Core Insights - Zillow Group reported mixed Q3 2025 results, with net income missing estimates but revenues exceeding expectations, driven by strong customer engagement and brand positioning in the residential real estate sector [1][8] Financial Performance - Net income for the quarter was $10 million (4 cents per share), a significant improvement from a net loss of $20 million (8 cents per share) in the same quarter last year, primarily due to solid revenue growth [2] - Quarterly revenues increased to $676 million from $581 million year-over-year, surpassing the Zacks Consensus Estimate of $669 million, with residential revenues rising 7% to $435 million [3][8] - The Mortgages segment generated $53 million in revenues, up from $39 million a year ago, driven by a 57% increase in purchase loan origination [4] - Rental revenues surged 41% to $174 million, largely due to a 62% year-over-year growth in multifamily revenues [4] Profitability Metrics - Gross profit for the quarter was $491 million, compared to $441 million in the prior-year quarter, reflecting healthy revenue growth across all segments [5] - Adjusted EBITDA rose to $165 million from $127 million a year ago, supported by higher revenues and cost discipline [5] Cash Flow & Liquidity - In the first nine months of 2025, Zillow generated $296 million in cash from operating activities, slightly down from $306 million in the prior-year period [6] - As of September 30, 2025, the company had $874 million in cash and cash equivalents, with $40 million in other long-term liabilities [6] Future Outlook - For Q3 2025, Zillow expects total revenues between $645 million and $655 million, with adjusted EBITDA projected between $145 million and $155 million [9] - The company anticipates approximately 20% year-over-year growth in Mortgages revenues, high-single-digit growth in residential revenues, and over 45% growth in rental revenues [9] - Zillow forecasts low to mid-teens revenue growth for 2025, with continued expansion in adjusted EBITDA margins and positive GAAP net income [10]