# Z earnings call intelligence

LOPJLB CallCard / temporal rollup · freemium · [stock page](https://www.lopjlb.com/stock/Z) · [Earnings tab](https://www.lopjlb.com/stock/Z?tab=earnings)

Updated: 2026-08-05T07:07:49

Quarters analyzed: 8

## Cross-quarter narrative

Across eight quarterly updates, Zillow’s top‑line momentum accelerated from modest double‑digit growth in 2024 to consistently 15‑18% year‑over‑year increases by 2026, driven by expanding Enhanced Markets, a rapidly scaling Rentals franchise and renewed mortgage integration. EBITDA margins rose from 22‑23% in 2024 to a peak of 26% in early 2025 before stabilising around 24% as variable costs in Rentals and Zillow Home Loans began outpacing revenue. The company repeatedly highlighted the rollout of Enhanced Markets (targeting 40‑44% of connections) and the launch of new consumer tools—BuyAbility, Zillow Pro, AI‑powered staging, and AI Mode—moving from delivery to on‑track integration. Macro headwinds persisted: a flat housing market, interest‑rate volatility, and regulatory shifts remained central risks, while cost discipline was challenged by rising variable expenses and Redfin partnership integration. In 2026 the narrative shifted to execution challenges around agent sentiment and MVP pricing, and to early‑stage AI monetisation uncertainty, marking the latest layer of risk atop the enduring macro uncertainty.

## Latest CallCard · Q1

Zillow Q1 revenue +18% YoY near high-end guidance, EBITDA beat; mid-teens full-year revenue guide maintained amid flat housing market, driven by enhanced markets, mortgage growth, rentals, and AI integration.

**Guidance:** maintained — Mid-teens total revenue growth for 2026 maintained; mid-single-digit residential growth expected; For Sale faster via enhanced markets and mortgages; rentals contributing; no macro improvement assumed.

**Tone:** mgmt 0.8 · Q&A pressure 0.3 · divergence 0.4

Prepared remarks emphasize consistent execution, momentum, AI leadership via content/context/integration advantages, and structural margin expansion.

### Demand visibility

Housing market essentially flat; Q1 worse weather and rate volatility; agent sentiment dampening MVP; enhanced markets and mortgage integration driving outperformance.

Industry transactions roughly flat in Q1. Q2 started slower than anticipated due to weather and rates impacting agent sentiment and MVP lag. Enhanced markets at 49% of connections (target 75%) and mortgage origination +96% YoY provide structural demand visibility independent of macro.

### Margins / costs

EBITDA exceeded outlook on lower costs; net income margin +500bps YoY; internal AI driving 40% more code per engineer.

EBITDA beat driven by lower-than-planned costs. Net income $46M with margin expansion >500bps YoY. AI-native transformation yielding engineering productivity gains (40% more code per engineer) and faster prototyping, compounding cost efficiency.

### Capital allocation

No specific capital allocation details discussed in transcript; shareholder letter referenced for GAAP/non-GAAP reconciliations.

Prepared remarks mention adjusted EBITDA and free cash flow but no commentary on buybacks, dividends, M&A, or debt management in provided sections.

### Milestones

- **AI Mode consumer experience** [on_track]: Live for ~5% of audience (millions of users); deeper conversations and more actionable engagement; expanding access through 2026.
- **Enhanced markets integration** [on_track]: 49% of connections in Q1 (up from 44% Q4); target at least 75%; driving mortgage adoption and revenue outperformance.
- **Zillow Preview pre-market listings** [on_track]: Launched 7 weeks ago with 5 brokerages; now 60+ brokerages onboarded; new realtor.com collaboration announced.
- **Shop with Pre-approval** [delivered]: Now available across entire platform; integrates verified pre-approval into shopping experience.
- **Buyability affordability tool** [on_track]: 4.3M enrolled users (up from 3.6M end of 2025); double-digit adoption in enhanced markets.
- **Zillow Home Loans scale** [delivered]: Purchase loan origination +96% YoY to record $1.5B in Q1; now top 25 purchase lender.
- **Rentals AI Assist for property managers** [on_track]: Streamlining lead management, application screening, lease coordination; multifamily revenue +57% YoY.
- **Internal AI-native transformation** [on_track]: Engineers shipping 40% more code per engineer; product/design prototyping faster; workflows reinvented.

### Fears / risks

- **Macro housing stagnation**: Housing market effectively flat; no recovery planned; worse weather and interest rate volatility suppressing transactions.
- **Agent sentiment pressure**: Agent sentiment heading into spring selling season impacting MVP adoption and market-based pricing willingness.
- **MVP segment volatility**: MVP lags due to agent sentiment; quarterly fluctuations may persist despite structural enhanced markets growth.
- **Interest rate sensitivity**: Mortgage origination growth and buyer affordability (Buyability) highly sensitive to rate movements.
- **AI execution and monetization risk**: AI Mode early (5% rollout); monetization path unclear; competitive response from horizontal LLMs and vertical players.
- **Private listing network competition**: Brokerages may prefer private networks that hide listings; Preview counters but adoption not guaranteed.
- **Regulatory complexity**: Hundreds of MLSs, 1.5M agents, high-stakes transactions create structural barriers to integration and AI deployment.
- **Rental market cyclicality**: Multifamily revenue +57% YoY but property manager marketing spend may fluctuate with occupancy cycles.

