ZILLOW GROUP, INC.
For the period ended Sep 30, 2025. Filed Oct 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 30, 2025
ZG$30.36-2.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001617640-25-000094
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0001617640-25-000150
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 145 previous paragraphs and 154 current paragraphs.
97 unchanged; 45 reworded; 11 added; 3 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
Total revenue increased $95 million, or 16%, to $676 million:
Current report
•Adjusted EBITDA does not reflect acquisition-related costs;
Current report
Sales and marketing expenses increased $50 million, or 9%, due to increases of $38 million in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our business and $5 million in depreciation and amortization expense.
Current report
Technology and development expenses increased $6 million, or 4%, primarily due to an increase of $4 million in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our business.
Current report
Adjusted Free Cash Flow
Current report
To provide investors with additional information regarding our liquidity, we have disclosed Adjusted free cash flow, a non-GAAP financial measure, in this Quarterly Report on Form 10-Q. We have provided a reconciliation below of Adjusted free cash flow to net cash provided by operating activities, the most directly comparable GAAP financial measure. We define Adjusted free cash flow as net cash provided by operating activities adjusted for purchases of property and equipment, purchases of intangible assets, net borrowings on repurchase agreements, and the initial payment in connection with the Redfin rentals partnership. Borrowings on repurchase agreements are used to fund Zillow Home Loans mortgage loan originations, and we consider them part of our ongoing liquidity management. The initial payment in connection with the Redfin rentals partnership was considered a one-time and nonrecurring cash flow, and we exclude it from our calculation as we believe it impacts the ability to evaluate the liquidity of our business operations on a period-to-period basis.
Current report
We have included Adjusted free cash flow in this Quarterly Report on Form 10-Q as it is a key metric used by our management to evaluate the effectiveness of our business strategies and execution and our ability to consistently generate cash from our core operations on a period-to-period basis.
Current report
Our use of Adjusted free cash flow has limitations as an analytical tool, and you should not consider this measure in isolation or as a substitute for analysis of our results as reported under GAAP. Adjusted free cash flow does not represent the residual cash flow available for discretionary expenditures. Other companies, including companies in our own industry, may calculate Adjusted free cash flow differently from the way we do, limiting its usefulness as a comparative measure.
Current report
The following table provides a reconciliation of Adjusted free cash flow to net cash provided by operating activities for the periods presented (in millions, unaudited):
Current report
Settlement of Capped Call Transactions
Current report
In August 2025, we settled the capped call transactions we entered into in connection with the issuance of the 2026 Notes, resulting in the receipt of approximately 3.1 million shares of Class C capital stock and $38 million in cash. Subsequent to this settlement, no capped call transactions remain outstanding.
Removed paragraphs (3)
Previous report
Total revenue increased $152 million, or 14%, to $1.3 billion:
Previous report
Sales and marketing expenses increased $21 million, or 10%, due to increases of $12 million in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our business, $6 million in marketing and advertising costs as we continue to invest in the growth of our rentals marketplace, and $2 million in depreciation and amortization expense.
Previous report
Technology and development expenses increased $9 million, or 6%, due to increases of $6 million in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our business, and $2 million in software and hardware costs.
Reworded paragraphs (45)
Previous wording
The following discussion of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results may differ materially from those described in or implied by any forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q, including in the section titled “Note Regarding Forward-Looking Statements,” and those factors discussed in Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K for the year ended December 31, 2024.
Current wording
The following discussion of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and the related notes included elsewhere in this Quarterly Report on Form 10-Q. In addition to historical financial information, the following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results may differ materially from those described in or implied by any forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this Quarterly Report on Form 10-Q, including in Part II, Item 1A (Risk Factors) and in the section titled “Note Regarding Forward-Looking Statements,” and those factors discussed in Part I, Item 1A (Risk Factors) of our Annual Report on Form 10-K for the year ended December 31, 2024.
Previous wording
As of June 30, 2025, we had 6,944 employees, compared to 6,856 employees as of December 31, 2024.
Current wording
As of September 30, 2025, we had 7,031 employees, compared to 6,856 employees as of December 31, 2024.
