Zillow Group (NASDAQ: ZG, Z) reported double-digit revenue growth in the fourth quarter of 2025, beating investor forecasts and returning to full-year GAAP profitability. The company’s latest earnings show strength in its Rentals and Mortgage segments, even as the broader U.S. housing market remains slow.
Q4 2025 Revenue Beats Expectations
Zillow reported Q4 2025 revenue of $654 million, up 18% year over year. This result came in above Wall Street estimates and at the higher end of the company’s own guidance range.
For the full year, Zillow generated $2.6 billion in revenue, a 16% increase compared with 2024. Company data shows that the U.S. residential real estate industry growth was approximately 3% during the same period, meaning Zillow significantly outperformed the broader market.
The revenue growth confirms continued demand for Zillow’s digital real estate platform, despite affordability pressures and lower transaction volumes across the housing market.
Segment Breakdown: Rentals and Mortgage Lead Growth
Zillow reports revenue across three main categories: For Sale, Rentals, and Mortgage.
For Sale Segment
The For Sale segment generated $475 million in Q4 revenue, up 7% year over year.
Within this segment, Residential revenue totaled $418 million, reflecting modest but steady growth. This category includes Premier Agent services and other home-sale-related products.
Growth here was stable but slower than in other segments, reflecting broader housing market conditions.
Rentals Segment
The Rentals segment posted $168 million in Q4 revenue, a 45% year-over-year increase. Multifamily revenue rose significantly, driven by higher adoption of Zillow’s digital rental tools.
Rentals have become one of Zillow’s fastest-growing revenue streams. The segment now represents a meaningful share of total company revenue and continues to expand its market presence.
Mortgage Segment
Zillow’s Mortgage segment generated $57 million in Q4 revenue, up 39% year over year. The growth was largely driven by a 67% increase in purchase loan origination volume.
This performance stands out given broader mortgage market volatility. The company continues to scale its integrated mortgage offering as part of its end-to-end home buying strategy.
Return to GAAP Profitability
Zillow reported Q4 GAAP net income of $3 million, compared with a loss in the same period last year.
For the full year 2025, the company recorded GAAP net income of $23 million, marking a return to profitability after prior annual losses.
Adjusted EBITDA for Q4 reached $149 million, while full-year adjusted EBITDA totaled $622 million, reflecting improved operating discipline.
Zillow ended the year with approximately $1.3 billion in cash and investments and generated strong free cash flow. The company also repurchased shares during the year, signaling confidence in its financial position.
Traffic and User Engagement
Despite housing market softness, Zillow’s platform engagement remained resilient.
- Average monthly unique users increased 8% year over year in Q4.
- Total visits grew approximately 2% for the full year.
Stable traffic growth supports Zillow’s long-term monetization strategy and strengthens its position as a leading online real estate marketplace.
Q1 2026 Outlook
For the first quarter of 2026, Zillow projected revenue between $700 million and $710 million, implying continued double-digit year-over-year growth.
The company expects Rentals and Mortgage revenue growth to remain strong, each projected at roughly 40% growth rates.
However, management indicated that legal expenses may remain elevated, which could impact margins in the near term.
Market Reaction
Despite the revenue beat and return to profitability, Zillow’s stock declined following the earnings release. Market reaction reflected mixed sentiment around certain profitability metrics and forward guidance expectations.
While revenue exceeded forecasts, some analysts viewed parts of the outlook as conservative. This explains the muted investor response despite strong top-line performance.
Analysis: Sustainable Growth or Short-Term Boost?
Zillow’s Q4 2025 earnings demonstrate disciplined execution. Revenue growth was not driven by aggressive expansion or one-time events. Instead, strength came from Rentals and Mortgage, areas aligned with long-term consumer demand.
The key question going forward is margin stability. Revenue growth is clear. Profitability has returned. But sustained earnings expansion will depend on cost control, legal exposure management, and continued conversion efficiency across the platform.
In a housing market defined by uncertainty, Zillow’s diversified model provides resilience. Whether that translates into stronger investor confidence will depend on consistent earnings delivery over the next several quarters.
