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- **Revenue Growth**: Q3 revenue $676M (+16% YoY), For Sale +10%, Rentals +41%. 
- **AI Integration**: First real estate app in ChatGPT, virtual staging in Showcase listings. 
- **Agent Tools**: Zillow Pro beta testing in 2026, Zillow Preferred adoption doubling in enhanced markets. 
- **Mortgage Expansion**: Home Loans origination +57% YoY, Q4 growth +40%. 
- **Rentals Momentum**: 69K multifamily properties, 2.5M listings, Q4 growth >45% YoY. 
- **Financial Health**: EBITDA $165M (24% margin), free cash flow $295M YTD. 
- **2026 Outlook**: Mid-teens growth, expanding margins, positive GAAP net income.

**【CEO Summary Section】**
- Total Q3 revenue: $676M (16% YoY growth), exceeding high end of guidance. For Sale revenue up 10%, outperforming the housing market by 500bps. Rentals revenue grew 41% YoY, driven by 62% growth in multifamily. 
- Key initiatives: 
  - Zillow Showcase adoption at 3.2% of new listings (vs 2.5% last quarter), with AI-powered virtual staging launched. 
  - Zillow Pro beta testing begins in 2026, integrating Follow Up Boss, premium branding, and client insights. 
  - Zillow app integrated into ChatGPT, making it the first real estate app in the platform. 
- Enhanced markets now account for 34% of connections (vs 27% last quarter), with Zillow Home Loans adoption doubling in enhanced markets. 
- BuyAbility enrolled 2.9M users (up 45% QoQ), with digital pre-approval and borrower app rolled out. 
- Q4 outlook: Revenue $645-655M (16-18% YoY growth), EBITDA $145-155M (23% margin). 

**【CFO Financial Commentary】**
- Q3 GAAP net income: $10M (vs $420M in the example). EBITDA: $165M (24% margin, +200bps YoY). Free cash flow YTD: $295M (28% YoY growth). 
- For Sale: Residential revenue +7% YoY, mortgages +36% YoY. Q4 mortgages origination volume expected +40% YoY. 
- Rentals: Multifamily properties +47% YoY to 69K, with 2.5M average monthly listings. Q4 Rentals revenue growth >45% YoY. 
- Cost management: EBITDA expenses +5% YoY, share-based comp -8% YoY. 2026 capex and variable costs aligned with growth. 

**【Q&A Highlights】**
- **AI & ChatGPT**: First real estate app in ChatGPT, viewed as new doorway for traffic. Early-stage but excited about AI-driven listing enhancements (e.g., virtual staging). 
- **Regulatory Environment**: FTC case on multifamily listings viewed as pro-consumer, with Zillow leading in ROI for property managers. 
- **Agent Tools**: Zillow Pro beta testing in 2026, aiming to expand agent ecosystem beyond Zillow connections. 
- **Mortgage Growth**: Zillow Home Loans origination +57% YoY, with 20% Q4 YoY growth expected. 
- ** Rentals Expansion**: 140K total multifamily properties in US, Zillow at 69K. Syndication with Redfin/Realtor.com driving visibility. 
- **2026 Outlook**: Mid-teens revenue growth, expanding margins, positive GAAP net income. Zillow Pro expected minimal 2026 contribution. 

Zillow Group, Inc. (ZG) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

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Z fundamentals

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