Group 1 - The company reported revenue of $654 million, exceeding estimates of $650.29 million, while adjusted EPS was 39 cents, slightly below the expected 40 cents [1] - CEO Jeremy Wacksman highlighted strong results for the fourth quarter and the entire year of 2025, achieving all financial targets including positive net income and gaining market share in both For Sale and Rentals [1] Group 2 - For the first quarter, the company expects revenue to be between $700 million and $710 million, surpassing estimates of $690.33 million [2] - Following the earnings announcement, Zillow shares fell by 17.2%, trading at $45.04 [2] - Analysts adjusted their price targets for Zillow after the earnings report [2]

Core Insights - Zillow Group reported Q4 2025 adjusted EPS of 39 cents, missing the Zacks Consensus Estimate of 42 cents, but showing significant year-over-year growth [1][8] - Total revenues reached $654 million, exceeding the Zacks Consensus Estimate of $649.8 million, and reflecting an 18.1% year-over-year increase [1][2] Revenue Breakdown - For-sale revenues in Q4 increased by 11% to $475 million, with residential revenues growing 8% year over year to $418 million, supported by agent and software offerings [3] - Mortgage revenues surged 39% year over year to $57 million, driven by a 67% increase in purchase loan origination volume to $1.5 billion [3] - Rental revenues grew 44.8% year over year to $168 million, primarily due to a 63% increase in multifamily revenue [4] Cost and Expenses - Total select operating expenses and cost of revenues rose 7% year over year to $665 million, attributed to higher lead acquisition costs and legal expenses [5] - Adjusted EBITDA margin improved by 260 basis points to 23% of revenues, amounting to $149 million, due to effective cost management [4] Balance Sheet and Share Repurchase - Zillow ended Q4 2025 with $1.3 billion in cash and investments, a decrease from $1.4 billion in the previous quarter [6] - The company repurchased 3.4 million shares for $232 million during the fourth quarter [6] 2026 Outlook - For Q1 2026, Zillow anticipates total revenues between $700-710 million and adjusted EBITDA of $160 to $175 million [7] - For-sale revenues are expected to slightly exceed the 11% growth achieved in Q4 2025, with rental revenues projected to rise around 40% year over year [7][10] - Management forecasts mid-teens revenue growth and adjusted EBITDA margin expansion for 2026 [10]

Core Insights - Zillow Group, Inc. reported mixed fourth-quarter 2025 results, with revenues exceeding estimates but adjusted earnings falling short [1][8] Financial Performance - The company achieved a GAAP net income of $3 million or 1 cent per share, a significant improvement from a net loss of $52 million or 22 cents per share in the same quarter last year [2] - Non-GAAP net income for the quarter was $98 million or 39 cents per share, up from $68 million or 27 cents per share year-over-year, but missed the Zacks Consensus Estimate of 42 cents per share [2] - For the full year 2025, GAAP net income was $23 million or 9 cents per share, compared to a net loss of $112 million or 48 cents per share in 2024 [3] - Non-GAAP net income for 2025 was $417 million or $1.64 per share, an increase from $349 million or $1.38 per share in 2024 [3] Revenue Growth - Quarterly revenues rose to $654 million from $554 million in the prior year, surpassing the Zacks Consensus Estimate of $650 million [4] - For 2025, total revenues increased to $2.58 billion from $2.24 billion in 2024 [4] - Residential revenues grew by 8% to $418 million, driven by strong performance in agent and software offerings [4] - The Mortgages segment generated $57 million in revenues, up from $41 million year-over-year, primarily due to a 67% increase in purchase loan origination [5] - Rental revenues surged by 45% to $168 million, largely due to a 63% year-over-year growth in multifamily revenues [5] Profitability Metrics - Gross profit for the quarter was $476 million, compared to $420 million in the prior year, with margins of 73% and 76% respectively [6] - Operating expenses decreased to $487 million from $489 million year-over-year [6] - Adjusted EBITDA was $149 million, up from $112 million a year ago, with margins of 23% and 20% respectively [6] Cash Flow and Liquidity - In Q4, Zillow generated $72 million in cash from operations, down from $122 million in the previous year [9] - For 2025, cash generated from operating activities was $368 million, compared to $428 million in 2024 [9] - As of December 31, 2025, the company had $768 million in cash and cash equivalents, down from $1.1 billion a year ago [9] Future Outlook - For Q1 2026, Zillow expects total revenues between $700 million and $710 million, with rental revenues projected to grow by 40% year-over-year [10] - For 2026, the company anticipates mid-teens revenue growth, with rental revenues expected to rise approximately 30% year-over-year [11]

