Shaina Mishkin

Real estate listings and technology company Zillow Group posted third-quarter earnings that beat analyst expectations. More users are buying homes with its mortgages, and more property managers are using it for rental listings.

Zillow on Thursday said it earned four cents a share on $676 million in revenue in its third quarter. The results beat analyst expectations, which called for two cents a share on $671 million in revenue, according to FactSet.

The company expects fourth quarter revenue in a range from $645 million to $655 million, more than the $644 million analysts on FactSet estimate. Zillow expects adjusted Ebitda in a range from $145 million to $155 million, in line with the $149 million forecast by analysts.

"Our consistently strong performance reinforces that Zillow can grow regardless of what the residential real estate market is doing," Zillow CEO Jeremy Wacksman and CFO Jeremy Hofmann wrote in a letter to shareholders.

The stock is down 3.2% so far this year to a recent $71.68.

Its residential revenue rose 7% from the year before $435 million. The category contains revenue from its agent software and advertising businesses, among other real estate industry products.

The residential category represents the bulk of Zillow's revenue, but its mortgages and rentals businesses are growing more quickly. Mortgage revenue grew 36% to $53 million, fueled by a 57% increase in purchase loan origination to $1.3 billion, the company said.

"Our mortgage strategy is leading more buyers to choose financing through Zillow Home Loans, which is the main growth driver of our overall Mortgages revenue," company executives wrote.

Its rentals revenue, which includes revenue from its rental listings business, rose 41% to $174 million. The number of multifamily properties advertising on Zillow grew 47% from the same period in 2024, to 69,000.

Zillow expects growth in both categories to stay strong: It foresees its mortgage revenue growing about 30% in its second half of the year compared with the same period in 2024, and rentals revenue to grow over 45% in its fourth quarter from one year prior.

Zillow has been building out its services offerings beyond its core agent business. The expansion has both spurred quick growth in those businesses and has come with challenges, such as the FTC's complaint against its rentals partnership with Redfin.

"As we continue to deliver excellent results, we're also aware of the external noise that has gotten louder in recent months -- and we're confident in our ability to execute through it, as we have the past few years whenever the volume has turned up," the executives wrote in the letter.

Write to Shaina Mishkin at shaina.mishkin@dowjones.com

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October 30, 2025 16:06 ET (20:06 GMT)

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