Zillow Group, Inc. (Z) SEC Filings & Earnings Calls

Regulatory risk from FTC and state actions resolved, but future antitrust scrutiny of syndication agreements remains possible.

“Zillow has consistently maintained the partnership with Redfin is pro-consumer and procompetitive, and we’re pleased to have found a resolution that enables its continuation.” · word for word

Traffic declining 2% YoY, with broader housing market slowdown expected in second half.

“Traffic to Zillow Group's mobile apps and sites in Q2 was down 2% year over year to 239 million average monthly unique users; similar to other leading indicators that are pointing to a slower second half”

Net loss of $4M despite strong revenue growth, indicating margin pressure from investments.

“Net loss was $4 million in Q2, and net loss margin was 1%” · word for word

Restructuring execution risk

“Restructuring costs 36 —” · word for word

Interest rate sensitivity

“the health and stability of the economy and United States residential real estate industry, including changes in inflationary conditions, interest rates, housing availability and affordability” · word for word

Litigation exposure

“On September 17, 2019, International Business Machines Corporation ("IBM") filed a complaint against us ... alleging ... patent infringement” · word for word

Antitrust litigation risk from FTC and state AGs

“On September 30, 2025, the Federal Trade Commission filed a complaint ... alleging that the partnership entered into between Zillow and Redfin on February 6, 2025, harmed competition for online multifamily rental-listings in violation of federal antitrust laws.” · word for word

Securities class action and derivative lawsuits

“Three purported class action lawsuits were filed against us ... alleging violations of federal securities laws ... There is a reasonable possibility that a loss may be incurred related to this matter; however, the possible loss or range of loss is not estimable.” · word for word

Patent litigation with IBM

“International Business Machines Corporation filed a complaint against us ... alleging that the Company has infringed and continues to willfully infringe seven patents ... There is a reasonable possibility that a loss may be incurred related to this matter; however, the possible loss or range of loss is not estimable.”

Traffic decline of 3% year-over-year may indicate slowing audience engagement

“Traffic to Zillow Group's mobile apps and sites in Q1 was down 3% year over year to 220 million average monthly unique users” · word for word

Incremental legal expenses of $11M created 160bps headwind to Adjusted EBITDA margin

“Adjusted EBITDA margin flat year over year despite a 160-basis-point headwind from incremental legal expenses”

No new risk signals; buyback signals confidence but may reduce financial flexibility.

“Buyback uses cash; no debt or liquidity concerns mentioned.”

Dependence on Real Estate Partner Spending

“Residential revenue accounted for 66% of total revenue for the year ended December 31, 2025.” · word for word

Industry Commission Structure Change Risk

“if agent commissions are meaningfully impacted, it could reduce the marketing budgets of real estate partners or reduce the number of real estate partners participating in the industry, which could adversely affect our financial condition and results of operations.” · word for word

Macroeconomic Housing Market Sensitivity

“We continue to operate in a macro housing environment that has experienced low housing inventory, elevated and volatile mortgage rates, home price fluctuations and inflationary conditions, all of which have led to affordability challenges for homebuyers and sellers.” · word for word

Dependence on MLS and Third-Party Data

“The loss of existing relationships with real estate listing providers, whether due to termination of agreements, loss of MLS memberships, or otherwise... may negatively impact our listing data quality” · word for word

Variable Consideration Revenue Estimation Risk

“Our estimates of variable consideration are primarily developed based on historical data and our future expectations based on current market trends. Our estimation methodology may be inaccurate and some or all of the revenue we recognize when our performance obligations are satisfied may be reversed.” · word for word

Mortgage loans held for sale increased significantly, indicating higher balance sheet risk.

“Mortgage loans held for sale $386M at Dec 2025 vs $159M at Dec 2024.”

Net cash provided by operating activities declined to $368M from $428M, despite higher net income.

“Net cash provided by operating activities $368M for FY2025 vs $428M for FY2024.”

Operating loss of $(3)M in Q3 2025, though improved from $(45)M loss YoY.

“Loss from operations $(3) million Q3 2025 vs $(45) million Q3 2024”

High share-based compensation ($99M in Q3) dilutes earnings.

“Total share-based compensation $99 million Q3 2025”

Housing Market Sensitivity

“the health and stability of the economy and United States residential real estate industry, including changes in inflationary conditions, interest rates, housing availability and affordability” · word for word

Regulatory and Legal Uncertainty

“our ability to navigate industry changes, including as a result of past, pending or future lawsuits, settlements or government investigations” · word for word

Mortgage Financing Risk

“our ability to operate and grow the mortgage operations of Zillow Home Loans, including the ability to obtain or maintain sufficient financing” · word for word