Core Viewpoint - Zillow Group's shares have increased by approximately 3.2% since the last earnings report, underperforming the S&P 500, raising questions about the sustainability of this trend leading up to the next earnings release [1] Estimates Movement - Estimates for Zillow have trended downward over the past month, with the consensus estimate shifting by -74.42% [2] VGM Scores - Zillow currently holds a Growth Score of B, but has a poor Momentum Score of F and a Value Score of F, placing it in the bottom 20% for the value investment strategy. The overall aggregate VGM Score for the stock is D, which is significant for investors not focused on a single strategy [3] Outlook - The downward trend in estimates indicates a negative shift, with Zillow holding a Zacks Rank of 3 (Hold). An in-line return is expected from the stock in the upcoming months [4]

Core Insights - Zillow Group, Inc. reported mixed first-quarter 2025 results, with net income missing estimates but revenue exceeding expectations, showing year-over-year growth [1][3][4] Financial Performance - Net income on a GAAP basis was $8 million (3 cents per share), recovering from a net loss of $23 million (10 cents per share) in the prior-year quarter [3] - Non-GAAP net income improved to $105 million (41 cents per share) from $93 million (36 cents) year-over-year, although it missed the Zacks Consensus Estimate by 2 cents [3] - Quarterly revenues increased to $598 million from $529 million in the previous year, surpassing the Zacks Consensus Estimate of $589 million [4] - Residential revenues rose 6% to $417 million, driven by growth in Premier Agent offerings and other services [4] - The Mortgages segment generated $41 million in revenues, up from $31 million, with a 32% increase in purchase loan origination [5] - Rental revenues surged 33% to $129 million, primarily due to a 47% growth in multifamily revenues [5] Operational Metrics - Gross profit for the quarter was $459 million, compared to $406 million in the prior-year quarter, attributed to revenue growth across all segments [6] - Operating expenses increased to $468 million from $451 million year-over-year [6] - Adjusted EBITDA rose to $153 million from $125 million, supported by higher revenues and cost discipline [6] Cash Flow and Liquidity - Cash generated from operating activities was $104 million, up from $80 million in the prior-year quarter [7] - As of March 31, 2025, the company had $914 million in cash and cash equivalents, with $37 million in other long-term liabilities [7] Future Outlook - For Q2 2025, Zillow expects total revenues between $635 million and $650 million, with adjusted EBITDA projected at $140 million to $155 million [8] - The company anticipates approximately 30% year-over-year growth in Mortgages revenues, mid-single-digit growth in residential revenues, and 35% growth in rental revenues [8] - For the full year 2025, Zillow expects low to mid-teens revenue growth and positive GAAP net income [9]

Group 1 - Zillow Group reported $598 million in revenue for Q1 2025, a year-over-year increase of 13% [1] - The EPS for the same period was $0.41, compared to $0.36 a year ago, indicating growth [1] - The revenue exceeded the Zacks Consensus Estimate of $588.55 million by 1.61%, while the EPS fell short of the consensus estimate of $0.43 by 4.65% [1] Group 2 - Key metrics indicate that Zillow's shares returned +10.6% over the past month, matching the S&P 500 composite's performance [3] - Zillow currently holds a Zacks Rank 4 (Sell), suggesting potential underperformance relative to the broader market [3] Group 3 - Average monthly unique users for Zillow's mobile applications and websites reached 227 million, surpassing the estimated 224.67 million [4] - Total visits to mobile applications and websites were 2.35 billion, exceeding the average estimate of 2.33 billion [4] - Residential revenue was reported at $417 million, slightly above the estimated $414.66 million, reflecting a year-over-year change of +6.1% [4] - Other revenue reached $11 million, significantly higher than the estimated $8.45 million, marking a +37.5% year-over-year change [4] - Mortgage revenue was $41 million, above the estimated $38.83 million, with a year-over-year increase of +32.3% [4] - Rental revenue was reported at $129 million, exceeding the estimated $126.10 million, representing a +33% year-over-year change [4]

