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]

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]

February 2026 Zillow Investor Presentation Legal Disclosure This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risks and uncertainties, including, without limitation, statements regarding our future targets, the future performance and operation of our business, our business strategies and ability to translate such strategies into financial performance, the current and future ...

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]

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]

Summary of Zillow Fireside Chat at Goldman Sachs Communicopia and Technology Conference Company Overview - **Company**: Zillow - **Industry**: Real Estate Technology - **User Base**: Over 240 million average monthly unique users across apps and sites [3] Core Business Model - **Housing Super App**: Zillow aims to be a comprehensive platform for buying, selling, renting, and financing homes [3] - **Revenue Segments**: - For Sale Market: Revenue from buying, selling, and financing homes - Rentals: Revenue from renting homes or apartments [3] Financial Performance - **2024 Performance**: - Revenue growth of 15% across the company - EBITDA margins expanded by 200 basis points - Positive GAAP net income [4] - **2025 Outlook**: - Projected mid-teens revenue growth for the full year - 40% growth rate in rentals [4][14] - **Q2 Performance**: - Residential revenue up 6% year-over-year - For Sale segment grew 9% year-over-year, outperforming the housing market by 800 basis points [7][8] Growth Drivers - **For Sale Business**: - Growth driven by enhanced agent support and mortgage growth through Zillow Home Loans - Introduction of innovative products like Zillow Showcase, which enhances listing visibility [9][10] - **Rentals Business**: - Unique position in the market with 60% of all single-family homes for rent listed on Zillow - Significant growth in multifamily revenue, increasing from 27,000 buildings to 64,000 in three years [15][16] - **Mortgage Business**: - Zillow Home Loans revenue up 41% year-over-year, with 48% growth in originations [27] - Focus on building relationships between agents and loan officers to drive growth [27][28] Strategic Partnerships - **Redfin Partnership**: - Expanded distribution and introduced more multifamily customers - Collaboration with Realtor.com and Redfin to enhance inventory visibility [22][24] Product Development - **Enhanced Markets**: - Targeting 35%+ of transactions by the end of the year, with a long-term goal of 75% [34][36] - **Follow Up Boss**: - CRM tool aimed at improving agent productivity and lead conversion [44] - **AI Integration**: - Utilizing AI for consumer experience, agent productivity, and internal operations [69][71] Capital Allocation and M&A Strategy - **Debt Management**: - Successfully retired convertible debt, achieving a clean balance sheet [72] - **Stock Buyback Program**: - Over $2 billion in stock repurchased since 2021, reducing share count [72] - **M&A Approach**: - Focus on product-led growth with selective acquisitions to fill gaps [75] Strategic Priorities - **Future Focus**: - Continued growth in for sale and rentals business, particularly in multifamily execution - Emphasis on cost discipline and leveraging enhanced markets for revenue opportunities [77][78] Conclusion - **Overall Sentiment**: - Positive outlook on growth opportunities despite a challenging housing market - Confidence in executing strategic initiatives to drive revenue and profitability [54][58]

Group 1 - Zillow and Berkshire Hathaway HomeServices have entered an agreement to provide U.S.-based agents access to Zillow Showcase, an AI-powered premium listing experience [1][2] - The partnership aims to equip agents with advanced technology and digital marketing tools to enhance their competitiveness in the real estate market [2][3] - Zillow Showcase listings are expected to expedite sales, with properties selling for 2% more and being more likely to go pending within the first 14 days on the market compared to non-Showcase listings [3][4] Group 2 - The Showcase product features an interactive design that includes high-resolution images and room-by-room photo organization, which increases exposure and engagement with potential buyers [3][4] - Continuous enhancements to Showcase, such as the introduction of SkyTour, aim to provide a more immersive home shopping experience [4] - Agents can access performance dashboards for their Showcase listings, allowing them to track data and analytics for better decision-making [4] Group 3 - Berkshire Hathaway HomeServices has approximately 45,000 real estate professionals and over 1,400 offices globally, completing more than USD 127.7 billion in real estate sales in 2024 [7][8]

