Zillow Group, Inc.NASDAQ: Z

Third Quarter 2026 Supplemental Financial Tables

· Issued by Zillow Group, Inc.

On 6ix: 6ix.com/news/zillow-third-quarter-2026-supplemental-financial-tables

Watch Zillow's latest callZillow Group (NASDAQ:Z) Q3 2026 Earnings Call · Replay · Nov 4
Financial Highlights
Zillow Group, Inc.
Financial Highlights
(in millions, except percentages, unaudited)
Three Months Ended September 30, 2025 to 2026 % Change Nine Months Ended September 30, 2025 to 2026 % Change
2026 2025 2026 2025
Revenue:
For Sale revenue:
Residential $ 419 $ 435 (4)% $ 1,334 $ 1,286 4 %
Mortgages 70 53 32 % 218 142 54 %
Total For Sale revenue 489 488 - % 1,552 1,428 9 %
Rentals 220 174 26 % 612 462 32 %
Other 15 14 7 % 40 39 3 %
Total revenue $ 724 $ 676 7 % $ 2,204 $ 1,929 15 %
Other Financial Data:
Gross profit $ 516 $ 491 $ 1,597 $ 1,439
Net income (loss) $ (158) $ 10 $ (116) $ 20
Diluted net income (loss) per share $ (0.70) $ 0.04 $ 0.51 $ 0.08
Net cash provided by operating activities $ 162 $ 105 $ 373 $ 296
Non-GAAP Financial Measures:(1)
Adjusted EBITDA $ 182 $ 165 $ 556 $ 473
Adjusted net income $ 124 $ 113 $ 387 $ 319
Diluted adjusted net income per share $ 0.55 $ 0.44 $ 1.68 $ 1.25
Adjusted free cash flow $ 46 $ 107 $ 269 $ 295
Percentage of Revenue:
Gross profit 71 % 73 % 72 % 75 %
Net income (loss) (22)% 1 % (5)% 1 %
Adjusted EBITDA(1) 25 % 24 % 25 % 25 %
Adjusted net income(1) 17 % 17 % 18 % 17 %
(1) These measures are non-GAAP financial measures not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See Exhibit 99.1 to our Form 8-K filed on November 4, 2026 for more information regarding our presentation of these non-GAAP financial measures, including reconciliations of each measure to the most directly comparable GAAP financial measures, for each of the periods presented.
Adjusted EBITDA
Zillow Group, Inc.
Reconciliation of Adjusted EBITDA
(in millions, unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Net income (loss) $ (158) $ 10 $ (116) $ 20
Income taxes 3 2 6 2
Other income, net (12) (18) (41) (58)
Depreciation and amortization 64 67 194 199
Share-based compensation 74 99 230 295
Impairment and restructuring costs 32 2 68 2
FTC Matter litigation costs(1) 8 - 34 -
ZO securities class action settlement(2) 165 - 165 -
Interest expense 6 3 16 13
Adjusted EBITDA $ 182 $ 165 $ 556 $ 473
(1) Beginning with the three months ended June 30, 2026, we calculate and report Adjusted EBITDA excluding litigation costs directly associated with the FTC Matter, which we have determined to be nonrecurring, infrequent, or unusual and outside the ordinary course of our business. We have revised Adjusted EBITDA for the three months ended March 31, 2026 to conform to the current period presentation. As a result of this revision, Adjusted EBITDA for the three months ended March 31, 2026 increased by $16 million, from $182 million as previously reported to $198 million.
(2) Beginning with the three months ended September 30, 2026, we calculate and report Adjusted EBITDA excluding the ZO securities class action settlement, net of expected insurance recoveries, which we do not believe is reflective of our ongoing operating performance.
Adjusted NI
Zillow Group, Inc.
