Zillow Group (Z) Status update summary

Strategic vision, AI integration, and platform innovation

• AI is positioned as a transformative accelerator, enabling a shift from search to end-to-end transaction support for consumers and professionals, with proprietary content, user context, and deep industry integration as core advantages.

• The unified platform integrates fragmented workflows, supporting the entire home journey—rentals, buying, selling, financing, and agent workflows—for a seamless experience.

• AI-driven tools like AI Mode, BuyAbility, smart messaging, and instant tour booking enhance personalization, agent productivity, and transaction support.

• Over 80% of U.S. residential transactions involve agents using at least one product, and more than 60% of vacant units are listed through the platform.

• New product launches and integrations, such as rental management, credit-building rent payments, and digital lease signing, drive engagement and recurring revenue.

Financial performance, outlook, and targets

• Revenue grew 43% since 2023, consistently outperforming the housing market, with 16% growth in 2025 versus a 3% market increase.

• Rentals revenue surged 130% since 2022, now comprising 24% of 2025 revenue, while buy/sell side revenue declined to 52%.

• Fixed costs have been tightly managed, growing only 5% since 2023, resulting in net income margin expansion of 590 basis points year-over-year in 2025.

• Adjusted EBITDA grew 59% and adjusted free cash flow 71% from 2023 to 2025; over $600M in share repurchases year-to-date 2026, with $1.25B authorized.

• 2026 targets include mid-teens revenue growth, ~30% Rentals revenue growth, continued margin expansion, $5B total revenue, 25% net income margin, and >10% decrease in share-based compensation.

Competitive positioning, data moats, and risk management

• Unique, proprietary data from consumer and professional activity forms a defensible moat, powering differentiated AI experiences and reinforcing market leadership.

• Deep industry integration, including tools like Follow Up Boss and ShowingTime, embeds the platform in daily real estate workflows.

• Successfully navigated industry disruptions, including commission changes, new competitors, listing fragmentation, and litigation, while maintaining brand strength and audience engagement.

• Leadership maintains a founder-engaged culture, runs internal red teams, and invests in specialized AI models tailored to real estate.

• Risks include economic conditions, regulatory changes, data access, competition, and operational challenges, with further details in SEC filings.