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 reported Q3 2025 adjusted EPS of 44 cents, missing the Zacks Consensus Estimate of 45 cents, but reflecting a 25.7% year-over-year increase [1][8] - Total revenues reached $676 million, exceeding the Zacks Consensus Estimate of $669 million, and showing a 16.4% year-over-year improvement [1][8] Revenue Breakdown - For-sale revenues increased by 9.9% to $488 million, with residential revenues of $435 million rising 7.4% year over year, supported by growth in agent and software offerings [2] - Mortgage revenues surged 35.9% year over year to $53 million, driven by a 57% increase in purchase loan origination volume to $1.3 billion [2] - Rental revenues grew 41.5% year over year to $174 million, primarily due to a 62% increase in multifamily revenue [3] Cost and Profitability - The adjusted EBITDA margin improved by 200 basis points to 24% of revenues, amounting to $165 million, attributed to strong revenue growth and cost discipline [3] - However, the cost of revenues rose 32.1% year over year to $185 million, influenced by increased lead acquisition costs and ad-serving expenses [4] User Engagement - Online traffic on Zillow's mobile applications and sites increased by 7% year over year, reaching 250 million average monthly unique users, with visits improving by 4% to 2.5 billion [3] Financial Position - Zillow ended Q3 2025 with $1.4 billion in cash and investments, up from $1.2 billion at the end of the previous quarter [5] Future Outlook - For Q4 2025, Zillow expects total revenues between $645-655 million and adjusted EBITDA of $145-155 million, with for-sale revenues projected to grow in the high single digits [6] - Rental revenues are anticipated to rise over 45% year over year, driven by accelerated multifamily revenue growth [7] - For the full year 2025, management projects mid-teens revenue growth and rental revenue growth of around 40% year over year, along with adjusted margin expansion and positive GAAP net income [7]