Zillow Group Reports Strong Fourth-Quarter and Full-Year 2025 Financial Results

For the fourth quarter of 2025, Zillow Group achieved a revenue of $654 million, reflecting an 18% increase year-over-year. This figure is notably close to the upper limit of the company’s projected outlook range. The residential real estate industry, according to the National Association of Realtors (NAR), grew by just 3% during this period, indicating that Zillow outperformed the industry by an impressive 1,500 basis points.

Zillow Group's total revenue for the full year reached $2.6 billion, marking a 16% increase from the previous year. The company’s performance is particularly remarkable given that the overall purchase mortgage origination volume remained flat year-over-year.

Zillow's profitability metrics showed substantial improvements. The company reported a GAAP net income of $3 million for Q4, achieving a net income margin of 0%, which is a 990-basis-point increase from the previous year. For the full year, Zillow's GAAP net income stood at $23 million, with a net income margin of 1%, reflecting a 590-basis-point year-over-year increase.

The company also highlighted its Adjusted EBITDA, which reached $149 million in Q4, resulting in an Adjusted EBITDA margin of 23%—an increase of 260 basis points from the previous year. For the full year 2025, Adjusted EBITDA was reported at $622 million with a margin of 24%, up 180 basis points year-over-year.

Zillow Group ended Q4 with cash and investments totaling $1.3 billion, a slight decrease from $1.4 billion at the end of Q3. The company returned value to shareholders by repurchasing 3.4 million shares for $232 million during the quarter.

Traffic to Zillow Group's platforms remained robust, with an 8% year-over-year increase in unique monthly users, reaching 221 million. Additionally, the total number of visits during Q4 rose by 2% year-over-year, amounting to 2.1 billion.

Jeremy Wacksman, Chief Executive Officer of Zillow, expressed pride in the company's performance, stating, "We delivered strong results in the fourth quarter and throughout 2025, achieving all our reported full-year financial targets, including positive net income, while continuing to gain share in both For Sale and Rentals." He emphasized the importance of Zillow's strategic execution and the ongoing innovation in AI that positions the company for sustained growth in the real estate sector.

As Zillow celebrates its 20th anniversary, the company is poised for continued growth, leveraging its engaged audience and industry-leading software solutions. The outlook for the first quarter of 2026 will be detailed in their forthcoming shareholder letter.

With its strategic focus and robust financial performance, Zillow Group continues to solidify its position as a transformative force in the real estate market, catering to both consumers and real estate professionals alike.