10-Q · May 6, 2026
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…
Earnings analysis · 10-Q
Z earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Zillow reported Q3 revenue of $724 million, missing the $754.8 million consensus estimate, while adjusted diluted EPS of $0.55 beat the $0.53 estimate. Rentals and mortgages were growth contributors, but a $165 million…
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Zillow reported Q3 revenue of $724 million, missing the $754.8 million consensus estimate, while adjusted diluted EPS of $0.55 beat the $0.53 estimate. Rentals and mortgages were growth contributors, but a $165 million settlement charge and $32 million impairment and restructuring charge weighed on GAAP results. Liquidity improved through a $500 million revolving facility, although mortgage funding exposure increased with $392 million of master repurchase borrowings. No material changes to the 2025 10-K risk factors were disclosed, and the 10-Q provided no new numerical revenue or EPS guidance.
Reported figures
- Earnings per share
- $0.55
What stood out
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EPS beat despite revenue miss
Revenue was $724 million, approximately 4.1% below the $754.8 million consensus estimate, while adjusted diluted EPS of $0.55 exceeded the $0.53 estimate by $0.02, or 3.8%.
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Adjusted EBITDA met outlook
Adjusted EBITDA was $182 million and was within the company’s existing outlook range, indicating solid adjusted profitability despite the revenue shortfall.
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Expanded liquidity capacity
The company entered a $500 million revolving credit facility on January 30, 2026, with capacity to increase it by an additional $250 million; no borrowings were outstanding as of the filing date.
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Rentals and mortgages grew
Rentals and mortgage businesses were identified as growth drivers in the quarter, although the extracted filing text does not provide segment revenue amounts.
What to watch
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Large settlement and restructuring charges
GAAP results included a $165 million settlement charge and a $32 million impairment and restructuring charge, creating a substantial drag on reported profitability.
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Mortgage funding and rate exposure
Outstanding borrowings under master repurchase agreements increased to $392 million at September 30, 2026, from $364 million at December 31, 2025. The borrowings carry floating rates based on SOFR, exposing mortgage operations to interest-rate and net-interest-margin risk.
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Housing and inflation headwinds
Persistently high mortgage rates have adversely affected transaction volumes, advertising demand and mortgage originations; the filing also states that labor, marketing and hosting costs may rise, while the company may not fully offset those increases.
Management's outlook
No numerical revenue or EPS guidance was provided in the extracted 10-Q text. The company’s 10-Q directs investors to the shareholder letter for fourth-quarter and full-year 2026 outlook; adjusted EBITDA was $182 million, within the existing outlook range.
Earlier filings 1
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.