Zillow (Z) Down 1.7% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Zillow (Z). Shares have lost about 1.7% in that time frame, outperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Zillow due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Zillow Group, Inc. before we dive into how investors and analysts have reacted as of late.

Zillow Group's Q4 EPS Lags Estimates, Revenues Beat, Grows Y/Y

Zillow Group reported fourth-quarter 2025 adjusted EPS of 39 cents, which missed the Zacks Consensus Estimate of 42 cents. However, the figure increased significantly on a year-over-year basis.

Results reflected increased costs, undermining the performance to some extent. For-sale revenues and rental revenues grew year over year.

Total revenues of $654 million surpassed the Zacks Consensus Estimate of $649.8 million. The figure improved 18.1% year over year.

Quarter in Detail

For-sale revenues reported were higher by 11% at $475 million. Residential revenues of $418 million increased 8% year over year, aided by growth in the company’s agent and software offerings and within its new construction marketplace. Mortgage revenues were 39% higher year over year at $57 million, backed by a 67% increment in purchase loan origination volume to $1.5 billion.

Rental revenues grew 44.8% year over year to $168 million, led by multifamily revenue growth of 63% year over year.

The adjusted EBITDA margin increased 260 basis points to 23% of revenues at $149 million, led by better-than-expected revenue growth and cost discipline.

Online traffic on Zillow Group’s mobile applications and sites was higher by 8% year over year to 221 million average monthly unique users. Visits improved 2% year over year to 2.1 billion.

Total select operating expenses and cost of revenues grew 7% year over year to $665 million due to an increase in lead acquisition costs related to strategic partnerships and ad-serving costs to support the growth of its rental marketplace and higher legal expenses.

Balance Sheet

Zillow exited the fourth quarter of 2025 with $1.3 billion in cash and investments, down from $1.4 billion at the prior quarter's end.

During the fourth quarter, Zillow repurchased 3.4 million shares for $232 million.

Z’s 2026 Outlook

Zillow expects its first-quarter 2026 total revenues in the range of $700-710 million and adjusted EBITDA between $160 and $175 million.

First-quarter for-sale revenues are expected to be slightly ahead of 11% achieved in the fourth quarter of 2025, driven by residential revenue growth in the high single-digit rangeand mortgage revenue growth of around 40%.

Rental revenues are anticipated to rise around 40% year over year, driven by accelerated multifamily revenue growth.

The company expects its adjusted EBITDA expenses to be around $535-$540 million, an increase from the fourth quarter. The rise is expected due to a seasonal increase in payroll-related taxes and lead acquisition costs related to the Redfin multifamily rental listing syndication agreement. Variable costs are also set to grow owing to higher personnel costs and elevated legal expenses.

For 2026, management projects mid-teens revenue growth year over year and rental revenue growth of around 30% year over year. The company expects to have an adjusted EBITDA margin expansion year over year.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -6.25% due to these changes.

VGM Scores

Currently, Zillow has a nice Growth Score of B, a score with the same score on the momentum front. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Zillow has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Zillow belongs to the Zacks Internet - Services industry. Another stock from the same industry, Uber Technologies (UBER), has gained 5.6% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.

Uber reported revenues of $14.37 billion in the last reported quarter, representing a year-over-year change of +20.1%. EPS of $0.71 for the same period compares with $3.21 a year ago.

Uber is expected to post earnings of $0.71 per share for the current quarter, representing a year-over-year change of -14.5%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

Uber has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

Zacks Names #1 Semiconductor Stock

This under-the-radar company specializes in semiconductor products that titans like NVIDIA don't build. It's uniquely positioned to take advantage of the next growth stage of this market. And it's just beginning to enter the spotlight, which is exactly where you want to be.

With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $971 billion by 2028.

See This Stock Now for Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Zillow Group, Inc. (Z): Free Stock Analysis Report

Uber Technologies, Inc. (UBER): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research