Zillow Group Inc. Class C Capital Stock (Z)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Zillow is a well-known real estate marketplace, but familiarity is not the same as a durable moat. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $772.0M, but net income was -$4.0M and diluted EPS was -$0.02. That follows fiscal Q1 2026, when net income was $46.0M and diluted EPS $0.19, and fiscal Q3 2025, when net income was $10.0M and diluted EPS $0.04. The annual record is similarly uneven: fiscal 2025 revenue was $2.6B with net income of $23.0M and diluted EPS $0.09; fiscal 2024 revenue was $2.2B but net loss of $112.0M and diluted EPS -$0.48; fiscal 2023 revenue was $1.9B with net loss of $158.0M and diluted EPS -$0.68. The Lynch category is TURNAROUND—returned to profit after a loss within the last three years—and that fits: profits are positive on an annual basis but barely so. FairStock's price-based calculations on the 2026-10-13 close of $27.97 show a P/E of 121.61, a Graham Number of $9.96, and a margin of safety of -180.82%. Those are not bargain signals. The balance sheet looks reasonable with D/E of 0.13, and trailing free cash flow is $220.0M, a 3.5% FCF yield. But ROE of 1.22% and ROCE of 0.89% suggest capital is not producing much. Altman Z-Score of 3.71 and Piotroski F-Score of 4/9 are mixed. At $6.4B market cap and EV/EBITDA of 18.28, I would want much stronger, more consistent owner earnings before calling this a value opportunity.

In plain English: Zillow runs real estate websites and apps that connect people with agents, rentals, loans, and related services. The business is growing sales but profits are very thin and turned into a small loss in the latest quarter, so it does not look financially strong right now. At the recent price, the shares look expensive relative to those tiny profits, though the stock is well below its 52-week high.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer