Zillow Group's Impressive Q3 2025 Results Show Growth and Resilience

Author: Logan Wright Updated: 10-30-2025 04:15 PM

Zillow Group Reports Strong Third-Quarter 2025 Financial Results

Zillow Group, Inc. (NASDAQ: Z), a leading online real estate marketplace, has released its financial results for the third quarter of 2025. The company has showcased its dedication to transforming the experience of buying, selling, renting, and financing homes, achieving remarkable performance metrics.

Key Financial Highlights

The total revenue for the third quarter reached $676 million, representing a 16% increase year over year. This figure exceeded both the company's expectations and the general growth observed in the residential real estate sector, which witnessed a mere 5% growth in total transaction value over the same period.

Revenue Breakdown by Segment

In particular, Zillow Group's different business segments reported the following:

For Sale revenue climbed by 10% to $488 million, reflecting the company's ongoing success in the real estate sales market.
Residential revenue rose 7% to $435 million, supported by increased activity in its agent and software offerings as well as the New Construction marketplace.
Revenue from Mortgages surged 36% to $53 million, primarily attributed to a notable 57% increase in purchase loan origination volume, totaling approximately $1.3 billion.
Rentals revenue witnessed significant growth, increasing 41% to $174 million, propelled by a 62% rise in multifamily revenue.

Profitability and Operational Efficiency

On a GAAP basis, Zillow reported a net income of $10 million for the quarter, with a net income margin of 1%. This performance marks an impressive 400-basis-point improvement from the previous year. Adjusted EBITDA for Q3 was reported at $165 million, equating to a margin of 24%, driven by effective revenue growth strategies and stringent cost management.

Solid Cash Position and User Engagement

The company ended the quarter with cash and investments totaling $1.4 billion. This increase from $1.2 billion compared to the second quarter reflects Zillow's robust financial health and capacity for future investments.

User engagement continued to show positive trends, with 250 million average monthly unique users across Zillow Group's mobile platforms, marking a 7% increase year over year. Total visits surged to 2.5 billion, up 4% compared to the previous year, signaling growing interest in real estate services and engagement with its digital platforms.

Looking Ahead: Optimism for the Future

As Zillow Group continues to innovate and expand, the company remains optimistic about its growth trajectory. CEO Jeremy Wacksman emphasized that these results demonstrate Zillow's mission to enhance customer experience by delivering innovative products while executing a successful integrated-transaction strategy.

Frequently Asked Questions

What were Zillow Group's total revenues for Q3 2025?

The total revenues reported were $676 million, reflecting a 16% increase from the previous year.

How has the Rentals segment performed in Q3 2025?

The Rentals segment saw a 41% increase in revenue, totaling $174 million, primarily driven by a 62% increase in multifamily revenue.

What is Zillow's net income for Q3 2025?

Zillow's net income for the third quarter was $10 million, a significant improvement from the previous year's results.

How many average monthly unique users does Zillow Group have?

Zillow Group recorded an average of 250 million unique users per month in Q3 2025.

What strategies is Zillow Group implementing to drive future growth?

Zillow continues to focus on enhancing user experience through innovation, integrating its transaction processes, and fostering partnerships within the real estate industry.

About The Author

Dedicated Author and financial expert Logan Wright here, 29 years old. After earning an economics degree, I spent a number of years working in different financial industries. My great passion is enabling everyone, from any background or experience level, to understand and be literate in financial matters.

My books and writings are centered on simplifying difficult financial ideas into doable, understandable guidance. Whether it's retirement planning, investing, or budgeting, I want to arm readers with the information they need to make wise financial choices and realize their financial objectives.

Apart from writing, I also frequently post to financial blogs and organize webinars and workshops targeted at enlightening participants about personal finance. Always, my strategy is to offer concise, doable advice that can truly improve people's lives.

Away from work, I like to read, travel, and sample new foods. My goal is to infuse everything I do with the balance that I think is essential to both financial and personal well-being. By my profession, I want to encourage and enable people to confidently and clearly take charge of their financial futures.

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