The following discussion of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results may differ materially from those described in or implied by any forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q, including in the section titled “Note Regarding Forward-Looking Statements,” and those factors discussed in Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K for the year ended December 31, 2025. Overview of our Business Zillow Group is reimagining real estate to make home a reality for more and more people. As the most visited real estate app and website in the United States, Zillow connects hundreds of millions of consumers with innovative technology, trusted agents and loan officers, and seamless digital solutions. With industry-leading tools and resources, Zillow supercharges real estate professionals so they can grow their businesses and deliver exceptional client experiences. For renters and housing providers, Zillow offers not only a robust marketplace but a set of end-to-end products and services to streamline applications, leases, payments and more. Zillow’s ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing. Our portfolio of affiliates, subsidiaries and brands includes Zillow, Zillow Premier Agent, Zillow Home Loans, our mortgage origination operations and affiliate lender, Zillow Rentals, Zillow New Construction, Trulia, StreetEasy, Out East, HotPads, Follow Up Boss, ShowingTime, dotloop and Zillow Closing. As of June 30, 2026, we had 7,232 employees, compared to 7,068 employees as of December 31, 2025. Health of Housing Market Our financial performance is impacted by changes in the health of the housing market, which is impacted, in turn, by general economic conditions. Current market factors have been driven by low housing inventory, elevated and volatile mortgage interest rates, changes in rental inventory and occupancy rates, as well as home price fluctuations and inflationary conditions. These factors may impact the number of transactions consumers complete using our products and services and demand for our advertising services. According to residential real estate data published by NAR, TTV increased 6% during the three months ended June 30, 2026 as compared to the three months ended June 30, 2025 and increased 4% during the six months ended June 30, 2026 as compared to the six months ended June 30, 2025. We continue to invest in the growth of our business, which we believe has resulted in year over year total revenue results, described below, for the three and six month periods ended June 30, 2026 as compared to the same periods in the prior year, that exceeded industry performance for the same periods. The extent to which market factors impact our results and financial position will depend on future developments, which are uncertain and difficult to predict. Revenue Overview Our revenue is classified into four categories: Residential, Mortgages, Rentals and Other. Our “For Sale revenue” subtotal includes our Residential and Mortgages revenue categories and represents our revenue from participation in residential real estate purchase and sale transactions. Residential. Residential revenue includes revenue generated from our agent and software offerings and revenue derived from our New Construction marketplace and StreetEasy for sale product offerings. Agent offerings include Zillow Preferred, Premier Agent market-based pricing, and Zillow Showcase. Software offerings primarily include Follow Up Boss, dotloop, and ShowingTime. Premier Agent advertising products, which include the delivery of validated customer connections, or leads, are offered on a pay for performance (“Zillow Preferred”) and share of voice (“market-based pricing”) basis. Connections are delivered when consumer contact information is provided to Premier Agent partners. We do not promise any minimum or maximum share of connections to customers for either market-based pricing or Zillow Preferred. With the Zillow Preferred model, Premier Agent partners are provided with leads and pay a performance advertising fee when a real estate transaction is closed with one of the leads, generally within two years. For Premier Agent market-based pricing, connections are distributed to Premier Agent partners in proportion to their share of voice, or a Premier Agent partner’s share of total advertising purchased in a particular zip code. 24 Table of Contents Zillow Showcase is an advertising and marketing solution which allows real estate agents to advertise an enhanced listing on our mobile apps and websites. Follow Up Boss revenue primarily consists of our software as a service (“SaaS”) customer relationship management system which provides real estate agents, teams and brokerages with a central hub to manage real estate transactions from connection to close. Dotloop is a real estate transaction management SaaS solution. ShowingTime primarily generates revenue through Appointment Center, which is a SaaS and call center solution allowing real estate agents, brokerages and MLSs to efficiently schedule real estate viewing appointments on behalf of their customers. Our new construction marketing solutions allow home builders to showcase their available inventory to home shoppers. New construction revenue primarily includes revenue generated by advertising sold to builders on a cost per residential community or cost per impression basis. StreetEasy for-sale revenue primarily consists of our StreetEasy Experts and StreetEasy subscription offerings. StreetEasy Experts is our pay for performance pricing model available in the New York City market for which agents and brokers are provided with leads at no initial cost and pay a performance referral fee only when a real estate purchase transaction is closed with one of the leads. Revenue generated through StreetEasy subscription offerings includes the sale of advertising and a suite of tools to developers, property managers, agents and other market professionals on a cost per property basis. Rentals. Rentals revenue includes advertising and a suite of tools sold to property managers on a cost per lead, lease, listing or impression basis or for a fixed fee for certain advertising packages through both the Zillow and StreetEasy brands. Rentals revenue also includes revenue generated from our rental applications product, through which potential renters can submit applications to multiple properties for a flat service fee. Mortgages. Mortgages revenue primarily includes revenue generated through mortgage originations and the related sale of mortgages on the secondary market through Zillow Home Loans and revenue from advertising sold to mortgage lenders and other mortgage professionals on a cost per lead basis, primarily through our Connect services. Other. Other revenue includes revenue generated primarily by display advertising. For additional information on our revenue categories, see Note 2 in our Notes to Consolidated Financial Statements in Part II, Item 8 in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Financial Overview For the three months ended June 