Zillow Group Investor Summit Summary Company Overview - **Company**: Zillow Group (NasdaqGS: Z) - **Event**: Investor Summit for AI - **Date**: March 24, 2026 Core Industry Insights - **AI as a Business Accelerator**: Zillow views AI as a significant driver for enhancing its business operations and consumer experiences, similar to the impact of the mobile revolution in the past [2][10] - **Unified Data Layer**: The company is focused on creating a unified data layer to streamline complex real estate transactions, which will enable the development of innovative products for consumers and industry professionals [3][4] Key Business Strategies - **End-to-End Real Estate Experience**: Zillow aims to provide a comprehensive platform that supports consumers throughout their entire housing journey, from searching to closing transactions [14][15] - **Consumer Engagement**: Zillow reports 235 million unique visitors monthly, with 80% of traffic being direct, indicating strong brand loyalty and consumer trust [13][24] - **Transaction Platform**: The company has transitioned from being a search platform to a transaction platform, facilitating buying, renting, financing, and selling [15][16] AI Integration and Product Development - **AI-Driven Insights**: Zillow leverages proprietary data to enhance its AI capabilities, allowing for personalized consumer experiences and actionable insights [17][19] - **Rich Media Content**: The company has invested in immersive media, with nearly 10% of new listings featuring proprietary rich media, which enhances the consumer shopping experience [21][22] - **Unified Intent Layer**: Zillow is developing a unified intent layer that tracks consumer preferences and behaviors, enabling the platform to anticipate user actions and provide timely guidance [37][40] Financial Performance and Projections - **Rental Business Growth**: Zillow's rental business is projected to grow by 30% year-over-year in 2026, with a target of reaching a billion-dollar revenue milestone [45] - **Transaction Volume**: The company processes significant transaction volumes, including over $10 billion in rent payments, indicating strong market presence and consumer reliance on its platform [50] Competitive Landscape - **Regulatory Challenges**: Zillow operates in a heavily regulated industry, requiring licensed brokerage relationships in all 50 states, which adds complexity to its operations [28][35] - **Fragmentation Solutions**: The company addresses fragmentation in the real estate market by integrating various tools and services into a cohesive platform, enhancing efficiency for both consumers and professionals [33][39] Consumer-Centric Innovations - **AI Mode**: Zillow introduced "AI Mode," an integrated feature designed to assist consumers throughout their home-buying journey, providing real-time answers and guidance [63][64] - **Enhanced User Experience**: The platform aims to simplify the rental and buying processes, offering features like real-time pricing, tour scheduling, and direct messaging with property managers [46][47] Conclusion - Zillow Group is positioning itself as a leader in the real estate market by leveraging AI to enhance consumer experiences, streamline transactions, and build a comprehensive platform that addresses the complexities of the housing industry. The company's focus on integrating data, content, and user context is expected to drive future growth and innovation in the sector [40][41]

Core Insights - Zillow has announced a multiyear partnership with Major League Baseball (MLB), becoming the official real estate and home rentals marketplace partner of MLB [1][3] - The partnership will span the entire baseball season, including spring training, home openers, and the postseason, with integrations across national broadcasting, streaming, digital, and in-stadium platforms [2][5] Partnership Details - The agreement connects the themes of home in both baseball and real estate, emphasizing the importance of home in American culture [4] - Zillow aims to leverage this partnership to enhance its brand visibility and connect with millions of potential customers who are engaged in the home buying and renting process [5][6] Marketing Strategy - Zillow's marketing initiatives will include national campaigns on MLB Network, MLB.TV, and Apple TV+, as well as on-site experiences during All-Star Week and postseason events [7] - The partnership aligns with Zillow's 2026 brand platform, "Someday starts today," which promotes the idea that taking the first step is crucial in the journey to homeownership [6][8] Brand Positioning - The collaboration with MLB is expected to reinforce Zillow's role in helping individuals find their homes, paralleling the optimism and fresh starts associated with the baseball season [6][8] - Zillow's extensive ecosystem includes various services that support consumers throughout the entire home journey, from searching to financing [10][11]

Core Viewpoint - Zillow Group's stock is experiencing a positive movement, rising approximately 5% due to a significant increase in housing starts, which surged 7.2% to an annualized rate of 1.49 million units in January, marking the highest level in the past year and within the 90th percentile of historical data [2][4]. Group 1: Stock Performance - Zillow's stock is outperforming both the broader market and its sector, providing a much-needed relief for investors after a challenging period where the stock fell 36% over the past year [3][6]. - Despite the recent bounce, Zillow's shares remain significantly below their 52-week high of $93.88 [6]. Group 2: Business Impact - The increase in housing starts is expected to lead to more listings, transactions, and demand for Zillow's services, including Premier Agent advertising, Rentals platform, and Zillow Home Loans, thereby benefiting the company's overall business model [4][8]. - January's housing starts data indicates a recovery in builder activity, with the current rate of 1.49 million units compared to a low of 1.27 million in October 2025, suggesting a potential construction momentum despite ongoing affordability challenges [5][8]. Group 3: Financial Performance - Zillow Group reported solid Q4 2025 earnings, with revenue reaching $654 million, an 18% year-over-year increase, surpassing the consensus estimate of $650.5 million [7]. - The company achieved its first full-year GAAP profitability in 2025, with a net income of $23 million, a significant turnaround from a $112 million loss in 2024 [7][8]. - The Rentals segment experienced substantial growth, increasing by 45% year over year, with the multifamily property count rising to 72,000 units, up 44% from 2024 [8].

