Zillow's Q2 2025 Earnings: Unpacking Contradictions in Rentals Revenue, Market Expansion, and Strategic Partnerships

Rentals revenue growth expectations, impact of Enhanced Markets on revenue growth, Redfin partnership impact on leads and property managers, Rentals business strategy and growth, and revenue growth expectations and market share gain are the key contradictions discussed in Zillow's latest 2025Q2 earnings call.



Revenue and Share Growth:
- Zillow Group reported total revenue of $655 million in Q2, exceeding expectations with a 15% year-over-year increase.
- The growth was driven by increased For Sale revenue, which grew 9% year-on-year, and Rentals revenue, which jumped 36% year-on-year.

Enhanced Markets and Zillow Home Loans:
- Residential revenue was up 6% year-on-year, with contributions from Enhanced Markets and Zillow Home Loans.
- The adoption of Zillow Home Loans in Enhanced Markets surpassed double-digit rates, indicating strong traction in integrating products and services.

Rentals Revenue and Multifamily Growth:
- Zillow Rentals achieved 36% year-over-year revenue growth in Q2, with multifamily revenue up 56%.
- Growth was supported by increased multifamily property listings, reaching 64,000 at the end of Q2, and partnerships with other rental networks.

EBITDA and Cost Management:
- Zillow Group reported EBITDA of $155 million in Q2, at the high end of expectations, with an EBITDA margin of 24%.
- The company effectively managed costs, with EBITDA expenses growing 10% year-over-year, driven by strategic investments in Rentals and Zillow Home Loans.