$Z · ZILLOW GROUP, INC.
Zillow Group reported Q3 FY2026 results (quarter ended September 30, 2026) via an 8-K with Item 2.02. Revenue grew 7% YoY to $724M, with adjusted EPS of $0.55 versus $0.44 a year ago. GAAP net loss was $158M (diluted loss per share $0.70), driven by a $165M Zillow Offers securities class action settlement net of expected insurance recoveries. Adjusted EBITDA was $182M (25% margin).
- Revenue +7% YoY to $724M, outpacing the 1% residential real estate industry growth.
- GAAP net loss of $158M includes a $165M Zillow Offers securities class action settlement.
- Adjusted EPS of $0.55 vs $0.44 a year ago; adjusted EBITDA $182M (25% margin).
- Mortgages revenue +32% YoY to $70M on 55% purchase loan origination growth to $2.0B.
- Rentals revenue +26% YoY to $220M; For Sale revenue flat at $489M.
Extended-hours last trade $29.91, down 11.77% vs the $33.90 regular close, despite the regular session closing up 9.43% — a sharp after-hours reversal on the results.
Zillow grew revenue and beat on adjusted EPS while absorbing a $165M litigation settlement, but the after-hours selloff signals investor concern about the GAAP loss and weak housing backdrop.
Zillow's 7% revenue growth sharply outpaced the 1% residential real estate industry growth and a 4% decline in industry purchase mortgage origination volume, underscoring share gains in a weak housing market.
The $165M Zillow Offers securities class action settlement drove the GAAP loss; higher-than-expected mortgage rates pressured residential revenue (-4% YoY) and traffic fell 3% YoY to 215M average monthly unique users.