Core Insights - Zillow Group reported first-quarter 2025 adjusted EPS of 41 cents, missing the Zacks Consensus Estimate of 43 cents, but reflecting a year-over-year increase of 13.9% [1] - Total revenues reached $598 million, exceeding the Zacks Consensus Estimate of $588.6 million, and showing a 13% year-over-year improvement [2] - The company experienced growth in for-sale revenues, rental revenues, and mortgage revenues, although increased sales and marketing expenses impacted overall results [1][4] Financial Performance - For-sale revenues increased by 8% to $458 million, while residential revenues rose by 6.1% to $417 million, supported by growth in premier agent offerings and new construction [2] - Rental revenues grew by 33% year over year to $129 million, driven by a 47% increase in multifamily revenue [3] - Adjusted EBITDA margin improved by 200 basis points to 26%, amounting to $153 million, due to revenue growth and cost discipline [3] Expenses and Costs - Sales and marketing expenses rose by 19.3% year over year to $198 million, attributed to higher personnel and marketing costs [4] - Cost of revenues increased by 13% year over year to $139 million, influenced by higher amortization of website development costs and lead acquisition costs [4] Balance Sheet - Zillow ended the first quarter of 2025 with $1.6 billion in cash and investments, a decrease from $1.9 billion at the end of the previous quarter [5] Future Outlook - For Q2 2025, Zillow expects total revenues between $635-650 million and adjusted EBITDA between $140-155 million [6] - For-sale revenues are projected to improve in the mid-single digits, with rental revenues expected to increase by over 35% year over year [7] - The company anticipates mid-teens revenue growth for 2025, with rental revenues expected to grow around 40% year over year [8]

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]

Core Insights - Zillow 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, resulting in an earnings surprise of -4.65% [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] - Zillow shares have declined approximately 9.3% since the beginning of the year, compared to a decline of -4.7% for the S&P 500 [3] Earnings Outlook - 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] - The estimate revisions trend for Zillow is currently unfavorable, leading to a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Services industry, to which Zillow belongs, is currently ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Financial Data and Key Metrics Changes - Zillow reported total Q1 revenue of $598 million, up 13% year over year, exceeding expectations [11][27] - Adjusted EBITDA for Q1 was $153 million, with an EBITDA margin of 26%, a 200 basis point improvement year over year [12][28] - The company achieved positive GAAP net income of $8 million, representing 1% of revenue [28][26] Business Line Data and Key Metrics Changes - For Sale category revenue was $458 million, up 8% year over year, with residential revenue growing 6% and mortgages revenue increasing 32% [11][30] - Rentals revenue reached an all-time high of $129 million, up 33% year over year, driven primarily by multifamily revenue growth of 47% [19][30] Market Data and Key Metrics Changes - Zillow had 227 million average monthly unique users in Q1, maintaining a significant lead in the residential real estate market [9] - The company reported 37 million unique visitors to Zillow Rentals in March, solidifying its position as renters' number one preference [21] Company Strategy and Development Direction - Zillow is focused on executing its differentiated housing super app strategy, aiming to monetize a larger share of the total addressable market [7][12] - The company is expanding its enhanced markets, with a goal of increasing connections within these markets to over 35% by the end of the year [13][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full-year 2025 goals of low to mid-teens revenue growth and continued EBITDA margin expansion despite macroeconomic challenges [7][34] - The company anticipates accelerating rentals revenue growth, projecting a 40% increase for the full year 2025 [35][36] Other Important Information - Zillow's cash and investments at the end of Q1 were $1.6 billion, down from $1.9 billion, primarily due to share repurchases [32] - The board approved an additional $1 billion share repurchase authorization, reflecting confidence in the company's financial position [34] Q&A Session Summary Question: What is driving the accelerating growth in the rentals business? - Management highlighted the execution of their strategy to build a comprehensive marketplace, resulting in increased inventory and brand preference among renters [43][45] Question: How should growth be assessed relative to the market? - Management noted that Zillow's growth outperformed the market, particularly in the residential segment, despite macroeconomic noise [50][52] Question: What are the mechanics of the partnership with Redfin? - Management clarified that there was no transfer of contracts; Zillow had to win the business, which resulted in significant property count growth [70][72] Question: What is the industry reaction to the new listing access standards? - Management reported positive industry support for the standards, which promote transparency in the real estate market [96] Question: What factors contributed to the lower than expected EBITDA expenses in Q1? - Management indicated slower hiring and lower marketing expenses than anticipated were the primary reasons for the variance [98]

