Financial 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] - Total revenue for the three months ended September 30, 2025, was $676 million, an increase of 16% compared to $581 million for the same period in 2024[111] - 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] Revenue Breakdown - 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] - 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 in 2024[128] Expenses and Costs - 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] - Cost of revenue increased by $97 million, or 25%, for the nine months ended September 30, 2025, primarily due to increases in lead acquisition costs and depreciation expenses[146] - Sales and marketing expenses rose by $50 million, or 9%, for the nine months ended September 30, 2025, driven by increases in 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 headcount-related expenses[155] 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] - 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] Cash Flow - Net cash provided by operating activities was $296 million for the nine months ended September 30, 2025, slightly down from $306 million in 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] - Adjusted free cash flow for the nine months ended September 30, 2025, was $295 million, compared to $231 million in the prior year[168] Share Repurchase and Equity - The company repurchased $438 million of Class A common stock and Class C capital stock during the nine months ended September 30, 2025[34] - Share repurchase authorizations increased to $3.5 billion, with $943 million remaining available for future repurchases as of September 30, 2025[73] - 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] Legal and Regulatory Matters - The company is involved in various legal proceedings, but management does not believe these will have a material effect on its financial position as of September 30, 2025[82] - The company is involved in various legal proceedings, including antitrust and intellectual property claims, which may increase as the business expands[209] Market Conditions and Risks - The company operates in a dynamic industry with significant risks including economic stability, interest rates, and regulatory changes[39] - Inflationary pressures have adversely impacted the number of transactions and demand for the company's services, affecting overall revenue[200] - Inflationary pressures may lead to increased costs in labor, marketing, and hosting, potentially affecting the company's financial condition[201] Miscellaneous - The company recorded an increase in unrecognized compensation cost related to unvested option awards totaling $197 million as of September 30, 2025[77] - The company does not maintain a significant balance of foreign currency, thus a 10% fluctuation in exchange rates is not expected to materially impact operations[202] - As of September 30, 2025, the company's disclosure controls and procedures were evaluated as effective by the CEO and CFO[203]

Revenue and Profit - Revenue for the three months ended September 30, 2025, was $676 million, a 16% increase from $581 million in the same period of 2024[3] - Gross profit for the nine months ended September 30, 2025, reached $1,439 million, up 12% from $1,289 million in 2024[3] - For Sale revenue for the twelve months ended September 30, 2025, was $1,856 million, reflecting a 10% increase from $1,682 million in 2024[7] - Net income for the nine months ended September 30, 2025, was $20 million, compared to a net loss of $60 million in the same period of 2024[5] - The company reported an Adjusted EBITDA of $165 million for the three months ended September 30, 2025, compared to $127 million in 2024, marking a 30% increase[3] Loan Origination and User Growth - Total loan origination volume for the three months ended September 30, 2025, was $1,281 million, a 56% increase compared to $819 million in 2024[8] - Average monthly unique users increased by 7% to 250 million in the three months ended September 30, 2025, from 233 million in 2024[6] Assets and Cash Position - Total assets as of September 30, 2025, were $5,698 million, a decrease from $5,829 million as of December 31, 2024[2] - Cash and cash equivalents at the end of the period were $879 million, down from $1,075 million at the end of September 2024[5] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $494 million, slightly up from $486 million in 2024[3]

ZILLOW GROUP, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in millions, unaudited) | | | | Three Months Ended | | | | Nine Months Ended | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | | September 30, | | | | September 30, | | | | | 2025 | | 2024 | | 2025 | | 2024 | | Revenue | $ | 676 | $ | 581 | $ | 1,929 | $ | 1,682 | | Cost of revenue (1) | | 185 | | 140 | | 490 | | 393 | | Gross profit | | 491 | | 441 | | 1,439 | | 1,289 | | Operating expenses: | | | | | | | | | | Sales and marketing (1 ...

Core Insights - An increasing number of individuals are utilizing financing options through Zillow for home purchases [1] - A growing number of property managers are leveraging Zillow for rental listings [1] Group 1 - More people are buying homes using financing through Zillow [1] - More property managers are using the website for rental listings [1]

NEW YORK--(BUSINESS WIRE)--Halper Sadeh LLC, an investor rights law firm, is investigating whether certain officers and directors of Zillow Group, Inc. (NASDAQ: Z) breached their fiduciary duties to shareholders. If you currently own Zillow stock and acquired shares on or before August 5, 2021, you may be able to seek corporate governance reforms, the return of funds back to the company, a court-approved financial incentive award, or other relief and benefits. Please click here to learn more ab. ...

