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Earnings analysis · 10-Q

Z earnings analysis

Filed May 6, 2026 · Our reading of the company's report

The latest report

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…

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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.

Read the original on SEC.gov

Where revenue came from

The business segments reported by the company.

Residential 63.6% Rentals 25.8% Mortgages 9.0% Other 1.6%

Shares of the segments disclosed in this filing, largest first.

Reported figures

Earnings per share
$0.53
Gross margin
73.0%

What stood out

  • 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.

What to watch

  • 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.

Management's outlook

Management expects continued growth in Mortgages and Rentals revenue, though specific numeric guidance not provided.

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.