Previous wording
Our financial performance is impacted by changes in the health of the housing market, which is impacted, in turn, by general economic conditions. Current market factors have been driven by low housing inventory, elevated and volatile mortgage interest rates, changes in rental inventory and occupancy rates, as well as home price fluctuations and inflationary conditions. These factors may impact the number of transactions consumers complete using our products and services and demand for our advertising services. According to residential real estate data collected and estimated by Zillow Group as published monthly on our site, TTV increased 2% during the three months ended June 30, 2025 as compared to the three months ended June 30, 2024 and increased 4% during the six months ended June 30, 2025 as compared to the six months ended June 30, 2024. We continue to invest in the growth of our business, which we believe has resulted in year over year total revenue results, described below, for the three and six month periods ended June 30, 2025 as compared to the same periods in the prior year, that exceeded industry performance for the same periods. The extent to which market factors impact our results and financial position will depend on future developments, which are uncertain and difficult to predict.
Current wording
Our financial performance is impacted by changes in the health of the housing market, which is impacted, in turn, by general economic conditions. Current market factors have been driven by low housing inventory, elevated and volatile mortgage interest rates, changes in rental inventory and occupancy rates, as well as home price fluctuations and inflationary conditions. These factors may impact the number of transactions consumers complete using our products and services and demand for our advertising services. According to residential real estate data collected and estimated by Zillow Group as published monthly on our site, TTV increased 6% during the three months ended September 30, 2025 as compared to the three months ended September 30, 2024 and increased 5% during the nine months ended September 30, 2025 as compared to the nine months ended September 30, 2024. We continue to invest in the growth of our business, which we believe has resulted in year over year total revenue results, described below, for the three and nine month periods ended September 30, 2025 as compared to the same periods in the prior year, that exceeded industry performance for the same periods. The extent to which market factors impact our results and financial position will depend on future developments, which are uncertain and difficult to predict.
Previous wording
For the three months ended June 30, 2025 and 2024, we generated total revenue of $655 million and $572 million, respectively, an increase of 15%. The increase in total revenue was primarily attributable to the following:
Current wording
For the three months ended September 30, 2025 and 2024, we generated total revenue of $676 million and $581 million, respectively, an increase of 16%. The increase in total revenue was primarily attributable to the following:
Previous wording
•Rentals revenue increased by $42 million, or 36%, to $159 million, due to increases in quarterly revenue per average monthly rentals unique visitor and average monthly rentals unique visitors.
Current wording
•Rentals revenue increased by $51 million, or 41%, to $174 million, due to increases in quarterly revenue per average monthly rentals unique visitor.
Previous wording
•Residential revenue increased by $25 million, or 6%, to $434 million, due to increases in the number of visits and in Residential revenue per visit.
Current wording
•Residential revenue increased by $30 million, or 7%, to $435 million, due to increases in the number of visits and in Residential revenue per visit.
Previous wording
•Mortgages revenue increased by $14 million, or 41%, to $48 million, driven by an increase in mortgage originations revenue as a result of increased total loan origination volume.
Current wording
•Mortgages revenue increased by $14 million, or 36%, to $53 million, driven by an increase in mortgage originations revenue as a result of increased total loan origination volume.
Previous wording
During the three months ended June 30, 2025 and 2024, we generated gross profit of $489 million and $442 million, respectively, an increase of 11%.
Current wording
During the three months ended September 30, 2025 and 2024, we generated gross profit of $491 million and $441 million, respectively, an increase of 11%.
Previous wording
Measuring unique users is important to us because much of our revenue depends in part on our ability to connect home buyers and sellers, renters and individuals with or looking for a mortgage to real estate, rental and mortgage professionals, products and services. Growth in consumer traffic to our mobile applications and websites increases the number of impressions, clicks, connections, leads and other events we can monetize to generate revenue. For example, our revenue depends in part, on users accessing our mobile applications and websites to engage in the sale, purchase, renting and financing of homes, including with Zillow Home Loans, and a significant portion of our Residential revenue, Rentals revenue and Other revenue depend on advertisements being served to users of our mobile applications and websites.
Current wording
Measuring unique users is important to us because much of our revenue depends in part on our ability to connect home buyers and sellers, renters and individuals with or looking for a mortgage to real estate, rental and mortgage professionals, products and services. Growth in consumer traffic to our mobile applications and websites increases the number of impressions, clicks, connections, leads and other events we can monetize to generate revenue. For example, our revenue depends in part, on users accessing our mobile applications and websites to engage in the sale, purchase, renting and financing of homes, including with Zillow Home Loans, and a significant portion of our Residential revenue, Rentals revenue and Other revenue depends on advertisements being served to users of our mobile applications and websites.
Previous wording
(1) Estimate for the trailing twelve months ended June 30, 2025 is as of July 2025.
Current wording
(1) Estimate for the twelve months ended September 30, 2025 is as of October 2025.
Previous wording
During the three and six months ended June 30, 2025, total loan origination volume increased 48% and 41%, respectively, compared to the three and six months ended June 30, 2024. This increase was primarily driven by the continued growth in Zillow Home Loans purchase loan originations in line with our strategic priorities.
