Zillow Group(Z) - 2025 Q2 - Quarterly Results

Consolidated Financial Statements This section presents Zillow Group's financial position, operational performance, and cash flow activities for the periods ended June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets The balance sheet as of June 30, 2025, shows a decrease in total assets and liabilities compared to December 31, 2024, primarily driven by changes in current assets and the settlement of convertible senior notes | Metric | Dec 31, 2024 (in millions) | June 30, 2025 (in millions) | Change (in millions) | | :-------------------------------- | :-------------------------- | :-------------------------- | :------------------- | | Total assets | $5,829 | $5,416 | $(413) | | Total liabilities | $981 | $670 | $(311) | | Total shareholders' equity | $4,848 | $4,746 | $(102) | - Current assets decreased from $2,334 million to $1,821 million, largely due to a reduction in cash and cash equivalents and short-term investments, partially offset by increases in accounts receivable and mortgage loans held for sale[2] - Current liabilities significantly decreased from $831 million to $546 million, primarily due to the settlement of $418 million in convertible senior notes, partially offset by an increase in borrowings under credit facilities[2] Condensed Consolidated Statements of Operations Zillow Group reported improved financial performance for both the three and six months ended June 30, 2025, with significant revenue growth and a shift from net loss to net income, alongside an increase in Adjusted EBITDA Three Months Ended June 30 | Metric | 2025 (in millions) | 2024 (in millions) | YoY Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Revenue | $655 | $572 | +14.5% | | Gross profit | $489 | $442 | +10.6% | | Loss from operations | $(11) | $(38) | Improved | | Net income (loss) | $2 | $(17) | Turned profitable | | Basic EPS | $0.01 | $(0.07) | Improved | | Adjusted EBITDA | $155 | $134 | +15.7% | Six Months Ended June 30 | Metric | 2025 (in millions) | 2024 (in millions) | YoY Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Revenue | $1,253 | $1,101 | +13.8% | | Gross profit | $948 | $848 | +11.8% | | Loss from operations | $(20) | $(83) | Improved | | Net income (loss) | $10 | $(40) | Turned profitable | | Basic EPS | $0.04 | $(0.17) | Improved | | Adjusted EBITDA | $308 | $259 | +18.9% | - Total share-based compensation decreased for both the three-month ($99M in 2025 vs $113M in 2024) and six-month ($196M in 2025 vs $221M in 2024) periods[3] Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, Zillow Group saw a significant increase in cash provided by operating activities and a shift from net cash used in investing activities to net cash provided, while financing activities resulted in a larger net cash outflow Six Months Ended June 30 | Cash Flow Activity | 2025 (in millions) | 2024 (in millions) | YoY Change | | :-------------------------------- | :----------------- | :----------------- | :--------- | | Net cash provided by operating activities | $191 | $135 | +41.5% | | Net cash provided by (used in) investing activities | $25 | $(207) | Shift to inflow | | Net cash used in financing activities | $(709) | $(240) | Increased outflow | | Net decrease in cash, cash equivalents and restricted cash | $(493) | $(312) | Larger decrease | | Cash, cash equivalents and restricted cash at end of period | $592 | $1,183 | -49.9% | - The increased cash outflow from financing activities was primarily driven by higher repurchases of Class A common stock and Class C capital stock ($400M in 2025 vs $301M in 2024) and the settlement of convertible senior notes ($419M in 2025 vs $89M in 2024)[5] - Investing activities improved significantly, moving from a net outflow of $207 million in 2024 to a net inflow of $25 million in 2025, largely due to higher proceeds from maturities and sales of investments and lower purchases of investments[5] Non-GAAP Financial Measures This section provides a reconciliation of non-GAAP financial measures, including adjusted net income and earnings per share, to their most directly comparable GAAP measures Non-GAAP Net Income per Share Zillow Group's non-GAAP net income and non-GAAP net income per share showed an increase for both the three and six months ended June 30, 2025, after adjusting for share-based compensation, impairment costs, loss on extinguishment of debt, and income taxes Non-GAAP Net Income and EPS (Three Months Ended June 30) | Metric | 2025 (in millions/share) | 2024 (in millions/share) | YoY Change | | :-------------------------- | :----------------------- | :----------------------- | :--------- | | Net income, adjusted | $101 | $99 | +2.0% | | Non-GAAP Basic EPS | $0.42 | $0.42 | 0% | | Non-GAAP Diluted EPS | $0.40 | $0.39 | +2.6% | Non-GAAP Net Income and EPS (Six Months Ended June 30) | Metric | 2025 (in millions/share) | 2024 (in millions/share) | YoY Change | | :-------------------------- | :----------------------- | :----------------------- | :--------- | | Net income, adjusted | $206 | $192 | +7.3% | | Non-GAAP Basic EPS | $0.85 | $0.82 | +3.7% | | Non-GAAP Diluted EPS | $0.81 | $0.75 | +8.0% | - Non-GAAP net income per share is presented as supplemental information to facilitate investors' operating performance comparisons, as it excludes certain non-cash and non-recurring items[6] Key Business Metrics This section highlights key operational metrics, including platform engagement, For Sale revenue per total transaction value, and loan origination volume Platform Engagement Metrics Zillow Group's platform engagement metrics, including visits and average monthly unique users, showed consistent growth for both the three and six months ended June 30, 2025, indicating increased user interaction Platform Engagement (Three Months Ended June 30) | Metric | 2025 (in millions) | 2024 (in millions) | % Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Visits | 2,590 | 2,495 | +4% | | Average monthly unique users | 243 | 231 | +5% | Platform Engagement (Six Months Ended June 30) | Metric | 2025 (in millions) | 2024 (in millions) | % Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Visits | 4,944 | 4,811 | +3% | | Average monthly unique users | 235 | 224 | +5% | For Sale Revenue per Total Transaction Value For the twelve months ended June 30, 2025, Zillow Group experienced growth in both For Sale revenue and Total Transaction Value (TTV), leading to an increase in For Sale revenue per TTV For Sale Revenue and TTV (Twelve Months Ended June 30) | Metric | 2025 | 2024 | % Change | | :--------------------------------------- | :--- | :--- | :--------- | | For Sale revenue (in millions) | $1,812 | $1,624 | +12% | | Total Transaction Value (TTV) (in trillions) | $1.8 | $1.6 | +6% | | For Sale revenue per TTV (in basis points) | 10.3 | 9.8 | +5% | - TTV is calculated based on the number of existing residential homes sold and their average sales price, as estimated by Zillow Group[9] Loan Origination Volume Zillow Home Loans demonstrated strong growth in loan origination volume for both purchase and refinance loans during the three and six months ended June 30, 2025, compared to the prior year Loan Origination Volume (Three Months Ended June 30) | Loan Type | 2025 (in millions) | 2024 (in millions) | % Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Purchase loan origination volume | $1,116 | $756 | +48% | | Refinance loan origination volume | $10 | $3 | +233% | | Total loan origination volume | $1,126 | $759 | +48% | Loan Origination Volume (Six Months Ended June 30) | Loan Type | 2025 (in millions) | 2024 (in millions) | % Change | | :-------------------------- | :----------------- | :----------------- | :--------- | | Purchase loan origination volume | $1,907 | $1,357 | +41% | | Refinance loan origination volume | $15 | $8 | +88% | | Total loan origination volume | $1,922 | $1,365 | +41% |