Zillow Group(ZG) - 2025 Q2 - Quarterly Results

Financial Statements Condensed Consolidated Balance Sheets The balance sheet provides a snapshot of Zillow Group's financial position, showing a decrease in total assets and total liabilities from December 31, 2024, to June 30, 2025, while shareholders' equity also slightly declined | Metric | June 30, 2025 (in millions) | December 31, 2024 (in millions) | Change (in millions) | | :-------------------------------- | :----------------------------- | :------------------------------- | :------------------- | | Total assets | $5,416 | $5,829 | $(413) | | Total liabilities | $670 | $981 | $(311) | | Total shareholders' equity | $4,746 | $4,848 | $(102) | | Cash and cash equivalents | $587 | $1,082 | $(495) | | Short-term investments | $571 | $776 | $(205) | | Convertible senior notes (current) | — | $418 | $(418) | - Current assets decreased by $513 million, primarily driven by a significant reduction in cash and cash equivalents and short-term investments[2] - Current liabilities decreased by $285 million, largely due to the settlement of convertible senior notes[2] Condensed Consolidated Statements of Operations Zillow Group reported a return to net income for the three and six months ended June 30, 2025, reversing losses from the prior year periods, driven by revenue growth and reduced operating losses despite increased cost of revenue and sales and marketing expenses | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Change (YoY) | | :-------------------------- | :------------------------------------------- | :------------------------------------------- | :----------- | | Revenue | $655 | $572 | +14.5% | | Gross profit | $489 | $442 | +10.6% | | Loss from operations | $(11) | $(38) | +71.1% | | Net income (loss) | $2 | $(17) | N/A (from loss to income) | | Basic EPS | $0.01 | $(0.07) | N/A | | Diluted EPS | $0.01 | $(0.07) | N/A | | Adjusted EBITDA | $155 | $134 | +15.7% | | Metric | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | Change (YoY) | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :----------- | | Revenue | $1,253 | $1,101 | +13.8% | | Gross profit | $948 | $848 | +11.8% | | Loss from operations | $(20) | $(83) | +75.9% | | Net income (loss) | $10 | $(40) | N/A (from loss to income) | | Basic EPS | $0.04 | $(0.17) | N/A | | Diluted EPS | $0.04 | $(0.17) | N/A | | Adjusted EBITDA | $308 | $259 | +18.9% | - Total share-based compensation decreased by $14 million for the three months ended June 30, 2025, and by $25 million for the six months ended June 30, 2025, compared to the prior year periods[3] Condensed Consolidated Statements of Cash Flows For the six months ended June 30, 2025, Zillow Group generated positive cash flow from operating activities, significantly improved cash flow from investing activities, but experienced a substantial increase in cash used in financing activities, leading to an overall net decrease in cash | Cash Flow Activity | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | Change (YoY) | | :-------------------------------- | :------------------------------------------- | :------------------------------------------- | :----------- | | Net cash provided by operating activities | $191 | $135 | +$56 | | Net cash provided by (used in) investing activities | $25 | $(207) | +$232 | | Net cash used in financing activities | $(709) | $(240) | $(469) | | Net decrease in cash, cash equivalents and restricted cash | $(493) | $(312) | $(181) | | Cash, cash equivalents and restricted cash at end of period | $592 | $1,183 | $(591) | - The significant increase in cash used in financing activities was primarily due to higher repurchases of Class A common stock and Class C capital stock ($400 million vs. $301 million) and the settlement of convertible senior notes ($419 million vs. $89 million)[5] - Investing activities shifted from a net use of cash to a net provision of cash, largely driven by a decrease in purchases of investments and an increase in proceeds from maturities and sales of investments[5] Non-GAAP Financial Measures Non-GAAP Net Income per Share Zillow Group presents non-GAAP net income per share as a supplemental measure, excluding share-based compensation, impairment costs, loss on extinguishment of debt, and income taxes, showing consistent positive non-GAAP net income and EPS for both the three and six months ended June 30, 2025 and 2024 | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | Change (YoY) | | :-------------------------- | :------------------------------------------- | :------------------------------------------- | :----------- | | Net income (loss), as reported | $2 | $(17) | N/A | | Share-based compensation | $99 | $113 | $(14) | | Non-GAAP net income, adjusted | $101 | $99 | +$2 | | Non-GAAP net income per share (Basic) | $0.42 | $0.42 | 0% | | Non-GAAP net income per share (Diluted) | $0.40 | $0.39 | +2.6% | | Metric | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | Change (YoY) | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :----------- | | Net income (loss), as reported | $10 | $(40) | N/A | | Share-based compensation | $196 | $221 | $(25) | | Non-GAAP net income, adjusted | $206 | $192 | +$14 | | Non-GAAP net income per share (Basic) | $0.85 | $0.82 | +3.7% | | Non-GAAP net income per share (Diluted) | $0.81 | $0.75 | +8.0% | - The primary adjustment for non-GAAP net income is share-based compensation, which was $99 million for Q2 2025 and $196 million for H1 2025[7] Key Operating Metrics Platform Engagement Metrics Zillow Group's platform engagement metrics show continued growth in both visits and average monthly unique users across its mobile apps and websites for the three and six months ended June 30, 2025, compared to the prior year | Metric | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 2024 (in millions) | % Change | | :-------------------------- | :------------------------------------------- | :------------------------------------------- | :------- | | Visits | 2,590 | 2,495 | 4% | | Average monthly unique users | 243 | 231 | 5% | | Metric | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 2024 (in millions) | % Change | | :-------------------------- | :------------------------------------------ | :------------------------------------------ | :------- | | Visits | 4,944 | 4,811 | 3% | | Average monthly unique users | 235 | 224 | 5% | - The growth in visits and unique users indicates sustained user interest and engagement with Zillow, Trulia, StreetEasy, and HotPads platforms[8][9] Real Estate Transaction Metrics For the twelve months ended June 30, 2025, Zillow Group experienced growth in For Sale revenue and Total Transaction Value (TTV), alongside an increase in the For Sale revenue per TTV, indicating improved monetization efficiency | Metric | Twelve Months Ended June 30, 2025 | Twelve Months Ended June 30, 2024 | % Change | | :------------------------------------- | :-------------------------------- | :-------------------------------- | :------- | | For Sale revenue (in millions) | $1,812 | $1,624 | 12% | | Total Transaction Value (in trillions) | $1.8 | $1.6 | 6% | | For Sale revenue per Total Transaction Value (in basis points) | 10.3 | 9.8 | 5% | - The increase in For Sale revenue per TTV suggests Zillow Group is more effectively capturing value from real estate transactions on its platform[9] Loan Origination Volume Zillow Home Loans demonstrated strong growth in loan origination volume for both purchase and refinance loans for the three and six months ended June 30, 2025, reflecting increased activity in its mortgage segment | Loan Type | Three Months Ended June 30, 2025 (in millions) | Three Months Ended June 30, 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 Type | Six Months Ended June 30, 2025 (in millions) | Six Months Ended June 30, 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% | - The substantial growth in both purchase and refinance loan volumes indicates a robust performance for Zillow Home Loans, outpacing overall market trends in some areas[10]