Current wording
During the three and nine months ended September 30, 2025, total loan origination volume increased 56% and 47%, respectively, compared to the three and nine months ended September 30, 2024. This increase was primarily driven by the continued growth in Zillow Home Loans purchase loan originations in line with our strategic priorities.
Previous wording
•Rentals revenue increased $42 million, or 36%. The increase in Rentals revenue was primarily due to a 21% increase in quarterly revenue per average monthly rentals unique visitor to $4.42 for the three months ended June 30, 2025 from $3.66 for the three months ended June 30, 2024, primarily driven by growth in multifamily property listings which drove a 56% increase in multifamily rentals revenue. We calculate quarterly revenue per average monthly rentals unique visitor by dividing total Rentals revenue for the period by the average monthly rentals unique visitors for the period and then dividing by the number of quarters in the period. The increase in Rentals revenue was also driven by growth in average monthly rentals unique visitors, which increased 13% to 36 million during the three months ended June 30, 2025 from 32 million during the three months ended June 30, 2024. We have estimated average monthly rentals unique visitors using Comscore data, which measures average monthly unique visitors on rental listings on Zillow, Trulia and HotPads mobile apps and websites, and on Realtor.com and Redfin and its sites, including Rent.com and ApartmentGuide.com. We expect Rentals revenue to increase in absolute dollars during the three months ending September 30, 2025, primarily driven by growth in multifamily revenue from the addition of new rental properties and in revenue per property as property managers upgrade their advertising spend.
Current wording
•Rentals revenue increased $51 million, or 41%, driven by a 46% increase in quarterly revenue per average monthly rentals unique visitor to $4.97 for the three months ended September 30, 2025 from $3.42 for the three months ended September 30, 2024. The increase in quarterly revenue per average monthly rentals unique visitor was driven by a 62% increase in multifamily rentals revenue due to growth in multifamily property listings and in revenue per property as property managers upgraded to more comprehensive advertising packages. We calculate quarterly revenue per average monthly rentals unique visitor by dividing total Rentals revenue for the period by the average monthly rentals unique visitors for the period and then dividing by the number of quarters in the period. Average monthly rentals unique visitors decreased 3% to 35 million during the three months ended September 30, 2025 from 36 million during the three months ended September 30, 2024. We have estimated average monthly rentals unique visitors using Comscore data, which measures average monthly unique visitors on rental listings on Zillow, Trulia and HotPads mobile apps and websites, and on Realtor.com and Redfin and its sites, including Rent.com and ApartmentGuide.com.
Previous wording
•Residential revenue increased $25 million, or 6%. The increase in Residential revenue was partially driven by a 4% increase in the number of visits to 2.6 billion for the three months ended June 30, 2025 from 2.5 billion for the three months ended June 30, 2024. Residential revenue was also positively impacted by an increase in Residential revenue per visit to $0.168 for the three months ended June 30, 2025 from $0.164 for the three months ended June 30, 2024, primarily due to an increase in ShowingTime+ revenue driven by increasing adoption of our software services by sellers and listing agents, and continued growth in Premier Agent and new construction revenue. We calculate Residential revenue per visit by dividing the revenue generated by our Residential offerings by the number of visits in the period.
Current wording
•Residential revenue increased $30 million, or 7%. The increase in Residential revenue was partially driven by a 4% increase in the number of visits to 2.5 billion for the three months ended September 30, 2025 from 2.4 billion for the three months ended September 30, 2024. Residential revenue was also positively impacted by an increase in Residential revenue per visit to $0.171 for the three months ended September 30, 2025 from $0.166 for the three months ended September 30, 2024, primarily due to growth in our Premier Agent revenue driven by continued improvement in our ability to connect high-intent customers to agents, an increase in ShowingTime+ revenue driven by increasing adoption of our software services by sellers and listing agents, and continued growth in new construction revenue. We calculate Residential revenue per visit by dividing the revenue generated by our Residential offerings by the number of visits in the period. We expect Residential revenue to decrease in absolute dollars during the three months ending December 31, 2025, primarily due to the impact of seasonality on the residential real estate market.