30, 2026 and 2025, we generated total revenue of $772 million and $655 million, respectively, an increase of 18%. The increase in total revenue was primarily attributable to the following: For Sale Revenue •Mortgages revenue increased by $36 million, or 75%, to $84 million, driven by an increase in mortgage originations revenue as a result of increased total loan origination volume. •Residential revenue increased by $31 million, or 7%, to $465 million, due to an increase in residential revenue per visit. Rentals Revenue Rentals revenue increased by $50 million, or 31%, to $209 million, due to increases in quarterly revenue per average monthly rentals unique visitor and average monthly rentals unique visitors. Gross Profit During the three months ended June 30, 2026 and 2025, we generated gross profit of $562 million and $489 million, respectively, an increase of 15%. August 2026 Cost Management Actions On August 4, 2026, Zillow Group announced a plan to reduce its headcount by approximately 7% of its employees. This headcount reduction is designed to allow the Company to move faster and operate more efficiently, including with a more 25 Table of Contents sustainable cost structure. As a result, the Company currently estimates that it will incur pre-tax restructuring costs totaling approximately $59 million to $64 million related to employee termination costs, of which an estimated $36 million to $38 million are expected to be future cash expenditures associated with severance payments, and the remaining amount is expected to be accelerated share-based compensation expense. For the three months ended June 30, 2026, Zillow Group recorded $36 million in restructuring costs related to employee termination costs and expects that the remainder of the restructuring costs will be recognized during the three months ending September 30, 2026. These employee termination costs have been recorded as restructuring costs within our condensed consolidated statements of operations. We plan to fund the cash expenditures through existing cash and investment balances. We expect total headcount-related expenses to decrease in absolute dollars during the three months ending September 30, 2026 as a result of these cost management actions. Key Metrics Management has identified visits, unique users, For Sale revenue per TTV, and the volume of loans originated through Zillow Home Loans as relevant to investors’ and others’ assessment of our financial condition and results of operations. Visits The number of visits is an important metric because it is an indicator of consumers’ level of engagement with our mobile apps, websites and other services. We believe highly engaged consumers are more likely to use our products and services, including Zillow Home Loans, or be transaction-ready real estate market participants and therefore more sought-after by our Premier Agent partners. We define a visit as a group of interactions by users with our Zillow, Trulia and StreetEasy mobile apps and websites. A single visit can contain multiple page views and actions, and a single user can open multiple visits across domains, web browsers, desktop or mobile devices. Visits can occur on the same day, or over several days, weeks or months. Zillow and StreetEasy measure visits using an internal measurement tool, and Trulia measures visits with Adobe Analytics. Visits to Trulia end after thirty minutes of user inactivity. Visits to Zillow and StreetEasy end after thirty minutes of user inactivity or at midnight. The following table presents the number of visits to our mobile apps and websites for the periods presented (in millions, except percentages): Three Months Ended June 30, 2025 to 2026 % Change Six Months Ended June 30, 2025 to 2026 % Change 2026 2025 2026 2025 Visits 2,529 2,590 (2) % 4,805 4,944 (3) % Unique Users Measuring unique users is important to us because much of our revenue depends in part on our ability to connect home buyers and sellers, renters and individuals with or looking for a mortgage to real estate, rental and mortgage professionals, products and services. Growth in consumer traffic to our mobile apps and websites increases the number of impressions, clicks, connections, leads and other events we can monetize to generate revenue. For example, our revenue depends in part, on users accessing our mobile apps and websites to engage in the sale, purchase, renting and financing of homes, including with Zillow Home Loans, and a significant portion of our Residential revenue, Rentals revenue and Other revenue depends on advertisements being served to users of our mobile apps and websites. We count a unique user the first time an individual accesses one of our mobile apps using a mobile device during a calendar month and the first time an individual accesses one of our websites using a web browser during a calendar month. If an individual accesses our mobile apps using different mobile devices within a given month, the first instance of access by each such mobile device is counted as a separate unique user. If an individual accesses more than one of our mobile apps within a given month, the first access to each mobile app is counted as a separate unique user. If an individual accesses our websites using different web browsers within a given month, the first access by each such web browser is counted as a separate unique user. If an individual accesses more than one of our websites in a single month, the first access to each website is counted as a separate unique user since unique users are tracked separately for each domain. Zillow, StreetEasy, and HotPads measure unique users using an internal measurement tool, and Trulia measures unique users with Adobe Analytics. 26 Table of Contents Due to technological limitations, user software settings, or user behavior, our internal measurement tool may assign a unique cookie to different instances of access by the same individual to our mobile apps and websites. In such instances, although this tool captures the number of unique users in accordance with the defined methodology, there are inherent limitations in measuring the number of unique individuals accessing our mobile apps and websites. The following table presents our average monthly unique users for the periods presented (in millions, except percentages): Three Months Ended June 30, 2025 to 2026 % Change Six Months Ended June 30, 2025 to 2026 % Change 2026 2025 2026 2025 Average monthly unique users 239 243 (2) % 229 235 (3) % For Sale Revenue Per Total Transaction Value For Sale revenue per TTV is an important metric because it is an indicator of our For Sale revenue performance relative to the residential real estate industry. To evaluate how our investments drive performance relative to industry growth, we use this metric to measure our ability to both connect and convert more buyers and sellers to transact with us and to grow revenue per customer transaction. We calculate For Sale revenue per TTV as total For Sale revenue for the relevant period divided by the aggregate TTV for the same period. TTV is calculated