Zillow Q2 2026: Revenues Up 18% as 500 Layoffs Announced

Zillow recorded a marginal net loss in the second quarter of 2026, despite revenue increases. The announcement comes with news that Zillow will also cut over 500 jobs imminently.

Highlights include:

• Q2 revenue was $772 million, up 18% year on year
• For Sale revenue was $549 million, up 14%
• Residential revenue was $465 million, up 7%
• Mortgages revenue was $84 million in Q2, up 75%
• Rentals revenue was $209 million, up 31%
• Net loss was $4 million for the quarter
• Q2 traffic to mobile apps and website dropped 2%, to 239 million average monthly unique users

Jeremy Wacksman, CEO at Zillow, said:

"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.

"[Job losses] are difficult decisions that reflect both the strides we're making in our strategy and the reality of what is required of us to grow at scale. So I want to share why we made this decision and what it means for Zillow moving forward.

"Zillow's purpose is to make home a reality for more people—and we're doing that. We continue to outperform the category, despite a housing market that has been essentially flat. The integrated experience we continue to build is producing results for our business and for the renters, buyers, sellers and professionals we serve.

"But, along with that strong growth, we must ensure we are organized to continue winning into the future. Continuing to grow at scale requires us to work differently than we do today. In support of that goal, we've made changes to our organization that require the elimination of some roles today. These changes are about ensuring we have a disciplined cost structure and getting more efficient, with the right people in the right positions."

It was another strong quarter for Zillow's nascent business segments, with Mortgage (75%) and Rentals (31%) registering strong revenue growth for the period. Mortgage revenue growth was driven by a 95% growth in purchase loan origination, while Rentals was driven by a bumper quarter for multifamily revenue, up 42% for the period.

In a letter to shareholders, Zillow said its recently launched AI Mode is "starting to show us what's possible when consumers can engage differently from traditional search" across purchase and rentals.

"We’re seeing them share more about their needs in AI mode than they ever entered into a typical residential search query—not just what they’re looking for in a home, but their timeline, financial picture, the need to sell their current home, whether they need a fenced backyard for their pets, and other special circumstances that go into their decision.

"Consumers who use AI mode spend more than three times as long on Zillow, view more than twice as many homes, run nearly three times as many searches—and contact an agent at nearly three times the rate of consumers who don’t use AI mode."

Finally, Zillow Showcase is now active on 5% of all new listings, while agents who use it on the majority of their listings "win 35% more listings than peers who don't."