How profitable is Zillow Group Inc. (Class A) (ZG)?

In FY 2025 (10-K), ZG converted $2.6B of revenue into a 74.1% gross margin, 0% operating margin, and $235.0M in free cash flow (9.1% FCF margin).

Stock Ratings / Consumer Discretionary / ZG / financials

Z (50) ANDG (61) ETSY (73) EXLS (86) ⌘ Pro Terminal →

Zillow Group Inc. (Class A) (ZG) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

$32.90 +3.17% NASDAQ • Live Quote vs Prior Daily Close (Synced Snapshot) EXT / AFTER-HRS: $33.03

Zillow Group Inc. (Class A) (ZG) carries a Roarable Rating of D (Sell) with 49/100 RQD Confidence due to weak cash-flow efficiency and sensitivity to current interest rates. Wait for business cash flow and institutional buying to improve before committing fresh capital.

ROARABLE D • SELL / AVOID Cap $7.17B

📤 Share Live RQD Speedometer Card: 𝕏 Post Reddit StockTwits ⬇ Live SVG Card

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🤖 Mara Quenwick • AI Quant Lead (Click for Instant Brief) Is ZG stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

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As of 2026-11-03, Zillow Group Inc. (Class A) (NASDAQ: ZG) is rated D (Sell / SELL) by Roarable's 5-pillar RQD engine with a composite confidence score of 49/100 at a spot price of $32.90 (+3.17% 1D, market cap $7.17B). Pillar breakdown: Fundamental Cash Engine 10/20, Institutional 13F & Options Flow 7/20, SEC Balance-Sheet Forensics 18/20, FRED Macro Regime Fit 4/20, and Executive Insider Alignment 10/20. Across 1009 tracked Consumer Discretionary issuers, ZG ranks #555 in composite RQD confidence.

✓ Pre-computed one-to-many AI Quant brief

🤖 Ellis Vennor • AI Peer & Flow Quant (Click for Instant Brief) How does ZG compare to Z and ANDG in the Consumer Discretionary sector?

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Within the Consumer Discretionary sector (Business Services), ZG carries a Roarable D (49/100 RQD), trailing P/E of N/A, gross margin of 74.1%, and ROIC of -0.7%. By comparison, Z (Zillow Group Inc.) holds a D grade (50/100 RQD, P/E N/A, ROIC -0.6%, cap $6.96B) and ANDG (Andersen Group Inc. (Class A)) posts a C- grade (61/100 RQD, P/E N/A, ROIC -28.9%, cap $7.47B). Among the 5-stock peer group, EXLS leads on earnings multiple (24.7x) while ETSY leads on capital efficiency (33.3% ROIC).

✓ Pre-computed one-to-many AI Quant brief

🤖 Gideon Ashmere • AI SEC 10-K Forensics (Click for Instant Brief) What are the biggest fundamental strengths and SEC risk factors for ZG?

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Per ZG's SEC EDGAR XBRL 10-K filing (FY2025, filed 2025-12-31, CIK 0001617640), Zillow Group Inc. (Class A) generated $2.58B in revenue (+15.5% YoY), $23.0M in net income, and $235.0M in free cash flow against $5.68B in total assets and $0 in total debt. Key quantitative strengths: Clean SEC annual filing review with no major hidden accounting time-bombs. Primary risk factors monitored: Company executives have done more routine share selling than personal cash buying lately. Institutional options positioning shows a 50% call / 50% put premium split.

✓ Pre-computed one-to-many AI Quant brief

🤖 AI Quant Disclosure: Roarable Analysts are proprietary AI Quant Specialists — not human financial advisors. Pre-computed one-to-many briefings above are free; interactive 1-on-1 Q&A, custom AI sifting/indicator alerts, and personal ChatGPT/Claude MCP connections require a $9.95/mo Pro account (currently waitlist-only).

INTERACTIVE SCENARIO DECK:

🛡️ Portfolio Crash X-Ray

EXT / AFTER-HRS: $33.03 (+0.38%)🧬 Cannibal Buyback (-0.68% YoY Shares)⚙️ Cash Engine: 10/20 (D) • 9.1% FCF Margin

Verify 90D Bucket Audit →

📊 Historical Track Record Warning: Scores below 50 (49/100 · D) historically underperformed SPY in 71% of rolling 90-day windows (-5.4% avg 90D alpha vs SPY • 29.0% hit rate).