as the number of existing residential homes sold during the relevant period multiplied by the average sales price of existing residential homes sold during the same period. Prior to the three months ended December 31, 2025, TTV was calculated and reported using existing-home sales and average sales price data collected and estimated by Zillow Group as published monthly on our site. Beginning with the three months ended December 31, 2025, we calculate and report TTV using existing-home sales and average sales price data published by NAR, an industry-standard, publicly available source of residential real estate transaction data. We made this change to align the calculation of TTV with a widely used industry data source. We believe the use of the NAR data improves comparability of the metric over time. We have recast TTV and For Sale revenue per TTV for the twelve months ended June 30, 2025 to conform with the revised TTV methodology used for the twelve months ended June 30, 2026, described above. The change in methodology to calculate TTV resulted in an approximately 26% increase in TTV and 20% decrease in For Sale revenue per TTV reported for the twelve months ended June 30, 2025, primarily due to differences in existing residential homes sold and average sales price of existing residential homes sold for the period as collected and estimated by Zillow Group compared to as reported by NAR. Zillow Group’s presentation of TTV is derived from third-party data published by NAR, which may be subject to revisions, updates, or changes in methodology. While we believe NAR’s data provides a reliable measure of industry transaction data, changes to the underlying data or methodologies could affect TTV and, as a result, For Sale revenue per TTV in future periods. The following table presents our For Sale revenue per TTV for the periods presented: Twelve Months Ended June 30, 2025 to 2026 % Change 2026 2025 For Sale revenue (in millions) $ 2,026 $ 1,812 12 % Total Transaction Value (in trillions) (1) $ 2.3 $ 2.2 4 % For Sale revenue per Total Transaction Value (in basis points) 8.8 8.2 7 % (1) Estimate for the twelve months ended June 30, 2026 is as of July 2026. 27 Table of Contents Loan Origination Volume Loan origination volume is an important metric as it is a measure of how successful we are at the origination of mortgage loan products through our Zillow Home Loans mortgage origination operations, which directly impacts our Mortgages revenue. Loan origination volume represents the total value of mortgage loan originations closed through Zillow Home Loans during the period. The following table presents loan origination volume by purpose and in total for Zillow Home Loans for the periods presented (in millions, except percentages): Three Months Ended June 30, 2025 to 2026 % Change Six Months Ended June 30, 2025 to 2026 % Change 2026 2025 2026 2025 Purchase loan origination volume $ 2,174 $ 1,116 95 % $ 3,722 $ 1,907 95 % Refinance loan origination volume 7 10 (30) % 29 15 93 % Total loan origination volume $ 2,181 $ 1,126 94 % $ 3,751 $ 1,922 95 % During the three and six months ended June 30, 2026, total loan origination volume increased 94% and 95%, respectively, compared to the three and six months ended June 30, 2025. This increase was primarily driven by the continued growth in Zillow Home Loans purchase loan originations in line with our strategic priorities. Results of Operations Given continued uncertainty surrounding the health of the housing market, interest rate environment and inflationary conditions, financial performance for current and prior periods may not be indicative of future performance. Revenue % of Total Revenue Three Months Ended June 30, 2025 to 2026 Three Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 (in millions, except percentages, unaudited) Revenue: For Sale revenue: Residential $ 465 $ 434 $ 31 7 % 60 % 66 % Mortgages 84 48 36 75 11 7 Total For Sale revenue 549 482 67 14 71 74 Rentals 209 159 50 31 27 24 Other 14 14 — — 2 2 Total revenue $ 772 $ 655 $ 117 18 % 100 % 100 % 28 Table of Contents % of Total Revenue Six Months Ended June 30, 2025 to 2026 Six Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 (in millions, except percentages, unaudited) Revenue: For Sale revenue: Residential $ 915 $ 851 $ 64 8 % 62 % 68 % Mortgages 148 89 59 66 10 7 Total For Sale revenue 1,063 940 123 13 72 75 Rentals 392 288 104 36 26 23 Other 25 25 — — 2 2 Total revenue $ 1,480 $ 1,253 $ 227 18 % 100 % 100 % Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025 Total revenue increased $117 million, or 18%, to $772 million: For Sale Revenue •Mortgages revenue increased $36 million, or 75%, primarily driven by a $38 million increase in mortgage originations revenue. The increase in mortgage originations revenue was primarily due to a 94% increase in total loan origination volume to $2.2 billion for the three months ended June 30, 2026 from $1.1 billion for the three months ended June 30, 2025. This increase was largely driven by continued growth in Zillow Home Loans purchase loan origination volume as we continued expanding the integrated transaction experience. •Residential revenue increased $31 million, or 7%. The increase in Residential revenue was primarily driven by a 10% increase in Residential revenue per visit to $0.184 for the three months ended June 30, 2026 from $0.168 for the three months ended June 30, 2025, primarily due to growth in our Premier Agent revenue driven by continued improvement in our ability to connect high-intent customers to agents, an increase in Zillow Showcase revenue driven by increasing adoption of our enhanced listing features by sellers and listing agents, and continued growth in new construction revenue. We calculate Residential revenue per visit by dividing the revenue generated by our Residential offerings by the number of visits in the period. We expect Residential revenue to decrease in absolute dollars during the three months ending September 30, 2026, due to housing market seasonality and as we continue to scale our Zillow Preferred model resulting in a continued shift in revenue from Residential to Mortgages as we bring the integrated transaction to more consumers. Rentals Revenue •Rentals revenue increased $50 million, or 31%. The increase in Rentals revenue was primarily due to a 28% increase in quarterly revenue per average monthly rentals unique visitor to $5.65 for the three months ended June 30, 2026 from $4.42 for the three months ended June 30, 2025, primarily driven by a 42% increase in multifamily rentals revenue due to growth in multifamily property listings and in revenue per property as property managers upgraded to more comprehensive advertising packages. We calculate quarterly revenue per average monthly rentals unique visitor by dividing total Rentals revenue for the period by the average monthly rentals unique visitors for the period and then dividing by the number of quarters in the period. The increase in Rentals revenue was also driven by growth in average monthly rentals unique visitors, which increased 3% to 37 million during the three months ended June 30, 2026 from 36 million during the three months ended June 30, 2025. We have estimated average monthly rentals unique visitors using Comscore data, which measures average monthly unique visitors on rental listings on Zillow’s, Trulia’s and HotPads’ mobile apps and websites, and on Realtor.com and beginning in February 2025, Redfin and its sites, including Rent.com and ApartmentGuide.com. We expect Rentals revenue to increase in absolute dollars during the three months ending September 30, 2026, primarily driven by continued growth in multifamily revenue from the addition of new rental properties. 