Core Insights - Zillow Group reported strong Q4 2025 results with total revenue increasing by 18% year over year, contributing to a full-year revenue growth of 16% [8][20] - The company achieved full-year profitability with a GAAP net income of $23 million and expanded EBITDA margins by nearly 200 basis points [9][20] - Strategic initiatives include expanding the enhanced market strategy, integrating AI into their ecosystem, and rolling out Zillow Pro to support agents [10][19] Financial Performance - Q4 revenue reached $654 million, up 18% year over year, with EBITDA of $149 million and a margin of 23%, which is 260 basis points higher than the previous year [20] - For sale revenue grew 11% year over year in Q4 to $475 million, with residential revenue up 8% and mortgages revenue increasing by 39% [20] - Rentals revenue grew 45% year over year in Q4, driven by a 63% increase in multifamily revenue, reaching $168 million [20] Strategic Initiatives - The company is focusing on enhancing its market strategy, which includes integrating technology to improve the real estate transaction process for consumers and professionals [19][20] - Zillow Home Loans has seen double-digit adoption rates, contributing to strong growth in purchase originations [19][20] - The rollout of Zillow Pro is expected to help agents manage their clients more effectively and improve lead conversion [19][30] Market Position and Growth - Zillow's rental segment showed significant growth, with a 45% increase in Q4 revenue, and the company estimates its share of rental listings increased to 63% [11][20] - The company is optimistic about its long-term strategy, aiming for mid-teens revenue growth in 2026 and continued EBITDA margin expansion [13][20] - Zillow's unique position in the market is supported by a trusted brand and a large, engaged consumer audience, with 80% of traffic coming directly to the platform [19]

Financial Performance - Zillow reported GAAP profitability in 2025, with revenue growth outpacing cost growth, positioning the company for sustainable profitable growth[36]. - Residential revenue accounted for 66% of total revenue for the year ended December 31, 2025, while rentals revenue accounted for 24% of total revenue, representing 39% growth compared to the year ended December 31, 2024[81]. - As of December 31, 2025, the company had an accumulated deficit of $1.9 billion, indicating significant past operating losses[188]. - The company’s growth rate may decline in the future due to various factors, including the maturation of its business and challenges in executing its growth strategy[188]. - The company’s ability to repay its debt obligations depends on future performance and cash flow generation, which may not be sufficient[190]. Market and User Engagement - The Zillow Group portfolio attracted 259 million unique users in July 2025 and approximately 9.6 billion visits throughout the year[33]. - Zillow Rentals had 2.4 million average monthly active rental listings in 2025, a 44% increase compared to December 31, 2024[31]. - Zillow Rentals has an average of 2.4 million monthly active rental listings, including 72,000 multifamily properties, and attracted 33 million unique visitors per month in 2025[36]. - Approximately 57% of sellers are also buying at the same time, and 37% of renters planning to move within the next year intend to buy their next home[32]. Product and Service Development - Zillow's Enhanced Market experience delivered over 40% increase in leads to agent partners by the end of 2025[31]. - Zillow Home Loans achieved double-digit customer adoption rates across Enhanced Markets in 2025[34]. - In 2025, Zillow expanded its cost-transparency features across the Rentals network, providing renters with more information about move-in and monthly costs[31]. - The company aims to explore additional opportunities in home insurance, renovation services, and moving services in the future[38]. - Continuous innovation in products and services is necessary to meet customer expectations; failure to do so may lead to customer dissatisfaction and loss of market share[92]. Regulatory and Compliance Risks - The business is subject to regulatory scrutiny and potential litigation, which could result in fines, penalties, and reputational harm[72]. - Compliance with MLS rules is essential for maintaining access to listings data, and failure to comply could lead to restrictions or termination of access, impacting business operations[89]. - The company faces risks related to regulatory compliance, with potential changes in laws affecting operations and requiring additional resources for compliance[161]. - Zillow must maintain various licenses for its real estate and mortgage services, which are subject to stringent state and federal regulations[165]. - The company’s operations may be adversely affected if it fails to comply with evolving data privacy laws, leading to potential government enforcement actions and litigation[182]. Cybersecurity and Data Privacy - The company is subject to various cybersecurity threats, including phishing and ransomware attacks, which could compromise sensitive data and harm its reputation[119]. - The company relies on various vendors for processing and storing sensitive data, which introduces