Q4 2025 Zillow Group Inc Earnings Call Transcript
Key Points
- Zillow Group Inc (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.
- Zillow Group Inc (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.
Hello and welcome to Zillow Group's 4th quarter and fiscal year 2025 financial results call. We ask that you hold all questions until the completion of the formal remarks, at which time you'll be given instructions for the question-and-answer session. Also, as a reminder, this conference is being recorded today. If you have any objections, please disconnect at this time. Brad, you may begin.
Thank you. Good afternoon and welcome to Zillow Group's quarterly earnings call. Joining me today to discuss our results are Zillow Group CEO Jeremy Waxman and CFO Jeremy Hoffman. During today's call, we will make forward-looking statements about our future performance and operating plans based on current expectations and assumptions. These statements are subject to risks and uncertainties, and we encourage you to consider the risk factors described in our SEC filings for additional information.
We undertake no obligation to update these statements as a result of new information or future events except as required by law. Please review the cautionary statement
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