Reconciliation of Adjusted Net Income
(in millions, except per share data, unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Net income (loss) $ (158) $ 10 $ (116) $ 20
Share-based compensation 74 99 230 295
Impairment and restructuring costs 32 2 68 2
FTC Matter litigation costs(1) 8 - 34 -
ZO securities class action settlement(2) 165 - 165 -
Income taxes 3 2 6 2
Adjusted net income $ 124 $ 113 $ 387 $ 319
Diluted net income (loss) per share $ (0.70) $ 0.04 $ (0.51) $ 0.08
Diluted adjusted net income per share $ 0.55 $ 0.44 $ 1.68 $ 1.25
(1) Beginning with the three months ended June 30, 2026, we calculate and report Adjusted net income and Diluted adjusted net income per share excluding litigation costs directly associated with the FTC Matter, which we have determined to be nonrecurring, infrequent, or unusual and outside the ordinary course of our business. We have revised Adjusted net income and Diluted adjusted net income per share for the three months ended March 31, 2026 to conform to the current period presentation. As a result of this revision, Adjusted net income for the three months ended March 31, 2026 increased by $16 million, from $129 million as previously reported to $145 million, and Diluted adjusted net income per share increased by $0.07, from $0.53 as previously reported to $0.60.
(2) Beginning with the three months ended September 30, 2026, we calculate and report Adjusted net income and Diluted adjusted net income per share excluding the ZO securities class action settlement, net of expected insurance recoveries, which we do not believe is reflective of our ongoing operating performance.
The following table reconciles the denominators used in the Diluted net income (loss) per share and Diluted adjusted net income per share calculations (in thousands, unaudited):
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Diluted weighted-average shares outstanding 225,305 256,243 229,589 254,700
Effect of dilutive securities:
Option awards 33 - 602 -
Unvested restricted stock units 83 - 290 -
Adjusted diluted weighted-average shares outstanding 225,421 256,243 230,481 254,700
Adjusted FCF
Zillow Group, Inc.
Reconciliation of Adjusted Free Cash Flow
(in millions, unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Net cash provided by operating activities $ 162 $ 105 $ 373 $ 296
Purchases of property and equipment (34) (32) (104) (105)
Purchases of intangible assets (9) (8) (28) (123)
Net borrowings (repayments) on master repurchase agreements (73) 42 28 127
Initial payment in connection with Redfin rentals partnership - - - 100
Adjusted free cash flow $ 46 $ 107 $ 269 $ 295
Balance Sheets
ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
September 30, 2026 December 31, 2025
Assets
Current assets:
Cash and cash equivalents $ 602 $ 768
Short-term investments 105 527
Accounts receivable, net 181 149
Mortgage loans held for sale 423 386
Prepaid expenses and other current assets 459 287
Restricted cash 6 5
Total current assets 1,776 2,122
Contract cost assets 26 27
Property and equipment, net 355 350
Right of use assets 56 56
Goodwill 2,823 2,823
Intangible assets, net 254 279
Other assets 37 28
Total assets $ 5,327 $ 5,685
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 73 $ 36
Accrued expenses and other current liabilities 393 134
Accrued compensation and benefits 83 62
Borrowings under master repurchase agreements 392 364
Deferred revenue 53 69
Lease liabilities, current portion 16 14
Total current liabilities 1,010 679
Lease liabilities, net of current portion 72 79
Other long-term liabilities 16 43
Total liabilities 1,098 801
Shareholders' equity:
Preferred stock - -
Class A common stock - -
Class B common stock - -
Class C capital stock - -
Additional paid-in capital 6,206 6,741
Accumulated other comprehensive income (loss) (2) 2
Accumulated deficit (1,975) (1,859)
Total shareholders' equity 4,229 4,884
Total liabilities and shareholders' equity $ 5,327 $ 5,685
Statements of Operations
ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share data which are presented in thousands, and per share data)
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Revenue $ 724 $ 676 $ 2,204 $ 1,929
Cost of revenue (1) 208 185 607 490
Gross profit 516 491 1,597 1,439
