Is the business good?
How good a business is ZG?
Zillow Group, Inc. earns 0.22% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
0.22%
Return on invested capital · cost of capital 9.0% · 8.8 points below what the capital costs: growth destroys value
- Operating margin
- 0.41%
Operating margin · Internet Content & Information median 6.3% · 12 months to Q1 2026
- Share count, year on year
- −6.5%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 23%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 6.7% |
| FY2021 | 11% |
| FY2022 | −4.8% |
| FY2023 | −14% |
| FY2024 | −8.8% |
| FY2025 | −1.3% |
Details›
- Gross margin12 months to Q1 2026
- 73%
- Operating margin12 months to Q1 2026
- 0.41%
- Net margin12 months to Q1 2026
- 2.3%
- Free cash flow margin
- 12%
- R&D as % of revenue
- 23%
- Revenue, trailing twelve months
- $2.69B
- Free cash flow, trailing twelve months
- $333M
- Net income, trailing twelve months
- $61M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 0.22%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Internet Content & Information
Ranks #16 of 24 by Smart Score