Key Highlights

  • Quarterly Revenue advanced 7% to USD 724 million from USD 676 million, while Gross Profit improved 5% to USD 516 million.
  • Net loss came to USD 158 million, or USD 0.70 a share, in contrast with Net Income of USD 10 million, or USD 0.04, in the same period last year.
  • Administrative spending climbed USD 152 million, primarily because of a USD 165 million charge tied to the ZO securities class action settlement after expected insurance recoveries were netted.
  • Adjusted EBITDA, a non-GAAP figure, rose 10% to USD 182 million, and its share of revenue reached 25% compared with 24% a year earlier.

Settlement Accrual Pushes the Quarter Into a Loss

Zillow Group (NASDAQ:Z) published its results for the quarter ended September 30, 2026 on November 4, 2026. On October 27, 2026 the firm agreed to resolve the ZO securities class action tied to its former Zillow Offers operation by depositing USD 212.5 million into escrow, subject to preliminary court sign-off. Final court approval has not yet been obtained. The full USD 212.5 million was accrued at September 30 against a USD 48 million insurance receivable, leaving a net charge near USD 165 million. That produced a USD 161 million operating loss, a USD 155 million pretax loss and a USD 158 million net loss. Leadership anticipates lower administrative expense in the fourth quarter.

Rentals and Mortgages Grow While Residential Slips

Rentals income advanced 26% to USD 220 million as quarterly revenue per average monthly unique rentals visitor increased. Mortgages income gained 32% to USD 70 million thanks to a larger Loan origination base. Residential revenue slid 4% to USD 419 million, a decline the company links to fewer visits in a softer housing market. Traffic is now counted under a tighter standard that filters out automated visits, and earlier periods were restated, reducing previously reported third-quarter 2025 visits by roughly 5%. Adjusted EBITDA of USD 182 million compares with USD 165 million, so the operating side improved even though the settlement weighed on net results. Those traffic figures are presented on the new basis throughout this section.

A 7% Headcount Cut, Buybacks and Lower Cash

A headcount cut of around 7% was disclosed on August 4, 2026. Restructuring charges reached USD 32 million in the period, split into USD 20 million of cash severance and USD 12 million of accelerated share-based pay. Cash, equivalents, investments and restricted cash came to USD 713 million, down from USD 1.3 billion at the close of 2025. Class A and Class C repurchases totaled roughly USD 846 million across nine months (calculated), which includes 539 thousand Class C shares bought for USD 20 million during the third quarter. Smaller Investment holdings pulled other income down to USD 12 million from USD 18 million. Those figures reflect balances reported at the close of the period.

Where Things Stand

Mainly a one-time accounting entry rather than weaker operations. Zillow Group (NASDAQ:Z) booked USD 212.5 million for the ZO settlement, partly offset by USD 48 million of expected insurance recoveries, while revenue advanced 7% and adjusted EBITDA climbed 10%. Residential revenue is still falling, and cash dropped after buybacks and restructuring. Next, watch court approval, the Escrow deposit, the anticipated drop in fourth-quarter administrative costs and residential demand.