Core Insights - Zillow ended the fourth quarter of 2025 with a net income of $3 million, marking its first profitable year since 2012, compared to a loss of $52 million in the same quarter of 2024 [1] - The company reported a full-year net income of $23 million for 2025, indicating a significant turnaround in financial performance [1] Financial Performance - Quarterly revenue increased by 18 percent to $654 million, with Adjusted EBITDA rising to $149 million from $112 million in 2024 [2] - The for-sale business generated quarterly revenue of $475 million, an 11 percent annual increase, while Mortgages revenue surged by 39 percent year over year to $57 million [2] - The rentals business saw a revenue growth of 45 percent annually, reaching $168 million in the fourth quarter [6] Market Context - The housing market experienced only 3 percent growth, indicating that Zillow's performance occurred despite a flat market [3] - CEO Jeremy Wacksman emphasized the company's strategy to gain market share in both for-sale and rental segments, aiming for sustainable growth across varying market conditions [3] Legal Challenges - Zillow faced lawsuits from competitors like Compass and CoStar, as well as scrutiny from the Federal Trade Commission, which could impact its operations [4][6] - A lawsuit from Compass regarding listing policies was denied a temporary halt by a judge, while CoStar's lawsuit pertains to alleged copyright infringement of rental listing photos [5][6] Future Outlook - Wacksman expressed confidence in the rentals business, projecting a potential for over $1 billion in annual revenue and an increase in market share from 54 percent in 2024 to 63 percent in 2025 [7]