Zillow Group Inc (NASDAQ:Z) (NASDAQ:ZG) shares are falling in extended trading Wednesday after the company reported worse-than-expected results for the third quarter.
- Zillow Group stock is showing notable weakness. Why is Z stock falling?
Zillow Posts Q3 Double Miss
- Q3 Revenue: $724 million, versus estimates of $773.04 million
- Q3 Adjusted EPS: 55 cents, versus estimates of 67 cents
Total revenue was up 7% year-over-year in the quarter. Residential revenue was down 4%, Mortgages revenue increased 32% and Rentals revenue increased 26%. The company highlighted a weaker-than-expected housing environment during the quarter and noted that the broader residential real estate industry grew by just 1%.
“Q3 highlighted Zillow’s durability. We grew revenue and outperformed the real estate category during one of the toughest housing markets in a generation,” said Jeremy Wacksman, CEO of Zillow. “That performance is powered by our brand, audience engagement, value to partners and strong growth levers across our well-diversified business.”
Zillow expects fourth-quarter revenue to be in the range of $635 million to $665 million versus Benzinga Pro estimates of $740.76 million. The company also lowered its full-year 2026 revenue outlook from a range of $2.92 billion to $2.96 billion to a new range of $2.84 billion to $2.87 billion, versus estimates of $2.98 billion.
Z Shares See Heavy Selling
Zillow shares were down 14.45% in after-hours trading at $29 at the time of publication on Wednesday, according to Benzinga Pro.
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