Zillow (Z) Misses Q2 EPS by 2c; offers guidance

Zillow (NASDAQ: Z) reported Q2 EPS of $0.40, $0.02 worse than the analyst estimate of $0.42. Revenue for the quarter came in at $655 million versus the consensus estimate of $647.7 million.

GUIDANCE:

Zillow sees Q3 2025 revenue of $663-673 million, versus the consensus of $666.2 million.

We expect Q3 For Sale revenue growth to be similar to the For Sale revenue
growth reported in Q2, with Residential revenue growth in the
mid-single-digit range and Mortgages revenue growth in the high 20%
range. We expect Zillow Home Loans purchase loan origination volume to
grow more than 40% in Q3.
● In Rentals, we expect revenue growth to accelerate, increasing more than
40% year over year in Q3, driven by further acceleration in multifamily
revenue.
● Our outlook implies Q3 Adjusted EBITDA expenses are expected to be $513
million.21 The increase from Q2 2025 is expected to be primarily driven by lead
costs associated with our Redfin rentals partnership.
2025 OUTLOOK
● We now expect mid-teens revenue growth for the full year 2025, at the
higher end of our previous 2025 outlook for low- to mid-teens revenue
growth.
● We continue to expect our Rentals revenue will grow approximately 40% for
the full year 2025.
● We expect Adjusted EBITDA margin expansion for the full year 2025.
● We expect to have positive GAAP net income for the full year 2025.

For earnings history and earnings-related data on Zillow (Z) click here.

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