Zillow Group Reports Fourth-Quarter and Full-Year 2025 Financial Results
Rhea-AI Summary
Zillow Group (NASDAQ: Z) reported Q4 2025 revenue of $654M (up 18% YoY) and full-year 2025 revenue of $2.58B (up 16% YoY). GAAP net income was $3M in Q4 and $23M for FY2025. Q4 Adjusted EBITDA was $149M (23% margin). Mortgages revenue rose 39% and Rentals revenue rose 45% in Q4. The company repurchased 3.4 million shares for $232M in Q4 and ended the quarter with $1.3B of cash and investments.
Positive
- Total revenue +18% Q4 to $654M
- Full-year revenue +16% to $2.58B
- GAAP profitability restored: Q4 net income $3M, FY net income $23M
- Adjusted EBITDA +33% Q4 to $149M (23% margin)
- Rentals revenue +45% Q4 and Mortgages revenue +39% Q4
Negative
- Gross profit margin down 300 bps Q4 to 73% from 76%
- Cash and investments declined to $1.3B from $1.4B at Q3-end
- $232M share repurchases in Q4 reduced liquidity available for other uses
Key Figures
Market Reality Check
Peers on Argus
Z fell 1.26% while key peer ZG is also down (-0.52%), but other high-affinity peers like NBIS, PINS, BIDU and TME show gains, indicating a stock-specific move rather than a broad sector decline.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Q3 2025 earnings | Positive | +0.3% | Q3 2025 revenue up 16% YoY with positive net income and strong EBITDA. |
| Aug 06 | Q2 2025 earnings | Positive | -0.6% | Q2 2025 revenue beat guidance with growth across For Sale, Rentals, Mortgages. |
| May 07 | Q1 2025 earnings | Positive | +0.0% | Q1 2025 revenue up 13% YoY and a return to net profitability. |
| Feb 11 | Q4 2024 earnings | Positive | -9.4% | Q4 2024 revenue up 17% YoY with improved losses and strong segment growth. |
| Nov 06 | Q3 2024 earnings | Positive | +23.8% | Q3 2024 revenue up 17% YoY with solid Rentals and Mortgages growth. |
Earnings releases have generally been positive fundamentally, but price reactions are mixed, with both sharp rallies and notable sell-offs following past reports.
Across the last five earnings releases from Nov 2024 through Oct 2025, Zillow has consistently reported double-digit revenue growth, led by Rentals and Mortgages, and a transition from net losses to positive net income. Adjusted EBITDA margins have stayed in the low-to-mid 20% range. Price reactions have alternated between strong gains and pullbacks, underscoring that upbeat fundamentals do not always translate into immediate upside. Today’s Q4 and full-year 2025 report extends this pattern of steady top-line growth and improving profitability.
Historical Comparison
In the past five earnings releases, Zillow’s average 1-day move was about 2.81%, with both rallies and selloffs despite consistently positive revenue trends.
From Q4 2024 through Q3 2025, earnings updates show steady revenue growth, Rentals and Mortgages outperformance, and a shift from recurring net losses to positive net income with mid-20% Adjusted EBITDA margins.
Market Pulse Summary
This announcement highlights strong Q4 and full-year 2025 growth, with revenue up 18% in Q4 to $654 million and full-year revenue rising to $2.583 billion. Zillow continued expanding Rentals and Mortgages, achieved positive net income for 2025, and maintained mid-20% Adjusted EBITDA margins. Recent earnings history shows similar trends of steady growth and improving profitability. Investors may focus on segment growth durability, cash and investment levels near $1.3 billion, and ongoing share repurchases as key metrics to monitor.
Key Terms
adjusted EBITDA financial
non-GAAP financial measures financial
GAAP financial
AI-generated analysis. Not financial advice.
Complete financial results, and outlook for the first quarter of 2026, can be found in the shareholder letter on the Investor Relations section of Zillow Group's website at https://investors.zillowgroup.com/investors/financials/quarterly-results/default.aspx.
"We delivered strong results in the fourth quarter and throughout 2025, achieving all our reported full-year financial targets, including positive net income, while continuing to gain share in both For Sale and Rentals," said Zillow Chief Executive Officer Jeremy Wacksman. "As we celebrate 20 years of Zillow, our results demonstrate our disciplined and consistent execution of our strategy. With our deeply engaged audience, industry-leading software that powers industry workflows, and two decades of AI innovation, we are uniquely positioned to drive durable growth by making the entire moving journey easier for consumers and the real estate professionals who serve them."
Recent highlights include:
- Zillow Group reported strong fourth-quarter results.