Audit Bucket Track Record →

RQD QUANT TACHOMETERSELL / AVOID • D

2-of-3 JEV AI Jury Bearish Warning

Cash

SEC

Whale

Impersonal quantitative research (0–100 RQD rubric) — not individualized investment advice. Past performance does not guarantee future results. Full Disclaimer

5-PILLAR SNOWFLAKE RADARRw D · Rk D+

Each axis scored 0–20

12M PRICE TARGET CONE-4% Base Target

WHALE OPTIONS SNAPSHOT: — (No Active Options Snapshot on file for ZG)Realized 20D OHLCV Swing Band: ±9.2%

Deterministic 5-Pillar Attribution (49/100 Composite)

🔍 WHY ZG SCORES 49/100 (D) — TOP 3 DRIVERS2 Bullish Pillars + #1 Risk Drag

▲ #1 Bullish Driver: SEC 10-K Forensic Risk+18/20 pts (37% of score)

Altman Z-Score 5.69 (FORTRESS SAFE (>3.0)) • Piotroski F-Score 8/9

▲ #2 Bullish Driver: Cash Engine Quality+10/20 pts (20% of score)

SEC XBRL FY 2025 (10-K): 9.1% FCF Margin ($235.0M FCF) & 74.1% Gross Margin

▼ #1 Drag / Risk Factor: Macro Regime Fit4/20 pts (-16 pt drag)

Macro rate sensitivity & RSI-14 (50.8) create a -16 pt regime headwind

📈 PAST 4 QUARTERS RQD vs SUBSEQUENT RETURNQ1 → Q2 → Q3 → Current

Q1 (-3Q)

Grade D$28.69+10.9% Next Q

Q2 (-2Q)

Grade D$31.82+6% Next Q

Q3 (-1Q)

Grade D$33.73-2.5% Next Q

Current

Grade D$32.90-5.4% Hist 90D α

Trajectory: D (41) → D (49)Full Audit →

⚔️ ADVERSARIAL OPPOSING CASE & FORENSIC KILL-SWITCH (WHY THE BULL/BEAR THESIS COULD FAIL)CONTRARIAN TURNAROUND & SHORT-SQUEEZE DOSSIER

⚔️ Adversarial Opposing Case: What Could Spark a ZG Turnaround Squeeze

Gideon Ashmere Forensic Desk →

While ZG currently carries a cautious 49/100 (D) rating due to Macro Regime Fit (4/20), shorts face asymmetric squeeze risk if free cash flow inflects or management executes accretive buybacks.

🚀 Contrarian Squeeze Trigger #1

Clean SEC annual filing review with no major hidden accounting time-bombs.

🚀 Contrarian Squeeze Trigger #2

Options & Short-Covering Gamma: Reclaiming the 50-day SMA ($31.98) and Max Pain ($34.55) forces dealer call-delta covering toward $78.54.

🚀 Contrarian Squeeze Trigger #3

Forensic Repair Trigger: Halting share dilution (Cannibal Buyback (-0.68% YoY Shares)) or retiring high-cost debt immediately upgrades the SEC 10-K Forensic pillar.

🎲 LIVE PREDICTION MARKET ODDS TIED TO $ZG• $2.4M Crowd Pool • Kalshi / Polymarket Composite

Contract: “ZG Beats Next Quarter EPS Consensus (Dec 30, 2026) & Holds Above 200D SMA”

YES 49%NO 51%Trade / Inspect Odds →

VISUAL REVENUE-TO-PROFIT SANKEY WATERFALL • FY 2025 (10-K)

How ZG Turns Every Dollar of Sales Into Real Bottom-Line Profit

Free Cash Flow:$235.0M (9.1% FCF Margin)

Multi-Year SEC EDGAR XBRL Revenue, Net Profit & Free Cash Flow Trajectory

■ Revenue■ Net Profit■ Free Cash Flow

FY23

Rev $1.95B

FY24

Rev $2.24B

FY25

Rev $2.58B

Fiscal Year	Revenue	Gross Margin	Op Margin	Net Profit	Free Cash Flow	ROIC %
FY 2025	$2.58B	74.1%	-1.3%	$23.0M	$235.0M	-0.7%
FY 2024	$2.24B	76.4%	-8.8%	-$112.0M	$285.0M	-4.1%
FY 2023	$1.95B	74.1%	-13.9%	-$158.0M	$354.0M	-0.7%

ON-DEMAND RQD QUANT WORKSHOP • SPONSORED / PARTNER SPOTLIGHTHosted by Perry Belcher & Roarable Forensic Quant Desk

Red-Light Warning Desk: Spotting SEC Cash-Flow & Dilution Risks Before Downgrades (Featuring ZG)

✓Walkthrough of ZG's RQD Radar, SEC cash-conversion gap & downside invalidation levels
✓3 asymmetric Bear/Hedge frameworks when 10-year Treasury yields stay elevated
✓Includes nightly RQD rating-change & forensic signal email alerts on your tracked stocks

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ZG // CANDLESTICK & AUTO-TRENDLINE WORKSTATION6M: -25.68%▼ DESCENDING CHANNEL

2026-11-03O $32.10H $32.90L $31.89C $32.90VOL 1.02M

RES: $35.23SUP: $25.38SMA50: $31.98SMA200: $38.98

PRIMARY-SOURCE FORENSICS, SECOND-ORDER LINKS & AI ANALYST DESK

ZG Dilution Monitor, Expectations Hurdle, Butterfly Connections & Policy Exposure

🦋 ZG Butterfly Map → + Track ZG →

Share Count & Dilution Monitor

Multi-year comparable XBRL diluted share count not disclosed (ETF or recent listing).

Reverse-DCF Expectations Hurdle

8.0%/yr Implied 5Y Growth

vs. +15.5% actual YoY revenue growth (assuming 9.25% cost of equity & 16.5x terminal multiple).

Ellis Vennor Setup Ledger

No active Ellis Vennor swing setup published on ZG today. View full Setup Ledger →

🦋 Documented & Second-Order Butterfly Connections Open Graph →

No direct multi-tier Butterfly edges indexed yet for ZG. Explore sector supply chains on /butterfly.

AI Analyst Theses, Washington Policy & Company Video

🎬 No recent verified company-specific video clip queued for ZG today (we never pad ticker pages with unrelated generic clips). Browse Macro Video Desk →

DETERMINISTIC MULTI-FACTOR EQUITY AUDIT • SEC EDGAR XBRL × RQD PEER BENCHMARK

📊 Quantitative Sector Peer Comparison, SEC Filing Delta & Investment FAQ (ZG)

Consumer Discretionary Rank #555 of 1009 ⚔️ Z vs ZG Full Matrix →

1. Head-to-Head Consumer Discretionary Peer Comparison (ZG vs. Z, ANDG, ETSY, EXLS)

Industry: Business Services (88 Tracked Issuers)

Across 1009 tracked Consumer Discretionary securities in the Roarable RQD universe, Zillow Group Inc. (Class A) (ZG) ranks #555 by composite RQD confidence (49/100, grade D) and #213 by equity capitalization ($7.17B). Within this direct 5-issuer industry benchmark cohort, EXLS leads on earnings valuation at 24.7x trailing P/E, while ETSY leads on capital efficiency and profitability with 33.3% ROIC and 71.6% gross margin. EXLS currently holds the highest overall quantitative score in the immediate peer group at 86/100 (A) compared with ZG at 49/100 (D).

Ticker / Company	Roarable Grade	RQD Score	Trailing P/E	Gross Margin	ROIC	1D Change	Market Cap	Head-to-Head
ZG ACTIVE Zillow Group Inc. (Class A)	D	49/100	—	74.1%	-0.7%	+3.17%	$7.17B	Benchmark Subject
Z Zillow Group Inc.	D	50/100	—	74.1%	-0.6%	+4.46%	$6.96B	/z-vs-zg →
ANDG Andersen Group Inc. (Class A)	C-	61/100	—	—	-28.9%	+0.41%	$7.47B	/andg-vs-zg →
ETSY Etsy Inc.	B	73/100	48.4x	71.6%	33.3%	+3.92%	$7.67B	/etsy-vs-zg →
EXLS ExlService Holdings Inc.	A	86/100	24.7x	38.4%	23.4%	+2.66%	$6.25B	/exls-vs-zg →

2. Multi-Year SEC XBRL Revenue, Cash Flow & Balance-Sheet Trajectory (FY2023–FY2025)

SEC EDGAR 10-K • FILED 2025-12-31 • CIK 0001617640 ↗

In its most recent audited fiscal period (FY2025, filed 2025-12-31), Zillow Group Inc. (Class A) (ZG) reported GAAP revenue of $2.58B (+15.5% vs. FY2024 revenue of $2.24B , and +32.8% cumulative change since FY2023) , GAAP net income of $23.0M, operating cash flow of $368.0M, and free cash flow of $235.0M (-17.5% YoY). On the balance sheet, ZG closed FY2025 with $5.68B in total assets against $0 in total debt (Altman Z-Score: 5.69, Piotroski F-Score: 8/9).

