Zillow Group, Inc. Class C Capital Stock (Z)

Zillow Group agreed on 27 October 2026 to pay $212.5 million in cash to settle the investor class action over its shut-down home-buying business, Zillow Offers 12.

About $48 million is expected to come from insurance, and the agreement carries no admission of liability 1.

The class covers people who bought Zillow stock from 5 August to 2 November 2021 1.

The settlement still needs court approval, and related shareholder suits on behalf of the company remain pending 1.

Zillow will report third-quarter 2026 results after the market close on 4 November 2026, with a call that afternoon 3.

The newest results on file are for the second quarter, when revenue rose 18 percent to $772 million and the net loss was $4 million 45.

Mortgages revenue, from Zillow's own lending arm, grew 75 percent to $84 million as purchase loan volume rose 95 percent to $2.2 billion 4.

On 19 October 2026 Zillow also launched a connector that lets people search homes for sale or rent inside Anthropic's Claude assistant 1011.

Zillow introduced the Zestimate, its automated home value estimate, in 2006 6. The estimate gave ordinary shoppers a number to argue with, and it drew the audience that the business then sold to agents 6.

For most of its life the company earned money by selling advertising to real estate agents who wanted those connections, called leads 6. It later widened into software and services around the agent and the buyer 6.

The company grew by buying tools that agents already used 3. Its brands today include Trulia, StreetEasy, HotPads, Out East, Follow Up Boss, ShowingTime and dotloop 3.

In December 2023 Zillow bought Follow Up Boss, a customer-tracking program for agents, paying $399 million in cash plus up to $100 million more if performance goals were met 5.

The biggest bet was Zillow Offers, which bought homes, renovated them and resold them 9. About two weeks before the exit, Zillow had said it was halting all new home purchases for the rest of the year, according to Fox Business 9.

Zillow later said it would leave the business, and it planned to cut 25 percent of its workforce 9. Barton said the unpredictability of forecasting home prices far exceeded what the company had anticipated 9.

Fox Business noted the company had once said the venture could produce $20 billion a year 9.

Investors then sued, saying Zillow made misleading statements about Zillow Offers 6. A court certified the investor class on 23 August 2024, and the Ninth Circuit court of appeals affirmed that on 26 September 2025 6.

After the exit, Zillow rebuilt around what it calls an integrated transaction: one place for search, an agent, a loan and, in rentals, a lease 6. Zillow Preferred, where agents pay when a deal closes, replaced the Flex program in the fourth quarter of 2025 6.

The rebuild showed in the annual figures, where revenue for 2025 was $2.6 billion against $2.2 billion for 2024, up 16 percent 6. Rentals revenue rose 39 percent to $630 million, residential revenue 7 percent to $1.7 billion and mortgages revenue 37 percent to $199 million 6.

On 6 February 2025 Zillow signed a rentals partnership with Redfin, and the Federal Trade Commission sued over it on 30 September 2025 6. Zillow and Redfin settled with the agency and five state attorneys general on 22 August, and the order lets the partnership continue 7.

Buying and selling: Residential and Mortgages

Residential is the largest line 6. It sells agents the connections, advertising and tools they use to serve buyers and sellers, and it brought in $1.7 billion in 2025 6.

In the second quarter of this year residential revenue rose 7 percent to $465 million, and the shift of deals to the Preferred model moves some revenue from residential to mortgages 4.

Zillow Home Loans is the company's mortgage lender 6. It is available in 49 states and the District of Columbia, and the company says it is a top-25 purchase lender in the country 64.

On 28 October 2026 Zillow Home Loans launched down payment help for FHA buyers: a second loan of up to 3.5 percent of the purchase price with no interest and no monthly payment 12. RISMedia reported it is forgiven after five years of on-time payments and open in 43 states and the District of Columbia 12.

Rentals

Rentals is a marketplace where renters search, tour, apply, sign and pay, and where property managers advertise 6. It brought in $630 million in 2025, up 39 percent 6.

In the second quarter rentals revenue rose 31 percent to $209 million, led by multifamily buildings, which grew 42 percent 4. Listings averaged 2.8 million a month, including a record 79,000 multifamily properties 4.

Software for agents and for sellers

Follow Up Boss is the customer-tracking program, and it had 138,000 monthly active users in the second quarter, up 21 percent 4. Zillow Pro, a paid membership for agents, launched nationwide a month before the letter, according to the shareholder letter 4.

