Market Performance and User Engagement - Zillow's Zestimate feature had a median error rate of 1.8% for homes listed for sale and 7.2% for off-market homes in 2025[30]. - Zillow Rentals had 2.4 million average monthly active rental listings in 2025, a 44% increase compared to December 31, 2024[31]. - Zillow's Enhanced Market experience delivered over 40% increase in leads to agent partners by the end of 2025[31]. - The Zillow Group portfolio attracted 259 million unique users in July 2025 and approximately 9.6 billion visits throughout the year[33]. - Zillow Rentals ranked 1 in partner satisfaction for return on marketing investment in its category[34]. - Zillow Rentals has an average of 2.4 million monthly active rental listings, including 72,000 multifamily properties, and attracted 33 million unique visitors per month in 2025[36]. Financial Performance and Growth Potential - Zillow's total addressable market includes transaction fees from residential real estate transactions and rentals marketplace, indicating significant growth potential[35]. - The total addressable market (TAM) for the residential real estate industry is estimated at $202 billion, with significant contributions from transaction fees, mortgage origination revenue, and rental advertising spend[37]. - In 2025, approximately 4.8 million homes were sold in the U.S., with over $1.3 trillion in purchase mortgage origination volume[41]. - The company reported GAAP profitability in 2025, with revenue growth outpacing cost growth, positioning it for sustainable profitable growth[36]. - Residential revenue accounted for 66% of total revenue for the year ended December 31, 2025, while rentals revenue accounted for 24% of total revenue, representing 39% growth compared to the year ended December 31, 2024[81]. Operational Challenges and Risks - The business is impacted by low housing inventory, elevated mortgage interest rates, and inflationary conditions, which have affected demand for products and services[71]. - The company may face significant operating losses and may not be able to sustain or increase revenue growth or profitability over the long term[72]. - Changes in industry practices due to the NAR Settlement may alter how commissions are negotiated and could impact financial performance[75]. - The company relies on third-party services for critical business functions, and any disruption could lead to significant losses[70]. - The ability to attract and retain real estate partners is crucial, as spending reductions could adversely affect financial results[78]. - The company is subject to regulatory scrutiny and potential litigation, which could disrupt operations and harm reputation[72]. - Future changes in pricing or lead delivery methodologies may negatively impact revenue opportunities and partner spending[84]. - The company may not be able to maintain relationships with real estate listing providers, which could limit access to essential data[85]. - The business is exposed to risks related to economic conditions, including recessionary pressures and changes in consumer confidence[79]. Cybersecurity and Data Privacy - The company is subject to various cybersecurity threats, including ransomware attacks, which could disrupt operations and lead to significant losses[122]. - The company relies on various vendors for processing and storing sensitive data, which introduces cybersecurity risks and vulnerabilities, potentially harming business operations and financial condition[124]. - Security incidents could disrupt the company's ability to provide services, leading to unauthorized access or loss of sensitive data, which may adversely affect customer trust and engagement[125]. - The company faces challenges in proactively addressing evolving cybersecurity threats, which could result in undetected vulnerabilities being exploited[127]. - The company is subject to various data privacy obligations, including the Payment Card Industry Data Security Standard (PCI DSS), with potential penalties ranging from $5,000 to $100,000 per month for noncompliance[179]. - The company may be adversely affected if it fails to comply with data privacy laws, leading to significant fines, penalties, and reputational harm[182]. Strategic Initiatives and Future Opportunities - Zillow aims to explore additional opportunities in home insurance, home renovation services, moving services, and home appraisal services[38]. - The company has invested over 83,000 hours in employee training and development through its internal platforms in 2025[55]. - The company has acquired Enchant, LLC, d/b/a Follow Up Boss in December 2023, indicating ongoing strategic acquisitions to enhance its business[108]. - The company’s fraud detection processes may not fully prevent fraudulent activities, which could harm its reputation and business results[110]. - Continuous innovation in products and services is necessary to meet customer expectations; failure to do so may result in customer dissatisfaction and loss of market share[92]. Intellectual Property and Compliance - Zillow's intellectual property is critical to its success, and failure to protect it adequately could harm brand value and financial condition, especially regarding proprietary technologies like the Zestimate home valuation model[150]. - The company may face costly intellectual property disputes, which could require significant resources to defend and potentially harm business operations and financial results[155]. - Regulatory scrutiny of AI and automated underwriting practices may impact Zillow's ability to adapt its business and maintain compliance, affecting financial condition and operations[166]. - Zillow holds multiple real estate brokerage licenses and must comply with various local, state, and federal regulations to maintain these licenses, which could increase operational costs[167]. Financial Structure and Capital Management - As of December 31, 2025, the company had an accumulated deficit of $1.9 billion, indicating significant past operating losses[188]. - The company has a maximum borrowing capacity of $600 million from mortgage credit facilities as of December 31, 2025, and entered into a $500 million Revolving Credit Facility in January 2026, none of which has been drawn yet[192]. - The company may face increased costs in the future as it continues to invest in business development, including expansion of Zillow Home Loans, product and service development, and technology infrastructure[191]. - The company expects fluctuations in results of operations due to various factors, including seasonal variances in home sales and economic conditions[203]. - The company may issue additional equity or securities convertible into equity, which could have a dilutive effect on existing shareholders[215].

