Zillow Group Inc (Z) Q4 2025 Earnings Call Highlights: Strong Revenue Growth Amidst Legal Challenges

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Wed, February 11, 2026 at 2:01 PM GMT+9 5 min read

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**Total Revenue Q4 2025:** $654 million, up 18% year over year.

**Full Year 2025 Revenue Growth:** 16% year over year.

**EBITDA Q4 2025:** $149 million, with a margin of 23%.

**Full Year 2025 EBITDA Growth:** 25% year over year.

**GAAP Net Income Full Year 2025:** $23 million.

**For Sale Revenue Q4 2025:** $475 million, up 11% year over year.

**Residential Revenue Q4 2025:** $418 million, up 8% year over year.

**Mortgages Revenue Q4 2025:** $57 million, up 39% year over year.

**Rentals Revenue Q4 2025:** $168 million, up 45% year over year.

**Multi-family Revenue Growth Q4 2025:** 63% year over year.

**Free Cash Flow 2025:** $420 million, up 36% year over year.

**Cash and Investments End of 2025:** $1.3 billion.

**Share Repurchases 2025:** $670 million, total $2.6 billion since 2021.

**Q1 2026 Revenue Outlook:** $700 million to $710 million, up 18% year over year at midpoint.

**Q1 2026 EBITDA Outlook:** $160 million to $175 million, 24% margin at midpoint.

**Full Year 2026 Revenue Growth Expectation:** Mid-teens percentage.

**Rentals Revenue Growth Expectation 2026:** Approximately 30%.

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Release Date: February 10, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Zillow Group Inc (NASDAQ:Z) reported a strong Q4 2025 with total revenue increasing 18% year over year, reaching near the top of their outlook range.

The company achieved full-year profitability with a GAAP net income of $23 million, marking an important milestone.

Rentals revenue grew significantly by 45% year over year in Q4, driven by 63% growth in multi-family revenue.

Zillow Home Loans saw a 67% year-over-year growth in purchase loan origination volume in Q4, indicating strong performance in the mortgage segment.

The company is executing a clear strategy, gaining market share across for sale and rentals, and building a platform designed for durable growth across market conditions.

Negative Points

Zillow Group Inc (NASDAQ:Z) faced higher than expected legal expenses in Q4, which were a drag on EBITDA margins.

The company anticipates ongoing elevated legal expenses throughout 2026, which will impact year-over-year EBITDA margin growth.

Despite strong revenue growth, the challenging housing market conditions are expected to continue in Q1 2026, affecting overall performance.

The rollout of Zillow Pro is in its early stages, and it is not expected to be a meaningful financial contributor in 2026.

The company's expense framework is planned to be consistent regardless of macroeconomic conditions, which may limit flexibility in adjusting to market changes.

 






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Q & A Highlights

Q: Can you elaborate on rental trends and the opportunity in the multi-family sector? Also, how do you see Zillow’s role in a vertically integrated AI future? A: Jeremy Wacksman, CEO: Our growth in rentals is driven by our strategy to organize all types of supply, including single-family and multi-family listings. We have the largest inventory in the category, which attracts a high-quality audience. Multi-family advertisers are increasingly bringing more portfolios online due to our high ROI. Regarding AI, we see it as an ingredient to enhance our vertically integrated experience, helping professionals be more efficient and improving customer service.

Q: How do you view the impact of recent industry consolidation and private listing networks on Zillow’s business? A: Jeremy Wacksman, CEO: We don’t expect any significant impact. The majority of sellers and agents prefer broad exposure for listings, which aligns with Zillow’s platform. Our focus remains on transparency and maximizing value for sellers.

Q: With ongoing legal challenges, is there any change in Zillow’s business strategy? A: Jeremy Wacksman, CEO: No, we are confident in our positions and approach. We don’t anticipate these challenges to materially impact our long-term strategy or financial position.

Q: Can you provide an update on the rollout of Zillow Pro and its expected impact on revenue? A: Jeremy Wacksman, CEO: Zillow Pro is in beta and will expand nationwide in the second half of the year. It’s designed to help agents manage their entire business, not just Zillow leads. While it’s early, we expect it to enhance CRM adoption and improve conversion rates. However, it won’t be a significant financial contributor in 2026.

Q: What are the biggest obstacles to achieving 75% of connections through enhanced markets, and when can we expect this milestone? A: Jeremy Wacksman, CEO: We haven’t set a specific timeframe, but we are expanding both geographically and in depth. The main challenges are operational scale and ensuring partner agents and loan officers are well-equipped. We are confident in our progress and the incremental revenue potential.

Q: How are you planning to grow marketing in 2026, and what channels will you focus on? A: Jeremy Wacksman, CEO: We plan a modest increase in marketing spend, focusing on enhanced markets and rentals. Our strategy remains opportunistic, leveraging our strong brand preference to deepen engagement and introduce new services. There are no significant channel shifts planned.

Q: How do you view the current affordability improvements in the housing market, and how does it affect your investment plans? A: Jeremy Hofmann, CFO: While affordability is improving, we haven’t seen it translate into faster home sales yet. Our investment plans are not heavily dependent on housing market growth; we maintain a consistent expense framework regardless of macro conditions.

Q: Is the mortgages segment EBITDA profitable, and how should we think about its margins in a recovery scenario? A: Jeremy Hofmann, CFO: We don’t disclose specific EBITDA for mortgages, but we see significant growth and profit potential. The segment is performing well, with strong purchase origination growth, and we expect continued expansion.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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