Summary of Zillow Group FY Conference Call (February 26, 2026) Company Overview - **Company**: Zillow Group (NasdaqGS: Z) - **Industry**: Real Estate Technology and Online Property Listings Key Financial Performance - **2025 Growth**: Overall business grew by 16% and Adjusted EBITDA increased by 25% [6] - **GAAP Profitability**: Achieved GAAP net income profitability for all four quarters of 2025 [6] - **Rentals Business Growth**: Rentals business grew by 39% year-over-year in 2025 [6] - **Margin Expansion**: Expanded margins by approximately 200 basis points [6] 2026 Financial Outlook - **Growth Expectations**: Anticipating mid-teens growth for 2026, with rentals expected to grow by around 30% [7][8] - **Cost Management**: Fixed costs expected to remain flat with inflation, maintaining cost discipline [9] - **Revenue Drivers**: Focus on converting brand engagement into transactions, regardless of housing market conditions [8] Strategic Vision - **Housing Super App**: Aiming to be a comprehensive platform for all housing-related needs, leveraging strong brand engagement [12][13] - **Transaction Funnel**: Enhancing the transaction process by integrating various services (mortgage, rentals, etc.) into a seamless experience [12][13] - **AI Integration**: Utilizing AI to improve user experience and streamline the transaction process [18][20] Product Development and Technology - **Proprietary Technology**: Development of unique tools such as 3D imaging and ShowingTime for home tours [21][22] - **Zillow Home Loans**: Significant growth in the mortgage segment, with a goal to become one of the largest lenders in the country [38][39] - **Enhanced Markets Strategy**: Aiming for 75% of connections to occur through integrated services, enhancing agent and loan officer collaboration [34][35] Market Dynamics and Challenges - **Affordability Trends**: Notable improvement in housing affordability, with the percentage of income spent on housing decreasing from 38% to 32% [46] - **Regulatory Concerns**: Ongoing litigation related to partnerships and business practices, but management remains confident in their competitive positioning [64][68] Rental Business Insights - **Growth in Rentals**: Expecting 30% growth in the rentals segment for 2026, with a clear path to a $1 billion revenue target [50][56] - **Market Share**: Currently capturing over 70% of single-family home rentals, with plans to expand further [54][56] - **Regulatory Impact**: Confidence in the partnership with Redfin despite ongoing FTC scrutiny, emphasizing pro-competitive benefits [65] Conclusion - **Long-term Ambitions**: Zillow Group is focused on expanding its market share across various segments, enhancing user experience through technology, and navigating regulatory challenges while maintaining growth momentum in a challenging housing market [39][46][64]

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 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]

Core Insights - Zillow Group reported strong financial results for Q4 and full-year 2025, achieving all full-year financial targets, including positive net income, while gaining market share in both For Sale and Rentals [1] - The company’s Q4 revenue increased by 18% year-over-year to $654 million, and full-year 2025 revenue rose by 16% to $2.6 billion, outperforming the residential real estate industry by significant margins [1][2] - Zillow's CEO highlighted the company's unique position to drive growth through innovative technology and a deeply engaged audience, celebrating 20 years of operation [1] Financial Performance - Q4 2025 For Sale revenue was $475 million, an 11% increase year-over-year, while Mortgages revenue surged by 39% to $57 million due to a 67% rise in purchase loan origination volume to $1.5 billion [1] - Residential revenue for Q4 2025 reached $418 million, up 8% year-over-year, benefiting from growth in agent and software offerings [1] - Adjusted EBITDA for Q4 was $149 million, representing a 33% increase from $112 million in Q4 2024, with an Adjusted EBITDA margin of 23% [1][3] Market Position - The residential real estate industry grew by 3% in Q4 and for the full year 2025, indicating Zillow outperformed the industry by 1,500 basis points in Q4 and 1,300 basis points for the full year [1] - Zillow's traffic to its apps and sites increased by 8% year-over-year to 221 million average monthly unique users, with visits up 2% to 2.1 billion [3] Non-GAAP Financial Measures - Adjusted net income for Q4 was $98 million, compared to $68 million in Q4 2024, with diluted adjusted net income per share rising to $0.39 from $0.27 [3] - Adjusted free cash flow for Q4 was $125 million, up from $78 million in Q4 2024, indicating strong cash generation capabilities [3][5]

Group 1 - Zillow Group, Inc. will present at the Barclays 23rd Annual Global Technology Conference in San Francisco on December 11, 2025, with CEO Jeremy Wacksman participating in a fireside chat [1] - The company is focused on transforming the real estate market by providing digital solutions for buying, selling, renting, and financing homes [2][4] - Zillow Group is the most visited real estate app and website in the United States, connecting users with real estate professionals and enhancing their home buying experience [2] Group 2 - Zillow Group's affiliates include various brands such as Zillow®, Trulia®, and Zillow Home Loans, which collectively aim to simplify the real estate process for consumers [2] - A recent analysis indicates that the hidden costs of homeownership have reached approximately $15,979 per year nationwide, highlighting the financial burdens faced by homeowners [5]