Zillow Group C 2025 Q1 Earnings Strong Performance as Net Income Surges 134.8%

Zillow Group C reported its fiscal 2025 Q1 earnings on May 07th, 2025. The company exceeded expectations with a 13% increase in revenue, reaching $598 million compared to $529 million in the same quarter last year. Zillow also returned to profitability, posting a net income of $8 million, a significant turnaround from a $23 million loss in Q1 2024. The company's guidance for Q2 2025 anticipates further growth with revenue projected at $610 million and an EPS of $0.47.

Revenue

The total revenue of Zillow Group C increased by 13.0% to $598 million in 2025 Q1, up from $529 million in 2024 Q1.

Earnings/Net Income

Zillow Group C returned to profitability with EPS of $0.03 in 2025 Q1, reversing from a loss of $0.10 per share in 2024 Q1 (130.0% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $8 million in 2025 Q1, representing a 134.8% positive swing from the net loss of $-23 million in 2024 Q1. The positive EPS reflects improved financial health.

Post-Earnings Price Action Review

The strategy of investing in Zillow Group C shares post-revenue raise and holding for a month yielded a 7.41% return over the past five years, falling short of the benchmark's substantial 84.08% return. This approach's risk-adjusted returns were lackluster, as indicated by a low Sharpe ratio of 0.17. Additionally, the strategy exhibited a significant maximum drawdown of -14.05%, underscoring its high-risk nature. The volatility, measured at 8.69%, further contributed to the strategy's elevated risk profile. Overall, these factors highlight the challenges and risks associated with this investment strategy.

CEO Commentary

"Our strong Q1 results surpassed our expectations and demonstrate how well we're executing. We are on track to meet our full-year 2025 goals, and we're well-positioned to deliver sustainable profitable growth," said Jeremy Wacksman, CEO of Zillow Group. "As we expand our services and scale the housing super app across more markets, we are bringing more customers and real estate professionals together and making buying, selling, and renting easier for them, which is helping us grow both our revenue and profits."

Guidance

Zillow Group expects to continue its growth trajectory, guiding for Q2 2025 revenue to be around $610 million, with an EPS of $0.47. The company aims to maintain its Adjusted EBITDA margin at approximately 26% and anticipates ongoing improvements in revenue from its For Sale and Rentals segments.

Additional News

In recent developments, Zillow Group has not announced any mergers or acquisitions or changes to its executive team. However, there has been notable activity in the stock market, with Zillow Group's shares experiencing fluctuations due to investor sentiment and market conditions. Analysts have been closely monitoring Zillow's performance, particularly its ability to meet or exceed projected guidance figures. The stock has also been subject to analyst ratings, with a mix of hold and buy ratings contributing to its moderate buy consensus. Additionally, insider trading activities have been reported, including sales by key executives, shedding light on internal perspectives regarding the company's stock valuation.