Zillow Group's Q4 EPS Lags Estimates, Revenues Beat Y/Y

Zillow Group Z reported its fourth-quarter 2025 adjusted earnings per share (EPS) of 39 cents, which missed the Zacks Consensus Estimate of 42 cents. The figure increased significantly on a year-over-year basis.

Results reflected higher for-sale revenues and rental revenues year over year. Increased costs undermined the results to some extent.

Total revenues of $654 million surpassed the Zacks Consensus Estimate of $649.8 million. The figure improved 18.1% year over year.

For 2025, adjusted EPS of $1.64 missed the Zacks Consensus Estimate of $1.67. It improved 18.8% year over year. For 2025, total revenues of $2.58 billion were up 16% year over year, in line with the consensus mark.

Zillow Group’s Q4 in Detail

For-sale revenues reported during the fourth quarter were higher by 11% at $475 million. Residential revenues of $418 million increased 8% year over year, aided by growth in the company’s agent and software offerings and within its new construction marketplace. Mortgage revenues were 39% higher year over year at $57 million, backed by a 67% increment in purchase loan origination volume to $1.5 billion.

Rental revenues grew 44.8% year over year to $168 million, led by multifamily revenue growth of 63% year over year in the fourth quarter.

The adjusted EBITDA margin increased 260 basis points to 23% of revenues at $149 million, led by better-than-expected revenue growth and cost discipline.

Online traffic on Zillow Group’s mobile applications and sites was higher by 8% year over year to 221 million average monthly unique users. Visits improved 2% year over year to 2.1 billion.

Total select operating expenses and cost of revenues grew 7% year over year to $665 million due to an increase in lead acquisition costs related to strategic partnerships and ad-serving costs to support the growth of its rental marketplace and higher legal expenses.

Balance Sheet of Zillow Group

Zillow exited the fourth quarter of 2025 with $1.3 billion in cash and investments, down from $1.4 billion at the prior quarter's end.

During the fourth quarter, Zillow repurchased 3.4 million shares for $232 million.

Z’s 2026 Outlook

Zillow expects its first-quarter 2026 total revenues in the range of $700-710 million and adjusted EBITDA between $160 and $175 million.

First-quarter for-sale revenues are expected to be slightly ahead of 11% achieved in the fourth quarter of 2025, driven by residential revenue growth in the high single-digit range and mortgage revenue growth of around 40%.

Rental revenues are anticipated to rise around 40% year over year, driven by accelerated multifamily revenue growth.

The company expects its adjusted EBITDA expenses to be around $535-$540 million, an increase from the fourth quarter. The rise is expected due to a seasonal increase in payroll-related taxes and lead acquisition costs related to the Redfin multifamily rental listing syndication agreement. Variable costs are also set to grow owing to higher personnel costs and elevated legal expenses.

For 2026, management projects mid-teens revenue growth year over year and rental revenue growth of around 30% year over year. The company expects to have an adjusted EBITDA margin expansion year over year.

Zillow Group’s Zacks Rank

Zillow Group currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zillow Group, Inc. Price, Consensus and EPS Surprise

Zillow Group, Inc. price-consensus-eps-surprise-chart | Zillow Group, Inc. Quote

Upcoming Earnings Release

We now look forward to the earnings releases of other REITs — CBRE Group CBRE and Jones Lang LaSalle JLL — slated to report on Feb. 12 and Feb. 18, respectively.

The Zacks Consensus Estimate for CBRE Group’s fourth-quarter 2025 EPS stands at $2.66, indicating a 14.7% increase year over year. CBRE currently has a Zacks Rank #3 (Hold).

The consensus estimate for Jones Lang LaSalle’s fourth-quarter 2025 EPS is pegged at $7.25, calling for a 17.9% jump year over year. JLL currently has a Zacks Rank #3.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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This article originally published on Zacks Investment Research (zacks.com).

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