Zillow Group C 2025 Q2 Earnings Returns to Profitability with 111.8% Net Income Surge

Zillow Group C reported its fiscal 2025 Q2 earnings on Aug 06th, 2025, delivering results that exceeded expectations and marking a return to profitability. The company's revenue rose 14.5% year-over-year to $655 million, and it posted a net income of $2 million—up from a $17 million loss in the prior-year period. The company also provided an optimistic outlook for 2025, with guidance for low to mid-teens revenue growth and continued EBITDA margin expansion.

Revenue
Zillow Group C reported robust revenue growth in Q2, with total revenue reaching $655 million, a 14.5% increase from $572 million in the same period last year. Residential segment revenue grew to $434 million, driven by increased agent and software offerings, as well as expansion in the New Construction marketplace. The Mortgages segment saw a significant 41% year-over-year increase to $48 million, fueled by a 48% rise in purchase loan origination volume. Rentals revenue also performed strongly, climbing 36% to $159 million, primarily due to a 56% increase in multifamily revenue. Other revenue stood at $14 million, contributing to the company’s overall growth trajectory.

Earnings/Net Income
The company achieved a net income of $2 million in 2025 Q2, a dramatic turnaround from a $17 million net loss in 2024 Q2, representing an 111.8% positive swing. Earnings per share (EPS) also improved significantly, with a positive EPS of $0.01 versus a loss of $0.07 in the prior-year period. This notable shift underscores the company’s strong operational and cost management execution.

Price Action
The stock price of Zillow Group C has shown strong performance in recent trading periods, climbing 3.18% during the latest trading day, 7.78% during the most recent full trading week, and surging 17.66% month-to-date.

Post-Earnings Price Action Review
The strategy of buying Zillow Group C shares 30 days after the quarterly earnings report and holding for another 30 days delivered strong returns over the past three years. The strategy achieved a total return of 93.52%, surpassing the benchmark return of 49.40% by 44.13%. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.56, the strategy also demonstrated robust risk management, making it a reliable approach for capital appreciation while minimizing potential losses.

CEO Commentary
CEO Jeremy Wacksman highlighted the company’s Q2 2025 performance, noting resilience in key areas despite ongoing housing market challenges. He emphasized strong momentum in the Rentals segment, where revenue increased 36% year-over-year to $159 million. The success of Zillow Home Loans was also highlighted, with 70% of movers now financing through the platform. Wacksman acknowledged seasonal and partnership-driven cost pressures in the coming quarter but expressed confidence in the company’s long-term strategy, including expanding its housing super app and enhancing services for buyers and sellers.

Guidance
Zillow Group guided to low to mid-teens revenue growth for 2025, with continued EBITDA margin expansion and positive GAAP net income. For Q3 2025, the company expects to maintain strong performance across core segments and expand its Enhanced Markets to exceed 35% of overall connections by year-end. The company anticipates Q3 revenue to reflect the impact of seasonal factors and strategic investments, but remains focused on long-term profitability and market share gains.

Additional News
Zillow Group announced a significant share repurchase program, having spent $150 million on repurchases in Q2 2025. Additionally, the company settled its remaining $419 million of convertible notes in May 2025. Zillow also highlighted a 5% year-over-year increase in average monthly unique users on its mobile apps and sites, reaching 243 million, and reported 2.6 billion total visits during the quarter, a 4% year-over-year increase. These developments underscore Zillow Group’s commitment to strengthening its market position and enhancing shareholder value.