Key Stats for Zillow Stock
- Price change for Zillow stock: -13%
- $Z Stock Price as of Aug. 5: $36
- 52-Week High: $94
- $Z Stock Price Target: $56
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What Happened?
Zillow (Z) reported Q2 revenue of $772 million, up 18% from $655 million a year ago. That topped the high end of the company’s own outlook range.
Adjusted EBITDA came in at $176 million, also above expectations, giving a 23% margin. Adjusted net income rose to $118 million from $101 million a year earlier, and diluted adjusted earnings per share climbed to $0.52 from $0.40.
But not every number told a clean story. On a GAAP basis, Zillow actually posted a net loss of $4 million, compared to a small profit last year.
- Operating cash flow dropped sharply, falling to $11 million from $87 million a year ago.
- Gross margin also slipped, down two percentage points to 73%, and
- Adjusted EBITDA margin narrowed slightly as well.
Then came the bigger headline. Zillow announced a company restructuring that eliminated about 7% of its workforce. The move is expected to generate roughly $75 million in annualized EBITDA savings, or about $140 million when combined with previously planned hiring cuts that won’t happen now.
The company also booked $36 million in restructuring costs during the quarter, with another $23 million to $28 million expected in Q3.
Alongside the layoffs, Zillow announced major leadership changes. CFO Jeremy Hofmann is taking on an expanded role as Chief Operating Officer and Chief Financial Officer combined.
Jun Choo, who had served as COO since 2024, is stepping down to focus on his health, though he’ll stay on in an advisory role through the end of the year. Zillow also named Sandi Knight, a longtime Google litigation executive, as its new Chief Legal and Policy Officer.
Segment results showed where the growth is coming from.
Mortgages revenue jumped 75% to $84 million, while Rentals revenue grew 31% to $209 million, driven largely by a 42% increase in multifamily revenue.
Residential revenue grew a more modest 7% to $465 million. Zillow’s audience numbers softened slightly, with average monthly unique users down 2% to 239 million and quarterly visits down 2% to 2.5 billion.
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What the Market Is Telling Us About Zillow Stock
The dip in Zillow stock shows investors weighing a strong headline quarter against some real question marks underneath.
A big GAAP net loss, a steep drop in operating cash flow, and a sizable round of layoffs paired with leadership turnover are the kind of details that make investors pause, even when adjusted numbers look healthy.
Management framed the restructuring as a move toward speed and efficiency rather than a sign of trouble, and pointed to strong growth in mortgages and rentals as proof the underlying business is working.
For now, Zillow stock reflects a market still sorting out whether this quarter was a story of strength or one of caution.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