Operating expenses:
Sales and marketing (1) 216 214 675 638
Technology and development (1) 150 151 456 453
General and administrative (1) 279 127 533 369
Impairment and restructuring costs (1) 32 2 68 2
Total operating expenses 677 494 1,732 1,462
Loss from operations (161) (3) (135) (23)
Other income, net 12 18 41 58
Interest expense (6) (3) (16) (13)
Income (loss) before income taxes (155) 12 (110) 22
Income tax expense (3) (2) (6) (2)
Net income (loss) $ (158) $ 10 $ (116) $ 20
Net income (loss) per share:
Basic $ (0.70) $ 0.04 $ (0.51) $ 0.08
Diluted $ (0.70) $ 0.04 $ (0.51) $ 0.08
Weighted-average shares outstanding:
Basic 225,305 242,326 229,589 241,889
Diluted 225,305 256,243 229,589 254,700
(1) Includes share-based compensation expense as follows:
Cost of revenue $ 2 $ 3 $ 6 $ 9
Sales and marketing 13 18 43 55
Technology and development 33 41 97 119
General and administrative 26 37 84 112
Impairment and restructuring costs 12 - 25 -
Total share-based compensation $ 86 $ 99 $ 255 $ 295
Adjusted EBITDA (2) $ 182 $ 165 $ 556 $ 473
(2) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See Exhibit 99.1 to our Form 8-K filed on November 4, 2026 for more information regarding our presentation of Adjusted EBITDA and for a reconciliation of Adjusted EBITDA to net income, the most directly comparable GAAP financial measure, for each of the periods presented.
WASO
Zillow Group, Inc.
Weighted Average Shares Outstanding
(in millions)
Three Months Ended September 30, Nine Months Ended September 30,
2026 2025 2026 2025
Shares outstanding - beginning of period 225 241 240 242
Issuance of Class C capital stock upon exercise of stock options - 2 1 2
Vesting of restricted stock units - - 2 2
Settlement of capped call transactions - (1) - -
Repurchases of Class A common stock and Class C capital stock - - (13) (4)
Weighted-average shares outstanding - basic 225 242 230 242
Effect of dilutive securities:
Option awards - 10 - 9
Unvested restricted stock units - 4 - 4
Weighted-average shares outstanding - diluted* 225 256 230 255
*In periods of net loss, all potentially dilutive securities are considered antidilutive.
Statements of Cash Flows
ZILLOW GROUP, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
Nine Months Ended September 30,
2026 2025
Operating activities
Net income (loss) $ (116) $ 20
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 194 199
Share-based compensation 255 295
Amortization of right of use assets 7 6
Amortization of contract cost assets 19 16
Other adjustments to reconcile net income to net cash provided by operating activities (14) (10)
Changes in operating assets and liabilities:
Accounts receivable (32) (53)
Mortgage loans held for sale (37) (132)
Prepaid expenses and other assets (163) (67)
Contract cost assets (18) (18)
Lease liabilities (12) (9)
Accounts payable 38 8
Accrued expenses and other current liabilities 246 32
Accrued compensation and benefits 21 2
Deferred revenue (16) 7
Other long-term liabilities 1 -
Net cash provided by operating activities 373 296
Investing activities
Proceeds from maturities of investments 108 338
Proceeds from sales of investments 391 61
Purchases of investments (82) (127)
Purchases of property and equipment (104) (105)
Purchases of intangible assets (28) (123)
Net cash provided by investing activities 285 44
Financing activities
Net borrowings on master repurchase agreements 28 127
Repurchases of Class A common stock and Class C capital stock (846) (438)
Settlement of 2025 Notes - (419)
Proceeds from settlement of capped call transactions - 38
Payments for debt issuance costs (2) -
Proceeds from exercise of stock options 24 176
Payment of contingent consideration for acquisition (27) (30)
Net cash used in financing activities (823) (546)
Net decrease in cash, cash equivalents and restricted cash during period (165) (206)
Cash, cash equivalents and restricted cash at beginning of period 773 1,085
Cash, cash equivalents and restricted cash at end of period $ 608 $ 879
Supplemental disclosures of cash flow information
Noncash transactions:
Write-off of fully depreciated property and equipment $ 138 $ 116
Capitalized share-based compensation 40 48
Write-off of fully amortized intangible assets 30 58
Key Metrics
Zillow Group, Inc.
