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.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
Reported figures
- Earnings per share
- $0.53
- Gross margin
- 73.0%
What stood out
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Revenue Increased by 18% Year-Over-Year
Total revenue for Q1 2026 was $708 million, up from $598 million in Q1 2025.
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EPS Beats Expectations
Earnings per share for the quarter was reported at $0.53, surpassing the estimate of $0.39.
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Mortgages Revenue Increased by 56%
Mortgages revenue rose to $64 million, up from $41 million, driven by a 97% increase in loan origination volume.
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Rentals Revenue Up by 42%
Rentals revenue grew from $129 million to $183 million, attributed to a 20% increase in unique monthly visitors.
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Adjusted Free Cash Flow of $127M
Free cash flow increased to $127 million from $88 million year-over-year.
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Reduction in Cash and Cash Equivalents
Cash and cash equivalents decreased to $788 million from $1.3 billion reported previously.
What to watch
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Increase in Legal Expenses
General and administrative expenses rose by $11 million due to increased legal expenses.
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Decline in Visits and Unique Users
Visits decreased 3% to 2.354 billion and unique users decreased by 3% to 227 million.
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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.