Zillow Group’s For Sale revenue increased 14% year-over-year to $549 million during Q2 2026 as rapid growth in its mortgage operation materially outpaced its residential business, while the company deployed $200 million to repurchase 5.6 million shares during the quarter.
Within For Sale, Residential revenue increased 7% to $465 million from $434 million. Zillow said growth benefited from Preferred, Zillow Showcase, New Construction and its suite of software tools for real estate agents.
Mortgage revenue expanded at more than 10 times the growth rate of Residential revenue, increasing 75% to $84 million from $48 million. The mortgage business accounted for approximately 15% of Q2 For Sale revenue, compared with roughly 10% a year earlier.
The increase was primarily driven by a 95% jump in purchase loan origination volume to $2.2 billion. The growth stands out against Zillow’s estimate that purchase mortgage origination volume across the broader industry was approximately flat year-over-year during Q2.
That divergence indicates Zillow Home Loans gained significant volume even without a major expansion in the overall purchase mortgage market. The company is attempting to integrate mortgage financing more deeply into the broader home-shopping and transaction experience offered through Zillow.
For the first six months of 2026, Mortgages revenue increased 66% to $148 million from $89 million, while Residential revenue increased 8% to $915 million. Total first-half For Sale revenue reached approximately $1.06 billion, up 13%.
Growth was also strong outside the For Sale business. Rentals revenue increased 31% to $209 million, primarily because multifamily revenue grew 42%. Total Zillow revenue increased 18% to $772 million from $655 million, exceeding the high end of management’s Q2 outlook.
Zillow estimated that the broader residential real estate industry grew approximately 6% during the quarter, meaning the company’s 18% total revenue increase was roughly three times the industry’s growth rate.
Adjusted EBITDA reached $176 million, above the high end of Zillow’s outlook and up from $155 million a year earlier. Adjusted net income increased to $118 million from $101 million, while diluted adjusted net income per share increased to $0.52 from $0.40.
Adjusted EBITDA margin was 23% compared with 24% a year earlier. On a GAAP basis, Zillow reported a $4 million net loss compared with $2 million of net income in Q2 2025.
The quarter also included $36 million of restructuring costs and $10 million of litigation costs associated with the Federal Trade Commission matter. Zillow began excluding the FTC-related litigation costs from its reported Adjusted EBITDA calculation during Q2.
Zillow generated $96 million of adjusted free cash flow during Q2 compared with $100 million a year earlier. For the first half, adjusted free cash flow increased to $223 million from $188 million.
The company ended the quarter with $682 million of cash and investments and used $200 million to repurchase approximately 5.6 million shares during Q2.
The buyback occurred while Zillow’s traffic metrics remained under some pressure. Average monthly unique users declined 2% to 239 million and visits fell 2% to 2.5 billion, although the company said Comscore data showed Zillow continued to outperform a residential real estate category that declined overall.
Zillow also said it was the only large company in the category, based on Comscore data, to consistently expand its reach among the real estate audience over the previous seven quarters.
The Q2 results increasingly show Zillow as more than a residential advertising marketplace. Residential revenue remains its largest For Sale business, but the much faster expansion of Zillow Home Loans is creating another growth engine tied directly to home transactions, while the company’s cash position is supporting significant share repurchases.
KEY QUOTES:
“Zillow delivered another quarter of strong results and consistent execution. We outperformed the broader housing market and our outlook, and we are on track toward our full-year goals.”
“Zillow is the operating system for modern real estate, and we are building toward a future where getting home through the integrated experience on Zillow is the standard for renters, buyers, sellers and the industry professionals who guide them through it.”
Jeremy Wacksman, Chief Executive Officer of Zillow
