Financial Data and Key Metrics Changes - Total revenue increased 16% year over year to $676 million in Q3, exceeding the high end of the outlook range [5][26] - EBITDA of $165 million was reported, above the high end of the outlook range, with an EBITDA margin of 24%, expanding more than 200 basis points year over year [6][26] - GAAP net income of $10 million was achieved in Q3, reflecting effective cost management alongside revenue growth [6][27] Business Line Data and Key Metrics Changes - For-sale revenue grew 10% year over year to $488 million, outperforming the broader housing market [27][28] - Residential revenue within for-sale increased 7% to $435 million, with mortgage revenue growing 36% year over year to $53 million [28][29] - Rentals revenue surged 41% year over year to $174 million, driven primarily by a 62% increase in multifamily revenue [19][30] Market Data and Key Metrics Changes - Zillow's apps and sites had 250 million average monthly unique users in Q3, with agents using Zillow products responsible for an estimated 80% of U.S. residential real estate transactions [7][8] - The number of multifamily properties listed on Zillow reached 69,000, nearly double the 35,000 from two years ago [19][30] - Zillow Rentals had 2.5 million average monthly active rental listings, the most in the category [30] Company Strategy and Development Direction - The company is focused on delivering a seamless digital end-to-end experience for consumers and real estate professionals, emphasizing innovation and consumer-first strategies [5][24] - Zillow is expanding its integrated transaction experience, with 34% of connections now going through enhanced markets, aiming for at least 75% [15][36] - The launch of Zillow Pro is expected to enhance agent capabilities and expand the serviceable market [17][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in executing through external challenges, with a focus on building a transparent, consumer-first marketplace [23][24] - The company anticipates continued revenue growth acceleration in Q4, with rentals revenue expected to increase more than 45% year over year [34][35] - For 2026, management expects similar growth and EBITDA margin expansion as in previous years, planning for a macro housing environment that remains flat [36][63] Other Important Information - The company generated $295 million of free cash flow in the first nine months of 2025, a 28% increase compared to the same period a year ago [32] - Cash and investments at the end of Q3 totaled $1.4 billion, up from $1.2 billion at the end of Q2 [32] - The company has repurchased $2.4 billion in shares at a weighted average price of $48 [32] Q&A Session Summary Question: On the integration of the Zillow app with ChatGPT and its implications - Management views the integration as a significant opportunity, enhancing brand visibility and user experience while leveraging existing traffic [39][40][41] Question: Impact of the FTC suit and potential disruptions from Compass's acquisition of Anywhere - Management believes the syndication of multifamily listings is beneficial for consumers and property managers, and they do not foresee significant disruption from the proposed merger [44][45][46] Question: Performance of the residential business and market dynamics - The residential business outperformed the market, with growth driven by enhanced markets and Zillow Home Loans [48][49] Question: Value unlocks from Zillow Pro and monetization strategy - Zillow Pro is designed to bundle software tools for agents, enhancing their business operations and providing a pathway to Zillow Preferred [50][51] Question: Long-term opportunity with Zillow Preferred and market share - The expansion of Zillow Preferred is expected to drive continued outperformance in both residential and for-sale categories [52][53] Question: Sales strategy for rentals in light of market conditions - Management plans to continue business as usual, confident in the growth trajectory and value proposition for property managers [54][55]