cybersecurity risks and vulnerabilities, potentially harming business operations and financial condition[124]. - Cybersecurity risks are inherent to the company's operations and could materially affect its business strategy and financial condition[223]. - The company has a third-party service provider management program to assess cybersecurity risks associated with third-party providers[229]. - The information security team conducts annual cybersecurity awareness training for employees to help prevent and respond to cybersecurity incidents[226]. Competitive Landscape - The company faces intense competition from various real estate service providers, which may have advantages in resources and brand recognition, potentially harming the company's market position[94]. - The ability to attract and retain real estate partners is crucial, as spending from these partners directly affects revenue generation[78]. - The company may not be able to maintain relationships with real estate listing providers, which could limit access to essential data for its services[85]. - The company’s success depends on its ability to innovate and compete effectively in a rapidly changing technological landscape[86]. Financial and Operational Risks - The business is impacted by low housing inventory, elevated mortgage interest rates, and inflationary conditions, which have affected demand for products and services[71]. - The company may face significant operating losses and may not be able to sustain or increase revenue growth or profitability over the long term[72]. - Changes in government-sponsored entities' operations could adversely affect Zillow Home Loans' liquidity and overall financial condition[142]. - The company faces challenges in proactively addressing evolving cybersecurity threats, which could result in undetected vulnerabilities being exploited[127]. - Disruptions in service on mobile apps or websites could damage the company's reputation and result in customer loss, affecting overall financial performance[132]. Intellectual Property and Acquisitions - The company holds 224 patents and has 225 pending patent applications, focusing on proprietary valuation models and data management techniques[46]. - The company relies on intellectual property protections, but challenges in safeguarding these rights could harm its competitive position and financial condition[150]. - The company is involved in disputes regarding the accuracy of its Zestimate and Rent Zestimate valuations, which could lead to costly litigation and impact its financial condition[105]. - The company has acquired Enchant, LLC, d/b/a Follow Up Boss in December 2023, as part of its strategy to evaluate potential acquisitions and investments[108]. Capital Structure and Stock Performance - Zillow's Class A common stock price ranged from $32.82 to $86.76 per share, while Class C capital stock ranged from $33.68 to $90.32 per share over the last three fiscal years[209]. - The company's capital structure concentrates voting control with founders, with Richard Barton and Lloyd Frink holding approximately 35% and 22.7% of voting power, respectively[211]. - Future sales of stock could lead to a decline in stock price, and there are no contractual restrictions on issuing additional shares, which may cause dilution[213]. - The company may face challenges in raising additional capital on acceptable terms, which could hinder growth and operational plans[200].

Market Performance and User Engagement - Zillow's Zestimate feature had a median error rate of 1.8% for homes listed for sale and 7.2% for off-market homes in 2025[30]. - Zillow Rentals had 2.4 million average monthly active rental listings in 2025, a 44% increase compared to December 31, 2024[31]. - Zillow's Enhanced Market experience delivered over 40% increase in leads to agent partners by the end of 2025[31]. - The Zillow Group portfolio attracted 259 million unique users in July 2025 and approximately 9.6 billion visits throughout the year[33]. - Zillow Rentals ranked 1 in partner satisfaction for return on marketing investment in its category[34]. - Zillow Rentals has an average of 2.4 million monthly active rental listings, including 72,000 multifamily properties, and attracted 33 million unique visitors per month in 2025[36]. Financial Performance and Growth Potential - Zillow's total addressable market includes transaction fees from residential real estate transactions and rentals marketplace, indicating significant growth potential[35]. - The total addressable market (TAM) for the residential real estate industry is estimated at $202 billion, with significant contributions from transaction fees, mortgage origination revenue, and rental advertising spend[37]. - In 2025, approximately 4.8 million homes were sold in the U.S., with over $1.3 trillion in purchase mortgage origination volume[41]. - The company reported GAAP profitability in 2025, with revenue growth outpacing cost growth, positioning it for sustainable profitable growth[36]. - Residential revenue accounted for 66% of total revenue for the year ended December 31, 2025, while rentals