Previous wording
•Mortgages revenue increased $14 million, or 41%, driven by a $14 million increase in mortgage originations revenue. The increase in mortgage originations revenue was primarily due to a 48% increase in total loan origination volume to $1.1 billion for the three months ended June 30, 2025 from $759 million for the three months ended June 30, 2024, primarily driven by continued growth in Zillow Home Loans purchase loan origination volume. The increase in mortgage originations revenue was also attributable to a 5% increase in gain on sale margin. Gain on sale margin represents the net gain on sale of mortgage loans divided by total loan origination volume for the period. Net gain on sale of mortgage loans includes all components related to the origination and sale of mortgage loans, including the net gain on sale of loans into the secondary market, loan origination fees, unrealized gains and losses associated with changes in fair value of IRLCs and mortgage loans held for sale, realized and unrealized gains or losses from derivative financial instruments and the provision for losses relating to representations and warranties.
Current wording
•Mortgages revenue increased $14 million, or 36%, driven by a $14 million increase in mortgage originations revenue. The increase in mortgage originations revenue was primarily due to a 56% increase in total loan origination volume to $1.3 billion for the three months ended September 30, 2025 from $819 million for the three months ended September 30, 2024, primarily driven by continued growth in Zillow Home Loans purchase loan origination volume. The increase in mortgage originations revenue was partially offset by a 6% decrease in gain on sale margin. Gain on sale margin represents the net gain on sale of mortgage loans divided by total loan origination volume for the period. Net gain on sale of mortgage loans includes all components related to the origination and sale of mortgage loans, including the net gain on sale of loans into the secondary market, loan origination fees, unrealized gains and losses associated with changes in fair value of IRLCs and mortgage loans held for sale, realized and unrealized gains or losses from derivative financial instruments and the provision for losses relating to representations and warranties.
Previous wording
Total revenue increased $83 million, or 15%, to $655 million:
Current wording
Total revenue increased $247 million, or 15%, to $1.9 billion:
Previous wording
•Rentals revenue increased $74 million, or 35%. The increase in Rentals revenue was primarily due to an 18% increase in quarterly revenue per average monthly rentals unique visitor to $4.36 for the six months ended June 30, 2025 as compared to $3.69 for the six months ended June 30, 2024, primarily driven by growth in multifamily property listings, which drove a 52% increase in multifamily rentals revenue. The increase in Rentals revenue was also driven by growth in average monthly rentals unique visitors, which increased 14% to 33 million during the six months ended June 30, 2025 from 29 million during the six months ended June 30, 2024.
Current wording
•Rentals revenue increased $125 million, or 37%, driven by a 25% increase in quarterly revenue per average monthly rentals unique visitor to $4.53 for the nine months ended September 30, 2025 as compared to $3.62 for the nine months ended September 30, 2024. The increase in quarterly revenue per average monthly rentals unique visitor was driven by a 56% increase in multifamily rentals revenue due to growth in multifamily property listings and in revenue per property as property managers upgraded to more comprehensive advertising packages. The increase in Rentals revenue was also driven by growth in average monthly rentals unique visitors, which increased 10% to 34 million during the nine months ended September 30, 2025 from 31 million during the nine months ended September 30, 2024.
Previous wording
•Residential revenue increased $49 million, or 6%. The increase in Residential revenue was partially driven by a 3% increase in Residential revenue per visit to $0.172 for the six months ended June 30, 2025 from $0.167 for the six months ended June 30, 2024. Residential revenue was also positively impacted by a 3% increase in the number of visits to 4.9 billion for the six months ended June 30, 2025 from 4.8 billion for the six months ended June 30, 2024, primarily due to an increase in ShowingTime+ revenue as driven by increasing adoption of our software services by sellers and listing agents, and continued growth in Premier Agent and new construction revenue.
Current wording
•Residential revenue increased $79 million, or 7%. The increase in Residential revenue was partially driven by a 3% increase in the number of visits to 7.5 billion for the nine months ended September 30, 2025 from 7.3 billion for the nine months ended September 30, 2024. Residential revenue was also positively impacted by a 3% increase in Residential revenue per visit to $0.172 for the nine months ended September 30, 2025 from $0.166 for the nine months ended September 30, 2024, primarily due to growth in our Premier Agent revenue driven by continued improvement in our ability to connect high-intent customers to agents, an increase in ShowingTime+ revenue driven by increasing adoption of our software services by sellers and listing agents, and continued growth in new construction revenue.
Previous wording
•Mortgages revenue increased $24 million, or 37%. This increase was driven by a $24 million increase in mortgage originations revenue. The increase in mortgage originations revenue was primarily due to a 41% increase in total loan origination volume to $1.9 billion for the six months ended June 30, 2025 from $1.4 billion for the six months ended June 30, 2024, primarily driven by continued growth in Zillow Home Loans purchase loan origination volume. The increase in mortgage originations revenue was also attributable to an 8% increase in gain on sale margin.
