Z earnings analysis
What we found in Z's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Zillow Group reported a strong Q1 2026 with total revenue of $708 million, an 18% increase year-over-year, and EPS of $0.53, exceeding estimates. Key growth drivers included significant increases in Mortgages and Rentals revenue, reflecting strong demand in these segments. However, the decline in cash and increases in legal expenses present some challenges ahead.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Increased by 18% Year-Over-Year
- Total revenue for Q1 2026 was $708 million, up from $598 million in Q1 2025.
- EPS Beats Expectations
- Earnings per share for the quarter was reported at $0.53, surpassing the estimate of $0.39.
- Mortgages Revenue Increased by 56%
- Mortgages revenue rose to $64 million, up from $41 million, driven by a 97% increase in loan origination volume.
- Rentals Revenue Up by 42%
- Rentals revenue grew from $129 million to $183 million, attributed to a 20% increase in unique monthly visitors.
- Adjusted Free Cash Flow of $127M
- Free cash flow increased to $127 million from $88 million year-over-year.
- Reduction in Cash and Cash Equivalents
- Cash and cash equivalents decreased to $788 million from $1.3 billion reported previously.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Increase in Legal Expenses
- General and administrative expenses rose by $11 million due to increased legal expenses.
- Decline in Visits and Unique Users
- Visits decreased 3% to 2.354 billion and unique users decreased by 3% to 227 million.
- Overall Cash and Investment Decline
- Total cash, cash equivalents, and investments dropped to $788 million from $1.3 billion.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.53
- Gross margin
- 73.0%
- Segment
- Residential: $450M
- Segment
- Mortgages: $64M
- Segment
- Rentals: $183M
- Segment
- Other: $11M
What they said about what is next.
Management expects continued growth in Mortgages and Rentals revenue, though specific numeric guidance not provided.
The filing reads better than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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