Zillow Stock Plunges 16% After Hours: A $158 Million Loss in a Tough Housing Market

Zillow stock plunged about 16% in after-hours trading on Wednesday, November 4, 2026, after the real estate platform reported a $158 million third-quarter loss, missed revenue forecasts, and issued fourth-quarter guidance well below Wall Street expectations. The drop erased a gain of nearly 10% in the regular session and left a stock already down roughly 55% this year facing another sharp reset.

What happened to Zillow stock?

Zillow shares closed the regular session up about 9.4% to $33.90 for the Class C shares, then fell about 15% to 16% after the closing bell. Reports put the after-hours price near $28.78 to $29.06. The move came immediately after the company released its third-quarter results for the period ended September 30, 2026, and investors focused on the miss, the loss, and the weak outlook rather than the parts of the business that still grew.

What did Zillow report in Q3 2026?

Revenue rose 7% year over year to $724 million, but that was below the roughly $753 million to $754 million analysts expected and down from $772 million in the second quarter. On a GAAP basis, Zillow lost $0.70 per share, a swing from a profit of $0.04 a share a year earlier, when net income was $10 million. This quarter the net loss was $158 million. Adjusted earnings were $0.55 per share, below the $0.58 to $0.60 per share expected in FactSet and Zacks consensus estimates. Adjusted EBITDA was $182 million, up from $165 million a year earlier, according to the company figures reported after the release.

Why is the housing market hurting Zillow?

Chief Executive Jeremy Wacksman described the backdrop as one of the toughest housing markets in a generation. The company said a fast rise in mortgage rates over the summer weakened the market and pressured housing transaction volume. That showed up directly in its largest business: for-sale residential revenue fell 4% to $419 million. Traffic also slipped. Average monthly unique users fell 3% to 215 million, and total visits fell 5% to 2.3 billion in the quarter, as fewer homes changed hands and fewer shoppers had a reason to browse listings.

Zillow noted in its shareholder letter that its revenue still grew faster than the housing market overall, which it said grew about 1% in the same period, citing National Association of Realtors data. Investors did not find much comfort in that comparison on Wednesday night, because the guidance suggested the pressure is getting worse, not better, heading into the final quarter.

What guidance did Zillow give for Q4?

Zillow forecast fourth-quarter revenue of $635 million to $665 million, well below the $709.5 million analysts expected, according to FactSet figures reported by Barron's. It also said it expects residential revenue to decline 9% to 15% from a year earlier in the fourth quarter. That combination — a current-quarter miss plus a much softer next quarter — is the pattern that has punished many stocks this earnings season, and Zillow was no exception.

What is working at Zillow?

Rentals were the clear bright spot. Rentals revenue rose 26% to $220 million, helping offset weakness in home sales. The company is also changing how it charges agents. It is transitioning its core agent offering to a model called Zillow Preferred, through which agents pay only after a home sale closes, rather than paying upfront to connect with buyers. Management is betting that model fits a slow market better, because agents share the risk of a thin transaction pipeline. Whether that bet pays off will depend on closing volumes that, by the company's own guidance, are set to fall again next quarter.

Why it's blowing up

The story spread quickly because Zillow is a household name that sits at the center of the US housing market, and its results are read as a live signal on home buying itself. A company that sees almost every home search in America reporting falling traffic, falling for-sale revenue, and a $158 million loss tells a broader story about mortgage rates and frozen transactions. The size of the move also mattered: a near-10% rise during the day followed by a 16% after-hours plunge is the kind of whiplash that draws attention well beyond housing specialists, especially for a stock already down about 54% to 55% in 2026 and, according to Dow Jones Market Data cited by Barron's, on track for its worst full year on record.

What's next

Attention now turns to Thursday's regular session, where investors will see whether the after-hours drop holds, and to mortgage rates, which the company itself identified as the swing factor for transaction volume. The fourth-quarter outlook will also put the Zillow Preferred transition under scrutiny: if agents embrace paying on close, the model could cushion the downturn; if closings keep falling, there is simply less to charge on. This report describes what happened and why markets reacted; it is not a recommendation to buy, sell, or hold any security.

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FAQ

Why did Zillow stock fall 16% after hours?

Zillow missed revenue and earnings expectations, swung to a $158 million net loss, and guided fourth-quarter revenue to $635 million to $665 million, well below the roughly $709.5 million analysts expected.

What were Zillow's Q3 2026 revenue and earnings?

Revenue was $724 million, up 7% year over year but below the roughly $753 million expected. GAAP earnings were a loss of $0.70 per share, while adjusted earnings were $0.55 per share.

What part of Zillow is still growing?

Rentals is the bright spot: rentals revenue rose 26% to $220 million in the third quarter, offsetting some of the 4% decline in for-sale residential revenue to $419 million.

What did Zillow say about the housing market?

CEO Jeremy Wacksman called it one of the toughest housing markets in a generation, and the company said higher mortgage rates over the summer pressured transaction volume, traffic, and home-sale revenue.