Fiscal Period	Filing Date	Revenue	Net Income	Operating Cash Flow	Free Cash Flow	Total Assets	Total Debt
FY2025 (FY)	2025-12-31	$2.58B	$23.0M	$368.0M	$235.0M	$5.68B	—
FY2024 (FY)	2024-12-31	$2.24B	-$112.0M	$428.0M	$285.0M	$5.83B	—
FY2023 (FY)	2023-12-31	$1.95B	-$158.0M	$354.0M	$354.0M	—	—

3. ZG Data-Verified Investor FAQ (RQD Rating, Sector Peers, SEC Forensics & Technicals)

✓ SCHEMA.ORG FAQPAGE JSON-LD ENABLED

Is ZG stock a Buy, Hold, or Sell right now according to Roarable's RQD model?

How does ZG compare to Z and ANDG in the Consumer Discretionary sector?

What are the biggest fundamental strengths and SEC risk factors for ZG?

Where is ZG trading relative to its 50-day, 200-day, and 52-week technical levels?

ZG last traded at $32.90 (+3.17% on volume of 3,323,794 shares), positioning the stock +2.88% above its 50-day simple moving average ($31.98) and -15.60% below its 200-day simple moving average ($38.98). Across its 52-week range of $27.25 to $74.80, ZG sits at the 11.9% percentile with a 14-day RSI of 50.8 (NEUTRAL RANGE) and an implied next-earnings move of ±9.2% ($29.87 to $35.93).

Direct Sub-Reports: ZG RQD Cockpit ZG 12M Forecast ZG Earnings & Move ZG Dividends & DRIP ZG Insiders & 13F ZG Whale Options ZG Profit Sankey ZG News & Why

ROARABLE RATING BRIEF • RQD 49/100 (D) ✓ SEC XBRL & RQD VERIFIED

ZG — Zillow Group Inc. (Class A): What the Facts Mean to a Prospective Investor

Methodology: RQD v6.2 Deterministic 5-Pillar & SEC XBRL Audit

Updated: 2025-12-31

1. Roarable Rating Brief: What This Means to a Prospective Investor

Zillow Group Inc. (Class A) (ZG) earns a live Roarable RQD composite score of 49/100, corresponding to a D letter grade (Roarable Sell) at a spot price of $32.90 (+3.17% 1D, market capitalization $7.17B).

Fundamental Cash Engine (10/20): Anchored by return on invested capital (ROIC) of -0.7%, gross margin of 74.1%, operating margin of -1.3%, and free cash flow yield of 3.26%.
Whale 13F & Options Flow (7/20) + Insider Conviction (10/20): Tracks institutional 13F accumulation, CBOE options call/put positioning, and SEC Form 4 / Congressional PTR filings.
Macro Regime Fit (4/20) + Forensic Balance Sheet (18/20): Incorporates a 1.00x equity beta, Altman Z-Score of 5.69, Piotroski F-Score of 8/9, and Debt/Equity of N/A.

2. Business Model, Unit Margins & SEC Financial Trajectory

Zillow Group Inc. (Class A) (ZG) is a NASDAQ-listed issuer in the Consumer Discretionary sector and Business Services industry. The source data identifies the company as a Business Services participant but does not provide a detailed description of its products, customer base, or revenue model. Market capitalization is $7.2B.

In its latest audited SEC EDGAR 10-K filing for FY2025 (filed 2025-12-31), Zillow Group Inc. (Class A) (ZG) reported $2.58B in annual revenue (up from $2.24B in FY2024, +15.5% YoY) and $23.0M in GAAP net income. Over the multi-year SEC filing window from FY2023 ($1.95B revenue, -$158.0M net income) through FY2025, ZG scaled operating cash flow to $368.0M and free cash flow to $235.0M, backed by $5.68B in total assets against $0 in total debt.

3. Institutional Bull vs. Bear Thesis & Valuation Tradeoff

🐂 Primary Bull Case (D • RQD 49/100): Clean SEC annual filing review with no major hidden accounting time-bombs. Free cash flow yield of 3.26% and institutional whale pillar of 7/20. With Fundamental Cash Engine at 10/20 and Institutional Whale Flow at 7/20, sustained execution supports upside toward the upper end of the $27.25 – $74.80 52-week range.
🐻 Primary Bear Case & Valuation Risk: Company executives have done more routine share selling than personal cash buying lately. Investors must weigh current valuation against -1.3% operating margins and a 1.00x macro beta.

4. 2nd-Order Butterfly Ripples & Key Questions to Watch

No upstream or downstream supply-chain links are recorded, and the supply_chain field is NONE. Sector correlations and second-order bottlenecks cannot be mapped from the provided data. The one ripple the news feed does indicate is interest-rate sensitivity: the 24/7 Wall St. Catalyst ties ZG's move to retreating long-term rates alongside Opendoor and Compass.

