Key facts
- Zillow reported $772 million in Q2 2026 revenue, up 18% year-over-year.
- The company posted a $4 million net loss for the quarter, compared to a $2 million net income a year ago.
- For the first six months of 2026, Zillow recorded $42 million in net income.
- Mortgage revenue surged 75% to $84 million, and rentals revenue increased 31% to $209 million.
- Zillow's AI search mode significantly increases user engagement and agent contact rates.
- The company recently laid off over 500 employees to improve efficiency.
Zillow reported strong revenue growth in its second quarter of 2026, with total revenue reaching $772 million, an 18% increase year-over-year. The company's for-sale segment saw an 14% annual revenue increase to $549 million, while its residential segment grew 7% to $465 million. The mortgage segment experienced significant growth, with revenue up 75% to $84 million, and the rentals segment revenue increased by 31% to $209 million.
Despite the revenue gains, Zillow reported a net loss of $4 million for the quarter, a decrease from the $2 million net income reported in the same period last year. However, for the first six months of 2026, the company has accumulated $42 million in net income, a substantial increase from $10 million a year prior.
The company attributed its rental revenue growth to a 23% annual increase in multifamily properties listed on its platform, totaling 79,000 properties. Zillow Home Loans saw its loan origination volume jump 95% to $2.2 billion, driven by the integration of pre-approval into home searches. Zillow noted its mortgage arm is now a top-25 purchase lender and expects its mortgage unit economics to become profitable.
Zillow highlighted the effectiveness of its AI search mode, which has led to users spending over three times longer on the platform, viewing more homes, conducting more searches, and contacting agents at nearly three times the rate of those not using AI mode. This feature is currently available to about 20% of signed-in users and is being expanded.
The company also noted a 23% annual revenue increase from its lead generation business due to the Zillow Preferred agent referral fee model. Features like 'Likely to List' are being used to assist listing agents. Zillow Preview has gained over 100 brokerage sign-ups.
In a move to streamline operations, Zillow conducted layoffs, eliminating over 500 roles to ensure a more sustainable cost structure and operational efficiency. Executives expressed confidence in the company's strategy, emphasizing its role as the 'operating system for modern real estate' that supports both consumers and professionals.