Key Highlights

  • Revenue was USD 724 million against an estimate of USD 753.54 million and USD 676 million a year earlier.
  • EPS of USD 0.55 compares with an estimate of USD 0.58, while GAAP net loss per share was USD 0.70.
  • General and administrative expenses included USD 165 million tied to a securities class action settlement.
  • Adjusted EBITDA was USD 182 million against USD 165 million a year earlier, and cash was USD 602 million.

Zillow Group (NASDAQ:Z) closed the third quarter with a cluster of dated items that management laid out alongside the numbers: a settlement of the ZO securities class action, a headcount reduction plan and a final order resolving the FTC matter. Revenue was USD 724 million, against USD 676 million a year earlier and an estimate of USD 753.54 million. EPS was USD 0.55 against an estimate of USD 0.58, and the GAAP net loss was USD 158 million, or USD 0.70 per share.

Dated Items Management Named

On October 27, 2026, the company signed a settlement agreement resolving all claims in the ZO securities class action. It agreed to pay USD 212.5 million in cash into Escrow within 20 Business days after the court preliminarily approves the settlement, which remains subject to court approval, and it recorded an accrual of that amount at September 30. Management projects lower general and administrative expense in dollar terms in the fourth quarter, since the settlement costs, net of insurance recoveries, were recorded in the third.

On August 4, 2026, Zillow Group announced a plan to reduce headcount by approximately 7% of employees. Restructuring costs were USD 32 million in the quarter and USD 68 million for nine months, and the company said it does not project additional restructuring costs from this plan. Separately, a final order with the FTC and the states, entered August 28, 2026, keeps the Redfin Partnership in place, with multifamily rental listing syndication intact through at least June 30, 2030.

The Quarter in Reported Figures

Gross profit was USD 516 million against USD 491 million. Operating expenses were USD 677 million against USD 494 million, with general and administrative expense at USD 279 million against USD 127 million. The loss from operations was USD 161 million, against a loss of USD 3 million a year earlier. Net loss was USD 158 million, against Net Income of USD 10 million a year earlier.

Adjusted EBITDA, a non-GAAP measure, was USD 182 million, against USD 165 million. For nine months, revenue was USD 2.2 billion against USD 1.929 billion, and net cash from Operating Activities was USD 373 million. Adjusted free Cash Flow for the nine months was USD 269 million, against USD 295 million.

Rentals, Mortgages and Residential

Rentals revenue rose 26% to USD 220 million, which the company attributed to higher quarterly revenue per average monthly rentals unique visitor. Mortgages revenue rose 32% to USD 70 million on higher Loan origination volume, and total loan origination Volume at Zillow Home Loans was USD 1.976 billion, against USD 1.281 billion. Residential revenue declined 4% to USD 419 million, which management tied to a decrease in visits.

Visits were 2.308 billion, down 5%, and average monthly unique users were 215 million, down 3%. Management cited low housing inventory, elevated and volatile Mortgage rates and home price fluctuations.

Cash and cash equivalents were USD 602 million at September 30, against USD 768 million at year end 2025, and the USD 500 million revolving Credit Facility was undrawn. Nine-month share repurchases totaled USD 846 million, with USD 1.1 billion remaining available.

Signposts for the Next Quarter

Revenue of USD 724 million sits alongside Adjusted EBITDA of USD 182 million, a net loss of USD 158 million and an accrual of USD 212.5 million for the class action settlement. Management named several dated markers: the settlement payment due within 20 business days of preliminary court approval, a January 11, 2027 deadline for filing an amended complaint in a separate securities suit, and a Redfin syndication commitment running through June 30, 2030.