Current wording
•Mortgages revenue increased $38 million, or 37%. This increase was driven by a $38 million increase in mortgage originations revenue. The increase in mortgage originations revenue was primarily due to a 47% increase in total loan origination volume to $3.2 billion for the nine months ended September 30, 2025 from $2.2 billion for the nine months ended September 30, 2024, primarily driven by continued growth in Zillow Home Loans purchase loan origination volume. The increase in mortgage originations revenue was also attributable to an 2% increase in gain on sale margin.
Previous wording
We have included Adjusted EBITDA in this Quarterly Report on Form 10-Q as it is a key metric used by our management and Board to measure operating performance and trends and to prepare and approve our annual budget. In particular, the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.
Current wording
We have included Adjusted EBITDA in this Quarterly Report on Form 10-Q as it is a key metric used by our management and Board to measure operating performance and trends and to prepare and approve our annual budget. In particular, we believe the exclusion of certain expenses in calculating Adjusted EBITDA facilitates operating performance comparisons on a period-to-period basis.
Previous wording
Cost of revenue increased $52 million, or 21%, primarily driven by increases of $25 million in lead acquisition costs, primarily associated with our rentals partnership with Redfin, $13 million in depreciation and amortization expense primarily due to an increase in amortization of website development costs, and $6 million in ad serving costs.
Current wording
Cost of revenue increased $45 million, or 32%, primarily driven by increases of $33 million in lead acquisition costs, primarily associated with our rentals partnership with Redfin, $8 million in ad serving costs to support the growth of our rentals marketplace, and $3 million in depreciation and amortization expense primarily due to an increase in amortization of website development costs.
Previous wording
Cost of revenue increased $36 million, or 28%, primarily driven by increases of $20 million in lead acquisition costs, primarily associated with our rentals partnership with Redfin, $5 million in depreciation and amortization expense primarily due to an increase in amortization of website development costs, $5 million in ad serving costs, $2 million in headcount related expenses, including share-based compensation expense, and $2 million in software and hardware costs. We expect our cost of revenue to increase in absolute dollars during the three months ending September 30, 2025, primarily due to higher direct product and service costs, including increased lead acquisition costs associated with our rentals partnership with Redfin, as we continue to support growth in revenue.
Current wording
Cost of revenue increased $97 million, or 25%, due to increases of $58 million in lead acquisition costs, primarily associated with our rentals partnership with Redfin, $17 million in depreciation and amortization expense primarily due to an increase in amortization of website development costs, $14 million in ad serving costs to support the growth of our rentals marketplace, $4 million in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our business, and $4 million in software and hardware costs.
Previous wording
Gross profit increased by $100 million, or 12%, primarily due to an increase in revenue, discussed above. Total gross margin decreased from 77% to 76%, primarily due to increased lead acquisition costs associated with our rentals partnership with Redfin.
Current wording
Gross profit increased by $50 million, or 11%, primarily due to an increase in revenue, discussed above. Total gross margin decreased from 76% to 73%, primarily due to increased lead acquisition costs associated with our rentals partnership with Redfin.
Previous wording
Gross profit increased by $47 million, or 11%, primarily due to an increase in revenue, discussed above. Total gross margin decreased from 77% to 75%, primarily due to increased lead acquisition costs associated with our rentals partnership with Redfin.
Current wording
Gross profit increased by $150 million, or 12%, primarily due to an increase in revenue, discussed above. Total gross margin decreased from 77% to 75%, primarily due to increased lead acquisition costs associated with our rentals partnership with Redfin.
Previous wording
Sales and marketing expenses increased $53 million, or 14%, due to increases of $28 million in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our business, $18 million in marketing and advertising costs as we continue to invest in the growth of our rentals marketplace, and $3 million in depreciation and amortization expense.
Current wording
Sales and marketing expenses decreased $3 million, or 1%, due to a decrease of $18 million in marketing and advertising costs primarily driven by the timing of our rentals advertising campaigns. This decrease was partially offset by a $10 million increase in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our business, and a $2 million increase in depreciation and amortization expense.
Previous wording
Technology and development expenses increased $11 million, or 4%, due to an increase of $6 million in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our business, and $4 million in software and hardware costs.
Current wording
Technology and development expenses increased $17 million, or 4%, due to increases of $10 million in headcount-related expenses, including share-based compensation expense, as we continue to invest in human capital to grow our business, and $5 million in software and hardware costs.
