CluenexZillow (Class C) Z
Zillow (Class C) scores average on business quality (5.9 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Zillow (Class C) does
Zillow Group operates digital real estate marketplaces, connecting home buyers, sellers, and renters with agents through its apps and websites while monetizing through advertising and software services. The company is leaning into its housing super app strategy, integrating rentals, mortgages, and agent services to capture more transactions.
- What it does best
Zillow dominates real estate digital traffic, boasting a gross margin of 72.9% that outpaces peers like CBRE at 18.4%. This high-margin marketplace model relies on massive consumer brand recognition that competitors struggle to match without multi-billion dollar ad budgets.
- The main risk
Volatile mortgage interest rates directly freeze housing market activity and choke off buyer demand. With rates swinging sharply, transaction volumes face sudden contractions that stall revenue growth across its core marketplace.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins sit thin at 1.8%, though gross margins reach 72.9% and free cash flow margin hits 52% of cash flow generation. High overhead relative to revenue keeps net income at $55 million, showing scale has not yet fully translated to bottom-line efficiency.
The brand acts as a consumer traffic magnet, securing a top decile sector ranking for revenue growth. However, low switching costs for everyday home seekers limit long-term pricing power and create a weak moat score.
Revenue grew 15.5% to $2.8 billion over the trailing period, accelerating past its historical multi-year contraction. This top-line expansion ranks in the 91st percentile of its sector.
Zillow holds $1.3 billion in cash against $364 million in debt, creating a net cash position of $931 million. Free cash flow stands at $220 million, leaving the balance sheet on solid footing.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
4 sold $383K outside pre-planned sales.
Our sealed record on Z
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Zillow (Class C) scores average on the Cluenex quality check (5.9 of 10), measured against its own industry. Profitability is weak, moat weak, growth fast and financial health strong.
In the last 90 days of SEC Form 4 filings: 4 sold $383K outside pre-planned sales.
Nov 4, 2026, after the close.
See Z today
- Today's verdict on Z, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Zillow (Class C) (Z)”, https://cluenex.com/stocks/z/, data as of Oct 10, 2026.