Zillow Group Reports 15% Revenue Growth to $655 Million in Q2 2025

Zillow Group, Inc. reported its financial results for the second quarter of 2025, revealing a total revenue of $655 million, a 15% increase from $572 million in the same period last year. The growth was primarily driven by a 36% rise in Rentals revenue, which reached $159 million, and a 6% increase in Residential revenue, totaling $434 million. Mortgages revenue also saw a significant boost, climbing 41% to $48 million, attributed to a rise in mortgage originations. The company's gross profit for the quarter was $489 million, up 11% from $442 million in the prior year, although the gross margin slightly decreased from 77% to 75%.

In comparison to the previous fiscal period, Zillow's financial performance showed notable improvements. For the first half of 2025, total revenue increased by 14% to $1.253 billion, with Rentals revenue growing by 35% and Residential revenue by 6%. The company reported a net income of $2 million for the second quarter, a turnaround from a net loss of $17 million in the same quarter of 2024. This positive shift in profitability was also reflected in the first half of the year, where Zillow achieved a net income of $10 million compared to a loss of $40 million in the prior year.

Strategically, Zillow has made significant moves, including a partnership with Redfin, which involved a $100 million payment to become the exclusive provider of multifamily rental listings on Redfin's platforms. This partnership is expected to enhance Zillow's market presence in the rental sector. Additionally, the company has been actively repurchasing its shares, with $981 million remaining under its repurchase authorization as of June 30, 2025. The employee headcount increased to 6,944, up from 6,856 at the end of 2024, indicating ongoing investment in human capital.

Operationally, Zillow reported 2.6 billion visits to its platforms during the second quarter, a 4% increase year-over-year, and an average of 243 million unique users, reflecting a 5% growth. The company also noted a 48% increase in total loan origination volume through Zillow Home Loans, reaching $1.126 billion for the quarter. These metrics suggest a strong engagement with users and a growing footprint in the mortgage market.

Looking ahead, Zillow's management expressed optimism about future growth, despite uncertainties in the housing market and economic conditions. The company plans to continue investing in technology and marketing to enhance its offerings and maintain its competitive edge. However, they acknowledged that ongoing inflationary pressures and fluctuating interest rates could impact future performance, particularly in the mortgage origination segment.