Zillow Group Inc Class C
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did Z Beat Earnings? Q2 2025 Results
Zillow Group posted a mixed but broadly encouraging second quarter for 2025, beating on revenue while falling short on the bottom line. The company generated $655.00 million in revenue, up 14.5% year over year and ahead of the $647.39 million consensus estimate, even as adjusted EPS of $0.40 missed analyst expectations of $0.44 by 9.01%. The headline story was the Rentals segment, which accelerated to 36% year-over-year growth and reached $159.00 million in revenue, fueled by a 56% surge in multifamily revenue as the company's rental platform continues expanding its addressable market. Mortgages also stood out, with revenue climbing 41% to $48.00 million on a 48% jump in purchase loan origination volume. Adjusted EBITDA reached $155.00 million, hitting the high end of guidance. Looking ahead, management raised its full-year 2025 revenue growth outlook to mid-teens and expects Rentals growth to exceed 40% in Q3, signaling continued momentum even as a sluggish broader housing market, where total transaction value grew just 1-2% year over year, remains a headwind.
- 15% total revenue growth year over year, significantly outpacing flat broader housing market (1-2% industry TTV growth)
- For Sale revenue per Total Transaction Value improved to 10.3 basis points on trailing 12-month basis from 9.8 basis points year ago
- Multifamily revenue grew 56% year over year, driving Rentals acceleration
- Purchase loan origination volume grew 48% year over year to $1.1 billion
- Traffic up 5% year over year to 243 million average monthly unique users with 2.6 billion visits
- Effective cost management and cost discipline supporting Adjusted EBITDA margin of 24%
- 27% of connections through Enhanced Market experience, targeting over 35% by year end
- Multifamily property count grew 45% year over year to 64,000 properties
“Zillow's Q2 results reflect how the power of our strategy and the strength of our execution are fueling growth across the company. We're relentlessly innovating to build a better real estate experience — one that helps more consumers move with confidence and gives real estate professionals the tools they need to power their businesses and serve movers effectively.”
Zillow Group CEO, on the earnings call
Forward Guidance & Outlook
Zillow raised its full-year 2025 revenue growth outlook to mid-teens, up from the prior range of low- to mid-teens. The company continues to expect Rentals revenue to grow approximately 40% for the full year 2025, Adjusted EBITDA margin expansion, and positive GAAP net income for the full year. For Q3 2025, the company expects For Sale revenue growth similar to Q2 (with Residential in the mid-single-digit range and Mortgages in the high 20% range), Rentals revenue growth to accelerate to more than 40% year over year, and Zillow Home Loans purchase loan origination volume to grow more than 40%. Q3 Adjusted EBITDA expenses are expected to be $513 million, with increases driven primarily by lead costs associated with the Redfin rentals partnership.
Z YoY Financials
Z Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.