Financial Data and Key Metrics Changes - Zillow reported total Q1 revenue of $598 million, up 13% year over year, exceeding expectations by $15 million [9][25] - Adjusted EBITDA for Q1 was $153 million, with an EBITDA margin of 26%, reflecting a 200 basis point year over year improvement [11][25] - The company achieved positive GAAP net income of $8 million, representing 1% of revenue, marking a significant milestone [26] Business Line Data and Key Metrics Changes - For Sale category revenue was $458 million, up 8% year over year, with residential revenue growing 6% to $417 million and mortgages revenue increasing 32% to $41 million [9][27] - Rentals revenue reached an all-time high of $129 million, up 33% year over year, driven primarily by multifamily revenue growth of 47% [10][28] - The number of multifamily properties on Zillow increased by 38% year over year, reaching 55,000 by the end of Q1 [18][28] Market Data and Key Metrics Changes - Zillow's average monthly unique users reached 227 million, significantly outpacing competitors with four times the app engagement [7] - The company reported 37 million unique visitors to Zillow Rentals in March, solidifying its position as renters' number one preference [19] Company Strategy and Development Direction - Zillow is focused on executing its differentiated housing super app strategy, aiming to monetize a larger share of the total addressable market [6][9] - The company is expanding its enhanced markets, with a goal of increasing connections within these markets to over 35% by the end of the year [12][83] - Zillow is integrating its Premier Agent and Zillow Home Loans offerings to create a seamless experience for buyers and sellers [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving full year 2025 goals of low to mid-teens revenue growth and continued EBITDA margin expansion despite macroeconomic challenges [6][23] - The company anticipates accelerating rentals revenue growth of approximately 40% for the full year 2025, driven by strong demand and strategic partnerships [32][33] Other Important Information - Zillow's cash and investments at the end of Q1 were $1.6 billion, down from $1.9 billion, primarily due to share repurchases [30] - The board approved an additional $1 billion share repurchase authorization, reflecting confidence in the company's financial position [31] Q&A Session Summary Question: What is driving the accelerating revenue growth in the rentals business? - Management highlighted the execution of their strategy to build a comprehensive marketplace, resulting in increased inventory and audience engagement [40][42] Question: How should investors assess Zillow's growth relative to the market? - Management noted that Zillow's growth outperformed the market, particularly in the residential and for sale categories, despite macroeconomic noise [48][50] Question: What are the mechanics of the partnership with Redfin? - Management clarified that there was no transfer of contracts; Zillow had to win the business, which has resulted in significant property count growth [66][72] Question: What is the industry reaction to the new listing access standards? - Management reported positive early reactions from the industry, with many brokerages supporting the principles of transparency in real estate [96] Question: What factors contributed to the lower than expected EBITDA expenses in Q1? - Management indicated slower hiring and lower marketing expenses than anticipated were the primary reasons for the variance [98]

[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)

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 001-36853 ZILLOW GROUP, INC. (Exact name of registrant as specified in its charter) _____________________________________________________ Washington 47-1645716 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________________________ FORM 10-Q _ ...

Reported Consolidated Results | | | Three Months Ended March | | | | --- | --- | --- | --- | --- | | | | 31, | | | | | | 2025 | | 2024 | | Revenue | $ | 598 | $ | 529 | | Cost of revenue (1) | | 139 | | 123 | | Gross profit | | 459 | | 406 | | Operating expenses: | | | | | | Sales and marketing (1) | | 198 | | 166 | | Technology and development (1) | | 149 | | 147 | | General and administrative (1) | | 121 | | 132 | | Impairment costs | | — | | 6 | | Total operating expenses | | 468 | | 451 | | Loss from op ...

[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%** |