Zillow Group's Revenue Growth Cools to 7%

The Tip Desk · November 5, 2026 · 2 min read

Third-quarter revenue was $724 million as a $165 million Zillow Offers settlement produced a $158 million net loss.

Zillow Group (ZG), the real estate marketplace, reported third-quarter revenue of $724 million, up 7% from a year earlier, as growth cooled from 18% in both the first and second quarters.

The company said the residential real estate industry grew 1% in the quarter, down from 6% in the second quarter and 2% in the first. Chief Executive Officer Jeremy Wacksman said the quarter highlighted Zillow’s durability and that the company outperformed the real estate category during one of the toughest housing markets in a generation.

For Sale revenue was flat year over year at $489 million after 14% growth to $549 million in the second quarter and 12% growth to $514 million in the first. Residential revenue fell 4% to $419 million, which the company attributed to higher-than-expected mortgage rates that pressured housing transaction volume.

Mortgages revenue increased 32% to $70 million, slower than 75% growth to $84 million in the second quarter and 56% growth to $64 million in the first. Purchase loan origination volume rose 55% to $2.0 billion.

Rentals revenue increased 26% to $220 million, with multifamily revenue growing 35%.

GAAP results swung to a $158 million net loss, or $0.70 a share, from a $4 million net loss in the second quarter and $46 million of net income in the first. Net loss margin was 22%.

Adjusted net income, which excludes the settlement, was $124 million, or $0.55 a share. Adjusted EBITDA was $182 million, within the company’s outlook range, with a 25% margin.

The company began excluding a $165 million Zillow Offers securities class action settlement, net of expected insurance recoveries, from Adjusted EBITDA and adjusted net income. It also recorded $8 million of FTC Matter litigation costs in the quarter.

Gross profit margin was 71%. Adjusted free cash flow was $46 million. Cash and investments were $707 million at quarter-end.

Average monthly unique users were 215 million and visits were 2.3 billion. According to Comscore, Zillow attracted 77% of average monthly unique visitors in the real estate category.

The shareholder letter said about 80% of traffic still comes directly to Zillow rather than from third-party sources, and that Zillow AI mode is now available to 100% of signed-in users.