Zillow reported third-quarter 2026 results showing mixed performance across its business divisions. Average monthly unique users fell 3% to 215 million, and overall visits declined 5% annually to 2.3 billion, according to Comscore data. The company recorded a net loss of $158 million for the quarter, compared to a $10 million net income in Q3 2025, though revenue rose 7% annually to $724 million.

Zillow's Preferred agent referral program continued its expansion. Two-thirds of buyer connections now route to Preferred agent partners, roughly double the prior year. The company expects Preferred to represent over three-quarters of connections by year-end and anticipates reaching 100% of buyer connections in the first half of 2027. Preferred connections generate 35% more revenue per connection than the prior lead generation model.

For-sale revenue remained flat year-over-year at $489 million. The residential segment reported a 4% annual revenue decline to $419 million, which Zillow attributed to higher-than-expected mortgage rates pressuring housing transaction volume.

CEO Jeremy Wacksman and COO and CFO Jeremy Hofmann wrote that AI search mode, now available to 100% of signed-in users, deepens engagement. Visitors using AI mode spend nearly three times as long on the site as those who don't.

Zillow's mortgage division grew 32% annually to $70 million, driven by a 55% increase in purchase loan origination volume to $2.0 billion. In markets where Zillow integrated its mortgage product with Preferred for the longest, adoption of Zillow Home Loans reached around 20%.

Rentals revenue grew 26% year-over-year to $220 million, with multifamily revenue up 35% annually. The rentals segment now accounts for roughly 30% of total revenue, up from 21% two years ago. Zillow said 81,000 multifamily properties were advertised on its platform at quarter-end, a 17% annual increase. Executives stated they see a path to more than $1 billion in annual rentals revenue.

Follow Up Boss, Zillow's CRM product, recorded roughly 141,000 monthly active users, up 16% annually. Over 800 brokerages signed up for Zillow Preview, its pre-marketing product.