“Selling” on the Housing Market: Zillow Group Exceeds Q1 Expectations with Strong Revenue Growth

Zillow Group has just reported its first-quarter 2025 financial results, exceeding expectations with strong top-line growth and GAAP profitability. The company's CEO, Jeremy Wacksman, highlighted this achievement during the recent conference call, citing Zillow's focus on executing its strategy, managing costs, and expanding EBITDA margins.

With Q1 revenue of $598 million, up 13% year-over-year, Zillow Group continues to demonstrate double-digit revenue growth. This trend was driven by significant increases in the for sale category, with residential revenue rising 6% and mortgages revenue surging 32%. Rentals revenue also reached an all-time high of $129 million in Q1, a 33% year-over-year increase.

The company's adjusted EBITDA came in at $153 million, expanding its EBITDA margin by 200 basis points year-over-year to 26%. This milestone marks a significant achievement for Zillow Group, positioning the company well to meet its full-year 2025 goals of low-to-mid-teens revenue growth, continued EBITDA margin expansion, and positive GAAP net income.

Zillow's housing super app has been at the forefront of this success, providing a unique experience that meets the needs of buyers and sellers. The company has been building an ecosystem that is easier, streamlined, tech-enabled, and integrated, making it a trusted brand in the residential real estate market. With 227 million average monthly unique users, Zillow continues to lead the category, widening its lead over competitors.

The company's commitment to transparency and fair access to information for consumers has also been highlighted. Recently, Zillow rolled out listing standards that encourage the industry to formally implement what most already believed and were practicing – marketing listings publicly to all buyers online. This move aligns with Zillow's long history of prioritizing consumer interests.

Jeremy Wacksman emphasized during the conference call, “We have a strong and trusted brand and a disciplined cost structure, and we are executing well on our differentiated housing super app strategy.” This focus has set Zillow up to monetize more of the significant total addressable market opportunity in front of it.