Zillow Group's Q3 2025 Results: Strong Growth and Consumer-First Innovations

Zillow Group Reports Impressive Q3 2025 Financial Results

Zillow Group, Inc. has recently revealed its consolidated financial results for the third quarter of 2025, demonstrating a remarkable performance driven by innovation and a dedication to consumer experience. As a leading platform in the residential real estate market, Zillow is redefining how people buy, sell, rent, and finance homes.

Financial Overview

For the three months ending September 30, 2025, Zillow’s revenue reached $676 million, reflecting a robust 16% increase compared to the same quarter last year. This performance outstripped the industry's growth rate of approximately 5%, showcasing Zillow's strength in the competitive real estate space.

CEO Jeremy Wacksman commented, "Our Q3 results exemplify our success in simplifying buying, selling, financing, and renting processes. Our focus on exceptional consumer and partner experiences fuels our growth and drives us toward a more transparent, consumer-centric future."

Revenue Breakdowns

1. For Sale Revenue:
- Reached $488 million, up 10% year-over-year.
- Per Total Transaction Value, the revenue generated was 10.1 basis points, slightly surpassing last year’s figure of 9.8 basis points.

2. Residential Revenue:
- Increased by 7% year-over-year, totaling $435 million, spurred by growth in agent offerings and the New Construction marketplace.

3. Mortgages Revenue:
- Saw a significant jump of 36%, amounting to $53 million, attributing this surge to a remarkable 57% rise in purchase loan origination volume.

4. Rentals Revenue:
- Experienced a remarkable growth of 41% year-over-year, reaching $174 million, primarily due to multifamily revenue expansion.

Profitability Metrics

On a GAAP basis, Zillow reported a net income of $10 million for Q3, marking a year-over-year improvement in net income margin by 400 basis points. Adjusted EBITDA, which is essential for assessing operational performance, hit $165 million, with an adjusted EBITDA margin of 24%. This improvement correlates closely with effective cost management and revenue growth.

The company's cash and investments totaled $1.4 billion at the end of Q3, a substantial increase from the previous quarter's $1.2 billion. Traffic to Zillow’s mobile platforms also rose, with 250 million unique users per month and 2.5 billion visits, both up 7% and 4% respectively compared to the previous year.

Forward Outlook and Strategy

In its shareholder letter, Zillow Group outlined its strategic focus on innovation and integration. The company's integrated-transaction model aims to streamline processes across its services, enhancing both user experience and operational efficiency.

Zillow will host a live conference today to further discuss these results and future strategies, emphasizing its commitment to leading the real estate market into a new age of transparency and consumer empowerment.

In summary, Zillow Group continues to exhibit substantial growth and resilience. Its Q3 2025 results, underpinned by strategic innovations and enhanced user experiences, set a solid foundation for the upcoming quarters. With ongoing developments, Zillow Group remains dedicated to reshaping the real estate landscape, making homeownership accessible for more individuals than ever before.