Zillow Reports Strong Q4 Results, Returns to GAAP Profitability, and Issues Positive 2026 Outlook

summarizeSummary

Zillow Group announced strong Q4 and full-year 2025 financial results, achieving GAAP profitability and outperforming the industry, complemented by significant share repurchases and a positive 2026 outlook.

check_boxKey Events

• Strong Q4 and Full-Year 2025 Financial Performance

  Zillow Group reported Q4 revenue of $654 million, up 18% year-over-year, and full-year 2025 revenue of $2.6 billion, up 16% year-over-year. This significantly outperformed the residential real estate industry's 3% growth for both periods.

• Return to GAAP Profitability

  The company achieved GAAP net income of $3 million in Q4 2025, a 990-basis-point increase year-over-year, and $23 million for the full year 2025, reversing prior-year losses.

• Significant Share Repurchase Program

  Zillow repurchased 3.4 million shares for $232 million in Q4 2025, contributing to a total of 9.5 million shares repurchased for $670 million in full-year 2025, which more than offset share-based compensation.

• Robust Segment Growth

  For Sale revenue increased 11% year-over-year in Q4, Mortgages revenue grew 39% driven by a 67% increase in purchase loan origination volume, and Rentals revenue surged 45% year-over-year.

auto_awesomeAnalysis

Zillow Group delivered robust fourth-quarter and full-year 2025 financial results, marking a significant turnaround to GAAP profitability. The company's revenue growth substantially outpaced the broader residential real estate industry, demonstrating effective execution of its strategy. The substantial share repurchase program in Q4, totaling $232 million, signals strong management confidence, particularly as the stock trades near its 52-week low. The positive outlook for 2026, including mid-teens revenue growth and Adjusted EBITDA margin expansion, suggests continued operational strength and a favorable trajectory for the company.