revenue accounted for 24% of total revenue, representing 39% growth compared to the year ended December 31, 2024[81]. Operational Challenges and Risks - The business is impacted by low housing inventory, elevated mortgage interest rates, and inflationary conditions, which have affected demand for products and services[71]. - The company may face significant operating losses and may not be able to sustain or increase revenue growth or profitability over the long term[72]. - Changes in industry practices due to the NAR Settlement may alter how commissions are negotiated and could impact financial performance[75]. - The company relies on third-party services for critical business functions, and any disruption could lead to significant losses[70]. - The ability to attract and retain real estate partners is crucial, as spending reductions could adversely affect financial results[78]. - The company is subject to regulatory scrutiny and potential litigation, which could disrupt operations and harm reputation[72]. - Future changes in pricing or lead delivery methodologies may negatively impact revenue opportunities and partner spending[84]. - The company may not be able to maintain relationships with real estate listing providers, which could limit access to essential data[85]. - The business is exposed to risks related to economic conditions, including recessionary pressures and changes in consumer confidence[79]. Cybersecurity and Data Privacy - The company is subject to various cybersecurity threats, including ransomware attacks, which could disrupt operations and lead to significant losses[122]. - The company relies on various vendors for processing and storing sensitive data, which introduces cybersecurity risks and vulnerabilities, potentially harming business operations and financial condition[124]. - Security incidents could disrupt the company's ability to provide services, leading to unauthorized access or loss of sensitive data, which may adversely affect customer trust and engagement[125]. - The company faces challenges in proactively addressing evolving cybersecurity threats, which could result in undetected vulnerabilities being exploited[127]. - The company is subject to various data privacy obligations, including the Payment Card Industry Data Security Standard (PCI DSS), with potential penalties ranging from $5,000 to $100,000 per month for noncompliance[179]. - The company may be adversely affected if it fails to comply with data privacy laws, leading to significant fines, penalties, and reputational harm[182]. Strategic Initiatives and Future Opportunities - Zillow aims to explore additional opportunities in home insurance, home renovation services, moving services, and home appraisal services[38]. - The company has invested over 83,000 hours in employee training and development through its internal platforms in 2025[55]. - The company has acquired Enchant, LLC, d/b/a Follow Up Boss in December 2023, indicating ongoing strategic acquisitions to enhance its business[108]. - The company’s fraud detection processes may not fully prevent fraudulent activities, which could harm its reputation and business results[110]. - Continuous innovation in products and services is necessary to meet customer expectations; failure to do so may result in customer dissatisfaction and loss of market share[92]. Intellectual Property and Compliance - Zillow's intellectual property is critical to its success, and failure to protect it adequately could harm brand value and financial condition, especially regarding proprietary technologies like the Zestimate home valuation model[150]. - The company may face costly intellectual property disputes, which could require significant resources to defend and potentially harm business operations and financial results[155]. - Regulatory scrutiny of AI and automated underwriting practices may impact Zillow's ability to adapt its business and maintain compliance, affecting financial condition and operations[166]. - Zillow holds multiple real estate brokerage licenses and must comply with various local, state, and federal regulations to maintain these licenses, which could increase operational costs[167]. Financial Structure and Capital Management - As of December 31, 2025, the company had an accumulated deficit of $1.9 billion, indicating significant past operating losses[188]. - The company has a maximum borrowing capacity of $600 million from mortgage credit facilities as of December 31, 2025, and entered into a $500 million Revolving Credit Facility in January 2026, none of which has been drawn yet[192]. - The company may face increased costs in the future as it continues to invest in business development, including expansion of Zillow Home Loans, product and service development, and technology infrastructure[191]. - The company expects fluctuations in results of operations due to various factors, including seasonal variances in home sales and economic conditions[203]. - The company may issue additional equity or securities convertible into equity, which could have a dilutive effect on existing shareholders[215].

