Key Highlights

  • Third-quarter Revenue rose 7% to USD 724 million but missed a market estimate of USD 754 million, a gap of about USD 30 million (calculated).
  • Adjusted EBITDA was USD 182 million, below a market estimate of USD 193.7 million, as management called it one of the toughest housing markets in a generation.
  • Average monthly unique users across Zillow apps and sites fell 3% to 215 million, while quarterly visits declined 5% to 2.3 billion.
  • Shares were reported down about 9% on November 5, 2026, with market wraps describing a tumble after the results.

A USD 30 Million Shortfall Meets a Frozen Housing Market

Zillow Group (NASDAQ:Z) reported third-quarter results this week, and published market wraps put the revenue figure at USD 724 million, up 7% from a year earlier. A consensus estimate near USD 754 million implies a miss of about USD 30 million, simple arithmetic on two published numbers, labeled calculated. Management described conditions as one of the toughest housing markets in a generation. The company operates a large online real estate marketplace and earns income mainly from agent advertising, rentals and Mortgage referrals. The company's own filing could not be opened during research, so figures rest on two consistent market reports.

Users and Visits Slip While EBITDA Misses

Engagement was the weak spot. Average monthly unique users fell 3% to 215 million, and quarterly visits were down 5% to 2.3 billion. Because Zillow monetizes through leads sold to agents, fewer visits can translate into fewer connections, which weighs on revenue per visitor before cost cuts can offset it. Adjusted EBITDA of USD 182 million compared with a market estimate of USD 193.7 million, a shortfall of about USD 11.7 million (calculated). Higher mortgage rates and low listing turnover keep both buyers and sellers sidelined, which feeds directly into the Advertising Demand that the platform depends on.

What to Watch After the Traffic Slowdown

The reported figures leave several questions open. The fourth-quarter outlook, any change in agent advertising demand and the pace of mortgage and rental growth could not be confirmed from the filing and are left out here. Zillow has two share classes, with Class C trading as Z and Class A as ZG, and the move was reported on both. Risks include a longer stall in existing home sales, rising competition for agent budgets and the cost of product investment. A rebound in traffic would likely need lower borrowing costs to unlock more listings. Revenue growth of 7% despite lower traffic implies more revenue per visitor (calculated reasoning, not a reported metric). Where that monetization came from, such as pricing, advertising mix or new products, was not detailed in the material reviewed.

Where Things Stand

Zillow Group (NASDAQ:Z) dropped about 9% because revenue and adjusted EBITDA both landed below estimates and audience metrics shrank, which undercut the growth story in a stalled housing market. The 7% revenue gain shows the Business still expands, but the 3% fall in users and 5% fall in visits suggest demand is soft. Next markers are the company's guidance, mortgage rate direction and whether listings increase into 2027. Investors will also watch whether traffic stabilizes without extra Marketing spend. Traffic matters because it is the clearest read on consumer demand for housing.