Companies /Communication Services

Zillow Group Inc - Class A

NASDAQ: ZG Internet Content & Information
$36.61
â–² $0.26 (+0.72%) today
Markets closed · 4:49pm ET

Q4 2025 Earnings

Reported Feb 10, 2026, 4:08pm ET · SEC source
$0.39
Miss −5.61%
EPS · est. $0.41
$654.0M
Beat +0.54%
Revenue · est. $650.5M
−3.0%
Trailing market
ZG vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−7%0+7%Feb 10Feb 11report 4:08pm ETearnings−0.0%−9.5%
−7%0+7%Feb 10Feb 11earnings−0.0%−9.5%
ZG −9.5%S&P 500 −0.0%
−7%0+7%Feb 10Feb 11report 4:08pm ETearnings+0.1%−9.5%
−7%0+7%Feb 10Feb 11earnings+0.1%−9.5%
ZG −9.5%NASDAQ +0.1%
−16%−8%0+8%Feb 9Feb 18report 4:08pm ETearnings−1.0%−13.3%
−16%−8%0+8%Feb 9Feb 18earnings−1.0%−13.3%
ZG −13.3%S&P 500 −1.0%
−16%−8%0+8%Feb 9Feb 18report 4:08pm ETearnings−1.1%−13.3%
−16%−8%0+8%Feb 9Feb 18earnings−1.1%−13.3%
ZG −13.3%NASDAQ −1.1%
−17.13%
Day of report
−3.10%
Next session
+0.98%
One week
−6.27%
30 days

S&P 500 over the same 30 days: −3.31%.

Did ZG 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%.

Key Takeaways
  • 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 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.

ZG YoY Financials

Q4 2025 vs Q4 2024 · SEC filings Q4 2024 Q4 2025
$0$200.0M$400.0M$600.0M$554.0M$654.0MRevenue$420.0M$476.0MGross Profit$-5,976,312$-11,000,000Operating Income$1.5M$3.0MNet Income
$0$200.0M$400.0M$600.0MRevenueGross ProfitOperating IncomeNet Income

ZG Revenue by Segment

Residential$418.0M+8.0%
Rentals$168.0M+45.0%
Mortgages$57.0M+39.0%
Other$11.0M+10.0%

Figures from SEC filings and company reports. Not investment advice.