Zillow Showcase is on about 5 percent of new listings, and Zillow Preview, a way to market a home before it is active, has more than 100 brokerage partners 4. Other tools are ShowingTime and dotloop 6.

AI mode and assistants

Zillow AI mode, a conversational search inside the Zillow app, is live for about 20 percent of signed-in users, the company said 4. People who use it contact an agent at nearly three times the rate of those who do not, by the company's own data 4.

Zillow also offers its search inside outside assistants 10. A connector for Claude launched on 19 October 2026, joining an app in ChatGPT and a rentals experience in Gemini 1011.

Rivals and the market

The industry is split into many small parts 6. About 4.8 million homes were sold in 2025, through more than 300,000 brokerages and over 70,000 mortgage lenders 6.

Zillow says it has more than twice as many daily active app users as its closest rival and that Realtor.com is the second-most-visited real estate platform 4. Comscore data it cites show category traffic fell in the second quarter 4.

People and offices

Jeremy Wacksman is chief executive, and Jeremy Hofmann became chief operating officer and chief financial officer on 5 August 2026 4. Jun Choo, the former operating chief, stepped down for health reasons and advises through the end of the year 4.

Cassandra Knight joined from Google as chief legal and policy officer 4. Rikki Tremblay became the principal accounting officer on 17 September 2026 after Jennifer Rock retired 8.

Zillow had 7,068 employees at the end of 2025, and its Seattle headquarters covers 113,470 square feet under a lease running to 2032 6.

Current problems

The settlement of the investor class action is the largest open item, and two shareholder suits on behalf of the company over the Zillow Offers wind-down stay paused 16. Two more were filed in July 2026 over the Redfin partnership 5.

The company also recorded $36 million of restructuring costs in the second quarter of 2026 for a reduction in staff 5.

The umbrella, in words

The company's brands are Zillow, Zillow Premier Agent, Zillow Home Loans, Zillow Rentals, Zillow New Construction, Trulia, StreetEasy, Out East, HotPads, Follow Up Boss, ShowingTime, dotloop and Zillow Closing 3.

The annual report's subsidiary list names MFTB Holdco, Inc., Zillow, Inc., Zillow Insurance Services, LLC and Zillow Risk Solutions, Inc., and omits smaller ones 13.

Zillow owns Follow Up Boss, bought in December 2023 5. It has agreed with Redfin to syndicate multifamily rental listings through at least 30 June 2030 7.

Founders Richard Barton and Lloyd Frink hold all the Class B shares, which carry 10 votes each 6. At the end of 2025 their holdings represented about 35 percent and 22.7 percent of the voting power 6.

Class C capital stock, the second ticker, has no vote, and the company's offices are leased 6.

Zillow is to report third-quarter results on 4 November 2026 3. The investor settlement is to be filed with the court for preliminary approval, and the company intends to file it as an exhibit to its annual report for 2026 1.

The company expects third-quarter revenue of $745 million to $760 million and adjusted EBITDA, a profit measure that leaves out some costs, of $180 million to $200 million 4. These figures were given on 5 August 2026 4.

For all of 2026 it expects revenue of $2.92 billion to $2.96 billion and adjusted EBITDA of $730 million to $760 million 4. It reaffirmed this outlook on 24 August 2026 7.

The company plans to end 2026 with more than 75 percent of its connections going to Preferred agent partners, up from 44 percent at the end of 2025 4. It expects 35 percent more revenue per connection by then 4.

Zillow says it has added $287 million of For Sale revenue since the start of 2025 toward a goal of $1 billion 4. It also sees a path to $1 billion a year in rentals revenue 4.

The company expects to launch instant floor plans later this year, and Zillow Preview listings were to be syndicated to Realtor.com later in the summer 4. The Redfin deal stays in place through at least 30 June 2030 under the order 7.

It expects the rest of the restructuring costs, in a range of $59 million to $64 million overall, in the third quarter 5.

If the court gives preliminary approval, class members get notice and a chance to object, and the court then holds a fairness hearing on final approval 1. The defendants can end the deal if exclusions pass a confidential threshold 1.

Jennifer Rock, the former chief accounting officer, remains in an advisory role through 1 March 2027 8.

The company says it had about $1.1 billion left on its share repurchase authorizations at the end of the second quarter 4.