Zillow Group Reports 18% Revenue Growth to $708 Million in Q1 2026

Zillow Group, Inc. reported a total revenue of $708 million for the first quarter of 2026, marking an 18% increase from $598 million in the same period of the previous year. The growth was primarily driven by a significant rise in both residential and mortgage revenues, which increased by 8% and 56%, respectively. Residential revenue reached $450 million, while mortgage revenue climbed to $64 million, reflecting a surge in mortgage originations. The company's net income also saw a substantial increase, rising to $46 million from $8 million year-over-year, resulting in a net income per share of $0.19, compared to $0.03 in the prior year.

In terms of operational metrics, Zillow's average monthly unique users decreased slightly by 3% to 220 million, while the number of visits to its platforms increased by 3% to 2.354 billion. The company reported a total transaction value (TTV) increase of 2% in the residential real estate market, which contributed to its revenue growth. Zillow's employee headcount remained stable at 7,058, down from 7,068 at the end of 2025, indicating a focus on maintaining operational efficiency.

Strategically, Zillow has continued to invest in its technology and product offerings, which has enhanced its competitive position in the real estate market. The company launched a $500 million revolving credit facility in January 2026, which can be increased by an additional $250 million, providing it with greater financial flexibility. Additionally, Zillow authorized a $1.25 billion increase in its share repurchase program, bringing the total to $4.8 billion, with $1.3 billion remaining available for future repurchases.

The filing also highlighted the company's focus on managing costs, with total operating expenses rising only 3% to $483 million, despite the revenue increase. This was achieved through careful management of sales and marketing expenses, which increased by 6% to $210 million, and general and administrative expenses, which rose by 2% to $123 million. The gross profit for the quarter was reported at $519 million, resulting in a gross margin of 73%, down from 77% in the previous year, primarily due to increased lead acquisition costs.

Looking ahead, Zillow anticipates continued growth in its mortgage and rental segments, driven by strategic investments and market conditions. However, the company remains cautious about the potential impacts of inflation and interest rate fluctuations on its operations and the broader housing market. The management emphasized that while current financial performance is strong, future results may be influenced by ongoing economic uncertainties.