Zillow Group (Z) Status update summary

Strategic vision, AI integration, and platform innovation

• AI accelerates the shift from search to end-to-end transaction support, leveraging proprietary content, user context, and deep industry integration for unique, actionable experiences.

• AI-driven tools like BuyAbility, smart messaging, and instant tour booking enhance efficiency and provide personalized recommendations for consumers and agents.

• Platform supports the entire home journey, integrating rentals, buying, selling, financing, and agent workflows for a seamless experience.

• Over 80% of U.S. residential transactions involve agents using at least one product, and more than 60% of vacant units are listed through the platform.

• New product launches and integrations, such as rental management, credit-building rent payments, and digital lease signing, drive engagement and recurring revenue.

Financial performance, outlook, and targets

• Revenue grew 43% since 2023, consistently outperforming the housing market, with 16% YoY growth in 2025 versus the market's 3%.

• Rentals revenue surged 130% since 2022, now comprising 24% of 2025 revenue, with multifamily properties nearly tripling to over 72,000.

• EBITDA grew 59% and adjusted free cash flow 71% from 2023 to 2025, with fixed costs tightly managed and stock-based compensation reduced by over 10%.

• 2026 targets include mid-teens revenue growth, continued EBITDA margin expansion, and a new 25% net income margin goal, with $5B total revenue and 45% adjusted EBITDA margin as mid-cycle targets.

• Over $600M in share repurchases year-to-date 2026, with an additional $1.25B authorized.

Competitive positioning, data moats, and risk management

• Unique, proprietary data from consumer and professional activity forms a defensible moat, feeding AI models and enhancing product differentiation.

• Deep industry integration, regulatory expertise, and end-to-end platform capabilities are barriers to entry for competitors.

• Brand strength, direct traffic (80%), and low marketing spend reinforce market leadership and audience engagement.

• Successfully navigated industry disruptions, including commission changes, new competitors, listing fragmentation, and litigation.

• Risks include economic conditions, regulatory changes, data access, competition, and operational challenges, with further details in SEC filings.