Press Release: Zillow Group Reports Fourth-Quarter and Full-Year 2025 Financial Results

Dow Jones
7 hours ago

SEATTLE, Feb. 10, 2026 /PRNewswire/ -- Zillow Group, Inc. (NASDAQ: Z and ZG), which is transforming the way people buy, sell, rent and finance homes, today announced its consolidated financial results for the three months and year ended December 31, 2025.

Complete financial results, and outlook for the first quarter of 2026, can be found in the shareholder letter on the Investor Relations section of Zillow Group's website at https://investors.zillowgroup.com/investors/financials/quarterly-results/default.aspx.

"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," said Zillow Chief Executive Officer Jeremy Wacksman. "As we celebrate 20 years of Zillow, our results demonstrate our disciplined and consistent execution of our strategy. With our deeply engaged audience, industry-leading software that powers industry workflows, and two decades of AI innovation, we are uniquely positioned to drive durable growth by making the entire moving journey easier for consumers and the real estate professionals who serve them."

Recent highlights include:

   -- Zillow Group reported strong fourth-quarter results. 
 
   -- Q4 revenue was up 18% year over year to $654 million, near the high end 
      of the company's outlook range. Full-year 2025 revenue of $2.6 billion 
      was up 16% year over year. The residential real estate industry grew by 
      3% in Q4 and 3% for full-year 2025, according to the NAR, meaning the 
      company outperformed the industry by 1,500 basis points in Q4 and 1,300 
      basis points for full-year 2025.1 The company estimates Q4 and full-year 
      2025 purchase mortgage origination volume for the industry was roughly 
      flat year over year. 
 
          -- For Sale revenue was up 11% year over year to $475 million in Q4. 
 
                 -- Residential revenue was up 8% year over year in Q4 to $418 
                    million, benefiting from growth in the company's agent and 
                    software offerings and in the company's New Construction 
                    marketplace. 
 
                 -- Mortgages revenue increased 39% year over year to $57 
                    million in Q4, primarily due to a 67% increase in purchase 
                    loan origination volume to $1.5 billion. 
 
          -- Rentals revenue increased 45% year over year to $168 million in 
             Q4, primarily driven by multifamily revenue growing 63% year over 
             year. 
 
   -- On a GAAP basis, net income was $3 million in Q4, and net income margin 
      was 0%, a 990-basis-point increase year over year. GAAP net income was 
      $23 million for full-year 2025, and net income margin was 1%, a 
      590-basis-point increase year over year. 
 
   -- Q4 Adjusted EBITDA was $149 million, and Adjusted EBITDA margin was 23%, 
      a 260-basis-point increase year over year, driven by revenue growth and 
      cost management. Adjusted EBITDA was $622 million for full-year 2025, and 
      Adjusted EBITDA margin was 24%, a 180-basis-point increase year over 
      year.2 
 
   -- Cash and investments at the end of Q4 were $1.3 billion, down from $1.4 
      billion at the end of Q3. During Q4, the company repurchased 3.4 million 
      shares for $232 million. 
 
   -- Traffic to Zillow Group's apps and sites in Q4 was up 8% year over year 
      to 221 million average monthly unique users. Visits during Q4 were up 2% 
      year over year at 2.1 billion. 
 
 
1  National Association of Realtors$(R)$ existing homes sold during Q4 2025 and 
   full-year 2025 multiplied by the average selling price per home for Q4 2025 
   and full-year 2025, compared with the same period in 2024 
2  Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures; 
   they are not calculated or presented in accordance with U.S. generally 
   accepted accounting principles ("GAAP"). Please see the "Use of Non-GAAP 
   Financial Measures" section below for more information about our 
   presentation of these non-GAAP financial measures, including a 
   reconciliation to the most directly comparable GAAP financial measures for 
   the relevant period. 
 

Fourth-Quarter and Full-Year 2025 Financial Highlights

The following table sets forth Zillow Group's financial highlights for the periods presented (in millions, except percentages, unaudited):

 
                          Three Months Ended                               Year Ended 
                             December 31,                                 December 31, 
                  ----------------------------------  --------  --------------------------------  -------- 
                                                      2024 to                                     2024 to 
                                                       2025 %                                      2025 % 
                        2025              2024         Change         2025             2024        Change 
                  -----------------  ---------------  --------  ----------------  --------------  -------- 
Revenue: 
 For Sale 
 revenue: 
   Residential     $            418   $          387    8 %       $        1,704   $       1,594    7 % 
   Mortgages                     57               41    39 %                 199             145    37 % 
                  -----------------  ---------------            ----------------  -------------- 
 Total For Sale 
  revenue                       475              428    11 %               1,903           1,739    9 % 
 Rentals                        168              116    45 %                 630             453    39 % 
 Other                           11               10    10 %                  50              44    14 % 
                  -----------------  ---------------            ----------------  -------------- 
Total revenue      $            654   $          554    18 %      $        2,583   $       2,236    16 % 
                  =================  ===============            ================  ============== 
Other Financial 
Data: 
Gross profit       $            476   $          420              $        1,915   $       1,709 
Net income 
 (loss)                 $         3      $      (52)            $             23     $     (112) 
Diluted net 
 income (loss) 
 per share         $           0.01     $     (0.22)             $          0.09    $     (0.48) 
Net cash 
 provided by 
 operating 
 activities       $              72   $          122             $           368  $          428 
Non-GAAP 
Financial 
Measures:(1) 
Adjusted EBITDA    $            149   $          112             $           622  $          498 
Adjusted net 
 income           $              98  $            68             $           417  $          349 
Diluted adjusted 
 net income per 
 share             $           0.39       $     0.27             $          1.64  $         1.38 
Adjusted free 
 cash flow         $            125  $            78             $           420  $          309 
Percentage of 
Revenue: 
Gross profit                   73 %             76 %                        74 %            76 % 
Net income 
 (loss)                        -- %            (9) %                         1 %           (5) % 
Adjusted 
 EBITDA(1)                     23 %             20 %                        24 %            22 % 
Adjusted net 
 income(1)                     15 %             12 %                        16 %            16 % 
 
 
 
(1) These are non-GAAP financial measures. Please see the "Use of Non-GAAP 
Financial Measures" section below for more information about our presentation 
of these non-GAAP financial measures, including a reconciliation to the most 
directly comparable GAAP financial measures for the relevant period. 
 

Conference Call and Webcast Information

Zillow Group will host a live webcast to discuss these results today at 2 p.m. Pacific time (5 p.m. Eastern time). Please register for the live event at https://zillow-q4-25-financial-results.open-exchange.net/. A shareholder letter, investor presentation, and link to both the live webcast and recorded replay of the call may be accessed in the Quarterly Results section of Zillow Group's Investor Relations website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, without limitation, statements regarding the company's business strategies, the execution of those strategies, and their impact on consumers and real estate professionals. Statements containing words such as "may," "believe," "anticipate," "expect," "intend," "plan," "project," "predict," "will," "projections," "continue," "estimate," "outlook," "guidance," "would," "could," "strive" or similar expressions constitute forward-looking statements. Forward-looking statements are made based on assumptions as of February 10, 2026, and although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee these results. Differences in Zillow Group's actual results from those described in these forward-looking statements may result from actions taken by Zillow Group as well as from risks and uncertainties beyond Zillow Group's control.

(MORE TO FOLLOW) Dow Jones Newswires

February 10, 2026 16:05 ET (21:05 GMT)

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