Previous wording
General and administrative expenses decreased $10 million, or 8%, due to decreases of $7 million in headcount-related expenses, including share-based compensation expense, driven primarily by equity award actions that occurred in August 2022 and impacted the three months ended June 30, 2024, and $2 million in third party professional service fees driven by active cost management. These decreases were partially offset by an increase of $2 million in software and hardware costs.
Current wording
General and administrative expenses increased $4 million, or 3%, due to increases of $9 million in third-party professional service fees, including legal expenses, and $2 million in software and hardware costs. These increases were partially offset by decreases of $8 million in headcount-related expenses, including share-based compensation expense, driven primarily by equity award actions that occurred in August 2022 and impacted the three months ended September 30, 2024.
Previous wording
General and administrative expenses decreased $21 million, or 8%, primarily due to decreases of $13 million in headcount-related expenses, including share-based compensation expense, driven primarily by equity award actions that occurred in August 2022 and impacted the six months ended June 30, 2024, $6 million in third party professional service fees driven by active cost management, and $3 million in facility expenses driven by cost savings associated with changes in the use of certain office space in our lease portfolio. These decreases were partially offset by an increase of $2 million in software and hardware costs.
Current wording
General and administrative expenses decreased $17 million, or 4%, primarily due to decreases of $21 million in headcount-related expenses, including share-based compensation expense, driven primarily by equity award actions that occurred in August 2022 and impacted the nine months ended September 30, 2024, $3 million due to the change in fair value of contingent consideration associated with our acquisition of Follow Up Boss, and $3 million in facility expenses driven by cost savings associated with changes in the use of certain office space in our lease portfolio. These decreases were partially offset by increases of $5 million in software and hardware costs and $4 million in third-party professional service fees, including legal expenses.
Previous wording
Other income, net decreased $16 million and $27 million for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024, primarily driven by lower interest income on investments due to a decrease in our investment balances as a result of the settlement of the 2024 Notes, 2025 Notes and 2026 Notes.
Current wording
Other income, net decreased $16 million and $43 million for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024, primarily driven by lower interest income on investments due to a decrease in our investment balances as a result of the settlement of the 2024 Notes, 2025 Notes and 2026 Notes.
Previous wording
Interest expense decreased $5 million and $9 million for the three and six months ended June 30, 2025, respectively, as compared to the three and six months ended June 30, 2024, primarily due to the settlement of the 2024 Notes, 2025 Notes and 2026 Notes.
Current wording
Interest expense decreased $6 million and $15 million for the three and nine months ended September 30, 2025, respectively, as compared to the three and nine months ended September 30, 2024, primarily due to the settlement of the 2024 Notes, 2025 Notes and 2026 Notes.
Previous wording
On July 4, 2025, the One Big Beautiful Bill (“the Bill”) was enacted into law. The Bill provides for significant U.S. tax law changes and modifications and makes permanent certain key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, the expensing of domestic research costs, and the business interest expense limitation. We are in the process of evaluating the provisions within the Bill and have not yet determined the impact of these provisions on our consolidated financial statements beginning with the quarterly period ending September 30, 2025.
Current wording
On July 4, 2025, the One Big Beautiful Bill Act (the “Bill”) was enacted into law. The Bill provides for significant U.S. tax law changes and modifications and makes permanent certain key elements of the Tax Cuts and Jobs Act, including 100% bonus depreciation, the expensing of domestic research costs, and the business interest expense limitation. The provisions of the Bill did not have a material impact on our condensed consolidated financial statements for the three or nine month periods ended September 30, 2025.
Previous wording
Income tax expense was not material for the three and six month periods ended June 30, 2025 or 2024.
Current wording
Income tax expense was not material for the three and nine month periods ended September 30, 2025 or 2024.
Previous wording
As of June 30, 2025 and December 31, 2024, we had cash and cash equivalents, investments and restricted cash of $1.2 billion and $1.9 billion, respectively. Cash and cash equivalents balances consist of operating cash on deposit with financial institutions, money market funds, and, from time to time, U.S. government treasury securities and commercial paper. Investments consist of fixed income securities, which include U.S. government treasury securities, investment grade corporate securities, U.S. government agency securities, commercial paper and certificates of deposit. Restricted cash primarily consists of amounts used to fund customer home purchases in our mortgage origination operations. Amounts on deposit with third-party financial institutions exceed the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation insurance limits, as applicable. As of June 30, 2025, Zillow Group and its subsidiaries were in compliance with all debt covenants specified in the facilities described below.