29 Table of Contents Six Months Ended June 30, 2026 compared to Six Months Ended June 30, 2025 Total revenue increased $227 million, or 18%, to $1.5 billion: For Sale Revenue •Residential revenue increased $64 million, or 8%. The increase in Residential revenue was primarily driven by an 11% increase in Residential revenue per visit to $0.190 for the six months ended June 30, 2026 from $0.172 for the six months ended June 30, 2025, primarily due to growth in our Premier Agent revenue driven by continued improvement in our ability to connect high-intent customers to agents, an increase in Zillow Showcase revenue driven by increasing adoption of our enhanced listing features by sellers and listing agents, continued growth in new construction revenue and Follow Up Boss revenue. •Mortgages revenue increased $59 million, or 66%, primarily driven by a $64 million increase in mortgage originations revenue. The increase in mortgage originations revenue was primarily due to a 95% increase in total loan origination volume to $3.8 billion for the six months ended June 30, 2026 from $1.9 billion for the six months ended June 30, 2025. This increase was largely driven by continued growth in Zillow Home Loans purchase loan origination volume as we continued expanding the integrated transaction experience. Rentals Revenue •Rentals revenue increased $104 million, or 36%. The increase in Rentals revenue was driven by a 25% increase in quarterly revenue per average monthly rentals unique visitor to $5.44 for the six months ended June 30, 2026 from $4.36 for the six months ended June 30, 2025, primarily driven by a 48% increase in multifamily rentals revenue due to growth in multifamily property listings and in revenue per property as property managers upgraded to more comprehensive advertising packages. The increase in Rentals revenue was also driven by growth in average monthly rentals unique visitors, which increased 9% to 36 million during the six months ended June 30, 2026 from 33 million during the six months ended June 30, 2025. Adjusted EBITDA The following table summarizes net income (loss) and Adjusted EBITDA (in millions, except percentages): % of Revenue Three Months Ended June 30, 2025 to 2026 Three Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 Net income (loss) $ (4) $ 2 $ (6) (300) % (1) % — % Adjusted EBITDA $ 176 $ 155 $ 21 14 % 23 % 24 % % of Revenue Six Months Ended June 30, 2025 to 2026 Six Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 Net income $ 42 $ 10 $ 32 320 % 3 % 1 % Adjusted EBITDA $ 374 $ 308 $ 66 21 % 25 % 25 % To provide investors with additional information regarding our financial results, we have disclosed Adjusted EBITDA, a non-GAAP financial measure, in this Quarterly Report on Form 10-Q. We have provided a reconciliation below of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure. We have included Adjusted EBITDA in this Quarterly Report on Form 10-Q as it is a key metric used by our management and Board to measure operating performance and trends and to prepare and approve our annual budget. In particular, we believe the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis. Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are: 30 Table of Contents •Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs; •Adjusted EBITDA does not consider the potentially dilutive impact of share-based compensation; •Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditures or contractual commitments; •Adjusted EBITDA does not reflect restructuring costs; •Adjusted EBITDA does not reflect interest expense or other income, net; •Adjusted EBITDA does not reflect income taxes; •Adjusted EBITDA does not reflect certain litigation costs directly associated with our pending antitrust litigation brought by the FTC and state attorneys general (“FTC Matter”), consisting of legal fees and related expenses that we have determined arise outside the ordinary course of our business and are nonrecurring, infrequent, or unusual. In making this determination, we considered the following factors: (1) the FTC Matter is the first legal proceeding of this nature brought against us, and we do not currently expect similar proceedings to recur; (2) the nature of the remedies sought by the FTC, including, among other things, a permanent injunction and a divestiture of assets or reconstruction of businesses, differs from the relief typically sought in our ordinary course litigation; and (3) the counterparties are a federal regulatory agency and state attorneys generals, which are distinct from the type of counterparties involved in our ordinary course litigation; and •Other companies, including companies in our own industry, may calculate Adjusted EBITDA differently from the way we do, limiting its usefulness as a comparative measure. Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash-flow metrics, net income (loss) and our other GAAP results. The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for each of the periods presented (in millions, unaudited): Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income (loss) $ (4) $ 2 $ 42 $ 10 Income taxes 1 — 3 — Other income, net (13) (18) (29) (40) Depreciation and amortization 65 67 130 132 Share-based compensation 75 99 156 196 Restructuring costs 36 — 36 — FTC Matter litigation costs(1) 10 — 26 — Interest expense 6 5 10 10 Adjusted EBITDA $ 176 $ 155 $ 374 $ 308 (1) Beginning with the three months ended June 30, 2026, we calculate and report Adjusted EBITDA excluding litigation costs directly associated with the FTC Matter, which we have determined to be nonrecurring, infrequent, or unusual and outside the ordinary course of our business. We have revised Adjusted EBITDA for the three months ended March 31, 2026 to conform to the current period presentation. As a result of this revision, Adjusted EBITDA for the three months ended March 31, 2026 increased by $16 million, from $182 million as previously reported to $198 million. 