Core Insights - Zillow economists project a modest increase in U.S. home prices, forecasting a rise of +1.2% from August 2025 to August 2026, with an updated outlook now at +1.9% [2][4]. Summary by Sections Home Price Forecast - Initially, Zillow's 12-month forecast for U.S. home prices was +2.6%, but due to a quicker-than-expected softening in housing markets, it was revised down to -1.7% by April 2025 [3]. - Recent months have seen a halt in downward revisions, with forecasts increasing from +0.4% in August to +1.2% in September, and now to +1.9% [4]. Regional Price Changes - Among the 300 largest U.S. metro areas, the highest projected home price increases from September 2025 to September 2026 are expected in: 1. Atlantic City, NJ +5.4% 2. Rockford, IL +5.1% 3. Concord, NH +5.1% 4. Knoxville, TN +5.0% 5. Saginaw, MI +4.9% [6]. Declining Markets - Conversely, the largest expected home price declines in the same period are projected in: 1. Houma, LA -7.4% 2. Lake Charles, LA -6.9% 3. Lafayette, LA -4.3% 4. New Orleans, LA -4.0% 5. Shreveport, LA -3.8% [12]. Market Dynamics - Currently, U.S. home prices are up +0.01% year over year, and if Zillow's latest forecast of +1.9% is realized, it would indicate a slight acceleration in national home price growth [7]. - The Sun Belt, particularly Southwest Florida, is identified as the epicenter of housing market weakness, with a notable increase in buyer's markets from 6 to 15 among the nation's largest metros [9].

Core Insights - Billionaire Philippe Laffont's Coatue Management focuses on high-growth technology and AI-driven stocks, managing $69.5 billion in assets as of May 27, 2025 [1] - The fund's largest public equity holdings include Nvidia, Broadcom, Meta, and CoreWeave, with CoreWeave representing 8.1% of the portfolio as of Q2 2025, emphasizing foundational AI infrastructure [2] - Recent easing of trade tensions with China and positive bank earnings have contributed to a recovery in U.S. stocks, with optimism growing around potential talks between U.S. and Chinese leaders [3] Company Movements - In Q2 2025, Laffont reduced his position in Amazon by 596,184 shares (6% decrease QoQ) while increasing his stake in CoreWeave by nearly 3.4 million shares (24% increase QoQ) [4] - The fund also expanded its positions in Nvidia and Broadcom by 35% and 59%, respectively, during the same period [4] Stock Picks and Performance - The article lists 10 stock picks from Coatue Management with significant upside potential, based on Q2 2025 13F filings and Wall Street analysts' price targets as of October 15, 2025 [7] - Philip Morris International Inc. (NYSE:PM) has an upside potential of 19.40% despite a share price return of -11.15% between July 1 and October 15, 2025, with a $37 million investment announced for expanding its manufacturing facility [10][11] - Zillow Group, Inc. (NASDAQ:Z) has an upside potential of 19.77% and recently launched an application on ChatGPT, enhancing its digital footprint [15][16][17] - Intuit Inc. (NASDAQ:INTU) shows an upside potential of 24.37% despite a share price return of -16.28%, with significant upgrades announced for its Mailchimp platform aimed at boosting retailer sales during the holiday season [19][20][21][22]

Summary of Key Points Core Viewpoint - Zillow's stock has experienced significant volatility, rising over 60% from a low of $57 to a high of $93.88, before recently declining by 25% to $69.69 [1]. Stock Performance - The stock price increased from $57 to $93.88, marking a rise of over 60% [1]. - Following this peak, the stock price fell by 25%, settling at $69.69 [1].

For the most part, large-cap tech stocks have enjoyed an aggressive late summer rally, buoyed by the prospect of rate cuts and continued crowding into the AI trade. One major holdout is Zillow (NASDAQ: Z ), the self-described housing super-app.With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regula ...

Zillow Group TodayZGZillow Group$68.11 -0.78 (-1.14%) 52-Week Range$55.08▼$90.22Price Target$86.92Add to WatchlistZillow Group Inc. NASDAQ: ZG is on track for its first profitable year since 2012. The company has cited increased revenue from its mortgage business and a focus on closely managing headcount as reasons for the spike in profitability. However, the real estate technology company may still need some help, in the form of lower interest rates, to reverse the bearish momentum from recent events. On ...