Shares of Zillow Group (Z) plunged 7.20% in after-hours trading on Wednesday after the company reported a surprise net loss and issued a weaker-than-expected revenue outlook for the third quarter. The housing technology company posted a net loss of $4 million, or two cents per share, for the second quarter, while analysts had forecast a profit of $21 million, or nine cents per share. Although total revenue grew 18% year-over-year to $772 million and beat estimates, the bottom line was weighed down by $36 million in restructuring costs.

Adding to the sell-off, Zillow guided for third-quarter revenue in the range of $745 million to $760 million, significantly below the $774 million consensus estimate. The company also forecast adjusted EBITDA between $180 million and $200 million, falling short of analysts’ expectations of $214 million. Management attributed the softer outlook to a declining mortgage market and a strategic shift toward its “preferred” agent service model, which introduces seasonal lags in revenue recognition.

Investor sentiment was further dampened by Zillow’s disclosure of over 500 job cuts and a series of executive changes, including the chief operating officer stepping down for health reasons. These factors, combined with the earnings miss and cautious guidance, drove the sharp after-hours decline in the stock.