Zillow reported an 18% increase in second-quarter revenue on Aug. 5, one day after disclosing plans to eliminate more than 500 jobs as part of an organizational restructuring. According to its second-quarter financial results, revenue reached $772 million, above analysts’ expectations of about $758 million. Zillow recorded a $4 million GAAP net loss, compared with a $2 million profit a year earlier, after recognizing $36 million in restructuring and impairment costs.
The cuts affect roughly 7% of Zillow’s workforce and follow about 200 job reductions in January. The company is reducing operating costs as mortgages, rentals, and transaction-based agent services grow faster than its traditional residential business.
Why Zillow is cutting jobs
CEO Jeremy Wacksman said the reductions were intended to create a more disciplined cost structure and improve efficiency, according to a report on the workforce reduction. Zillow did not identify the affected departments or functions.
The latest reduction is the company’s largest reported layoff since Zillow eliminated about a quarter of its workforce following the closure of Zillow Offers in 2021. As of Aug. 6, 2026, Zillow had not publicly announced changes to lead distribution, referral terms, or account support following the latest cuts.
Where Zillow’s revenue grew
For Sale revenue increased 14% year over year to $549 million. Residential revenue, which includes agent advertising and software products, rose 7% to $465 million.
Mortgage revenue jumped 75% to $84 million. Zillow Home Loans originated $2.2 billion in purchase mortgages during the quarter, up 95% from a year earlier. Zillow said the origination volume made its lending business a top-25 US purchase lender.
Rentals revenue increased 31% to $209 million. The company reported approximately 79,000 multifamily properties on its rental platform, an increase of about 23%. Adjusted EBITDA rose to $176 million from $155 million, while the GAAP result included the restructuring and impairment costs.
How Zillow’s Preferred shift affects agents
Zillow is moving beyond listing searches and upfront agent advertising by connecting consumers with agents, mortgages, rentals, and transaction software. Under Zillow Preferred, participating agents receive eligible connections without an upfront lead charge and pay a referral fee when a transaction closes.
Wacksman said Zillow generates about 23% more revenue per connection through Preferred than through its traditional upfront advertising model. The figure describes Zillow’s revenue, not an agent’s lead volume, conversion rate, or return on investment.
Agents participating in the program should compare referral fees with their conversion rates and cost per closing. Brokerages should also monitor whether the staff reductions affect account support, implementation, or response times.
More Zillow-generated buyers may enter an agent relationship after beginning the financing process on the platform. Agents should still verify their preapproval and financing status.
Zillow forecasts a softer third quarter
Zillow projected third-quarter revenue of $745 million to $760 million, below its $772 million second-quarter total. Management cited weaker housing and mortgage conditions and delayed revenue recognition under the Preferred pay-at-close model.
The company is cutting costs while expanding mortgages and transaction-based agent referrals. For participating agents, lead quality, conversion costs, and service levels will determine whether the restructuring affects Zillow’s value as a source of business.