Zillow Group(US:Z)2025-10-30 20:36Financial Performance - Total revenue for Q3 2025 was $676 million, a 16.3% increase from $581 million in Q3 2024[28] - Gross profit for Q3 2025 reached $491 million, compared to $441 million in Q3 2024, reflecting a 11.4% growth[28] - Net income for Q3 2025 was $10 million, a recovery from a net loss of $20 million in Q3 2024[30] - For Sale revenue from residential properties was $435 million in Q3 2025, up from $405 million in Q3 2024, marking a 7.4% increase[28] - The company reported a loss from operations of $3 million in Q3 2025, an improvement from a loss of $45 million in Q3 2024[28] - Total revenue for the three months ended September 30, 2025, was $676 million, representing a 16% increase from $581 million in the same period of 2024[111] - The net income for the three months ended September 30, 2025, was $10 million, compared to a net loss of $20 million in the same period of 2024[95] - Adjusted EBITDA for the three months ended September 30, 2025 was $165 million, a 30% increase from $127 million in the same period in 2024[137] - Total revenue for the nine months ended September 30, 2025 increased by $247 million, or 15%, to $1.9 billion[133] Assets and Liabilities - Total current assets decreased to $2,119 million as of September 30, 2025, down from $2,334 million at the end of 2024[27] - Total liabilities decreased to $706 million as of September 30, 2025, compared to $981 million at the end of 2024[27] - Shareholders' equity increased to $4,992 million as of September 30, 2025, up from $4,848 million at the end of 2024[27] - Total assets measured at fair value on a recurring basis were $1,695 million as of September 30, 2025, compared to $2,025 million as of December 31, 2024[56] - As of September 30, 2025, outstanding borrowings under master repurchase agreements totaled $272 million, with a maximum borrowing capacity of $600 million[62] Cash Flow and Investments - Net cash provided by operating activities was $296 million for the nine months ended September 30, 2025, compared to $306 million in 2024[34] - Cash, cash equivalents, and restricted cash at the end of the period were $879 million, down from $1,075 million at the end of September 2024[34] - The company reported a net decrease in cash of $206 million during the period, compared to a decrease of $420 million in the prior year[34] - The company repurchased Class A common stock and Class C capital stock totaling $438 million in 2025, compared to $301 million in 2024[34] - The company repurchased 4.7 million shares of Class A common stock and 1.4 million shares of Class C capital stock during the nine months ended September 30, 2025, for an aggregate purchase price of $438 million[187] Revenue Breakdown - Rentals revenue increased by $51 million, or 41%, to $174 million, driven by higher quarterly revenue per average monthly rentals unique visitor[111] - Residential revenue rose by $30 million, or 7%, to $435 million, attributed to increased visits and Residential revenue per visit[115] - Mortgages revenue increased by $14 million, or 36%, to $53 million, due to a rise in mortgage originations revenue from higher total loan origination volume[115] - Total loan origination volume for the three months ended September 30, 2025, was $1,281 million, a 56% increase from $819 million in the same period of 2024[128] Expenses - Total operating expenses for Q3 2025 were $494 million, slightly higher than $486 million in Q3 2024[28] - Cost of revenue increased by $45 million, or 32%, to $185 million for the three months ended September 30, 2025[142] - Sales and marketing expenses rose by $50 million, or 9%, for the nine months ended September 30, 2025, driven by increased headcount-related expenses[152] - Technology and development expenses increased by $17 million, or 4%, for the nine months ended September 30, 2025, primarily due to higher headcount-related expenses[155] - General and administrative expenses decreased by $17 million, or 4%, for the nine months ended September 30, 2025, mainly due to lower headcount-related expenses[158] Shareholder Information - The company authorized a total of $3.5 billion for share repurchases, with $943 million remaining available as of September 30, 2025[73] - The company has authorized up to an additional $1 billion for share repurchases, increasing total cumulative repurchase authorizations to $3.5 billion as of September 30, 2025[187] Market and Economic Conditions - Zillow Group operates in a dynamic industry influenced by economic conditions, interest rates, and housing availability[39] - The company is exposed to market risks, particularly fluctuations in interest rates, which may impact mortgage loan origination volume and associated revenue[195] - Inflationary pressures may lead to increased costs in labor, marketing, and hosting, potentially affecting the company's financial condition[201] Legal and Compliance - The company has not recorded any material accruals related to ongoing legal proceedings as of September 30, 2025, indicating a stable financial position despite potential risks[82] - The company is involved in various legal proceedings, including antitrust and consumer protection claims, which may increase as the business expands[209] - As of September 30, 2025, the company's disclosure controls and procedures were evaluated as effective by the CEO and CFO[203] - No changes in internal control over financial reporting were identified that could materially affect the company's financial reporting[204]