Core Viewpoint - Zillow Group reported quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.43 per share, but showing an increase from $0.36 per share a year ago, indicating a -4.65% earnings surprise [1] - The company posted revenues of $598 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.61% and up from $529 million year-over-year [2] Financial Performance - Over the last four quarters, Zillow has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2] - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $657.3 million, and for the current fiscal year, it is $1.90 on revenues of $2.57 billion [7] Market Position - Zillow shares have declined approximately 6.8% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] - The Zacks Rank for Zillow is currently 4 (Sell), indicating expectations of underperformance in the near future [6] Industry Outlook - The Financial - Mortgage & Related Services industry, to which Zillow belongs, is currently in the bottom 17% of over 250 Zacks industries, suggesting potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Zillow's stock performance [5]

[PART I – FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Financial Statements (unaudited)](index=7&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) The company reported a **13% year-over-year revenue increase** to **$598 million** in Q1 2025, achieving a net income of **$8 million** and positive operating cash flow of **$104 million** Condensed Consolidated Balance Sheet Highlights (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $914 | $1,082 | | Short-term investments | $689 | $776 | | Total current assets | $2,154 | $2,334 | | Total assets | $5,746 | $5,829 | | Total current liabilities | $875 | $831 | | Total liabilities | $992 | $981 | | Total shareholders' equity | $4,754 | $4,848 | Condensed Consolidated Statements of Operations (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Total revenue | $598 | $529 | | Gross profit | $459 | $406 | | Loss from operations | $(9) | $(45) | | Net income (loss) | $8 | $(23) | | Diluted EPS | $0.03 | $(0.10) | Condensed Consolidated Statements of Cash Flows (in millions) | Activity | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $104 | $80 | | Net cash used in investing activities | $(52) | $(204) | | Net cash provided by (used in) financing activities | $(219) | $71 | | Net decrease in cash | $(167) | $(53) | [Note 5. Intangible Assets, Net](index=17&type=section&id=Note%205.%20Intangible%20Assets%2C%20Net) Net intangible assets increased to **$297 million** by March 2025, primarily due to a **$100 million** payment for a Redfin partnership, with **$20 million** in Q1 amortization expense - On February 6, 2025, Zillow entered into a partnership with Redfin, making a **$100 million** payment that is categorized as customer relationships and will be amortized over an estimated useful life of nine years[58](index=58&type=chunk) Intangible Assets Breakdown (in millions) | Category | Net Value (Mar 31, 2025) | Net Value (Dec 31, 2024) | | :--- | :--- | :--- | | Customer relationships | $161 | $65 | | Software | $65 | $62 | | Developed technology | $44 | $51 | | **Total** | **$297** | **$207** | [Note 6. Debt](index=18&type=section&id=Note%206.%20Debt) Total debt increased to **$592 million** by March 2025, including **$419 million** in convertible notes maturing in May 2025 and **$173 million** in repurchase agreements, with new borrowing capacity added - The company's 2025 Notes, with a principal amount of **$419 million**, mature on May 15, 2025. Zillow has elected to settle conversions with a combination of cash for the principal and Class C capital stock for the conversion premium[67](index=67&type=chunk) Debt Summary (in millions) | Debt Instrument | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total master repurchase agreements | $173 | $145 | | 2025 Notes | $419 | $418 | | **Total debt** | **$592** | **$563** | - Zillow Home Loans increased its borrowing capacity by entering into a new **$150 million** master repurchase agreement with Bank of Montreal on February 27, 2025, and later amended its JPMorgan agreement in April 2025 to increase capacity to **$200 million** and extend the maturity[61](index=61&type=chunk)[62](index=62&type=chunk) [Note 8. Share Repurchase Authorizations](index=20&type=section&id=Note%208.%20Share%20Repurchase%20Authorizations) The company repurchased **$250 million** of stock in Q1 2025, with **$131 million** remaining under authorization, and an additional **$1.0 billion** was approved in May 2025 Q1 2025 Share Repurchase Activity (in millions, except share data) | Stock Class | Shares Repurchased (thousands) | Weighted-Average Price | Total Purchase Price | | :--- | :--- | :--- | :--- | | Class A common stock | 2,460 | $73.75 | $181 | | Class C capital stock | 879 | $78.03 | $69 | | **Total** | **3,339** | | **$250** | - On May 2, 2025, the Board authorized an additional **$1.0 billion** for share repurchases, bringing the total authorization to **$3.5 billion**. As of March 31, 2025, **$131 million** was available from previous authorizations[72](index=72&type=chunk) [Note 11. Commitments and Contingencies](index=23&type=section&id=Note%2011.