Zillow Group Reports Strong Q1 Results with 18% Revenue Growth, Significant Profit Increase, and Positive Outlook
Summary
Zillow Group reported strong Q1 2026 financial results, with revenue up 18% and net income surging 475% year-over-year, alongside positive guidance for Q2 and the full year.
Key Events
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Strong Q1 Financial Performance
Total revenue increased 18% year-over-year to $708 million, with net income rising 475% to $46 million, and diluted net income per share reaching $0.19 compared to $0.03 a year ago. Adjusted EBITDA grew 19% to $182 million.
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Key Segment Growth Drivers
Mortgages revenue surged 56% year-over-year to $64 million, driven by a 96% increase in purchase loan origination volume to $1.5 billion. Rentals revenue also saw significant growth, up 42% to $183 million.
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Share Repurchase Activity
During Q1, the company repurchased 13.5 million shares for $626 million. Approximately $1.3 billion remains on existing share repurchase authorizations, providing continued flexibility.
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Positive Q2 and Full-Year Outlook
For Q2 2026, Zillow Group expects total revenue between $750 million and $765 million and Adjusted EBITDA between $150 million and $165 million. The full-year outlook projects mid-teens total revenue growth and Adjusted EBITDA margin expansion, with share-based compensation expected to be down more than 15% year-over-year.
Analysis
Zillow Group delivered robust first-quarter results, significantly outperforming the broader residential real estate industry. The company achieved substantial year-over-year growth in total revenue, net income, and key segments like Mortgages and Rentals. The strong financial performance, coupled with an improved outlook for full-year share-based compensation and expected Adjusted EBITDA margin expansion in the second half, indicates solid operational execution and strategic momentum. The continued share repurchase activity further demonstrates a commitment to shareholder returns, even as cash and investments decreased due to these buybacks. The company's focus on AI integration and product development across its 'For Sale' and 'Rentals' segments positions it for continued growth.
At the time of this filing, ZG was trading at $42.01 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $10.2B. The 52-week trading range was $39.14 to $90.22. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.