Zillow Group bested company-set expectations for revenue during the second quarter of 2025, as the real estate company continued to grow, according to earnings results released on Wednesday.
Revenue was up 15 percent year over year to $655 million, which exceeded Zillow’s previous estimations and outperformed industry average annual total transaction value growth of 2 percent, according to data tracked by Zillow, and by 1 percent according to NAR data.
Zillow turned a profit of $2 million in Q2 — an improvement over the $17 million it lost during the same period in 2024. During the first quarter of 2025, Zillow also earned a profit — a first for the company since 2022.
Residential revenue was up 6 percent year over year to $434 million, and mortgages revenue was up 41 percent year over year to $48 million, largely due to a 48 percent increase in purchase loan origination volume to $1.1 billion. When the company released its Q1 2025 earnings, it said it expected for-sale revenue growth during the second quarter to “be in the mid-single digits year over year.”
Meanwhile, Zillow Group’s rentals revenue rose 36 percent year over year to $159 million, largely driven by multifamily revenue increasing 56 percent year over year, the company said.
Jeremy Wacksman
“Zillow’s Q2 results reflect how the power of our strategy and the strength of our execution are fueling growth across the company,” Zillow CEO Jeremy Wacksman said in a statement. “We’re relentlessly innovating to build a better real estate experience — one that helps more consumers move with confidence and gives real estate professionals the tools they need to power their businesses and serve movers effectively.”
Wacksman told Inman during a call on Wednesday that the company’s strategy for delivering an integrated transaction and growing market share is what drove its positive results during the second quarter. As the company is able to increase its share, those figures stand to become increasingly positive.
“A little more than one-quarter of our customers get [the company’s “enhanced market experience,” or integrated experience of financing and transacting a home through Zillow and partner agents], which means that three-quarters of Zillow customers don’t get exposed to that yet, and so we’re growing by lighting up these services for buyers and sellers and lighting up the software for agents in more markets,” Wacksman said.
“Our goal is to get to 35 percent by the end of this year, and a long-term goal is 75 percent. We would like the majority of Zillow customers to be partnered with a top agent and partner with great software and tools from Zillow to not just find a home but actually make an offer, buy and sell their home with those agent partners.”
Wacksman added during the call with Inman that there is still a great deal of untapped potential in the rental market for Zillow, since many rental listings currently on the platform are not for large multifamily buildings. But its share is growing.
“There are 140,000 buildings out there that are 25-plus units, big, tall buildings,” Wacksman said. “Zillow Rentals now has 64,000 advertising with us — that’s up from 50,000 just in the end of last year. So it’s really, really sharp growth, and that’s what is driving this revenue growth. That is also why we put this target out there of $1 billion-plus business, because we see a really clear path to continue this growth rate and this growth of Zillow Rentals into that $1 billion-revenue business as we tap into more of those multifamily advertisers.”
During an earnings call with investors on Wednesday, Wacksman also noted that the company has continued to invest in tools to help agents, including implementing more AI features into Follow Up Boss, making improvements to Zillow’s in-app messaging and recently launching SkyTour, an enhanced home tour experience.
Zillow Group’s cash and investments at the end of the second quarter were $1.2 billion, down from $1.6 billion at the end of the first quarter of 2025. The decline was largely due to a May 2025 settlement of the company’s remaining $419 million of convertible notes and $150 million in share repurchases, Zillow said.
Traffic to Zillow’s mobile apps and websites was up 5 percent year over year during the second quarter to 243 million average monthly unique users. Overall visits were up 4 percent year over year during the second quarter to 2.6 billion.
During the question and answer period of the investor call, executives also addressed the recent partnership Zillow made with Redfin to syndicate Zillow rental listings in multifamily buildings, saying they were “really pleased” with the relationship thus far. During the second quarter, the company brought in 9,000 syndicated properties but said they expect that to normalize in the future.
“It’s an important component of a larger rentals business we are building, not a separate piece, and the positives these folks bring to us impact the entire business,” Zillow CFO Jeremy Hoffman said.
One attendee on the investor call asked if Zillow had seen any changes in agent behavior or the agent ecosystem more generally in the wake of rolling out its new listing access standards.
Since June, the portal giant has been battling a lawsuit from Compass over the company’s new listing standards that impact private listings receiving public marketing.
Wacksman responded to the question by saying that the company was encouraged by the positive response from the agent community, and the general feeling of consensus that properties for sale should be accessible to everyone.
“We are really pleased that early on, we’ve seen the majority of the industry largely adopt these standards,” he said.
Zillow’s stock price steadily increased on Wednesday, closing up 3.25 percent by market’s close to $85.18 per share, and up 1.27 percent in after hours trading to $86.26 per share as the investor call was ongoing.
Credit: Yahoo Finance
Update: This story was updated after an earnings call with investors concluded on Aug. 6, 2025.
