Description

Zillow Group’s 42% Rentals Growth — Can It Become A $1 Billion Business?

Zillow Group reported first-quarter 2026 revenue of $708 million, representing an 18% year-over-year increase and near the high end of its outlook, with EBITDA of $182 million surpassing expectations and an associated margin of 26%. Net income for the quarter reached $46 million, reflecting a net income margin expansion of more than 500 basis points from the prior year. Free cash flow improved 44% year-over-year to $127 million. Diluted net income per share grew to $0.19 from $0.03, aided by a 16% decline in share-based compensation expense. The company’s For Sale segment delivered $514 million in revenue, up 12% year-over-year. Residential revenue grew 8%, driven by expansion of Zillow Preferred and the integration of agent tools, while mortgage revenue increased 56%, propelled by a near doubling of purchase loan originations to $1.5 billion.