### Key quotes

> “Q1 was another quarter of consistent execution and continued momentum across our business. We delivered revenue near the high end of our outlook range and EBITDA above our outlook, putting us on track toward achieving our full year goals.” — Jeremy Wacksman

> “We have been building advanced technology in residential real estate for 20 years from the Zestimate to the mobile revolution to computer vision and beyond. We are now in the next chapter of that arc, and we believe Zillow is uniquely”

> “Our engineers are shipping 40% more code per engineer at the same or higher quality. Product and design teams are prototyping faster and taking features from concept to launch in a matter of days, and our employees are using AI to reinvent”

> “Housing market has been effectively flat. We're not planning for that to get better. It may, but we're not planning for it. So against that backdrop, what informs the mid-teens guide is we expect mid-single-digit growth in residential.” — Jeremy Hofmann

> “Preview -- the response to Preview, I think, kind of proves that it's something that's broadly desired by most of the market, and that's just because public is better than private.” — Jeremy Wacksman

## Quarter one-liners

- **2026 Q1:** Zillow Q1 revenue +18% YoY near high-end guidance, EBITDA beat; mid-teens full-year revenue guide maintained amid flat housing market, driven by enhanced markets, mortgage growth, rentals, and AI integration.
- **2025 Q4:** Zillow delivered Q4 revenue +18% YoY, full-year GAAP profitability, Rentals +45%, For Sale +11%, enhanced markets at 44% of connections; guiding mid-teens 2026 growth with EBITDA margin expansion despite legal headwinds.','tone': {'mgmt': 0.3, 'mgmt_rationale': 'Management highlighted strong executi
- **2025 Q3:** Zillow Q3 beats with 16% revenue growth, 24% EBITDA margin; For Sale +10%, Rentals +41%; launching Zillow Pro, Showcase at 3.2% listings; guiding Q4 16-18% growth. Full-year targets maintained. Mid-cycle $5B revenue, 45% EBITDA target reaffirmed. Free cash flow $295M YTD. Share buybacks $2.4B to dat
- **2025 Q2:** Zillow Group reports strong Q2 with 15% revenue growth, EBITDA $155M at high end, Rentals accelerating to 36% YoY, For Sale outpacing flat market; raises full-year revenue guidance to mid-teens.
- **2025 Q1:** Zillow Q1 beat: $598M rev (+13%), $153M EBITDA (26% margin), GAAP profitable; reaffirms low-mid teens growth, margin expansion; Rentals +33%, Enhanced Markets 24% connections.','tone': {'mgmt': 0.7, 'mgmt_rationale': 'Management highlighted exceeding Q1 outlook, GAAP profitability, strong revenue gr
- **2024 Q4:** Zillow Q4 revenue $554M (+17% YoY), FY24 $2.2B (+15%); EBITDA margin +200bps to 22%; guiding low to mid-teens FY25 growth, positive GAAP net income, Enhanced Markets to 35% connections, rentals $1B+ path with Redfin partnership.','tone':{'mgmt':0.5,'mgmt_rationale':'Management highlighted meeting 20
- **2024 Q3:** Zillow Q3: $581M rev (+17%), $127M EBITDA (22%), beats industry; 43 Enhanced Markets, Showcase 1.5% listings, Rentals +24%, Mortgages +63%; Q4 guide $525-540M rev, $90-105M EBITDA; FY24 rev +14%, EBITDA margin 22% (+200bps).
- **2024 Q2:** Zillow Q2 revenue $572M (+13% YoY), 8th straight quarter outperforming industry; CEO transition to Jeremy Wacksman; Enhanced Markets expanding to 36 by Aug, 40 by year-end; Rentals +29%, Mortgages purchase volume +125%; EBITDA margin 23% (+100bps); guidance: double-digit 2024 revenue growth, modest 

## Theme arcs

- **Revenue growth** (improving): YoY revenue rose from +13% in 2024 Q2 to +18% by 2026 Q1, with guidance lifted to mid‑teens.
- **Enhanced Markets rollout** (new): Started in 2024 Q2, now at 44% of connections by 2025 Q4 and still expanding.
- **Rentals expansion** (improving): Growth accelerated from +29% in 2024 Q2 to +45% YoY in 2025 Q4.
- **Mortgage/interest rate sensitivity** (stable): Consistently cited as a risk affecting loan origination volume.
- **Variable cost pressure** (new): First noted 2025 Q2, persists through 2026 Q1.
- **AI integration** (new): AI Mode, virtual staging and ChatGPT integration introduced 2025‑2026.
- **Agent sentiment/MVP volatility** (new): Identified as a delay risk in 2026 Q1.

## Fear persistence

- **Macro housing market uncertainty** [recurring]: Cited from 2024 Q2 through 2026 Q1 as a persistent backdrop.
- **Interest rate sensitivity** [recurring]: Repeatedly noted as affecting mortgage revenue and buyer affordability.
- **Variable cost growth ahead of revenue** [recurring]: First flagged 2025 Q2, continues into 2026 Q1.
- **Enhanced Markets execution risk** [recurring]: Initial execution risk in 2024 Q2, reiterated in 2025 Q2 timeline concerns.
- **Redfin partnership integration risk** [new]: Identified in 2025 Q2 as a cost‑of‑revenue risk.
- **Agent sentiment pressure/MVP volatility** [new]: Highlighted in 2026 Q1 as a delay for MVP segment.
- **AI execution and monetisation risk** [new]: Raised in 2026 Q1 with early rollout uncertainty.

## Guidance path

2024 Q2:maintained → 2024 Q3:maintained → 2024 Q4:vague → 2025 Q1:vague → 2025 Q2:raised → 2025 Q3:maintained → 2025 Q4:vague → 2026 Q1:maintained

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Research context only. Not personalized investment advice.

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