Zillow Group Posts Strong Q2 2026 Results Amid Slower Housing Market — Zillow Group, Inc.

Event summary

Q2 revenue up 18% YoY to $772M, exceeding outlook despite 6% industry growth.
Mortgages revenue surged 75% YoY to $84M on 95% increase in loan origination volume.
Rentals revenue grew 31% YoY to $209M, driven by 42% multifamily segment growth.
Net loss narrowed to $4M from $2M profit YoY; adjusted net income rose to $118M.
Mobile app and site traffic declined 2% YoY to 239M average monthly unique users.

The big picture

Zillow's Q2 results highlight its ability to outperform a slowing housing market through diversified revenue streams, particularly in mortgages and rentals. The company's strategic focus on becoming the 'operating system for modern real estate' faces challenges from declining user traffic and potential regulatory pressures in mortgage lending. With $682M in cash reserves and aggressive share buybacks, Zillow appears positioned to weather market volatility while expanding its ecosystem.

What we're watching

Market Positioning: Whether Zillow can sustain its category-leading reach amid broader real estate traffic declines.
Mortgage Growth: How the 95% increase in loan origination volume will impact profitability and regulatory scrutiny.
Operational Efficiency: The pace at which Zillow can convert revenue growth into sustained net income improvement.