31 Table of Contents Costs and Expenses, Gross Profit and Other Items % of Total Revenue Three Months Ended June 30, 2025 to 2026 Three Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 (in millions, except percentages, unaudited) Cost of revenue $ 210 $ 166 $ 44 27 % 27 % 25 % Gross profit 562 489 73 15 73 75 Operating expenses: Sales and marketing 249 226 23 10 32 35 Technology and development 156 153 3 2 20 23 General and administrative 131 121 10 8 17 18 Restructuring costs 36 — 36 — 5 — Total operating expenses 572 500 72 14 74 76 Other income, net 13 18 (5) (28) 2 3 Interest expense 6 5 1 20 1 1 Income tax expense 1 — 1 — — — % of Total Revenue Six Months Ended June 30, 2025 to 2026 Six Months Ended June 30, 2026 2025 $ Change % Change 2026 2025 (in millions, except percentages, unaudited) Cost of revenue $ 399 $ 305 $ 94 31 % 27 % 24 % Gross profit 1,081 948 133 14 73 76 Operating expenses: Sales and marketing 459 424 35 8 31 34 Technology and development 306 302 4 1 21 24 General and administrative 254 242 12 5 17 19 Restructuring costs 36 — 36 — 2 — Total operating expenses 1,055 968 87 9 71 77 Other income, net 29 40 (11) (28) 2 3 Interest expense 10 10 — — 1 1 Income tax expense 3 — 3 — — — Cost of Revenue Cost of revenue consists of expenses related to operating our mobile apps and websites, including associated headcount-related expenses, such as salaries, benefits, bonuses and share-based compensation expense, as well as revenue-sharing costs, depreciation expense, and costs associated with hosting our mobile apps and websites. Cost of revenue also includes amortization costs related to capitalized website and development activities, amortization of software, amortization of certain intangible assets and other costs to obtain data used to populate our mobile apps and websites, and amortization of certain intangible assets recorded in connection with acquisitions, including developed technology. Cost of revenue also includes credit card fees and ad serving costs paid to third parties, direct costs to provide our rental applications product, and direct costs to originate mortgage loans, including underwriting and processing costs. 32 Table of Contents Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025 Cost of revenue increased $44 million, or 27%, primarily driven by increases of $29 million in lead acquisition costs, primarily associated with our Redfin rentals syndication agreement, $6 million in mortgage loan processing costs due to increased purchase loan origination volume, $4 million in software and hardware costs, $3 million in ad serving costs to support the growth of our rentals marketplace, and $3 million in headcount-related expenses to support loan fulfillment and processing costs driven by growth in Mortgages purchase loan origination volume. Six Months Ended June 30, 2026 compared to Six Months Ended June 30, 2025 Cost of revenue increased $94 million, or 31%, primarily driven by increases of $67 million in lead acquisition costs, primarily associated with our Redfin rentals syndication agreement, $11 million in mortgage loan processing costs due to increased purchase loan origination volume, $7 million in software and hardware costs, $6 million in ad serving costs to support the growth of our rentals marketplace, and $5 million in headcount-related expenses to support loan fulfillment and processing costs driven by growth in Mortgages purchase loan origination volume. Gross Profit Gross profit is calculated as revenue less cost of revenue. Gross margin is gross profit expressed as a percentage of revenue. Our gross profit has and will continue to be affected by a number of factors, including the mix of revenue from our various product offerings. Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025 Gross profit increased by $73 million, or 15%, primarily due to an increase in revenue, discussed above. Total gross margin decreased from 75% to 73%, primarily due to increased lead acquisition costs associated with our Redfin rentals syndication agreement. Six Months Ended June 30, 2026 compared to Six Months Ended June 30, 2025 Gross profit increased by $133 million, or 14%, primarily due to an increase in revenue, discussed above. Total gross margin decreased from 76% to 73%, primarily due to increased lead acquisition costs associated with our Redfin rentals syndication agreement. Sales and Marketing Sales and marketing expenses consist of advertising costs and other sales expenses related to promotional and marketing activities, headcount-related expenses, including salaries, commissions, benefits, bonuses and share-based compensation expense for sales, sales support, customer support, including the customer connections team and mortgage loan officers and specialists, marketing and public relations employees, depreciation expense and amortization of certain intangible assets recorded in connection with acquisitions and strategic partnerships, including trade names and trademarks and customer relationships. Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025 Sales and marketing expenses increased $23 million, or 10%, primarily driven by increases of $11 million in headcount-related expenses to support loan origination costs driven by growth in Mortgages purchase loan origination volume and $9 million in marketing and advertising costs as we continue to invest in the growth of our business. We expect sales and marketing expenses to decrease in absolute dollars during the three months ending September 30, 2026 as marketing and advertising spend normalizes following strategic increases in the first half of the year. Six Months Ended June 30, 2026 compared to Six Months Ended June 30, 2025 Sales and marketing expenses increased $35 million, or 8%, primarily driven by increases of $20 million in headcount-related expenses to support loan origination costs driven by growth in Mortgages purchase loan origination volume and $10 million in marketing and advertising costs as we continue to invest in the growth of our business. 33 Table of Contents Technology and Development Technology and development expenses consist of headcount-related expenses, including salaries, benefits, bonuses and share-based compensation expense for individuals engaged in the design, development and testing of our products, mobile apps and websites and the tools and apps that support our products. Technology and development expenses also include equipment and software maintenance costs and depreciation expense. Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025 Technology and development expenses increased $3 million, or 2%, due to a $9 million increase in software and hardware costs which was partially offset by an $8 million decrease in headcount-related expenses driven primarily by a decrease in share-based compensation expense. Six Months Ended June 30, 2026 compared to Six Months Ended June 30, 2025 Technology and development expenses increased $4 million, or 1%, due to a $14 million increase in software and hardware costs which was partially offset by a $12 million decrease in headcount-related expenses driven primarily by a decrease in share-based compensation expense. General and Administrative General and administrative expenses consist of headcount-related expenses, including salaries, benefits, bonuses and share-based compensation expense for executive, finance, accounting, legal, human resources, recruiting, corporate information technology costs and other administrative support. General and administrative expenses also include legal settlement costs and estimated legal liabilities, legal, accounting and other third-party professional service fees, rent expense, depreciation expense, and bad debt expense. Three Months Ended June 30, 2026 compared to Three Months Ended June 30, 2025 General and administrative expenses increased $10 million, or 8%, primarily due to an increase of $18 million in legal expenses which was partially offset by a $12 million decrease in headcount-related expenses, driven primarily by a decrease in share-based compensation expense. Six Months Ended June 30, 2026 compared to Six Months Ended June 30, 2025 General and administrative expenses increased $12 million, or 5%, primarily due to an increase of $29 million in legal expenses which was partially offset by a decrease of $21 million in headcount-related expenses, including share-based compensation expense. Restructuring Costs Restructuring costs of $36 million for the three and six months ended June 30, 2026 related to employee termination costs incurred as a result of the reduction in headcount announced on August 4, 2026. For additional information regarding our restructuring costs, see Note 14 to our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q. Other Income, net Other income, net consists primarily of interest income earned on our cash, cash equivalents and investments. Other income, net decreased $5 million and $11 million for the three and six months ended June 30, 2026, respectively, as compared to the three and six months ended June 30, 2025, primarily due to lower interest income driven by a decrease in our investment balances as a result of share repurchases and the settlement of the 2025 Notes. 34 Table of Contents Income Taxes We are subject to income taxes in the United States (federal and state) and certain foreign jurisdictions. As of June 30, 2026 and December 31, 2025, we have provided a valuation allowance against our net deferred tax assets that we believe, based on the weight of available evidence, are not more likely than not to be realized. There is a reasonable possibility that within the next several quarters, sufficient positive evidence will become available to demonstrate that a significant portion of the valuation allowance against our U.S. net deferred tax assets will no longer be required. We have accumulated federal tax losses of approximately $1.8 billion as of December 31, 2025, which are available to reduce future taxable income. We have accumulated state tax losses of approximately $70 million (tax effected) as of December 31, 2025. Income tax expense was not material for the three and six month periods ended June 30, 2026 or 2025. Liquidity and Capital Resources Our primary sources of liquidity and capital resources are cash flows from operations and debt financing. Our cash requirements consist principally of working capital, general corporate needs and mortgage loan originations. We continue to invest in the development and expansion of our operations using available cash flows from operations. Ongoing investments include, but are not limited to, improvements in our technology platforms, investments in new products and services, and continued investments in sales and marketing. We also use cash flows from operations to service our debt obligations and to repurchase Class A common stock, Class C capital stock, or a combination thereof through our Repurchase Authorizations or otherwise. Sources of Liquidity As of June 30, 2026 and December 31, 2025, we had cash and cash equivalents, investments and restricted cash of $688 million and $1.3 billion, respectively. Cash and cash equivalents balances consist of operating cash on deposit with financial institutions, money market funds, and, from time to time, U.S. government treasury securities and commercial paper. Investments consist of fixed income securities, which include investment grade corporate securities, U.S. government treasury securities, commercial paper, and U.S. government agency securities. Restricted cash primarily consists of amounts used to fund customer home purchases in our mortgage origination operations. Amounts on deposit with third-party financial institutions exceed the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation insurance limits, as applicable. As of June 30, 2026, Zillow Group and its subsidiaries were in compliance with all debt covenants specified in the facilities described below. On January 30, 2026, Zillow Group entered into a $500 million Revolving Credit Facility by and among Zillow Group, MFTB Holdco, Inc., Zillow, Inc. (the “Borrower”), the lenders from time to time party thereto, Goldman Sachs Bank USA as administrative agent and as issuing bank, and other issuing banks from time to time party thereto. The Revolving Credit Facility may be increased by up to an additional $250 million subject to the terms of the credit agreement. Revolving loans may be borrowed, repaid and reborrowed under the Revolving Credit Facility until January 30, 2031, at which time all amounts borrowed must be repaid. Revolving loans may be prepaid, and revolving loan commitments may be permanently reduced by the Borrower in whole or in part, without penalty or premium. We have not drawn any amounts under the Revolving Credit Facility as of the date of this Quarterly Report on Form 10-Q. We believe that cash from operations and cash and cash equivalents and investment balances will be sufficient to meet our ongoing operating activities, working capital, capital expenditures, strategic acquisitions and investments and other capital requirements for at least the next 12 months, though we may choose to utilize our Revolving Credit Facility. We believe we will meet longer-term expected future cash requirements and obligations through a combination of cash flows from operations, debt financing, including the Revolving Credit Facility, and equity offerings, as applicable. Summarized Cash Flow Information The following table presents selected cash flow data for the periods presented (in millions, unaudited): 35 Table of Contents Six Months Ended June 30, 2026 2025 Cash Flow Data: Net cash provided by operating activities $ 211 $ 191 Net cash provided by investing activities 325 25 Net cash used in financing activities (731) (709) Adjusted free cash flow 223 188 Cash Flows Provided By Operating Activities Our operating cash flows result primarily from cash received from real estate professionals, rental professionals, mortgage professionals, builders and brand advertisers, as well as cash received from sales of mortgages originated by Zillow Home Loans. Our primary uses of cash from operating activities include marketing and advertising activities, mortgages funded through Zillow Home Loans and employee compensation and benefits. Additionally, uses of cash from operating activities include costs associated with operating our mobile apps and websites and other general corporate expenditures. For the six months ended June 30, 2026, net cash provided by operating activities was $211 million. This was primarily driven by net