Key Metrics
(in millions, except percentages, unaudited)
The following table presents our visits and average monthly unique users for the periods presented:
Three Months Ended September 30, 2025 to 2026 % Change Nine Months Ended September 30, 2025 to 2026 % Change
2026 2025 2026 2025
Visits (1) 2,308 2,425 (5)% 6,931 7,166 (3)%
Average monthly unique users (2) 215 222 (3)% 213 216 (1)%
(1) Visits includes groups of interactions by users with the Zillow, Trulia and StreetEasy apps and websites. Zillow and StreetEasy measure visits with an internal measurement tool and Trulia measures visits with Adobe Analytics.
(2) Zillow, StreetEasy and HotPads measure unique users with an internal measurement tool and Trulia measures unique users with Adobe Analytics.
See "Selected Historical Data" tab for further discussion regarding our visits and average monthly unique users metric as well as the recast of these metrics for certain historical periods.
The following table presents our For Sale revenue per Total Transaction Value ("TTV") for the periods presented:
Twelve Months Ended September 30, 2025 to 2026 % Change
2026 2025
For Sale revenue (in millions) $ 2,033 $ 1,856 10 %
Total Transaction Value (in trillions)(1) $ 2.3 $ 2.2 3 %
For Sale revenue per Total Transaction Value (in basis points) 8.8 8.3 6 %
(1) TTV is calculated as the number of existing residential homes sold during the relevant period multiplied by the average sales price of existing residential homes sold during the same period according to the National Association of Realtors ("NAR").
The following table presents loan origination volume by purpose and in total for Zillow Home Loans for the periods presented:
Three Months Ended September 30, 2025 to 2026 % Change Nine Months Ended September 30, 2025 to 2026 % Change
2026 2025 2026 2025
Purchase loan origination volume $ 1,972 $ 1,276 55 % $ 5,694 $ 3,183 79 %
Refinance loan origination volume 4 5 (20)% 33 20 65 %
Total loan origination volume $ 1,976 $ 1,281 54 % $ 5,727 $ 3,203 79 %
Selected Historical Data
Zillow Group, Inc.
Selected Historical Data
(in millions, unaudited)
Beginning with the three months ended September 30, 2026, we enhanced our methodology for identifying and excluding from visits and unique users any activity that we identify as generated by automated programs rather than consumers ("automated traffic"), such as programs that access our websites to index or collect content. Previously, we excluded self-identified automated traffic and estimated and excluded other automated traffic through monitoring of traffic patterns. Because the volume and sophistication of automated traffic have increased in recent periods, including traffic designed to resemble consumer activity, we now identify and exclude automated traffic at the individual instance of access. Our methodology considers, among other factors, whether a user is signed in, the level of interaction during the instance of access, the traffic source and indicators of atypical network activity. We believe excluding automated traffic at the individual instance of access provides a more accurate indicator of consumers' engagement and traffic to our mobile apps and websites and improves the comparability of visits and unique users across periods. We have recast prior period visits and average monthly unique users to conform with the current period methodology, which identifies and excludes automated traffic at the individual instance of access, using the indicators of automated traffic available for each period.
The following tables present the recast of our visits and average monthly unique users for the periods presented:
Three Months Ended
March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 September 30, 2025 December 31, 2025 March 31, 2026 June 30, 2026
Visits 2,231 2,410 2,353 1,969 2,246 2,496 2,425 1,999 2,206 2,417
Average monthly unique users 200 216 217 185 204 222 222 198 209 216
Twelve Months Ended
December 31, 2024 December 31, 2025
Visits 8,963 9,166
Average monthly unique users 204 211

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