Overview
- Q4 revenue rose 18% to $654 million and full-year revenue reached about $2.6 billion, with 2025 net income at $23 million after a prior-year loss.
- Zillow guided Q1 2026 revenue to $700–$710 million above consensus, but projected adjusted EBITDA of $160–$175 million below Wall Street expectations, and the stock fell in after-hours trading.
- Growth was led by rentals and mortgages in Q4, with rentals revenue up 45% to $168 million and mortgage revenue up 39% to $57 million; purchase loan origination volume climbed 53% for 2025 as loan officer productivity rose 11% alongside a 40% staffing increase.
- User engagement improved with 221 million average monthly unique users in Q4 (up 8%) and 2.1 billion annual visits, while product adoption advanced through Zillow Showcase and new Zillow Home Loans preapproval letters inside Follow Up Boss.
- Legal headwinds persist, including an FTC complaint tied to a Redfin rentals partnership and other suits, though management does not expect a material long-term impact as near-term legal costs weigh on margins; a judge recently denied Compass’s bid to block Zillow’s listing rules.