%20Commitments%20and%20Contingencies) The company has **$300 million** in future purchase commitments and is involved in several legal proceedings, including patent infringement and securities class action lawsuits, with potential but unquantifiable losses - Zillow is involved in a patent infringement lawsuit with IBM, a federal securities class action suit regarding its former Zillow Offers business, and several shareholder derivative suits. The company believes a loss is reasonably possible but cannot estimate the amount[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk) Future Purchase Commitments (in millions) | Period | Purchase Obligations | | :--- | :--- | | Remainder of 2025 | $116 | | 2026 | $117 | | 2027 | $66 | | 2028 | $1 | | **Total** | **$300** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=26&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management reported a **13% revenue increase** to **$598 million** in Q1 2025, driven by strong growth across all segments, resulting in **$153 million** Adjusted EBITDA and a robust liquidity position of **$1.6 billion** [Key Metrics](index=28&type=section&id=Key%20Metrics) Key metrics for Q1 2025 showed positive trends with **2.35 billion** visits and **227 million** unique users, alongside a **32% increase** in loan origination volume to **$796 million** Key Performance Indicators | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Visits (millions) | 2,354 | 2,316 | 2% | | Average monthly unique users (millions) | 227 | 217 | 5% | For Sale Revenue per TTV (Trailing Twelve Months) | Metric | TTM Ended Mar 31, 2025 | TTM Ended Mar 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | For Sale revenue (in millions) | $1,773 | $1,585 | 12% | | Total transaction value (in trillions) | $1.7 | $1.6 | 7% | | For Sale revenue per TTV (basis points) | 10.2 | 9.7 | 5% | Loan Origination Volume (in millions) | Loan Type | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Purchase loan origination | $791 | $601 | 32% | | Refinance loan origination | $5 | $4 | 25% | | **Total loan origination** | **$796** | **$605** | **32%** | [Results of Operations](index=30&type=section&id=Results%20of%20Operations) Total revenue increased **13%** to **$598 million** in Q1 2025, with Residential, Mortgages, and Rentals segments growing **6%**, **32%**, and **33%** respectively, contributing to a **22%** rise in Adjusted EBITDA Revenue by Category (in millions) | Category | Q1 2025 | Q1 2024 | $ Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Residential | $417 | $393 | $24 | 6% | | Mortgages | $41 | $31 | $10 | 32% | | **Total For Sale revenue** | **$458** | **$424** | **$34** | **8%** | | Rentals | $129 | $97 | $32 | 33% | | Other | $11 | $8 | $3 | 38% | | **Total revenue** | **$598** | **$529** | **$69** | **13%** | - Residential revenue growth was driven by a **4% increase** in revenue per visit and a **2% increase** in visits, reflecting strength in ShowingTime+, Premier Agent, and new construction offerings[128](index=128&type=chunk) - Rentals revenue growth was primarily due to a **20% increase** in quarterly revenue per average monthly rentals unique visitor and an **11% increase** in average monthly rentals unique visitors, driven by growth in multifamily property listings[127](index=127&type=chunk) Adjusted EBITDA Reconciliation (in millions) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss) | $8 | $(23) | | Income taxes | — | 2 | | Other income, net | (22) | (33) | | Depreciation and amortization | 65 | 56 | | Share-based compensation | 97 | 108 | | Impairment costs | — | 6 | | Interest expense | 5 | 9 | | **Adjusted EBITDA** | **$153** | **$125** | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained strong liquidity with **$1.6 billion** in cash and investments, generating **$104 million** in operating cash flow, while utilizing cash for share repurchases and strategic partnerships - Primary sources of liquidity are cash from operations, debt, and equity offerings. As of March 31, 2025, the company had **$1.6 billion** in cash, cash equivalents, investments, and restricted cash[149](index=149&type=chunk)[150](index=150&type=chunk) - Net cash used in financing activities was **$219 million** in Q1 2025, primarily due to **$250 million** in share repurchases and a **$30 million** contingent consideration payment, partially offset by proceeds from stock option exercises[160](index=160&type=chunk) - Net cash used in investing activities was **$52 million**, driven by a **$100 