Filing Flows › Zillow Group (ZG) › Q1 2025
Zillow Group (ZG) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 7, 2025
Zillow Group (ZG) reported revenue of $598M for the first quarter 2025 (Q1 2025), +13% from a year earlier and +8% from the quarter before. Operating margin was -1.5%, net earnings $8.0M (1.3% of revenue).
Zillow Group, Q1 2025: revenue $598M (+13% year over year), operating margin -1.5%, net earnings $8.0M, operating cash flow $104M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $598M | +8% | +13% |
| Operating profit | −$9.0M | — | — |
| Net earnings | $8.0M | — | — |
| Operating cash flow | $104M | -15% | +30% |
| Free cash flow | $68.0M | -23% | +66% |
What changed
Revenue was $598.0M in Q1 2025, up 13% year over year and up 8% from the previous quarter. Residential was the largest line at 70% of revenue. Rentals added $32.0M year over year (up 33%), 46% of the total change.
Gross margin was 76.8%, unchanged from a year earlier. Operating costs exceeded revenue by $9.0M, an operating margin of -1.5%. Operating expenses grew 4% against revenue growth of 13%. The fastest-growing cost line was Sales & marketing (+19%). Net earnings were $8.0M. The effective tax rate was 0.0%. Non-operating items added $17.0M, 212% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was $104.0M (up 30% year over year), 1300% of net earnings. Non-cash charges added back $65.0M of depreciation and amortization and $97.0M of share-based compensation. Working capital and other items used $66.0M. Capital expenditures of $36.0M left free cash flow of $68.0M.
Questions
What was Zillow Group's revenue in the first quarter 2025?
Zillow Group (ZG) reported revenue of $598M for the first quarter 2025 (Q1 2025), +13% from a year earlier and +8% from the quarter before.
Was Zillow Group profitable in the first quarter 2025?
Operating loss was $9.0M (-1.5% of revenue) and net earnings $8.0M.
Source: Zillow Group 10-Q on SEC EDGAR.