Zillow Slides 9.4% to 17-Month Low After Reporting Q4 Net Income
Zillow shares plunged 9.4% to a 17-month low on February 11 after the company reported Q4 net income of $84 million on $1.6 billion in revenue, reversing a loss from a year earlier. Investors sold off following management’s cautionary remarks on slowing home-listing growth despite the return to profitability.
1. Stock Performance
On February 11, Zillow’s stock fell 9.4%, closing at its lowest level since September 2024. The sell-off came on unusually high trading volume as investors digested the quarterly report and forward commentary.
2. Quarterly Financials
Zillow posted Q4 net income of $84 million on $1.6 billion in revenue, marking a swing to profit from a net loss in the year-ago period. Adjusted EBITDA margins improved by 220 basis points to 18.3%.
3. Investor Reaction
Despite the profitability rebound, concerns over a decelerating housing market weighed on shares. Management highlighted softer home-listing trends and extended lead times for pending sales, triggering risk-off sentiment among shareholders.
4. Outlook and Guidance
Zillow maintained full-year 2026 revenue guidance of $6.4 billion to $6.6 billion but cautioned that market headwinds could pressure margins in the first half. The company reiterated plans to optimize costs and focus on higher-margin segments.