each non-GAAP indicator with the most directly comparable GAAP indicator.

After adjustment, EBITDA

After adjustment, EBITDA is a key indicator used by management and the board of directors to measure operational performance and trends, as well as to prepare and approve annual budgets. In particular, the company believes that excluding certain expenses when calculating adjusted EBITDA helps to compare operational performance on a timely basis.

There are also limitations to the company's use of the adjusted EBITDA. Investors should not consider this indicator in isolation, nor should they regard it as a substitute for the analysis of GAAP results. Some of these limitations include:

• After adjustment, EBITDA does not reflect changes in working capital requirements, nor does it meet the cash needed to satisfy these requirements;
• After adjustment, EBITDA does not take into account the potential dilution effect of equity incentives;
• Although depreciation and amortization are non-cash expenses, the related assets may need to be replaced in the future, and the adjusted EBITDA does not reflect such replacements, capital expenditures, or cash capital expenditures required by contractual commitments;
• After adjustment, EBITDA does not reflect impairment and reorganization costs;
• After adjustment, EBITDA does not reflect interest expenses or other net income;
• After adjustment, EBITDA does not reflect income tax;
• After adjustment, EBITDA does not reflect certain litigation costs that are not directly related to the antitrust lawsuits filed by the United States Federal Trade Commission ( FTC ) and the state attorneys general (" FTC matter" ). These costs include legal fees and related expenditures, which the company considers to be outside of normal business operations and to be non-recurring, infrequent, or exceptional items. In making this determination, the company took into account the following factors: (1) The FTC matter is the first such legal proceeding against the company, and the company currently does not expect similar proceedings to occur again; (2) The nature of the remedies sought in FTC includes, but is not limited to, permanent bans as well as asset divestiture or business reorganization, which differ from the remedies typically sought in the company's regular litigations; (3) The opponents are federal regulatory agencies and state attorneys general, which are different from the types of opponents in the company's regular litigations;
• After adjustment, EBITDA does not reflect the impact of the collective securities litigation settlement (after deducting expected insurance payouts). The company believes that this matter does not represent the ongoing operating performance. In making this judgment, the company took into account the scale of the settlement costs, as well as the fact that the settlement is related to the Zillow Offers business, which has ceased operations;
• Other companies, including those in the same industry, may calculate the adjusted EBITDA in different ways, which limits its use as a comparable indicator.

Due to these limitations, investors should consider the adjusted EBITDA in conjunction with other financial performance indicators, including various cash flow indicators, net profit (loss), and other GAAP results.

Adjusted net profit and diluted adjusted earnings per share

The adjusted net profit and diluted adjusted earnings per share reported by the company do not include the effects of equity incentives, impairment and restructuring costs, litigation costs related to FTC, settlements from collective securities lawsuits related to Zillow Offers, and income tax. These indicators are not considered key metrics by management or the board of directors for measuring operational performance or managing the business. However, the company provides the adjusted net profit and diluted adjusted earnings per share as supplementary information to investors because it believes that excluding the impacts of equity incentives, impairment and restructuring costs, litigation costs related to FTC, settlements from collective securities lawsuits related to Zillow Offers, and income tax helps investors to compare operational performance over time. Investors should not consider these indicators in isolation, nor should they be regarded as a substitute for GAAP result analysis.

Adjusted Free Cash Flow

The company defines adjusted free cash flow as the net cash generated from operating activities. On this basis, adjustments are made for purchases of property and equipment, acquisitions of intangible assets, net borrowings (repayments) under the main repurchase agreement, and initial payments related to the leasing collaboration with Redfin. The borrowings (repayments) under the main repurchase agreement are used to fund the issuance of the mortgage loan for Zillow Home Loans, and the company considers this to be part of its daily liquidity management. The initial payments related to the leasing collaboration with Redfin are considered one-time and non-recurring cash flows, and therefore are excluded from the calculation, as the company believes that they would affect the ability to assess the liquidity of business operations on a timely basis.

The company includes the adjusted free cash flow in this press release because this indicator is an important measure used by management to evaluate business strategy and execution effectiveness, as well as whether the company can continue to generate cash on time in its core operations.

There are also limitations to the adjusted free cash flow used by the company, and investors should not consider it in isolation or as a substitute for the analysis of GAAP results. Adjusted free cash flow does not represent the remaining cash flow that can be used for discretionary expenditures. Other companies, including those in the same industry, may calculate adjusted free cash flow in different ways, which limits its usefulness as a comparable indicator.

Non-GAAP Financial Indicator Adjustment Table

The following table shows the adjustment of EBITDA to net profit (loss) for the specified period (unit: million US dollars, unaudited):

The following table shows the adjusted net profit and net profit (loss) for the specified period, as well as the adjustments to related per-share indicators (unit: millions of US dollars; except for per-share data, unaudited):

For the period of GAAP where there is a net loss but there is an adjusted net profit, the adjusted weighted average diluted number of shares is used to calculate the diluted adjusted earnings per share. This includes potential dilutive securities that were excluded in the calculation of the diluted net loss per share, as their effect is anti-dilutive. The following table shows the adjustment to the denominator used in the calculation of the diluted adjusted earnings per share (loss) (unit: thousand shares, unaudited):

The following table shows the adjustment between adjusted free cash flow and net cash generated from operating activities for the specified period (unit: millions of US dollars, unaudited):