- Q4 revenue was up
18% year over year to$654 million $2.6 billion 16% year over year. The residential real estate industry grew by3% in Q4 and3% for full-year 2025, according to the NAR, meaning the company outperformed the industry by 1,500 basis points in Q4 and 1,300 basis points for full-year 2025.1 The company estimates Q4 and full-year 2025 purchase mortgage origination volume for the industry was roughly flat year over year.- For Sale revenue was up
11% year over year to$475 million - Residential revenue was up
8% year over year in Q4 to$418 million - Mortgages revenue increased
39% year over year to$57 million 67% increase in purchase loan origination volume to$1.5 billion
- Residential revenue was up
- Rentals revenue increased
45% year over year to$168 million 63% year over year.
- For Sale revenue was up
- On a GAAP basis, net income was
$3 million 0% , a 990-basis-point increase year over year. GAAP net income was$23 million 1% , a 590-basis-point increase year over year. - Q4 Adjusted EBITDA was
$149 million 23% , a 260-basis-point increase year over year, driven by revenue growth and cost management. Adjusted EBITDA was$622 million 24% , a 180-basis-point increase year over year.2 - Cash and investments at the end of Q4 were
$1.3 billion $1.4 billion $232 million - Traffic to Zillow Group's apps and sites in Q4 was up
8% year over year to 221 million average monthly unique users. Visits during Q4 were up2% year over year at 2.1 billion.
1 | National Association of Realtors® existing homes sold during Q4 2025 and full-year 2025 multiplied by the average selling price per home for Q4 2025 and full-year 2025, compared with the same period in 2024 | |||||
2 | Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures; they are not calculated or presented in accordance with | |||||
Fourth-Quarter and Full-Year 2025 Financial Highlights
The following table sets forth Zillow Group's financial highlights for the periods presented (in millions, except percentages, unaudited):
Three Months Ended December 31, | 2024 to 2025 % Change | Year Ended December 31, | 2024 to 2025 % Change | |||||||||
2025 | 2024 | 2025 | 2024 | |||||||||
Revenue: | ||||||||||||
For Sale revenue: | ||||||||||||
Residential | $ 418 | $ 387 | 8 % | $ 1,704 | $ 1,594 | 7 % | ||||||
Mortgages | 57 | 41 | 39 % | 199 | 145 | 37 % | ||||||
Total For Sale revenue | 475 | 428 | 11 % | 1,903 | 1,739 | 9 % | ||||||
Rentals | 168 | 116 | 45 % | 630 | 453 | 39 % | ||||||
Other | 11 | 10 | 10 % | 50 | 44 | 14 % | ||||||
Total revenue | $ 654 | $ 554 | 18 % | $ 2,583 | $ 2,236 | 16 % | ||||||
Other Financial Data: | ||||||||||||
Gross profit | $ 476 | $ 420 | $ 1,915 | $ 1,709 | ||||||||
Net income (loss) | $ 3 | $ (52) | $ 23 | $ (112) | ||||||||
Diluted net income (loss) per share | $ 0.01 | $ (0.22) | $ 0.09 | $ (0.48) | ||||||||
Net cash provided by operating activities | $ 72 | $ 122 | $ 368 | $ 428 | ||||||||
Non-GAAP Financial Measures:(1) | ||||||||||||
Adjusted EBITDA | $ 149 | $ 112 | $ 622 | $ 498 | ||||||||
Adjusted net income | $ 98 | $ 68 | $ 417 | $ 349 | ||||||||
Diluted adjusted net income per share | $ 0.39 | $ 0.27 | $ 1.64 | $ 1.38 | ||||||||
Adjusted free cash flow | $ 125 | $ 78 | $ 420 | $ 309 | ||||||||
Percentage of Revenue: | ||||||||||||
Gross profit | 73 % | 76 % | 74 % | 76 % | ||||||||
Net income (loss) | — % | (9) % | 1 % | (5) % | ||||||||
Adjusted EBITDA(1) | 23 % | 20 % | 24 % | 22 % | ||||||||
Adjusted net income(1) | 15 % | 12 % | 16 % | 16 % | ||||||||
(1) These are non-GAAP financial measures. Please see the "Use of Non-GAAP Financial Measures" section below for more information about our presentation of these non-GAAP financial measures, including a reconciliation to the most directly comparable GAAP financial measures for the relevant period. |
Conference Call and Webcast Information
Zillow Group will host a live webcast to discuss these results today at 2 p.m. Pacific time (5 p.m. Eastern time). Please register for the live event at https://zillow-q4-25-financial-results.open-exchange.net/. A shareholder letter, investor presentation, and link to both the live webcast and recorded replay of the call may be accessed in the Quarterly Results section of Zillow Group's Investor Relations website.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, without limitation, statements regarding the company's business strategies, the execution of those strategies, and their impact on consumers and real estate professionals. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "predict," "will," "projections," "continue," "estimate," "outlook," "guidance," "would," "could," "strive" or similar expressions constitute forward-looking statements. Forward-looking statements are made based on assumptions as of February 10, 2026, and although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee these results. Differences in Zillow Group's actual results from those described in these forward-looking statements may result from actions taken by Zillow Group as well as from risks and uncertainties beyond Zillow Group's control.
