Zillow Group (Z) investor relations material

Executive summary

• Q2 2026 revenue rose 18% year-over-year to $772 million, driven by strong growth in Mortgages and Rentals, outperforming the broader housing market.

• Adjusted EBITDA reached $176 million (23% margin), and adjusted net income was $118 million, both above outlook.

• Net loss for Q2 was $4 million, primarily due to $36 million in restructuring costs.

• Announced a 7% workforce reduction in August 2026 to improve efficiency and cost structure.

• Strategic focus on integrated transaction experience, AI-driven engagement, and expansion of Preferred agent model.

Financial highlights

• Mortgages revenue grew 75% year-over-year to $84 million, driven by a 95% increase in loan origination volume.

• Rentals revenue increased 31% to $209 million, with multifamily revenue up 42%.

• Residential revenue rose 7% to $465 million, with a 10% increase in revenue per visit.

• Gross profit was $562 million (73% margin), up 15% year-over-year.

• Share repurchases totaled $200 million in Q2; $826 million year-to-date.

Outlook and guidance

• Q3 2026 revenue expected at $745–$760 million (11% growth at midpoint).

• Full-year 2026 revenue expected at $2.92–$2.96 billion (mid-teens growth); EBITDA $730–$760 million.

• Rentals revenue expected to grow ~30% for the year.

• Residential revenue expected to decrease in Q3 2026 due to seasonality and model shift.

• Management believes liquidity is sufficient for at least the next 12 months.