Zillow Group Inc Class C
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.73%.
Did Z Beat Earnings? Q1 2025 Results
Zillow Group opened 2025 with a clean beat across the board, reporting first-quarter earnings per share of $0.41 against a consensus estimate of $0.37, a 10.81% positive surprise, while revenue of $598.00 million topped the $589.09 million expectation by 1.51% and climbed 13.0% year over year. The headline story beneath the numbers was the company's return to GAAP profitability, with $8.00 million in net income marking a 500-basis-point improvement in net income margin year over year. The single biggest growth engine was Rentals, where revenue hit an all-time high of $129.00 million, up 33% year over year, fueled by a 47% surge in multifamily revenue. Adjusted EBITDA reached $153.00 million at a 26% margin, up 200 basis points year over year, underscoring disciplined cost management alongside top-line momentum. Still, shares fell after the print, with analysts pointing to the broader housing market's limited recovery as a near-term overhang. Looking ahead, Zillow guided Q2 revenue of $580.00 million to $600.00 million and maintained its full-year outlook for low- to mid-teens revenue growth with positive GAAP net income.
- 13% year-over-year total revenue growth outpacing industry transaction value growth of 3-6%
- Multifamily Rentals revenue grew 47% year over year, the main driver of Rentals segment growth
- Purchase loan origination volume grew 32% year over year to $791 million
- For Sale revenue per total transaction value expanded to 10.2 basis points from 9.7 basis points a year ago
- Adjusted EBITDA margin expanded 200 basis points year over year to 26%
- Cost discipline with fixed expenses up only 3% year over year
- Traffic grew 5% year over year to 227 million average monthly unique users
“Our strong Q1 results surpassed our expectations and demonstrate how well we're executing. We are on track to meet our full-year 2025 goals, and we're well-positioned to deliver sustainable profitable growth.”
Zillow Group CEO, on the earnings call
Forward Guidance & Outlook
For Q2 2025, Zillow expects total revenue of $580 million to $600 million, with Adjusted EBITDA of $145 million to $165 million. For Sale revenue growth is expected in the mid-single digits year over year, driven by mid-single digit Residential growth and approximately 30% Mortgages growth. Rentals revenue is expected to grow more than 35% year over year in Q2, benefiting from the Redfin rentals partnership that went live in April. Q2 Adjusted EBITDA expenses are expected to be approximately $495 million. For full-year 2025, the company expects low- to mid-teens revenue growth, continued Adjusted EBITDA margin expansion, approximately 40% Rentals revenue growth, and positive GAAP net income.
Z YoY Financials
Z Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.