Weekly Real Estate News
Zillow Group reported a $158 million net loss for the third quarter despite growing revenue 7% to $724 million, as its mortgage and rentals operations expanded faster than its core residential real estate business.
The company released its results at 4:05 p.m. Eastern on November 4 for the three months ended September 30. The results illustrate how Zillow is diversifying its business while the housing transaction market remains under pressure.
Mortgage revenue rises 32%
Zillow’s mortgage revenue reached $70 million, up 32% from $53 million a year earlier. The company attributed the growth primarily to a 55% increase in purchase-loan origination volume, which reached $2 billion.
That growth contrasted with a difficult backdrop for home sales. Zillow said it estimated that industrywide purchase-mortgage origination volume fell 4% year over year in the quarter. Its residential revenue declined 4% to $419 million as higher-than-expected mortgage rates weighed on transaction volume.
For Sale revenue, which combines residential and mortgage operations, was essentially unchanged at $489 million.
Rentals help offset housing-market weakness
Rentals revenue increased 26% to $220 million, with multifamily revenue up 35%. Zillow’s mix of revenue is shifting as its rental and mortgage businesses grow while its traditional residential business faces a slower transaction market.
Total quarterly revenue increased from $676 million a year earlier to $724 million. Zillow reported adjusted EBITDA of $182 million, with a 25% adjusted EBITDA margin, and adjusted net income of $124 million. Those adjusted measures are non-GAAP and should not be confused with its reported net loss.
Settlement weighs on reported results
The company recorded a net loss of $158 million, or $0.70 per diluted share, compared with net income of $0.04 per diluted share in the year-earlier period. Its earnings release identifies the $165 million Zillow Offers securities class-action settlement, net of expected insurance recoveries, among the items excluded from its adjusted financial measures.
The difference between GAAP losses and adjusted profitability matters for investors assessing recurring operations versus unusual expenses. Neither figure should be used in isolation.
Audience slips despite market reach
Average monthly unique users across Zillow’s apps and sites declined 3% to 215 million, while quarterly visits fell 5% to 2.3 billion. Zillow said its platforms attracted 77% of average monthly unique visitors in the residential real estate category, citing Comscore.
CEO Jeremy Wacksman said the company grew revenue and outperformed the broader real estate category in a challenging market. The company’s own industry comparison estimated residential real estate activity rose about 1% year over year, while its purchase mortgage volume comparison showed a decline.
What to watch
Investors and housing professionals will be watching whether mortgage and rentals growth can continue to offset weaker residential transaction revenue, and how much of Zillow’s reported loss reflects settlement-related expenses rather than its ongoing operations.
The company reported $707 million in cash and investments at quarter-end. Additional outlook detail is available through its investor relations quarterly results materials.
Simple Content Summary
Zillow Group reported November 4, 2026 third-quarter results showing revenue of $724 million, up 7%, and a GAAP net loss of $158 million. Mortgage revenue rose 32% to $70 million on $2 billion in purchase-loan originations, while rentals revenue climbed 26% to $220 million. Residential revenue declined 4%, and audience traffic slipped.
Illustrative office technology photograph by Kari Shea via Unsplash.