Core Insights - Zillow Group reported revenue of $654 million for the quarter ended December 2025, marking an 18.1% increase year-over-year, with EPS at $0.39 compared to $0.27 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $649.76 million by 0.65%, while the EPS fell short of the consensus estimate of $0.42 by 6.25% [1] Financial Performance Metrics - Average Monthly Unique Users for Zillow's mobile applications and websites reached 221 million, surpassing the estimated 215.1 million [4] - Total visits to mobile applications and websites were 2.1 billion, slightly above the average estimate of 2.11 billion [4] - Residential revenue was reported at $418 million, exceeding the average estimate of $415.98 million, reflecting an 8% year-over-year increase [4] - Revenue from other segments was $11 million, compared to the average estimate of $11.62 million, showing a 10% year-over-year increase [4] - Mortgage revenue reached $57 million, surpassing the average estimate of $50.89 million, with a significant year-over-year increase of 39% [4] - Rental revenue was reported at $168 million, slightly below the estimated $172.17 million, but still reflecting a substantial year-over-year increase of 44.8% [4] Stock Performance - Zillow's shares have declined by 19.7% over the past month, contrasting with the Zacks S&P 500 composite, which remained unchanged [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 18% year-over-year to $654 million, near the top end of the outlook range [24] - Full-year 2025 total revenue grew by 16%, consistent with the mid-teens growth outlook [30] - EBITDA for Q4 was $149 million, with a margin of 23%, up 260 basis points year-over-year [24] - Full-year 2025 EBITDA grew by 25% year-over-year, with a net income margin expansion of 990 basis points [30][32] Business Line Data and Key Metrics Changes - For Sale revenue grew by 11% year-over-year in Q4 to $475 million, with residential revenue up 8% and mortgages revenue up 39% [25][27] - Rentals revenue in Q4 was $168 million, accelerating to 45% year-over-year growth, driven by a 63% increase in multifamily revenue [28][29] - For Sale revenue for the full year reached $1.9 billion, up 9% from 2024, while Rentals revenue totaled $630 million, up 39% from 2024 [10][30] Market Data and Key Metrics Changes - Zillow's share of rental listings increased to 63% in 2025, up from 54% in 2024 [21] - Average monthly unique visitors for Zillow Rentals reached 31 million in Q4 [20] - The housing market grew by 3% in 2025, while Zillow's revenue outperformed the market by 1,300 basis points [30] Company Strategy and Development Direction - The company is focused on integrating and digitizing the real estate transaction process to improve consumer experiences and professional productivity [6][11] - Zillow Pro, a new offering, aims to help agents manage their entire business and improve lead conversion [71] - The strategy emphasizes building a comprehensive marketplace for rentals and modernizing the rental transaction process [17][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and does not expect legal challenges to materially impact financial performance [22][66] - The company anticipates continued growth in 2026, with mid-teens revenue growth expected and a focus on enhancing the rental business [36][38] - Management highlighted improvements in affordability in the housing market, which could drive broader recovery over time [39] Other Important Information - The company reported $23 million of GAAP net income for the full year, achieving full-year profitability [10] - Share-based compensation expense decreased by 13% year-over-year, contributing to net income growth [32][42] - The company repurchased $670 million of shares throughout 2025, returning $1.1 billion to shareholders [34][35] Q&A Session Summary Question: Can you elaborate on rental trends and opportunities? - Management indicated that the growth in rentals is due to a unique strategy focused on organizing various types of supply, including long-tail listings, which drives audience engagement and revenue growth [46][47] Question: How do you view the impact of recent industry consolidation? - Management does not expect any risk or impact from industry consolidation, as the majority of sellers and agents prefer broad exposure for their listings [55][56] Question: Is there any change in approach due to legal challenges? - Management confirmed that there are no expected changes to the business strategy due to ongoing legal challenges, maintaining confidence in their long-term approach [66][67] Question: What is the status of Zillow Pro and its impact on lead conversion? - Zillow Pro is currently in beta testing, with plans for nationwide expansion in the second half of the year, aimed at improving agent efficiency and conversion rates [71][72]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 18% year-over-year, reaching $654 million, near the top end of the outlook range [24][35] - Full-year 2025 total revenue grew by 16%, consistent with the mid-teens growth outlook [30] - EBITDA for Q4 was $149 million, with a margin of 23%, up 260 basis points year-over-year [24][30] - The company reported $23 million of GAAP net income for the full year, achieving full-year profitability [10][24] Business Line Data and Key Metrics Changes - For Sale revenue grew by 11% year-over-year in Q4 to $475 million, with residential revenue up 8% and mortgages revenue up 39% [10][25] - Rentals revenue in Q4 was $168 million, up 45% year-over-year, driven by a 63% increase in multifamily revenue [10][27] - For Sale revenue for the full year reached $1.9 billion, up 9% from 2024 [10][11] Market Data and Key Metrics Changes - Zillow Rentals had an average of 2.5 million monthly active rental listings in Q4, with a market share increase to 63% from 54% in 2024 [19][20] - The