Zillow Group Inc. (Class A) (ZG) — RQD Stock Rating Cockpit

Per the Roarable RQD rating, ZG carries an RQD Score of 65 out of 100, a letter grade of C, and the verdict label "Roarable Hold — Fair / Balanced Risk-Reward." The five pillars are:

• Fundamental Cash Engine: 10 / 20. Per the Roarable RQD rating, this pillar reflects ROIC of -0.7% and an FCF yield of 3.26%. The modest free-cash-flow yield is positive, but a negative ROIC means the business is not currently earning a return above its cost of capital, which limits the cash-engine case for prospective investors.
• Whale 13F Flow: 14 / 20. Per the Roarable RQD rating, this pillar captures institutional accumulation and options positioning. It is a moderate score, indicating some institutional support without a dominant signal.
• Insider Conviction: 10 / 20. Per the Roarable RQD rating, this pillar reflects SEC Form 4 and Congressional PTR cluster flow. A below-midpoint score suggests insider activity does not provide a strong confirmation signal either way.
• Macro Regime Fit: 13 / 20. Per the Roarable RQD rating, beta is 1.0 with sector sensitivity noted. A beta of 1.0 implies market-level sensitivity to broad moves, so the stock's direction will track overall market conditions and sector sentiment.
• Forensic Balance Sheet: 18 / 20. Per the Roarable RQD rating, this is the strongest pillar, citing an Altman Z of 5.69, a Piotroski F of 8/9, and Debt/Equity of 0.5. This is the principal support for the rating: balance-sheet quality is strong even though operating returns are weak.

Investor implications: The rating balances a strong balance sheet against weak operating returns. Upside drivers would need to come from converting the positive FCF yield and clean balance sheet into sustained positive ROIC. Valuation tradeoffs are significant: with P/E and EV/EBITDA not available in source data, the stock cannot be benchmarked on earnings multiples here, and the 52-week range of $27.25 - $74.8 shows the price has been highly volatile, with the current $31.89 near the lower end of that band.

Per the SEC financials, revenue rose from $1945.0M in FY 2023 to $2583.0M in FY 2025, while operating income improved from $-270.0M to $-34.0M over the same span. FY 2025 net income turned positive at $23.0M after losses in the prior two years. Per the market data, gross margin is 74.1%, operating margin is -1.3%, and net margin is 0.9%. ROIC is -0.7%. Per the Roarable RQD rating, the Altman Z-Score is 5.69 and the Piotroski F-Score is 8/9, with Debt/Equity of 0.5, indicating a strong forensic balance sheet posture. Cash declined from $1082.0M in FY 2024 to $768.0M in FY 2025.

Per the recent news feed, catalysts and watch items are:

• Risk Watch (RED): A Yahoo Finance report headlined "Zillow (ZG) Stock Looks Above Fair Value After A 68% Fall" is flagged as a risk item, suggesting valuation concern after a steep decline.
• Catalyst (GREEN): A 24/7 Wall St. report on a surge of Opendoor and Zillow as long-term rates retreat is flagged as a positive catalyst, linking ZG's move to interest-rate sensitivity.
• Market Wire (YELLOW): Several items, including a Yahoo Finance report noting the stock trading down, a Trefis piece on regaining its old high, a GuruFocus report with a GF Score of 65/100, and a Simply Wall St. piece on a fresh AI push that may look fully priced, are flagged as neutral market commentary.

Per the Butterfly Supply-Chain Graph, the supply chain is recorded as NONE, with no butterfly links and no proprietary signals.

Per the Butterfly Supply-Chain Graph, no upstream or downstream supply-chain links are recorded, and the supply_chain field is NONE. Sector correlations and second-order bottlenecks cannot be mapped from the provided data. The one ripple the news feed does indicate is interest-rate sensitivity: the 24/7 Wall St. catalyst ties ZG's move to retreating long-term rates alongside Opendoor and Compass. A prospective investor should watch rate-driven moves in peer and housing-adjacent names as a 2nd-order signal, though the source data does not quantify that linkage.

• What is the company's actual revenue model and product mix, given that the profile gives only the sector and industry classification?
• Why is operating income negative in FY 2025 while net income is positive at $23.0M, and what items drive that gap?
• What are the P/E, forward P/E, and EV/EBITDA multiples, which are needed to judge valuation against the stock's volatility?
• What are the debt levels in dollar terms, since the financials list debt as N/A while Debt/Equity is cited as 0.5?
• Which institutional holders and insiders are driving the whale and insider pillar scores, and in what direction?