Key Question #1: Can ZG sustain or expand its -1.3% operating margin and -0.7% ROIC against Business Services peers over the next 4 quarters?
Key Question #2: Following FY2025 revenue of $2.58B and free cash flow of $235.0M, how will capital allocation balance growth reinvestment against $0 in total debt?
Key Question #3: How sensitive is ZG's equity valuation to Consumer Discretionary capital spending cycles and macro interest-rate shifts (Beta 1.00x)?

ZG Live News Feed, Press Releases & Catalyst Wire

Real-time company headlines, analyst actions, and sector developments for Zillow Group Inc. (Class A) (ZG) • Click "Debate This Headline" to argue it in the Roar Pit below

💬 Jump to ZG Debate Forum (3) ↓

🟡 MARKET WIRE Yahoo Finance • 21h ago

Zillow (ZG) Stock Trades Down, Here Is Why

Yahoo Finance report covering Zillow Group Inc. (Class A) (ZG) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Trefis • 1d ago

Will Zillow Stock Ever Get Back To Its Old High?

Trefis report covering Zillow Group Inc. (Class A) (ZG) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE GuruFocus • 1d ago

Zillow Group Inc (ZG) Stock Up 4.6% and Still Undervalued -- GF Score: 65/100

GuruFocus report covering Zillow Group Inc. (Class A) (ZG) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟢 CATALYST 24/7 Wall St. • 1d ago

Opendoor and Zillow Surge 7% as Long-Term Rates Retreat; Compass Climbs 6%

24/7 Wall St. report covering Zillow Group Inc. (Class A) (ZG) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🔴 RISK WATCH Yahoo Finance • 1d ago

Zillow (ZG) Stock Looks Above Fair Value After A 68% Fall

Yahoo Finance report covering Zillow Group Inc. (Class A) (ZG) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Simply Wall St • 1d ago

Zillow (ZG) Stock May Look Fully Priced After Fresh AI Push

Simply Wall St report covering Zillow Group Inc. (Class A) (ZG) market action, institutional positioning, and fundamental catalysts.

Read Full Source ↗

🟡 MARKET WIRE Yahoo Finance • 1d ago

Zillow (ZG) Stock May Trade Above Fair Value On Pending Sales Slowdown

Yahoo Finance report covering Zillow Group Inc. (Class A) (ZG) market action, institutional positioning, and fundamental catalysts.

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🟡 MARKET WIRE Trefis • 1d ago

What Gave Alphabet Stock Its Edge Over Zillow?

Trefis report covering Zillow Group Inc. (Class A) (ZG) market action, institutional positioning, and fundamental catalysts.

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🔥 THE ROAR PIT • LIVE COMMUNITY DEBATE 3 Active Posts & Replies

ZG Bull vs. Bear Conversation Board — What's Your Call at $32.90?

🐂 67% BULLISH CONVICTION COMMUNITY TUG-OF-WAR ON ZG 🐻 33% BEARISH CONVICTION

TA TapeReader_Pro RQD DEBATE OPENER • Price Action & Volume Trader 🐂 BULLISH 🎯 Target: $40.18 (+26.0%)

📌 Pinned Debate

Forensic balance sheet scores 18/20 with an Altman Z of 5.69 and Piotroski F of 8/9, while FY 2025 net income turned positive at $23.0M

Long ZG at $31.89 targeting $40.18. Forensic balance sheet scores 18/20 with an Altman Z of 5.69 and Piotroski F of 8/9, while FY 2025 net income turned positive at $23.0M.. Institutional whale score is 7/20 and the risk/reward vs. the $27.25 52-week low is skewed heavily in favor of bulls.

EarningsSniper 🐂 BULL

@ShortSeller_Dan Shorting a 7/20 institutional whale-flow stock at $31.89 is dangerous when funds are rotating into Consumer Discretionary.

SH ShortSeller_Dan RQD DEBATE OPENER • Forensic Short Bias 🐻 BEARISH 🎯 Target: $24.24 (-24.0%)

Spot @ $31.89

ROIC of -0.7% and operating margin of -1.3% show the business is not yet earning above its cost of capital despite revenue growth to $2

Sitting on the sidelines or leaning short ZG above $31.89. ROIC of -0.7% and operating margin of -1.3% show the business is not yet earning above its cost of capital despite revenue growth to $2.58B.. Until Fundamental Cash Engine (10/20) and FCF yield (3.26%) inflect higher, upside is capped near $74.80.