Current wording
As of September 30, 2025 and December 31, 2024, we had cash and cash equivalents, investments and restricted cash of $1.4 billion and $1.9 billion, respectively. Cash and cash equivalents balances consist of operating cash on deposit with financial institutions, money market funds, and, from time to time, U.S. government treasury securities and commercial paper. Investments consist of fixed income securities, which include U.S. government treasury securities, investment grade corporate securities, U.S. government agency securities, certificates of deposit and commercial paper. Restricted cash primarily consists of amounts used to fund customer home purchases in our mortgage origination operations. Amounts on deposit with third-party financial institutions exceed the Federal Deposit Insurance Corporation and the Securities Investor Protection Corporation insurance limits, as applicable. As of September 30, 2025, Zillow Group and its subsidiaries were in compliance with all debt covenants specified in the facilities described below.
Previous wording
For the six months ended June 30, 2025, net cash provided by operating activities was $191 million. This was driven by net income of $10 million, adjusted by share-based compensation of $196 million, depreciation and amortization of $132 million, amortization of contract cost assets of $10 million, accretion of bond discount of $5 million, amortization of right of use assets of $4 million, and $5 million in other adjustments to reconcile net income to net cash provided by operating activities. Changes in operating assets and liabilities decreased net cash provided by operating activities by $152 million. The changes in operating assets and liabilities are primarily related to a $91 million increase in mortgage loans held for sale due to an increase in purchase loan origination volume, a $47 million increase in accounts receivable primarily due to an increase in revenue from products and services billed in arrears, a $46 million increase in prepaid expenses and other current assets primarily due to an increase in accrued revenue, a $13 million increase in contract costs assets primarily due to an increase in capitalized sales commissions, and a $6 million increase in lease liabilities due to contractual lease payments. These changes were partially offset by a $26 million increase in accounts payable and an $18 million increase in accrued expenses and other current liabilities, both primarily driven by the timing of payments, and an $8 million increase in deferred revenue attributable to the timing of revenue recognition.
Current wording
For the nine months ended September 30, 2025, net cash provided by operating activities was $296 million. This was primarily driven by net income of $20 million, adjusted by share-based compensation of $295 million, depreciation and amortization of $199 million, amortization of contract cost assets of $16 million, accretion of bond discount of $7 million, amortization of right of use assets of $6 million, and $6 million in other adjustments to reconcile net income to net cash provided by operating activities. Changes in operating assets and liabilities decreased net cash provided by operating activities by $230 million. The changes in operating assets and liabilities are primarily related to a $132 million increase in mortgage loans held for sale due to an increase in purchase loan origination volume, a $67 million increase in prepaid expenses and other assets primarily due to an increase in accrued revenue, a $53 million increase in accounts receivable primarily due to an increase in revenue from products and services billed in arrears, an $18 million increase in contract costs assets primarily due to an increase in capitalized sales commissions, and a $9 million decrease in lease liabilities due to contractual lease payments. These changes were partially offset by a $32 million increase in accrued expenses and other current liabilities and an $8 million increase in accounts payable, both primarily driven by the timing of payments, and a $7 million increase in deferred revenue attributable to the timing of revenue recognition.
Previous wording
For the six months ended June 30, 2024, net cash provided by operating activities was $135 million. This was driven by a net loss of $40 million, adjusted by share-based compensation of $221 million, depreciation and amortization of $115 million, accretion of bond discount of $17 million, amortization of contract cost assets of $9 million, impairment costs of $6 million, amortization of right of use assets of $6 million, amortization of debt issuance costs of $3 million, and $8 million in other adjustments to reconcile net loss to net cash provided by operating activities. Changes in operating assets and liabilities decreased net cash provided by operating activities by $176 million. The changes in operating assets and liabilities are primarily related to a $95 million increase in mortgage loans held for sale due to an increase in purchase loan origination volume, a $49 million increase in prepaid expenses and other current assets primarily due to an increase in accrued revenue, a $27 million decrease in lease liabilities due to contractual lease payments, a $19 million increase in accounts receivable primarily due to an increase in revenue from products and services billed in arrears, and a $9 million increase in contract cost assets primarily due to capitalized sales commissions. These changes were partially offset by an $11 million increase in accounts payable driven by the timing of payments, a $7 million increase in deferred revenue attributable to the timing of revenue recognition, and a $6 million increase in accrued expenses and other current liabilities primarily driven by the timing of payments.
