Zillow Group (Z) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 13% year-over-year to $598 million, surpassing guidance by $15 million, with GAAP profitability and a net income of $8 million, reversing a prior-year loss.

• Adjusted EBITDA reached $153 million, with a 26% margin, reflecting strong cost discipline and up from 24% in Q1 2024.

• Strategic focus on cost management, expanding EBITDA margins, and executing the housing super app strategy.

• Mobile apps and sites averaged 227 million monthly unique users, up 5% year-over-year.

• The company invested in technology, marketing, and partnerships, including a $100 million payment to Redfin and $250 million in share repurchases.

Financial highlights

• For Sale revenue was $458 million in Q1, up 8% year-over-year; Residential revenue up 6% to $417 million, and Mortgages revenue up 32% to $41 million.

• Rentals revenue surged 33% to $129 million, with multifamily revenue up 47%.

• Gross profit was $459 million, with a 77% margin, and operating expenses increased 4% to $468 million.

• Cash and investments ended Q1 at $1.6 billion, down from $1.9 billion due to share repurchases and Redfin payment.

• Trailing 12-month EBITDA grew 28%.

Outlook and guidance

• Q2 revenue expected between $635 million and $650 million, up 11%-14% year-over-year.

• Q2 EBITDA guidance is $140-$155 million (22%-24% margin).

• Full-year 2025 guidance: low to mid-teens revenue growth, ~40% rentals revenue growth, continued EBITDA margin expansion, and positive GAAP net income.

• Management expects Rentals revenue to increase in Q2 2025, driven by multifamily property growth and the Redfin partnership.

• The company believes it has sufficient liquidity to meet operating and capital needs for at least the next 12 months.