📊 Z Key Takeaways
Is Zillow Group, Inc.. (Z) a Good Investment?
Zillow demonstrates solid revenue growth (+15.5% YoY) with exceptional gross margins (74.1%) and strong free cash flow generation ($235M), backed by a fortress balance sheet with low leverage. However, operational profitability is severely challenged with negative operating income and negative interest coverage, combined with minimal shareholder returns (0.5% ROE, 0.9% net margin), indicating the business struggles to convert gross profit into bottom-line earnings.
Why Buy Zillow Group, Inc.. Stock? Z Key Strengths
- Strong revenue growth of 15.5% YoY demonstrating market traction
- Excellent gross margin of 74.1% showing pricing power and cost of sales control
- Robust free cash flow of $235M (9.1% margin) with positive operating cash flow of $368M
- Fortress balance sheet with low debt-to-equity ratio of 0.27x and $768M cash
- Outstanding liquidity position with 3.13x current and quick ratios
Z Stock Risks: Zillow Group, Inc.. Investment Risks
- Operating income is negative at -$34M despite $1.9B gross profit, indicating severe cost structure issues
- Net profit margin of only 0.9% leaves minimal margin for error or investment
- Negative interest coverage ratio (-1.9x) indicates inability to service debt from operations
- Abysmal returns on equity (0.5%) and assets (0.4%) suggest capital is not efficiently deployed
- Massive gap between gross profit and operating income ($1.934B) indicates uncontrolled operating expenses
Key Metrics to Watch
- Operating margin trend and path to positive operating income
- Operating expense ratio as percentage of revenue (cost structure efficiency)
- Return on equity improvement trajectory
- Interest coverage ratio recovery to positive territory
- Free cash flow sustainability and conversion rate to net income
Zillow Group, Inc.. (Z) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 3.13x current ratio provides a solid financial cushion.
Z Profit Margin, ROE & Profitability Analysis
Z vs Services Sector: How Zillow Group, Inc.. Compares
How Zillow Group, Inc.. compares to Services sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Zillow Group, Inc.. Stock Overvalued? Z Valuation Analysis 2026
Based on fundamental analysis, Zillow Group, Inc.. has mixed fundamental signals relative to the Services sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Zillow Group, Inc.. Balance Sheet: Z Debt, Cash & Liquidity
Z Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Zillow Group, Inc..'s revenue has declined by 68% over the 5-year period, indicating business contraction. The most recent EPS of $-0.68 indicates the company is currently unprofitable.
Z Revenue Growth, EPS Growth & YoY Performance
Z Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $581.0M | $10.0M | $0.04 |
| Q2 2025 | $572.0M | $2.0M | $0.01 |
| Q1 2025 | $529.0M | $8.0M | $0.03 |
| Q3 2024 | $496.0M | -$20.0M | $-0.08 |
| Q2 2024 | $506.0M | -$17.0M | $-0.07 |
| Q1 2024 | $469.0M | -$22.0M | $-0.09 |
| Q3 2023 | $483.0M | -$28.0M | $-0.12 |
| Q2 2023 | $504.0M | $8.0M | $0.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Zillow Group, Inc.. Dividends, Buybacks & Capital Allocation
Z SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Zillow Group, Inc.. (CIK: 0001617640)
📋 Recent SEC Filings
❓ Frequently Asked Questions about Z
What is the AI rating for Z?
Zillow Group, Inc.. (Z) has an AI rating of HOLD with 60% confidence, based on fundamental analysis of SEC EDGAR filings.
What are Z's key strengths?
Claude: Strong revenue growth of 15.5% YoY demonstrating market traction. Excellent gross margin of 74.1% showing pricing power and cost of sales control.
What are the risks of investing in Z?
Claude: Operating income is negative at -$34M despite $1.9B gross profit, indicating severe cost structure issues. Net profit margin of only 0.9% leaves minimal margin for error or investment.
What is Z's revenue and growth?
Zillow Group, Inc.. reported revenue of $2.6B.
Does Z pay dividends?
Zillow Group, Inc.. does not currently pay dividends.
Where can I find Z SEC filings?
Official SEC filings for Zillow Group, Inc.. (CIK: 0001617640) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is Z's EPS?
Zillow Group, Inc.. has a diluted EPS of $0.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is Z a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Zillow Group, Inc.. has a HOLD rating with 60% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is Z stock overvalued or undervalued?
Valuation metrics for Z: ROE of 0.5% (sector avg: 16%), net margin of 0.9% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy Z stock in 2026?
Our dual AI analysis gives Zillow Group, Inc.. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is Z's free cash flow?
Zillow Group, Inc..'s operating cash flow is $368.0M, with capital expenditures of $133.0M. FCF margin is 9.1%.
How does Z compare to other Services stocks?
Vs Services sector averages: Net margin 0.9% (avg: 10%), ROE 0.5% (avg: 16%), current ratio 3.13 (avg: 1.5).