million** payment for the Redfin partnership and other capital expenditures, partially offset by net proceeds from investments[157](index=157&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=40&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks primarily from interest rate fluctuations affecting investments, debt, and mortgage operations, and from inflation impacting the housing market, though foreign currency risk is immaterial - The company's primary market risks are interest rate fluctuations and inflation. Interest rate changes affect investment income, debt valuation, and mortgage operations[175](index=175&type=chunk) - The **$419 million** in 2025 Notes have a fixed interest rate, mitigating exposure to interest rate changes on that debt. However, borrowings for Zillow Home Loans are at a floating rate based on SOFR, creating market risk that is managed via hedging[178](index=178&type=chunk)[179](index=179&type=chunk) - Inflationary pressures have led to higher mortgage rates, impacting transaction volumes and demand for services. While this has had an adverse impact on revenue, the company does not expect it to materially affect its long-term business strategy[181](index=181&type=chunk)[182](index=182&type=chunk) [Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) As of March 31, 2025, the CEO and CFO concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during Q1 2025 - Management, including the CEO and CFO, evaluated disclosure controls and procedures and found them to be effective as of March 31, 2025[184](index=184&type=chunk) - No changes occurred during Q1 2025 that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[185](index=185&type=chunk) [PART II – OTHER INFORMATION](index=43&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Legal Proceedings](index=43&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including patent infringement and securities class action lawsuits, with potential but unquantifiable losses, as detailed in Note 11 of the financial statements - Information regarding legal proceedings is provided in Note 11 of the Notes to Condensed Consolidated Financial Statements in Part I, Item 1 of the report[188](index=188&type=chunk) [Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the company's risk factors since those disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2024 - There have been no material changes to the risk factors from those set forth in the Annual Report on Form 10-K for the fiscal year ended December 31, 2024[189](index=189&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q1 2025, the company repurchased **$250 million** of stock, with **$131 million** remaining under authorization and an additional **$1 billion** approved in May 2025, and no unregistered equity sales occurred - There were no unregistered sales of equity securities during the three months ended March 31, 2025[191](index=191&type=chunk) Q1 2025 Stock Repurchases by Month (in millions, except share data) | Period | Total Shares Purchased (thousands) | Average Price Paid Per Share (Class A / Class C) | Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | Jan 2025 | 0 | N/A | $381 | | Feb 2025 | 2,278 | $74.66 / $78.13 | $208 | | Mar 2025 | 1,061 | $72.53 / $71.82 | $131 | | **Total Q1** | **3,339** | | **$131** | - On May 2, 2025, the Board authorized an additional **$1 billion** for stock repurchases, increasing the total authorization to **$3.5 billion**[193](index=193&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) Several executives and board members have entered into or terminated Rule 10b5-1 sales plans, including CEO Jeremy Wacksman entering a new plan and COO Jun Choo terminating a previous one - CEO Jeremy Wacksman entered into a 10b5-1 sales plan on February 13, 2025, effective May 16, 2025, to sell shares of Class C capital stock from option exercises and RSU vestings[194](index=194&type=chunk) - COO Jun Choo terminated a previously disclosed 10b5-1 sales plan on February 28, 2025. No shares were sold under the plan prior to its termination[195](index=195&type=chunk) - Board members Erik Blachford and Claire Cormier Thielke entered into 10b5-1 sales plans in March 2025, effective in June 2025, for the sale of Class C shares related to RSU vestings[196](index=196&type=chunk)[197](index=197&type=chunk)

