Core Insights - Zillow Group, Inc. reported mixed fourth-quarter 2025 results, with revenues exceeding estimates but adjusted earnings falling short [1][8] Financial Performance - The company achieved a GAAP net income of $3 million or 1 cent per share, a significant improvement from a net loss of $52 million or 22 cents per share in the same quarter last year [2] - Non-GAAP net income for the quarter was $98 million or 39 cents per share, up from $68 million or 27 cents per share year-over-year, but missed the Zacks Consensus Estimate of 42 cents per share [2] - For the full year 2025, GAAP net income was $23 million or 9 cents per share, compared to a net loss of $112 million or 48 cents per share in 2024 [3] - Non-GAAP net income for 2025 was $417 million or $1.64 per share, an increase from $349 million or $1.38 per share in 2024 [3] Revenue Growth - Quarterly revenues rose to $654 million from $554 million in the prior year, surpassing the Zacks Consensus Estimate of $650 million [4] - For 2025, total revenues increased to $2.58 billion from $2.24 billion in 2024 [4] - Residential revenues grew by 8% to $418 million, driven by strong performance in agent and software offerings [4] - The Mortgages segment generated $57 million in revenues, up from $41 million year-over-year, primarily due to a 67% increase in purchase loan origination [5] - Rental revenues surged by 45% to $168 million, largely due to a 63% year-over-year growth in multifamily revenues [5] Profitability Metrics - Gross profit for the quarter was $476 million, compared to $420 million in the prior year, with margins of 73% and 76% respectively [6] - Operating expenses decreased to $487 million from $489 million year-over-year [6] - Adjusted EBITDA was $149 million, up from $112 million a year ago, with margins of 23% and 20% respectively [6] Cash Flow and Liquidity - In Q4, Zillow generated $72 million in cash from operations, down from $122 million in the previous year [9] - For 2025, cash generated from operating activities was $368 million, compared to $428 million in 2024 [9] - As of December 31, 2025, the company had $768 million in cash and cash equivalents, down from $1.1 billion a year ago [9] Future Outlook - For Q1 2026, Zillow expects total revenues between $700 million and $710 million, with rental revenues projected to grow by 40% year-over-year [10] - For 2026, the company anticipates mid-teens revenue growth, with rental revenues expected to rise approximately 30% year-over-year [11]

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]