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00:02Zillow's shares fell on Wednesday as improving core profitability was overshadowed by rising
00:07legal costs and competitive pressure from private listing networks, according to Benzinga.
00:12Needham analyst Bernie McTernan reiterated a hold rating after Zillow's fourth quarter results and
00:18first quarter guidance and cut his 2026 earnings estimates by 1%, citing near-term uncertainty.
00:24The firm models 50% incremental margins in 2025, excluding legal costs and 30% to 40%
00:32including them.
00:33It expects margins to approach 60% in 2027 as legal costs decline.
00:39Zillow Group reported fourth quarter adjusted EBITDA that missed estimates by 2% as margins
00:44weakened and issued first quarter guidance that came in 5% below projections due to higher
00:50costs, including legal expenses.
00:52Shares were down by 17.13% at $45.10, according to data from Benzinga Pro.
00:59For all things money, visit Benzinga.com.
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