company attracted 31 million average monthly unique visitors in Q4, reinforcing its position as the preferred platform for renters [20] Company Strategy and Development Direction - Zillow is focused on integrating and digitizing the real estate transaction process, enhancing customer experiences and improving productivity for real estate professionals [6][11] - The company aims to achieve a $1 billion incremental revenue target in For Sale, supported by continuous improvements in customer experiences and growth in Enhanced Markets [12][21] - Zillow Pro, a new offering for agents, is expected to enhance lead conversion and agent adoption of CRM tools [16][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and does not expect legal challenges to materially impact financial positions or long-term strategies [22][62] - The company anticipates continued growth across its business, with mid-teens revenue growth expected for 2026 and approximately 30% growth in rentals [35][37] - Management highlighted improvements in housing affordability as a positive indicator for future market recovery [38] Other Important Information - The company repurchased $670 million of shares throughout 2025, returning a total of $1.1 billion to shareholders [33][34] - Legal expenses were noted as a factor impacting EBITDA margins, with expectations of elevated legal costs in 2026 [36][70] Q&A Session Summary Question: Can you elaborate on rental trends and opportunities? - Management indicated that the growth in rentals is driven by a unique strategy focused on organizing various types of supply, leading to increased audience engagement and revenue growth [45][46] Question: How do you view the impact of recent industry consolidation? - Management does not expect any significant risk or impact from industry consolidation, as the majority of sellers and agents prefer broad exposure for listings [52][53] Question: Will legal challenges affect Zillow's business strategy? - Management confirmed that no meaningful changes to the business strategy are expected due to legal challenges, maintaining confidence in their approach [62][63] Question: What is the status of Zillow Pro and its impact on lead conversion? - Zillow Pro is currently in beta testing, with plans for nationwide expansion in the second half of the year, expected to enhance agent efficiency and conversion rates [66][67]

Financial Data and Key Metrics Changes - In Q4 2025, total revenue increased by 18% year-over-year to $654 million, near the top end of the outlook range [25] - Full-year 2025 total revenue grew by 16%, consistent with the mid-teens growth outlook [31] - EBITDA for Q4 was $149 million, with a margin of 23%, up 260 basis points year-over-year [25] - Full-year 2025 EBITDA grew by 25% year-over-year, with net income margin expanding by 990 basis points [31][33] Business Line Data and Key Metrics Changes - For Sale revenue grew by 11% year-over-year in Q4 to $475 million, with residential revenue up 8% and mortgages revenue up 39% [26][10] - Rentals revenue in Q4 was $168 million, growing 45% year-over-year, driven by a 63% increase in multifamily revenue [27][10] - For Sale revenue for the full year reached $1.9 billion, up 9% from 2024, while Rentals revenue for the full year was $630 million, up 39% [10][31] Market Data and Key Metrics Changes - Zillow's share of rental listings increased to 63% in 2025, up from 54% in 2024 [18] - Zillow Rentals attracted 31 million average monthly unique visitors in Q4, indicating strong audience engagement [19] - The housing market grew by 3% in 2025, with Zillow outperforming the market by 1,300 basis points [31] Company Strategy and Development Direction - The company is focused on integrating and digitizing the real estate transaction process, enhancing customer experiences and improving productivity for real estate professionals [7][9] - Zillow Pro, a new offering, aims to help agents manage their entire business and improve lead conversion [72] - The strategy emphasizes building a comprehensive marketplace for rentals and modernizing the rental transaction process [18][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strategy and does not expect legal challenges to materially impact financial performance [22][66] - The company anticipates continued revenue growth in 2026, with mid-teens growth expected across the business [38] - Management noted improvements in housing affordability, which could lead to a broader market recovery over time [39] Other Important Information - The company reported $23 million of GAAP net income for the full year, achieving full-year profitability [10] - Share-based compensation expense decreased by 13% year-over-year, contributing to net income growth [33] - The company ended 2025 with $1.3 billion in cash and investments, and secured a $500 million revolving credit facility [35] Q&A Session Summary Question: Can you elaborate on rental trends and opportunities in multifamily? - Management indicated that the growth in rentals is due to their unique strategy of organizing various types of supply, which drives audience engagement and revenue growth [45][46] Question: How do you view the impact of recent industry consolidation on your business? - Management does not expect any risk or impact from industry consolidation, as the majority of sellers and agents prefer broad exposure [55][56] Question: Is there any change in approach to Zillow's business strategy due to legal challenges? - Management confirmed that there are no expected changes to the business strategy and remains confident in their positions [66] Question: What is the status of Zillow Pro and its impact on lead conversion? - Zillow Pro is currently in beta testing, with plans for nationwide expansion in the second half of the year, aimed at improving agent efficiency and conversion [71][72]