[Reported Consolidated Results](index=1&type=section&id=Reported%20Consolidated%20Results) [Condensed Consolidated Balance Sheets](index=1&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, Zillow Group's total assets were $5.75 billion, a slight decrease from $5.83 billion at the end of 2024, primarily due to a reduction in cash and short-term investments, while total liabilities saw a minor increase to $992 million from $981 million, and total shareholders' equity decreased to $4.75 billion Balance Sheet Summary (in millions) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Current Assets** | $2,154 | $2,334 | | Cash and cash equivalents | $914 | $1,082 | | Short-term investments | $689 | $776 | | **Total Assets** | **$5,746** | **$5,829** | | **Total Current Liabilities** | $875 | $831 | | **Total Liabilities** | **$992** | **$981** | | **Total Shareholders' Equity** | **$4,754** | **$4,848** | [Condensed Consolidated Statements of Operations](index=2&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) For the first quarter of 2025, Zillow Group reported a 13% year-over-year revenue increase to $598 million, achieved a significant turnaround in profitability with a net income of $8 million compared to a net loss of $23 million in 2024, and saw Adjusted EBITDA grow by 22% to $153 million Q1 2025 vs Q1 2024 Performance (in millions, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Revenue | $598 | $529 | | Gross Profit | $459 | $406 | | Loss from Operations | $(9) | $(45) | | Net Income (Loss) | $8 | $(23) | | Diluted EPS | $0.03 | $(0.10) | | Adjusted EBITDA | $153 | $125 | - Total share-based compensation expense decreased to **$97 million** in Q1 2025 from **$108 million** in Q1 2024[3](index=3&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=3&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) In Q1 2025, net cash provided by operating activities increased to $104 million from $80 million, but a net cash outflow of $219 million from financing activities, primarily due to $250 million in stock repurchases, resulted in a net decrease in cash, cash equivalents, and restricted cash of $167 million for the quarter Cash Flow Summary for Three Months Ended March 31 (in millions) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $104 | $80 | | Net cash used in investing activities | $(52) | $(204) | | Net cash provided by (used in) financing activities | $(219) | $71 | | **Net decrease in cash** | **$(167)** | **$(53)** | - The company repurchased **$250 million** of its Class A common stock and Class C capital stock during Q1 2025, a significant increase from the **$9 million** repurchased in Q1 2024[5](index=5&type=chunk) - Cash used for purchases of intangible assets increased significantly to **$108 million** in Q1 2025 from **$7 million** in Q1 2024[5](index=5&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Non-GAAP Net Income per Share](index=4&type=section&id=Non-GAAP%20Net%20Income%20per%20Share) Zillow provides a non-GAAP net income metric that excludes share-based compensation, impairment costs, and income taxes to facilitate period-over-period comparisons, with adjusted non-GAAP net income for Q1 2025 at $105 million, or $0.41 per diluted share, an increase from $93 million, or $0.36 per diluted share, in Q1 2024 Reconciliation of GAAP Net Income to Non-GAAP Net Income (in millions) | Description | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net income (loss), as reported (GAAP) | $8 | $(23) | | Share-based compensation | $97 | $108 | | Impairment costs | $— | $6 | | Income taxes | $— | $2 | | **Net income, adjusted (Non-GAAP)** | **$105** | **$93** | Non-GAAP Net Income Per Share | Per Share Data | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Basic | $0.43 | $0.40 | | Diluted | $0.41 | $0.36 | [Key Operating Metrics](index=5&type=section&id=Key%20Metrics) [User Engagement Metrics](index=5&type=section&id=User%20Engagement%20Metrics) User engagement on Zillow's platforms grew in the first quarter of 2025 compared to the prior year, with total visits increasing by 2% to 2.35 billion and average monthly unique users rising by 5% to 227 million User Engagement for Three Months Ended March 31 (in millions) | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Visits | 2,354 | 2,316 | 2% | | Average monthly unique users | 227 | 217 | 5% | [For Sale Revenue Metrics](index=5&type=section&id=For%20Sale%20Revenue%20Metrics) For the twelve months ending March 31, 2025, For Sale revenue increased by 12% to $1.77 billion, outpacing the 7% increase in Total Transaction Value (TTV) and improving revenue monetization with For Sale revenue per TTV rising from 9.7 to 10.2 basis points For Sale Revenue for Twelve Months Ended March 31 | Metric | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | For Sale revenue (in millions) | $1,773 | $1,585 | 12% | | Total transaction value (in trillions) | $1.7 | $1.6 | 7% | | For Sale revenue per TTV (in basis points) | 10.2 | 9.7 | 5% | [Loan Origination Metrics](index=5&type=section&id=Loan%20Origination%20Metrics) Zillow Home Loans demonstrated significant growth in Q1 2025, with total loan origination volume rising 32% year-over-year to $796 million, primarily driven by a 32% increase in purchase loan origination volume which reached $791 million Loan Origination Volume for Three Months Ended March 31 (in millions) | Loan Type | 2025 | 2024 | % Change | | :--- | :--- | :--- | :--- | | Purchase loan origination volume | $791 | $601 | 32% | | Refinance loan origination volume | $5 | $4 | 25% | | **Total loan origination volume** | **$796** | **$605** | **32%** |

