Zillow Group Inc Class C
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did Z Beat Earnings? Q3 2025 Results
Zillow Group posted a clean beat across the board in Q3 2025, reporting earnings per share of $0.44 against a consensus estimate of $0.44 and revenue of $676.00 million, a 16.4% year-over-year gain that edged past the $670.90 million Wall Street expected. The standout driver behind the quarter was the Rentals segment, which surged 41% year over year to $174.00 million, fueled by a 62% jump in multifamily revenue as the number of multifamily properties advertising on the platform climbed 47% to 69,000. Mortgages also impressed, rising 36% to $53.00 million on a 57% spike in purchase loan origination volume. Equally notable was the company's return to GAAP profitability, with net income of $10.00 million representing a 400-basis-point margin improvement from the year-ago period. Adjusted EBITDA reached $165.00 million at a 24% margin. Looking ahead, Zillow guided Q4 revenue to $690.00 million to $705.00 million, with Rentals growth accelerating above 45%, while reaffirming its full-year 2025 target of mid-teens revenue growth and positive GAAP net income.
- 16% year-over-year revenue growth outpacing ~5% industry total transaction value growth
- For Sale revenue per Total Transaction Value expanded to 10.1 basis points from 9.8 basis points year over year on trailing 12-month basis
- 57% increase in purchase loan origination volume to $1.3 billion drove Mortgages revenue growth
- Multifamily revenue grew 62% year over year, driving Rentals segment growth
- Multifamily properties on platform grew 47% year over year to 69,000
- Enhanced Markets accounted for 34% of connections, up from 27% last quarter
- Effective cost management with Adjusted EBITDA expenses growing 13% versus 16% revenue growth
- Traffic up 7% year over year to 250 million average monthly unique users
“Zillow's Q3 results show how well we're delivering on our mission to make buying, selling, financing and renting easier. What drives our success is that we deliver exceptional consumer and partner experiences, relentlessly innovate with our products, and consistently execute well on our integrated-transaction strategy. Zillow is leading the industry toward a more transparent, consumer-first future.”
Zillow Group CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, Zillow expects total revenue of $690 million to $705 million and Adjusted EBITDA of $152 million to $162 million, with weighted-average diluted shares outstanding of approximately 257 million. Q4 For Sale revenue growth is expected in the high single digits year over year, with Residential revenue growth similar to Q3's 7% rate and Mortgages revenue growth of approximately 20% with continued purchase origination volume growth over 40%. Rentals revenue growth is expected to accelerate above 45% year over year. Q4 Adjusted EBITDA expenses are expected at $500 million. For full year 2025, the company continues to expect mid-teens revenue growth, Rentals revenue growing approximately 40%, Adjusted EBITDA margin expansion, and positive GAAP net income. Management is planning for the macro housing environment to continue bouncing along the bottom of the housing cycle.
Z YoY Financials
Z Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.