Zillow Group Inc Class C
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.31%.
Did Z Beat Earnings? Q4 2025 Results
Zillow Group closed out Q4 2025 with a beat on both top and bottom lines, reporting revenue of $654 million, up 18.1% year over year, against a consensus estimate of $650.50 million, while adjusted EPS of $0.39 edged past the $0.38 estimate by 1.80%. The headline story behind the quarter's strength was the explosive performance in Rentals, where revenue surged 45% year over year to $168 million, powered by multifamily revenue growth of 63% as the company's multifamily property count reached 72,000 at year-end. Equally notable, Zillow achieved full-year GAAP profitability for the first time in 2025, flipping from a $112 million net loss in 2024 to net income of $23 million. Despite the strong results, shares slid in premarket trading, reflecting investor caution around a challenging housing backdrop and elevated legal expenses flagged as near-term headwinds. Looking ahead, Zillow guided Q1 2026 revenue of $575 million to $590 million and continues to target mid-teens total revenue growth for the full year, with Rentals expected to grow approximately 30%.
- Multifamily rentals revenue grew 63% year over year in Q4, the primary driver of Rentals segment growth
- Enhanced Markets expanded to 44% of connections in Q4, up from 21% a year ago
- Purchase loan origination volume grew 67% year over year to $1.5 billion in Q4
- Zillow Home Loans loan officer productivity increased 11% in 2025 despite adding 40% more loan officers
- Traffic to Zillow Group apps and sites grew 8% year over year to 221 million average monthly unique users
- Zillow Showcase was on 3.7% of new listings in Q4, up from 1.7% a year ago
- Revenue outperformed the residential real estate industry by 1,500 basis points in Q4
“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.”
Zillow Group CEO, on the earnings call
Forward Guidance & Outlook
For Q1 2026, Zillow expects total revenue of $575 million to $590 million and Adjusted EBITDA of $35 million to $50 million. For Sale year-over-year revenue growth in Q1 is expected to be in line with or slightly better than the 11% Q4 growth, driven by Residential revenue growth in the high single-digit range and Mortgages revenue growth of approximately 40%. Rentals revenue is expected to grow approximately 40% year over year in Q1. Q1 Adjusted EBITDA expenses are expected to be $535 million to $540 million, with elevated legal expenses contributing approximately 200 basis points of headwind to Q1 Adjusted EBITDA margin. For full-year 2026, Zillow expects mid-teens total revenue growth year over year, Rentals year-over-year revenue growth of approximately 30%, a fixed cost base of approximately $1 billion growing with inflation, Adjusted EBITDA margin expansion year over year, and share-based compensation to decrease by more than 10% year over year. The outlook reflects expectations that challenging housing market conditions will continue.
Z YoY Financials
Z Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.