Zillow Group shares tumbled 8.39% in a 24-hour plunge, driven by a post-market earnings release that revealed an unexpected net loss, soft forward guidance, and a major restructuring announcement. The housing technology company reported a second-quarter net loss of $4 million, or $0.02 per share, a sharp contrast to the $21 million profit analysts had expected. While total revenue rose 18% year-over-year to $772 million and beat estimates, the bottom line was hit by $36 million in impairment and restructuring costs.

Adding to investor concerns, Zillow issued third-quarter revenue guidance of $745 million to $760 million, well below the $774 million consensus estimate. Adjusted EBITDA guidance of $180 million to $200 million also missed expectations. Management attributed the weaker outlook to a softening mortgage market and a strategic shift toward its “preferred” agent service model, which introduces seasonal lags in revenue recognition. The company also disclosed plans to cut over 500 jobs as part of an organizational restructuring, further dampening sentiment.

The sell-off was compounded by an analyst downgrade from Evercore ISI, which cut Zillow to Hold with a $40 price target, and executive changes including the COO stepping down for health reasons. The combination of earnings miss, cautious outlook, and strategic contraction fueled the sharp decline in post-market and overnight trading.