Current wording
For the nine months ended September 30, 2024, net cash provided by operating activities was $306 million. This was driven by a net loss of $60 million, adjusted by share-based compensation of $329 million, depreciation and amortization of $178 million, accretion of bond discount of $23 million, amortization of contract cost assets of $14 million, amortization of right of use assets of $8 million, impairment costs of $6 million, amortization of debt issuance costs of $4 million, and $14 million in other adjustments to reconcile net loss to cash provided by operating activities. Changes in operating assets and liabilities decreased cash provided by operating activities by $164 million. The changes in operating assets and liabilities are primarily related to a $73 million increase in prepaid expenses and other assets primarily due to an increase in accrued revenue, a $64 million increase in mortgage loans held for sale due to an increase in purchase loan origination volume, a $31 million decrease in lease liabilities due to contractual lease payments, a $21 million increase in accounts receivable primarily due to an increase in revenue from products and services billed in arrears, and a $15 million increase in contract cost assets primarily due to capitalized sales commissions. These changes were partially offset by a $25 million increase in accounts payable driven by the timing of payments, an $8 million increase in accrued expenses and other current liabilities primarily driven by the timing of billings, and a $5 million increase in deferred revenue attributable to the timing of revenue recognition.
Previous wording
Cash Flows Provided By (Used In) Investing Activities
Current wording
Cash Flows Provided By Investing Activities
Previous wording
For the six months ended June 30, 2025, net cash provided by investing activities was $25 million. This was primarily related to $213 million of net proceeds from maturities and sales of investments. These inflows were partially offset by $188 million of purchases of property and equipment and intangible assets, including a $100 million payment in connection with the partnership we entered into with Redfin in February 2025.
Current wording
For the nine months ended September 30, 2025, net cash provided by investing activities was $44 million. This was primarily related to $272 million of net proceeds from maturities and sales of investments, partially offset by $228 million of purchases of property and equipment and intangible assets, including a $100 million payment in connection with the rentals partnership we entered into with Redfin in February 2025.
Previous wording
For the six months ended June 30, 2024, net cash used in investing activities was $207 million. This was the result of $117 million of net purchases of investments and $90 million of purchases of property and equipment and intangible assets.
Current wording
For the nine months ended September 30, 2024, net cash provided by investing activities was $121 million. This was the result of $251 million of net proceeds from maturities and sales of investments and $130 million of purchases of property and equipment and intangible assets.
Previous wording
Our primary financing activities include repurchases of Class A common stock and Class C capital stock, the exercise of employee option awards, repayments of borrowings on our master repurchase agreements related to Zillow Home Loans, settlements of long-term debt, and the payment of contingent consideration up to its acquisition-date fair value.
Current wording
Our primary financing activities include repurchases of Class A common stock and Class C capital stock, the exercise of employee option awards, repayments of borrowings on our master repurchase agreements related to Zillow Home Loans, settlements of convertible senior notes and capped call transactions, and the payment of contingent consideration up to its acquisition-date fair value.
Previous wording
For the six months ended June 30, 2025, net cash used in financing activities was $709 million, which primarily related to $419 million of cash paid for the settlement of the 2025 Notes, $400 million of cash paid for share repurchases, and $30 million related to the settlement of the acquisition date fair value of the first Follow Up Boss contingent consideration earn out payment. The cash outflows were partially offset by $55 million of proceeds from the exercise of option awards and $85 million of net borrowings on our master repurchase agreements related to Zillow Home Loans.
Current wording
For the nine months ended September 30, 2025, net cash used in financing activities was $546 million, which primarily related to $438 million of cash paid for share repurchases, $419 million of cash paid for the settlement of the 2025 Notes, and $30 million related to the settlement of the acquisition date fair value of the first Follow Up Boss contingent consideration earn out payment. The cash outflows were partially offset by $176 million of proceeds from the exercise of stock options, $127 million of net borrowings on our master repurchase agreements related to Zillow Home Loans, and $38 million of proceeds from the settlement of capped call transactions.
Previous wording
For the six months ended June 30, 2024, net cash used in financing activities was $240 million, which primarily related to $301 million of cash paid for share repurchases and $89 million of cash paid for the partial repurchase of the 2025 Notes. The cash outflows were partially offset by $89 million of net borrowings on our master repurchase agreements related to Zillow Home Loans and $61 million of proceeds from the exercise of option awards.
Current wording
For the nine months ended September 30, 2024, net cash used in financing activities was $847 million, which primarily related to $697 million of cash paid for the settlement of the 2024 Notes and partial repurchase of the 2025 Notes, and $301 million of cash paid for share repurchases. The cash outflows were partially offset by $96 million of proceeds from the exercise of stock options and $55 million of net borrowings on our master repurchase agreements related to Zillow Home Loans.
Showing the first 40 of 45 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
(2)Agreement was amended and renewed on September 5, 2025 to extend the maturity date to September 4, 2026.