Factors that may contribute to such differences include, but are not limited to: the health and stability of the economy and
The foregoing list of risks and uncertainties is illustrative but not exhaustive. For more information about potential factors that could affect Zillow Group's business and financial results, please review the "Risk Factors" described in Zillow Group's publicly available filings with the United States Securities and Exchange Commission. Except as may be required by law, Zillow Group does not intend and undertakes no duty to update this information to reflect future events or circumstances.
About Zillow Group, Inc.
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people.
As the most visited real estate app and website in
Zillow's ecosystem spans the entire home journey — from dreaming and shopping to renting, buying, selling and financing.
Zillow Group's affiliates, subsidiaries, and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans®, Zillow Rentals®, Zillow® New Construction, Trulia®, StreetEasy®, Out East®, HotPads®, Follow Up Boss®, ShowingTime®, dotloop® and Zillow® Closing.
All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2026 MFTB Holdco, Inc., a Zillow affiliate.
Please visit https://investors.zillowgroup.com, www.zillowgroup.com/news, www.x.com/zillowgroup, and www.linkedin.com/company/zillow, where Zillow Group discloses information about the company, its financial information, and its business that may be deemed material.
Logos for Zillow Group and some of its key brands are available at https://zillow.com/news/logos/.
(ZFIN)
Use of Non-GAAP Financial Measures
To provide investors with additional information regarding our financial results and liquidity, this press release includes references to Adjusted EBITDA, Adjusted net income, Diluted adjusted net income per share, and Adjusted free cash flow, all of which are non-GAAP financial measures not calculated or presented in accordance with GAAP. We have provided a reconciliation below of each non-GAAP financial measure to the most directly comparable GAAP financial measure.
Adjusted EBITDA
Adjusted EBITDA is a key metric used by our management and Board of Directors to measure operating performance and trends and to prepare and approve our annual budget. In particular, we believe the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.
Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- Adjusted EBITDA does not reflect changes in, or cash requirements for, our working capital needs;
- Adjusted EBITDA does not consider the potentially dilutive impact of share-based compensation;
- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and Adjusted EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditures or contractual commitments;
- Adjusted EBITDA does not reflect impairment costs;
- Adjusted EBITDA does not reflect acquisition-related costs;
- Adjusted EBITDA does not reflect loss on extinguishment of debt;
- Adjusted EBITDA does not reflect interest expense or other income, net;
- Adjusted EBITDA does not reflect income taxes; and
- Other companies, including companies in our own industry, may calculate Adjusted EBITDA differently from the way we do, limiting its usefulness as a comparative measure.
Because of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including various cash-flow metrics, net income (loss), and our other GAAP results.
Adjusted Net Income and Diluted Adjusted Net Income Per Share
Our presentation of Adjusted net income and Diluted adjusted net income per share excludes the impact of share-based compensation, impairment costs, acquisition-related costs, loss on extinguishment of debt, and income taxes. These measures are not key metrics used by our management or Board of Directors to measure operating performance or otherwise manage the business. However, we provide Adjusted net income and Diluted adjusted net income per share as supplemental information to investors, as we believe the exclusion of the results of share-based compensation, impairment costs, acquisition-related costs, loss on extinguishment of debt, and income taxes facilitates investors' operating performance comparisons on a period-to-period basis. You should not consider Adjusted net income and Diluted adjusted net income per share in isolation or as substitutes for analysis of our results as reported under GAAP.
Adjusted Free Cash Flow
We define Adjusted free cash flow as net cash provided by operating activities adjusted for purchases of property and equipment, purchases of intangible assets, net borrowings (repayments) on repurchase agreements, and the initial payment in connection with the Redfin rentals partnership. Borrowings (repayments) on repurchase agreements are used to fund Zillow Home Loans mortgage loan originations, and we consider them part of our ongoing liquidity management. The initial payment in connection with the Redfin rentals partnership was considered a one-time and nonrecurring cash flow, and we exclude it from our calculation as we believe it impacts the ability to evaluate the liquidity of our business operations on a period-to-period basis.
