Zillow Group Inc. Class A Common Stock (ZG)

FairStock Score: 36/100 — MIXED

Key Financials

AI Analysis

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

Zillow is a digital real estate marketplace connecting consumers with agents and loan officers. The network may be valuable, but the numbers show a business still trying to prove durable earnings power. In fiscal 2025, the year ended 2025-12-31, revenue was $2.6 billion, net income was $23 million, and diluted EPS was $0.09. That followed a fiscal 2024 loss of $112 million and a fiscal 2023 loss of $158 million. So the turnaround is real, but the margin is razor-thin. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $772 million but net income was negative $4 million, with diluted EPS negative $0.02. Fiscal Q1 2026, the quarter ended 2026-03-31, earned $46 million, so results are uneven. FairStock labels this a TURNAROUND because it returned to profit after a loss within the last three years. At the 2026-10-13 close of $28.85, FairStock's calculations show a P/E of 125.43, P/B of 1.50, ROE of 1.22%, ROCE of 0.89%, and FCF yield of 3.3%. Debt is modest with D/E of 0.13, and its Altman Z-Score of 3.83 suggests financial distress is not immediate. However, the Piotroski F-Score is 4/9, and the Graham Number is $9.96, leaving a margin of safety of -189.66%. That is not a Graham bargain; it is a priced-for-growth stock whose profits have not yet caught up. The PEG of 0.26 and EV/EBITDA of 18.85 offer mixed signals, but I trust earnings and cash more than stories. Zillow may have a marketplace moat, but thin returns and a beta of 1.98 imply volatility. At this price, I would want proof of sustainable margins, not just revenue growth.

In plain English: Zillow runs a real estate website and app that connects people with agents and loan officers. Revenue has grown, but profits are very thin and uneven, including a small loss in the latest reported quarter. At $28.85, the price looks expensive compared with those small profits, though it trades close to the value of its net assets.

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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