Zillow’s first quarter results for 2025 were shaped by strong expansion in its rental marketplace and continued gains from its Enhanced Markets strategy. Management credited the 13% revenue growth to higher multifamily property counts in Rentals, which saw a 47% increase in multifamily revenue, and growing adoption of digital tools like Real Time Touring. CEO Jeremy Wacksman also highlighted progress in integrating services across buyer and seller journeys, with Premier Agent and Zillow Home Loans working increasingly in tandem. CFO Jeremy Hofmann noted that cost discipline and operational leverage contributed to improved operating margins, despite persistent challenges in the broader housing market.
Is now the time to buy ZG? Find out in our full research report (it’s free).
Zillow (ZG) Q1 CY2025 Highlights:
- Revenue: $598 million vs analyst estimates of $589.9 million (13% year-on-year growth, 1.4% beat)
- Adjusted EPS: $0.41 vs analyst estimates of $0.37 (11.1% beat)
- Adjusted EBITDA: $153 million vs analyst estimates of $138.6 million (25.6% margin, 10.4% beat)
- Operating Margin: -1.5%, up from -8.5% in the same quarter last year
- Market Capitalization: $18.08 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Zillow’s Q1 Earnings Call
-
Ronald Josey (Citi): Asked about the drivers of accelerating Rentals growth and the impact of multifamily partnerships. CEO Jeremy Wacksman emphasized strategy execution and growing inventory, while CFO Jeremy Hofmann detailed revenue acceleration and long-term opportunity.
-
Bradley Erickson (RBC Capital Markets): Inquired about outperformance versus industry growth and the role of Enhanced Markets. Hofmann explained that gains were driven by high-end market strength and Enhanced Markets expansion, with Wacksman adding that methodical rollout supports future growth.
-
John Colantuoni (Jefferies): Questioned the apparent shift in growth contributions among segments and cost discipline. Hofmann clarified that Rentals acceleration was already included in guidance and highlighted ongoing fixed cost control.
-
Trevor Young (Barclays): Sought details on the Redfin partnership mechanics and its impact on property count. Hofmann explained that no contracts transferred and all business was won directly, with the partnership syndicating listings across platforms.
-
Thomas Champion (Piper Sandler): Asked about the significance of new listing standards and Enhanced Markets expansion. Wacksman described the listing standards as promoting transparency, while Hofmann characterized Enhanced Markets as still in early innings but central to long-term growth.
Catalysts in Upcoming Quarters
In the quarters ahead, the StockStory team will be monitoring (1) the pace of Rentals revenue acceleration and the impact of the Redfin partnership on multifamily property growth, (2) progress toward increasing the share of connections made through Enhanced Markets and subsequent adoption of integrated transaction services, and (3) the scaling and monetization of products like Showcase and Real Time Touring. Continued operational discipline and macroeconomic developments will also be key factors influencing Zillow’s trajectory.
Zillow currently trades at $73, up from $66.37 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).
Our Favorite Stocks Right Now
Market indices reached historic highs following Donald Trump’s presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth.
While this has caused many investors to adopt a "fearful" wait-and-see approach, we’re leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