We have included Adjusted free cash flow in this press release as it is a key metric used by our management to evaluate the effectiveness of our business strategies and execution and our ability to consistently generate cash from our core operations on a period-to-period basis.
Our use of Adjusted free cash flow has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Other companies, including companies in our own industry, may calculate Adjusted free cash flow differently from the way we do, limiting its usefulness as a comparative measure.
Reconciliations of Non-GAAP Financial Measures
The following table presents a reconciliation of Adjusted EBITDA to net income (loss) for each of the periods presented (in millions, unaudited):
Three Months Ended | Year Ended December 31, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
Net income (loss) | $ 3 | $ (52) | $ 23 | $ (112) | ||||
Income taxes | — | 1 | 2 | 5 | ||||
Other income, net | (19) | (26) | (77) | (127) | ||||
Depreciation and amortization | 65 | 62 | 264 | 240 | ||||
Share-based compensation | 95 | 119 | 390 | 448 | ||||
Impairment costs | — | — | 2 | 6 | ||||
Acquisition-related costs | — | — | — | 1 | ||||
Loss on extinguishment of debt | — | — | — | 1 | ||||
Interest expense | 5 | 8 | 18 | 36 | ||||
Adjusted EBITDA | $ 149 | $ 112 | $ 622 | $ 498 | ||||
The following table presents a reconciliation of Adjusted net income to net income (loss) and associated per-share metrics for each of the periods presented (in millions, except per-share data, unaudited):
Three Months Ended December 31, | Year Ended December 31, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
Net income (loss) | $ 3 | $ (52) | $ 23 | $ (112) | ||||
Share-based compensation | 95 | 119 | 390 | 448 | ||||
Impairment costs | — | — | 2 | 6 | ||||
Acquisition-related costs | — | — | — | 1 | ||||
Loss on extinguishment of debt | — | — | — | 1 | ||||
Income taxes | — | 1 | 2 | 5 | ||||
Adjusted net income | $ 98 | $ 68 | $ 417 | $ 349 | ||||
Diluted net income (loss) per share | $ 0.01 | $ (0.22) | $ 0.09 | $ (0.48) | ||||
Diluted adjusted net income per share | $ 0.39 | $ 0.27 | $ 1.64 | $ 1.38 | ||||
For periods with GAAP net loss and Adjusted net income, the Adjusted diluted weighted-average shares outstanding used in the calculation of Diluted adjusted net income per share includes potentially dilutive securities that were excluded from the calculation of Diluted net loss per share, as the effect was anti-dilutive. The following table reconciles the denominators used in the Diluted net income (loss) per share and Diluted adjusted net income per share calculations (in thousands, unaudited):
Three Months Ended December 31, | Year Ended December 31, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
Diluted weighted-average shares outstanding | 252,387 | 236,329 | 254,117 | 234,077 | ||||
Effect of dilutive securities: | ||||||||
Option awards | — | 8,933 | — | 4,206 | ||||
Unvested restricted stock units | — | 4,382 | — | 2,669 | ||||
Convertible senior notes | — | 9,844 | — | 20,347 | ||||
Adjusted diluted weighted-average shares outstanding | 252,387 | 259,488 | 254,117 | 261,299 | ||||
The following table provides a reconciliation of Adjusted free cash flow to net cash provided by operating activities for the periods presented (in millions, unaudited):
Three Months Ended | Year Ended December 31, | |||||||
2025 | 2024 | 2025 | 2024 | |||||
Net cash provided by operating activities | $ 72 | $ 122 | $ 368 | $ 428 | ||||
Purchases of property and equipment | (28) | (34) | (133) | (143) | ||||
Purchases of intangible assets | (11) | (7) | (134) | (28) | ||||
Net borrowings (repayments) on repurchase agreements | 92 | (3) | 219 | 52 | ||||
Initial payment in connection with Redfin rentals partnership | — | — | 100 | — | ||||
Adjusted free cash flow | $ 125 | $ 78 | $ 420 | $ 309 | ||||
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SOURCE Zillow Group, Inc.
FAQ
What were Zillow Group's Q4 2025 results and key metrics (Z)?
How did Zillow's for-sale, mortgages, and rentals businesses perform in Q4 2025 (Z)?
Did Zillow return to GAAP profitability in 2025 and what were full-year figures (Z)?
How much did Zillow repurchase in share buybacks during Q4 2025 (Z)?
What outlook or next-step investor events did Zillow announce after Q4 2025 results (Z)?
