Zillow Group, Inc. is a prominent digital real estate enterprise that manages a variety of property-related brands accessible via mobile applications and ...
Zillow Group, Inc. is a prominent digital real estate enterprise that manages a variety of property-related brands accessible via mobile applications and websites throughout the United States. Its operations are organized into three primary divisions: Homes, Internet, Media & Technology (IMT), and Mortgages. The Homes segment focuses on the buying ...Zillow Group, Inc. is a prominent digital real estate enterprise that manages a variety of property-related brands accessible via mobile applications and websites throughout the United States. Its operations are organized into three primary divisions: Homes, Internet, Media & Technology (IMT), and Mortgages. The Homes segment focuses on the buying and selling of properties, alongside providing essential title and escrow services to both purchasers and vendors. These services encompass conducting title searches for insurance policies, managing escrow, and handling other closing procedures. The IMT division offers digital marketplaces designed for premier real estate agents, rental properties, and newly constructed homes. It also provides various advertising solutions, including dotloop and display ads, in addition to a suite of business software offerings. Through its Mortgage segment, Zillow supplies home financing options and offers marketing tools like personalized quotes and connection services. The company's extensive brand portfolio features well-known names such as Zillow Rentals, Trulia, StreetEasy, Zillow Closing Services, HotPads, and Out East. Established in 2004, Zillow Group maintains its corporate headquarters in Seattle, Washington. Financially, Zillow has a market cap of around $8.16 billion, with revenue per share of $12.33 and a net profit margin of 2%. The company invests heavily in technology, with R&D spending at 16.2% of revenue. Key people include co-founder Rich Barton, who served as CEO until August 2024, and current CEO Jeremy Wacksman. The company aims to reimagine real estate to make home a reality for everyone, leveraging data and technology to empower consumers.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$2.6B
+15.5%
+9.0%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$23.0M
+120.5%
-108.7%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+74.1%
-3.0%
-0.7%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
-1.2%
+85.9%
-125.5%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+0.9%
+117.8%
-108.0%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$235.0M
-17.5%
-114.0%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+9.1%
-28.6%
-112.9%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
11.0%
-19.4%
+33.1%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
3.13x
+11.3%
-16.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Hello, and welcome to Zillow Group's second quarter 2026 financial Results Call. We ask that you please hold all questions until the completion of the formal remarks at which time you will be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Bradley, you may begin.
Bradley Allen Berning: Thank you. Good afternoon, and welcome to Zillow Group's quarterly earnings call. Joining me today to discuss our results are Zillow Group CEO, Jeremy Wacksman; as well as COO and CFO, Jeremy Hofmann. During today's call, we will make forward looking statements about our future performance and operating plans, based on current expectations and assumptions. These statements are subject to risks and uncertainties and we encourage you to consider the risk factors described in our SEC filings for additional information. We undertake no obligation to update these statements as a result of new information or future events except as required by law. Please review the cautionary statement and additional information in our earnings release, which can be found on our investor Relations website. This call is being broadcast on the Internet and is available on our Investor Relations website. A recording of the call will be available later today. During the call, we will discuss GAAP and non GAAP measures, including adjusted net income, diluted adjusted net income per share, adjusted EBITDA, which we refer to as EBITDA, and adjusted free cash flow, which we refer to as free cash flow. We encourage you to read our shareholder letter and earnings release, which can be found on our Investor Relations website as they contain important information about our GAAP and non GAAP results including reconciliations of historical non GAAP financial measures. We will open the call with remarks followed by live Q&A. And with that, I will now turn the call over to Jeremy Wacksman.
Jeremy Wacksman: Good afternoon, everyone, and thank you for joining us. Q2 was another quarter of strong results that demonstrate our consistent execution and the durability of our strategy. Zillow is the operating system for modern real estate, AI native, at the core of the transaction, empowering both consumers and professionals from end to end. We have earned consumers' trust for many years now, by consistently showing up for them at every stage of the housing journey. that is why our brand and engagement are so strong. We have more than 2x as many daily active app users as our next closest competitor, and 80% of our traffic comes directly to our apps and sites. According to Comscore, which tracks growth trends across the residential real estate category, Zillow's average monthly unique visitors in Q2 outperform the category. Which saw a decline overall amid the rise in mortgage rates. Zillow is the only large company in the category to consistently expand its reach with the …