Zillow Group (NasdaqGS:Z) Q4 2025 Earnings call February 10, 2026 05:00 PM ET Company ParticipantsBrad Berning - VP Strategic Affairs and Investor RelationsDae Lee - Equity Research VPJeremy Hofmann - CFOJeremy Wacksman - CEOMark Mahaney - Senior Managing DirectorNick Jones - Managing Director of Internet Equity ResearchRon Josey - Managing DirectorConference Call ParticipantsBrad Erickson - Internet Equity AnalystDan Kurnos - Equity Research AnalystJohn Colantuoni - Equity Research AnalystLloyd Walmsley - ...

Zillow Group (NasdaqGS:Z) Q4 2025 Earnings call February 10, 2026 05:00 PM ET Company ParticipantsBrad Berning - VP Strategic Affairs and Investor RelationsJeremy Hofmann - CFOJeremy Wacksman - CEOMark Mahaney - Senior Managing DirectorNick Jones - Managing Director of Internet Equity ResearchRon Josey - Managing DirectorConference Call ParticipantsBrad Erickson - Internet Equity AnalystDan Kurnos - Equity Research AnalystJohn Colantuoni - Equity Research AnalystLloyd Walmsley - Managing Director and Senior ...

Zillow Group (NasdaqGS:Z) Q4 2025 Earnings call February 10, 2026 05:00 PM ET Speaker11Hello, and welcome to Zillow Group's fourth quarter and fiscal year 2025 financial results call. We ask that you hold all questions until the completion of the formal remarks, at which time you'll be given instructions for the question and answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Brad, you may begin.Speaker0Thank you. Good aft ...

Despite all of the headlines Zillow faced last year involving various court cases, the company continued to outperform investor expectations in the fourth quarter. ...

The home-listing site posted a quarterly profit of $3 million, compared with a loss of $52 million a year earlier. ...

Reported Consolidated Results ZILLOW GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) | | | | December 31, | | | --- | --- | --- | --- | --- | | | | 2025 | | 2024 | | Assets | | | | | | Current assets: | | | | | | Cash and cash equivalents | $ | 768 | $ | 1,082 | | Short-term investments | | 527 | | 776 | | Accounts receivable, net | | 149 | | 104 | | Mortgage loans held for sale | | 386 | | 159 | | Prepaid expenses and other current assets | | 287 | | 210 | | Restricted cash | | 5 ...

most directly comparable GAAP financial measure.Adjusted EBITDAAdjusted EBITDA is a key metric used by our management and Board of Directors to measure operating performance and trends and to prepare and approve our annual budget. In particular, we believe the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.Our use of Adjusted EBITDA has limitations as an analytical tool, and you should not consider this measure in isolat ...

February 2026 Zillow Investor Presentation Legal Disclosure This presentation 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 our future targets, the future performance and operation of our business, our business strategies and ability to translate such strategies into financial performance, the current and future ...

Some analysts expect Zillow will have strong revenue growth as the housing market improves. ...