Complete financial results for the third quarter and outlook for the fourth quarter of 2025 can be found in the shareholder letter on the Investor Relations section of Zillow Group's website at https://investors.zillowgroup.com/investors/financials/quarterly-results/default.aspx.
"Zillow's Q3 results show how well we're delivering on our mission to make buying, selling, financing and renting easier," said Zillow Chief Executive Officer Jeremy Wacksman. "What drives our success is that we deliver exceptional consumer and partner experiences, relentlessly innovate with our products, and consistently execute well on our integrated-transaction strategy. Zillow is leading the industry toward a more transparent, consumer-first future."
Recent highlights include:
Zillow Group's third-quarter results exceeded the company's outlook for revenue and Adjusted EBITDA.
Q3 revenue was up 16% year over year to $676 million, above the company's outlook range. Q3 revenue outperformed the residential real estate industry's year-over-year total transaction value growth of approximately 5% according to industry data tracked and estimated by Zillow1 and according to the NAR.2 The company estimates Q3 purchase mortgage origination volume for the industry was nearly flat year over year.
For Sale revenue was up 10% year over year to $488 million in Q3. On a trailing 12-month basis, For Sale revenue per Total Transaction Value was 10.1 basis points at the end of Q3, compared with 9.8 basis points at the end of Q3 2024.
Residential revenue was up 7% year over year in Q3 to $435 million, benefiting from growth across the company's agent and software offerings and within the company's New Construction marketplace.
Mortgages revenue increased 36% year over year to $53 million in Q3, primarily due to a 57% increase in purchase loan origination volume to $1.3 billion.
Rentals revenue increased 41% year over year to $174 million in Q3, primarily driven by multifamily revenue growing 62% year over year.
On a GAAP basis, net income was $10 million in Q3, and net income margin was 1%, a 400-basis-point increase year over year.
Q3 Adjusted EBITDA was $165 million, and Adjusted EBITDA margin was 24%, a more than 200-basis-point increase year over year, driven by better-than-expected revenue growth and effective cost management.3
Cash and investments at the end of Q3 were $1.4 billion, up from $1.2 billion at the end of Q2.
Traffic to Zillow Group's mobile apps and sites in Q3 was up 7% year over year to 250 million average monthly unique users. Visits during Q3 were up 4% year over year to 2.5 billion.
1
Calculated as the number of existing residential homes sold during Q3 2025 multiplied by the average sale price of existing residential homes sold for Q3 2025 according to industry data collected and estimated by Zillow, as published monthly on our site
2
National Association of Realtors® existing homes sold during Q3 2025 multiplied by the average selling price per home for Q3 2025, compared with the same period in 2024
3
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures; they are not calculated or presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Please see the "Use of Non-GAAP Financial Measures" section below for more information about our presentation of these non-GAAP financial measures, including a reconciliation to the most directly comparable GAAP financial measures for the relevant period.
Third-Quarter 2025 Financial Highlights
The following table sets forth Zillow Group's financial highlights for the periods presented (in millions, except percentages, unaudited):
Three Months Ended
September 30,
2024 to 2025
% Change
Nine Months Ended
September 30,
2024 to 2025
% Change
2025
2024
2025
2024
Revenue:
For Sale revenue:
Residential
$ 435
$ 405
7 %
$ 1,286
$ 1,207
7 %
Mortgages
53
39
36 %
142
104
37 %
Total For Sale revenue
488
444
10 %
1,428
1,311
9 %
Rentals
174
123
41 %
462
337
37 %
Other
14
14
— %
39
34
15 %
Total revenue
$ 676
$ 581
16 %
$ 1,929
$ 1,682
15 %
Other Financial Data:
Gross profit
$ 491
$ 441
$ 1,439
$ 1,289
Net income (loss)
$ 10
$ (20)
$ 20
$ (60)
Diluted net income (loss) per share
$ 0.04
$ (0.08)
$ 0.08
$ (0.26)
Net cash provided by operating activities
$ 105
$ 171
$ 296
$ 306
Non-GAAP Financial Measures:(1)
Adjusted EBITDA
$ 165
$ 127
