: Zillow says it has sold more than half the homes it owns, commits cash to stock repurchases

“We are pleased with the progress of our wind-down efforts and recognize that no longer operating Zillow Offers will allow us to have a more capital-efficient balance sheet and business moving forward,” Zillow Chief Executive Rich Barton said in a statement. “With that, we see today as an opportune time to announce a share repurchase program and reduce the cash balance we built up to support Zillow Offers.”

Opinion: Zillow thought it could rule the housing market. It was very wrong.

Zillow stated that more than 50%of the homes are now under contract or that it has agreed on disposition terms for them. Management now expects revenue of $2.3 billion to $2.9 billion for the home-buying business in the fourth quarter, after previously stating guidance of $1.7 billion to $2.1 billion. Executives said Thursday they continue to believe that the wind-down of the business will be cash-flow neutral at least, including the repayment of nearly $3 billion in secured debt.

Zillow shares gained more than 5% in after-hours trading following the announcement. The stock was pummeled in the wake of last month’s announcement, and ended Thursday’s regular session down 45.2% in the past three months. Overall, Zillow shares are down 58.2% so far this year, while the S&P 500 index
SPX,
+1.42%
has gained 20.2% in that time.