Zillow Group Inc
NASDAQ:ZG
Zillow Group Inc
Zillow Group Inc. began as a bold experiment to revolutionize the housing market in the digital age, fundamentally reshaping how people buy, rent, and sell homes. Anchored in Seattle, Washington, Zillow made its mark by providing a treasure trove of real estate data, empowering users with newfound transparency and insights into property valuations through its signature “Zestimate.” Born from the minds of former Microsoft executives, Rich Barton and Lloyd Frink, Zillow transformed the real estate landscape, tapping into the vast opportunities of the online space. Its user-friendly platform amalgamates listings, market data, and user-generated content, offering a comprehensive tool for prospective homebuyers, sellers, and renters. Utilizing a blend of cutting-edge technology and extensive real estate segments, Zillow crafts an all-inclusive experience that connects users with homes and real estate professionals, making property transactions more accessible and informed than ever before.
The company generates revenue mainly through its highly successful Premier Agent program, which enables real estate agents to gain prominence on the site by paying for advertising placements that connect them with high-intent users. Despite its early focus on advertising, Zillow has not stopped evolving; it has dipped its toes into the iBuying market with Zillow Offers, attempting to directly purchase homes from sellers and resell them, aiming to streamline the transaction process. Furthermore, through partnerships and subsidiaries, Zillow has expanded its reach into the realms of mortgage lending and title services. By offering these ancillary services, Zillow enhances its monetization strategy, capturing additional value from its vast audience. This multifaceted approach not only reinforces Zillow's position as a real estate titan but also ensures its continued adaptation and growth amid the constantly shifting dynamics of the housing market.
Zillow Group Inc. began as a bold experiment to revolutionize the housing market in the digital age, fundamentally reshaping how people buy, rent, and sell homes. Anchored in Seattle, Washington, Zillow made its mark by providing a treasure trove of real estate data, empowering users with newfound transparency and insights into property valuations through its signature “Zestimate.” Born from the minds of former Microsoft executives, Rich Barton and Lloyd Frink, Zillow transformed the real estate landscape, tapping into the vast opportunities of the online space. Its user-friendly platform amalgamates listings, market data, and user-generated content, offering a comprehensive tool for prospective homebuyers, sellers, and renters. Utilizing a blend of cutting-edge technology and extensive real estate segments, Zillow crafts an all-inclusive experience that connects users with homes and real estate professionals, making property transactions more accessible and informed than ever before.
The company generates revenue mainly through its highly successful Premier Agent program, which enables real estate agents to gain prominence on the site by paying for advertising placements that connect them with high-intent users. Despite its early focus on advertising, Zillow has not stopped evolving; it has dipped its toes into the iBuying market with Zillow Offers, attempting to directly purchase homes from sellers and resell them, aiming to streamline the transaction process. Furthermore, through partnerships and subsidiaries, Zillow has expanded its reach into the realms of mortgage lending and title services. By offering these ancillary services, Zillow enhances its monetization strategy, capturing additional value from its vast audience. This multifaceted approach not only reinforces Zillow's position as a real estate titan but also ensures its continued adaptation and growth amid the constantly shifting dynamics of the housing market.
Revenue Growth: Zillow’s Q4 revenue rose 18% year-over-year to $654 million, near the top of their outlook, and full-year 2025 revenue grew 16%, in line with their mid-teens guidance.
Profitability: The company achieved GAAP profitability for the year, with $23 million net income and a 24% full-year EBITDA margin, expanding by 180 basis points versus 2024.
Outperformance: Zillow’s revenue growth in both For Sale and Rentals far outpaced the underlying housing market, which grew just 3% in 2025.
Rentals Momentum: Rentals revenue soared 45% in Q4 and 39% for the full year, driven by strong multifamily performance and greater property manager adoption.
Mortgage Growth: Mortgages revenue rose 39% in Q4 and 37% for the year, with purchase loan originations accelerating 67% in Q4.
Guidance: For Q1 2026, revenue is expected between $700–710 million (up 18% YoY), and the company expects mid-teens revenue growth for the full year, with ongoing EBITDA margin expansion.
Legal/Expenses: Elevated legal expenses are expected to be a 100 basis point headwind to EBITDA margins in 2026 but are not expected to impact long-term strategy.