income of $42 million, adjusted by share-based compensation of $169 million, depreciation and amortization of $130 million, amortization of contract cost assets of $13 million, amortization of right of use assets of $4 million, and $13 million in other adjustments to reconcile net income to net cash provided by operating activities. Changes in operating assets and liabilities decreased net cash provided by operating activities by $134 million. The changes in operating assets and liabilities are primarily related to a $108 million increase in mortgage loans held for sale due to the timing of loan sales, a $94 million increase in prepaid expenses and other assets primarily due to an increase in accrued revenue, a $26 million increase in accounts receivable primarily due to an increase in revenue from products and services billed in arrears, a $13 million increase in contract cost assets primarily due to an increase in capitalized sales commissions, a $7 million decrease in lease liabilities due to contractual lease payments, and a $4 million decrease in deferred revenue. These changes were partially offset by a $49 million increase in accrued expenses and other current liabilities, a $36 million increase in accounts payable, and a $32 million increase in accrued compensation and benefits, each primarily driven by the timing of payments. For the six months ended June 30, 2025, net cash provided by operating activities was $191 million. This was driven by net income of $10 million, adjusted by share-based compensation of $196 million, depreciation and amortization of $132 million, amortization of contract cost assets of $10 million, amortization of right of use assets of $4 million, and $9 million in other adjustments to reconcile net income to net cash provided by operating activities. Changes in operating assets and liabilities decreased net cash provided by operating activities by $152 million. The changes in operating assets and liabilities are primarily related to a $91 million increase in mortgage loans held for sale due to an increase in purchase loan origination volume, a $47 million increase in accounts receivable primarily due to an increase in revenue from products and services billed in arrears, a $46 million increase in prepaid expenses and other current assets primarily due to an increase in accrued revenue, a $13 million increase in contract cost assets primarily due to an increase in capitalized sales commissions, and a $6 million decrease in lease liabilities due to contractual lease payments. These changes were partially offset by a $26 million increase in accounts payable and an $18 million increase in accrued expenses and other current liabilities, both primarily driven by the timing of payments, and an $8 million increase in deferred revenue attributable to the timing of revenue recognition. Cash Flows Provided By Investing Activities Our primary investing activities include the purchase and sale or maturity of investments and the purchase of property and equipment and intangible assets. For the six months ended June 30, 2026, net cash provided by investing activities was $325 million. This was primarily related to $414 million of net proceeds from maturities and sales of investments, partially offset by $89 million of purchases of property and equipment and intangible assets. For the six months ended June 30, 2025, net cash provided by investing activities was $25 million. This was primarily related to $213 million of net proceeds from maturities and sales of investments. These inflows were partially offset by $188 million of purchases of property and equipment and intangible assets, including a $100 million payment in connection with the partnership we entered into with Redfin in February 2025. 36 Table of Contents Cash Flows Used In Financing Activities Our primary financing activities include repurchases of Class A common stock and Class C capital stock, the exercise of employee option awards, repayments of borrowings on our master repurchase agreements related to Zillow Home Loans, and the payment of contingent consideration up to its acquisition-date fair value. For the six months ended June 30, 2026, net cash used in financing activities was $731 million, which primarily related to $826 million of cash paid for share repurchases and $27 million related to the settlement of the acquisition date fair value of the second Follow Up Boss contingent consideration earn out payment. The cash outflows were partially offset by $101 million of net borrowings on our master repurchase agreements related to Zillow Home Loans and $23 million of proceeds from the exercise of stock options. For the six months ended June 30, 2025, net cash used in financing activities was $709 million, which primarily related to $419 million of cash paid for the settlement of the 2025 Notes, $400 million of cash paid for share repurchases, and $30 million related to the settlement of the acquisition date fair value of the first Follow Up Boss contingent consideration earn out payment. The cash outflows were partially offset by $85 million of net borrowings on our master repurchase agreements related to Zillow Home Loans and $55 million of proceeds from the exercise of option awards. Adjusted Free Cash Flow To provide investors with additional information regarding our liquidity, we have disclosed Adjusted free cash flow, a non-GAAP financial measure, in this Quarterly Report on Form 10-Q. We have provided a reconciliation below of Adjusted free cash flow to net cash provided by operating activities, the most directly comparable GAAP financial measure. We define Adjusted free cash flow as net cash provided by operating activities adjusted for purchases of property and equipment, purchases of intangible assets, net borrowings on master repurchase agreements, and the initial payment in connection with the Redfin rentals partnership. Borrowings on master repurchase agreements are used to fund Zillow Home Loans mortgage loan originations, and we consider them part of our ongoing liquidity management. The initial payment in connection with the Redfin rentals partnership was considered a one-time and nonrecurring cash flow, and we exclude it from our calculation as we believe it impacts the ability to evaluate the liquidity of our business operations on a period-to-period basis. We have included Adjusted free cash flow in this Quarterly Report on Form 10-Q as it is a key metric used by our management to evaluate the effectiveness of our business strategies and execution and our ability to consistently generate cash from our core operations on a period-to-period basis. Our use of Adjusted free cash flow has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Other companies, including companies in our own industry, may calculate Adjusted free cash flow differently from the way we do, limiting its usefulness as a comparative measure. The following table provides a reconciliation of Adjusted free cash flow to net cash provided by operating activities for the periods presented (in millions, unaudited): Six Months