Zillow Group (Z) Q4 2025 earnings summary

Executive summary

• Achieved all full-year 2025 financial targets, including 16% year-over-year revenue growth to $2.6 billion, positive GAAP net income of $23 million, and Adjusted EBITDA margin expanding to 24%.

• Outperformed the residential real estate industry, gaining market share in For Sale and Rentals segments, with notable growth in traffic and engagement across digital platforms.

• Maintained category leadership with 70% of U.S. buyers and sellers using the platform and 80% of traffic coming directly to owned apps and sites.

• Continued progress on a multi-year strategy to integrate and digitize real estate transactions, focusing on both consumer and professional experiences.

Financial highlights

• Q4 2025 revenue reached $654 million, up 18% year-over-year; full-year revenue was $2.6 billion, up 16% year-over-year.

• Full-year 2025 Adjusted EBITDA was $622 million (24% margin), with Q4 Adjusted EBITDA at $149 million (23% margin), both showing margin expansion.

• Free cash flow for 2025 was $420 million, a 36% increase year-over-year; ended 2025 with $1.3 billion in cash and investments.

• Share-based compensation expense declined by $58 million or 13% year-over-year, supporting net income margin expansion.

• Q4 net income was $3 million; full-year net income was $23 million (net income margin 1%).

Outlook and guidance

• Q1 2026 revenue expected between $700–$710 million, up 18% year-over-year at midpoint.

• Full-year 2026 guidance calls for mid-teens revenue growth and approximately 30% rentals revenue growth.

• Targeting $5 billion revenue and 45% Adjusted EBITDA margin at mid-cycle.

• Continued EBITDA margin expansion expected, despite 100 basis points of margin headwind from elevated legal expenses.

• Share-based compensation expense projected to decline by more than 10% in 2026.