Core Insights - Zillow Group, Inc. reported mixed second-quarter 2025 results, with net income missing the Zacks Consensus Estimate but revenues exceeding expectations, driven by strong customer engagement and brand positioning in the residential real estate sector [1][2][3] Financial Performance - Net income for the quarter was $2 million or 1 cent per share, a significant improvement from a net loss of $17 million or 7 cents per share in the prior-year quarter, primarily due to solid top-line growth [2] - Quarterly revenues increased to $655 million from $572 million in the year-ago quarter, surpassing the Zacks Consensus Estimate of $647 million, with residential revenues rising 6% to $434 million [3][8] - The Mortgages segment generated $48 million in revenues, up from $34 million a year earlier, driven by a 48% increase in purchase loan origination [4] - Rental revenues surged 36% to $159 million, primarily due to a 56% year-over-year growth in multifamily revenues [4] Profitability Metrics - Gross profit for the quarter was $489 million, compared to $442 million in the prior-year quarter, reflecting healthy revenue growth across all segments [5] - Operating expenses rose to $500 million from $480 million in the prior-year quarter, while adjusted EBITDA increased to $155 million from $134 million a year ago, supported by higher revenues and cost discipline [5] Cash Flow and Liquidity - In the first half of 2025, Zillow generated $191 million in cash from operating activities, up from $135 million in the prior-year period, with $587 million in cash and cash equivalents as of June 30, 2025 [6] Future Outlook - For Q3 2025, Zillow expects total revenues in the range of $663-$673 million and total adjusted EBITDA between $150 million and $160 million, with Mortgages' revenues projected to grow approximately 20% year-over-year [9] - The company anticipates low to mid-teens revenue growth for 2025, with continued adjusted EBITDA margin expansion and positive GAAP net income forecasted [10]

Financial Data and Key Metrics Changes - Total revenue for Q2 increased by 15% year over year, reaching $655 million, exceeding expectations [11][33] - EBITDA for Q2 was $155 million, representing a margin of 24%, with trailing twelve-month EBITDA growing 26% year over year [34][46] - The company reported its second consecutive quarter of positive GAAP net income [35][46] Business Line Data and Key Metrics Changes - For sale revenue grew by 9% year over year to $482 million, outpacing the residential real estate industry growth of 2% [35][36] - Residential revenue increased by 6% year over year to $434 million, driven by agent and software offerings [36] - Mortgages revenue surged by 41% year over year to $48 million, with purchase loan origination volume growing 48% to $1.1 billion [37] - Rentals revenue accelerated to 36% year over year, reaching $159 million, primarily driven by multifamily revenue growth of 56% [38][39] Market Data and Key Metrics Changes - Zillow Rentals had 2.4 million active rental listings, the most in the category, with multifamily properties increasing by 45% year over year [27][38] - Average monthly unique visitors for rentals reached 36 million in Q2, indicating strong audience growth [30][38] Company Strategy and Development Direction - The company is focused on building a comprehensive two-sided marketplace for rentals and modernizing the transaction experience for renters and property managers [24][30] - Zillow aims to enhance its housing super app to streamline residential real estate transactions, emphasizing a tech-enabled and integrated experience [12][23] - The company is on track to achieve mid-teens revenue growth for the full year 2025, with a focus on expanding EBITDA margins and positive net income [12][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow despite a challenging housing market, which is expected to remain flat [43][104] - The company anticipates continued growth in rentals revenue, projecting over 40% year-over-year growth in Q3 [44][57] - Management highlighted the importance of innovation and consumer-focused products to drive long-term growth [14][46] Other Important Information - The company ended Q2 with $1.2 billion in cash and investments, down from $1.6 billion at the end of Q1, primarily due to share repurchases and the settlement of convertible notes [41] - The Redfin partnership is expected to be accretive to EBITDA, contributing positively to the overall business [45][97] Q&A Session Summary Question: Insights on the rentals business and growth confidence - Management highlighted the strength of the rentals strategy, with 2.4 million active listings and a focus on modernizing the transaction experience for renters and property managers [49][51] Question: Factors driving faster residential revenue growth - Management attributed the outperformance to enhanced market execution, increased adoption of Zillow Home Loans, and growth in new construction [60][62] Question: Contribution from Redfin partnership - Management noted that the Redfin partnership enhances distribution and leads, providing access to a larger addressable market and driving growth in the rentals business [66][68] Question: Variable expenses and investment areas - Management indicated that variable costs are expected to grow ahead of revenue in 2025, primarily due to investments in rentals and Zillow Home Loans [83][86] Question: Broader real estate market assumptions - Management is not assuming significant help from the macro environment and plans to grow through current market challenges [102][104]