Ended June 30, 2026 2025 Net cash provided by operating activities $ 211 $ 191 Purchases of property and equipment (70) (73) Purchases of intangible assets (19) (115) Net borrowings on master repurchase agreements 101 85 Initial payment in connection with Redfin rentals partnership — 100 Adjusted free cash flow $ 223 $ 188 37 Table of Contents Capital Resources Revolving Credit Facility On January 30, 2026, Zillow Group entered into a $500 million Revolving Credit Facility, which may be increased by up to an additional $250 million subject to the terms of the credit agreement. Borrowings under the facility bear interest at a floating rate based on either an alternative base rate, as defined in the credit agreement, or SOFR, in each case plus an applicable margin, determined by Zillow Group’s total net leverage ratio. The facility matures on January 30, 2031. As of June 30, 2026, no amounts were outstanding under the Revolving Credit Facility. Refer to Note 6 of our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for additional information on our Revolving Credit Facility. Share Repurchases On March 4, 2026, the Board authorized the repurchase of up to an additional $1.25 billion of our Class A common stock, Class C capital stock, or a combination thereof, which increased our total cumulative Repurchase Authorizations to $4.8 billion as of June 30, 2026. On June 3, 2026, the Board approved an amendment to the Repurchase Authorizations, pursuant to which, effective June 3, 2026, no repurchase of shares under the Repurchase Authorizations is permitted if, after giving effect to such repurchase, any single shareholder would beneficially own more than 45% of the then-outstanding voting power of the Company’s voting securities. During the six months ended June 30, 2026, we repurchased 4.8 million shares of Class A common stock and 14.3 million shares of Class C capital stock at an average price of $45.25 and $42.52 per share, respectively, for an aggregate purchase price of $219 million and $607 million, respectively, totaling $826 million. As of June 30, 2026, $1.1 billion remained available for future repurchases of our stock pursuant to the Repurchase Authorizations, which repurchases decrease our liquidity and capital resources when effected. Master Repurchase Agreements Zillow Home Loans operations impact our liquidity and capital resources as a cash intensive business that funds mortgage loans originated for resale in the secondary market. We primarily use debt financing to fund mortgage loan originations. The following table summarizes our master repurchase agreements as of the periods presented (in millions, except interest rates): Lender Maturity Date Maximum Borrowing Capacity(1) Outstanding Borrowings atJune 30, 2026 Outstanding Borrowings atDecember 31, 2025 Weighted Average Interest Rate atJune 30, 2026 JPMorgan Chase Bank, N.A.(2) April 22, 2027 $ 200 $ 159 $ 126 5.18 % Bank of Montreal (3) February 24, 2027 200 139 88 5.20 % Bank of Nova Scotia (4) June 4, 2027 150 94 65 5.08 % UBS AG September 4, 2026 150 73 85 5.20 % Total $ 700 $ 465 $ 364 (1) Available borrowing capacity under our master repurchase agreements is primarily uncommitted. (2) Agreement was amended and renewed on April 23, 2026 to extend the maturity date to April 22, 2027. (3) Agreement was amended and renewed on February 25, 2026 to increase the total maximum borrowing capacity from $150 million to $200 million and to extend the maturity date to February 24, 2027. (4) Agreement was amended and renewed on June 5, 2026 to increase the total maximum borrowing capacity from $100 million to $150 million and to extend the maturity date to June 4, 2027. Refer to Note 6 of our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q for additional information on Zillow Home Loans’ master repurchase agreements. Contractual Obligations and Other Commitments Master Repurchase Agreements - Includes principal amounts due for amounts borrowed under the master repurchase agreements to finance mortgages originated through Zillow Home Loans. Principal amounts under the master repurchase agreements are due when the related mortgage loan is sold to an investor or directly to an agency. As of June 30, 2026, we have outstanding principal amounts of $465 million. Operating Lease Obligations - Our lease portfolio comprises operating leases for our office space. During the three months ended June 30, 2026, there were no material changes to our operating lease obligations disclosed in Note 7 in the Notes 38 Table of Contents to the Consolidated Financial Statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. Contingent Consideration - In connection with the acquisition of Follow Up Boss, we are obligated to pay contingent consideration upon the achievement of certain performance metrics over a three-year period measured at each anniversary of the closing date of the acquisition. For additional information regarding this contingent consideration, see Note 3 of our Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q. Purchase Obligations - We have non-cancelable purchase obligations for content related to our mobile apps and websites, certain cloud computing services and amounts due under certain partnership agreements. For additional information regarding our purchase obligations, see Note 11 to our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q. Restructuring Payments - We expect to make future cash payments of approximately $36 million to $38 million related to the employee termination costs incurred as a result of the reduction in headcount announced on August 4, 2026. We expect these additional cash payments to be made primarily during the three months ending September 30, 2026. For additional information regarding our restructuring costs, see Note 14 to our Notes to Condensed Consolidated Financial Statements of this Quarterly Report on Form 10-Q. Critical Accounting Estimates Our condensed consolidated financial statements are prepared in accordance with GAAP. The preparation of these condensed consolidated financial statements requires us to make estimates, judgments and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses and related disclosures. We evaluate our estimates, judgments and assumptions on an ongoing basis. Our estimates are based on historical experience and various other assumptions that we believe to be reasonable under the circumstances. Our actual results could differ from these estimates, and the health of the housing market and the broader economy have introduced significant additional uncertainty with respect to estimates, judgments and assumptions, which may materially impact our estimates. For information on our critical accounting policies and estimates, see Part II, Item 7 (Management’s Discussion and Analysis of Financial Condition and Results of Operations) of our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. There have been no material changes to our critical accounting policies and estimates as previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. 39 Table of Contents