$Z · ZILLOW GROUP, INC.
Zillow Group's Q3 2026 10-Q shows total revenue up 7% YoY to $724M, but the company swung to a $158M net loss ($0.70 diluted EPS) versus a $10M profit a year earlier. The swing was driven by general and administrative expenses nearly doubling to $279M (from $127M) and impairment/restructuring charges of $32M (from $2M). Gross margin was 71.3% and operating margin -22.2%. Nine-month revenue rose 14% to $2.2B, with a $116M net loss versus a $20M profit in 2025.
- Q3 revenue rose 7% YoY to $724M, led by Rentals up 26% to $220M.
- Net loss of $158M ($0.70/share) versus a $10M profit in Q3 2025.
- G&A expense nearly doubled to $279M from $127M a year ago.
- Impairment and restructuring charges jumped to $32M from $2M.
- Nine-month net loss of $116M versus a $20M profit in 2025.
Extended-hours trading shows Z at $28.55, down 15.78% versus the regular close of $33.90, signaling a sharply negative reaction to the surprise loss and cost spike.
A profitable quarter flipped to a $158M loss on a near-doubling of G&A and impairment charges, a sharp cost-structure deterioration that spooked investors.
Zillow's Rentals segment (up 26%) and mortgage origination volume (up 54% YoY) are growing, but the cost structure blowout contrasts with peers monetizing housing-market resilience.
The filing flags continued uncertainty around housing-market health, interest rates, and inflation, warning that prior-period financial performance may not be indicative of future results. Elevated G&A and impairment charges signal cost-control risk.