Zillow Group Reports $598 Million Revenue in Q1 2025, 13% Year-Over-Year Growth

Zillow Group, Inc. reported a total revenue of $598 million for the first quarter of 2025, marking a 13% increase from $529 million in the same period last year. The growth was primarily driven by a 6% rise in residential revenue, which reached $417 million, and a significant 32% increase in mortgages revenue, totaling $41 million. The company's gross profit also saw a corresponding increase, rising to $459 million from $406 million year-over-year. Despite these gains, Zillow recorded a net income of $8 million, a notable improvement from a net loss of $23 million in the prior year.

In terms of operational metrics, Zillow reported a 2% increase in visits to its platforms, totaling 2.354 billion, and a 5% rise in average monthly unique users, reaching 27 million. The company also highlighted a 33% increase in rentals revenue, which amounted to $129 million, driven by higher revenue per unique visitor and an increase in average monthly rentals unique visitors. The total transaction value (TTV) for the residential real estate industry increased by 6% during the same period, reflecting a positive trend in the housing market.

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 rental offerings and drive future revenue growth. Additionally, the company repurchased approximately 2.5 million shares of Class A common stock and 0.9 million shares of Class C capital stock during the quarter, totaling $250 million and $69 million, respectively.

Zillow's financial position remains strong, with cash and cash equivalents totaling $914 million as of March 31, 2025, down from $1.082 billion at the end of 2024. The company also reported a decrease in employee headcount, with 6,819 employees compared to 6,856 at the end of the previous fiscal year. Looking ahead, Zillow anticipates continued growth in its revenue streams, particularly in the rentals segment, as it expands its partnerships and enhances its product offerings. However, the company remains cautious about potential market fluctuations and economic conditions that could impact its performance.