Company Overview - Zillow Group (ZG) is expected to report earnings for the quarter ended March 2025 on May 7, 2025, with a consensus EPS estimate of $0.43, reflecting a year-over-year increase of 19.4% [3] - Revenues are anticipated to reach $588.55 million, which is an 11.3% increase from the same quarter last year [3] Earnings Expectations - The actual stock price movement will depend on how the reported results compare to these estimates, with a potential for the stock to rise if results exceed expectations, or fall if they miss [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Zacks Earnings ESP (Expected Surprise Prediction) model indicates that Zillow's Most Accurate Estimate is lower than the consensus estimate, resulting in an Earnings ESP of -8.67%, suggesting a bearish outlook from analysts [10] - Zillow currently holds a Zacks Rank of 4 (Sell), complicating predictions of an earnings beat [11] Historical Performance - In the last reported quarter, Zillow was expected to post earnings of $0.29 per share but delivered $0.27, resulting in a surprise of -6.90% [12] - Over the past four quarters, Zillow has beaten consensus EPS estimates two times [13] Industry Context - In comparison, loanDepot (LDI), another player in the Zacks Financial - Mortgage & Related Services industry, is expected to report a loss of $0.07 per share for the same quarter, which represents a year-over-year change of +66.7% [17] - loanDepot's revenues are projected to be $275.8 million, up 23.8% from the previous year [17]

Company Overview - Zillow Group (ZG) shares increased by 8.7% to close at $64.96, following a notable trading volume, contrasting with a 12.7% loss over the past four weeks [1] - The company is experiencing strong demand trends in the residential and rental markets, supported by advanced technology and new features [2] Technology and Innovation - Zillow is leveraging AI technology, planning to introduce several advancements in 2025, focusing on enhancing visual and multimodal capabilities [2] - Generative AI will provide home shoppers with insights on financing and help real estate agents engage with potential customers [2] Financial Performance Expectations - The upcoming quarterly earnings report is expected to show earnings of $0.47 per share, reflecting a year-over-year increase of 30.6%, with revenues projected at $588.55 million, up 11.3% from the previous year [3] - The consensus EPS estimate for Zillow has remained unchanged over the last 30 days, indicating stability in earnings expectations [4] Industry Context - Zillow operates within the Zacks Financial - Mortgage & Related Services industry, where Walker & Dunlop (WD) also operates, having closed 6.5% higher recently [4] - Walker & Dunlop's EPS estimate for the upcoming report is $0.98, representing a 17.7% decrease from the previous year, while it holds a Zacks Rank of 1 (Strong Buy) [5]

Core Insights - Zillow Group, Inc. has partnered with HomeServices of America to enhance real estate agent capabilities through Zillow Showcase, an AI-powered solution [1][4] - Zillow Showcase features interactive visuals and improved discoverability, leading to increased customer engagement and interest in listings [2][3] Company Collaboration - HomeServices agents benefit significantly from Zillow Showcase, with listings selling for 2% more, adding approximately $9,000 to the average sale price [3] - Active showcase listings experience 81% more page views, 80% more saves, and 90% more shares compared to standard listings, enhancing agent effectiveness in a competitive market [3][5] Market Position and Growth Potential - The partnership with HomeServices of America, a major player in the U.S. real estate market, highlights Zillow's growing influence and the potential for long-term growth through advanced technology [4][6] - Zillow aims to introduce further AI advancements in 2025, focusing on visual and multimodal capabilities to improve home buying and selling experiences [6] Stock Performance - Zillow's stock has increased by 24.8% over the past year, contrasting with a 6% decline in the industry [7]

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