EX-99.2 3 q32025992.htm EX-99.2
Exhibit 99.2
Reported Consolidated Results
ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)

| September 30, 2025 |  | December 31, 2024
Assets |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 874 |  |  | $ | 1,082 |
Short-term investments | 515 |  |  | 776 |
Accounts receivable, net | 157 |  |  | 104 |
Mortgage loans held for sale | 291 |  |  | 159 |
Prepaid expenses and other current assets | 277 |  |  | 210 |
Restricted cash | 5 |  |  | 3 |
Total current assets | 2,119 |  |  | 2,334 |
Contract cost assets | 27 |  |  | 25 |
Property and equipment, net | 371 |  |  | 360 |
Right of use assets | 58 |  |  | 59 |
Goodwill | 2,823 |  |  | 2,823 |
Intangible assets, net | 273 |  |  | 207 |
Other assets | 27 |  |  | 21 |
Total assets | $ | 5,698 |  |  | $ | 5,829 |
Liabilities and shareholders’ equity |  |  |
Current liabilities: |  |  |
Accounts payable | $ | 38 |  |  | $ | 30 |
Accrued expenses and other current liabilities | 133 |  |  | 105 |
Accrued compensation and benefits | 59 |  |  | 57 |
Borrowings under credit facilities | 272 |  |  | 145 |
Deferred revenue | 69 |  |  | 62 |
Lease liabilities, current portion | 13 |  |  | 14 |
Convertible senior notes | — |  |  | 418 |
Total current liabilities | 584 |  |  | 831 |
Lease liabilities, net of current portion | 82 |  |  | 83 |
Other long-term liabilities | 40 |  |  | 67 |
Total liabilities | 706 |  |  | 981 |
Shareholders’ equity: |  |  |
Class A common stock | — |  |  | — |
Class B common stock | — |  |  | — |
Class C capital stock | — |  |  | — |
Additional paid-in capital | 6,852 |  |  | 6,733 |
Accumulated other comprehensive income (loss) | 2 |  |  | (3) |
Accumulated deficit | (1,862) |  |  | (1,882) |
Total shareholders’ equity | 4,992 |  |  | 4,848 |
Total liabilities and shareholders’ equity | $ | 5,698 |  |  | $ | 5,829 |

ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in millions, except share data, which are presented in thousands, and per share data, unaudited)

| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Revenue | $ | 676 |  |  | $ | 581 |  |  | $ | 1,929 |  |  | $ | 1,682 |
Cost of revenue (1) | 185 |  |  | 140 |  |  | 490 |  |  | 393 |
Gross profit | 491 |  |  | 441 |  |  | 1,439 |  |  | 1,289 |
Operating expenses: |  |  |  |  |  |  |
Sales and marketing (1) | 214 |  |  | 217 |  |  | 638 |  |  | 588 |
Technology and development (1) | 151 |  |  | 145 |  |  | 453 |  |  | 436 |
General and administrative (1) | 127 |  |  | 123 |  |  | 369 |  |  | 386 |
Impairment costs | 2 |  |  | — |  |  | 2 |  |  | 6 |
Acquisition-related costs | — |  |  | 1 |  |  | — |  |  | 1 |
Total operating expenses | 494 |  |  | 486 |  |  | 1,462 |  |  | 1,417 |
Loss from operations | (3) |  |  | (45) |  |  | (23) |  |  | (128) |
Loss on extinguishment of debt | — |  |  | — |  |  | — |  |  | (1) |
Other income, net | 18 |  |  | 34 |  |  | 58 |  |  | 101 |
Interest expense | (3) |  |  | (9) |  |  | (13) |  |  | (28) |
Income (loss) before income taxes | 12 |  |  | (20) |  |  | 22 |  |  | (56) |
Income tax expense | (2) |  |  | — |  |  | (2) |  |  | (4) |
Net income (loss) | $ | 10 |  |  | $ | (20) |  |  | $ | 20 |  |  | $ | (60) |
Net income (loss) per share: |  |  |  |  |  |  |
Basic | $ | 0.04 |  |  | $ | (0.08) |  |  | $ | 0.08 |  |  | $ | (0.26) |
Diluted | $ | 0.04 |  |  | $ | (0.08) |  |  | $ | 0.08 |  |  | $ | (0.26) |
Weighted-average shares outstanding: |  |  |  |  |  |  |
Basic | 242,326 |  |  | 232,521 |  |  | 241,889 |  |  | 233,553 |
Diluted | 256,243 |  |  | 232,521 |  |  | 254,700 |  |  | 233,553 |
(1) Includes share-based compensation expense as follows: |  |  |  |  |  |  |
Cost of revenue | $ | 3 |  |  | $ | 3 |  |  | $ | 9 |  |  | $ | 11 |
Sales and marketing | 18 |  |  | 19 |  |  | 55 |  |  | 57 |
Technology and development | 41 |  |  | 40 |  |  | 119 |  |  | 124 |
General and administrative | 37 |  |  | 46 |  |  | 112 |  |  | 137 |
Total share-based compensation | $ | 99 |  |  | $ | 108 |  |  | $ | 295 |  |  | $ | 329 |
Adjusted EBITDA (2) | $ | 165 |  |  | $ | 127 |  |  | $ | 473 |  |  | $ | 386 |
(2) Adjusted EBITDA is a non-GAAP financial measure; it is not calculated or presented in accordance with U.S. generally accepted accounting principles, or GAAP. See Exhibit 99.1 for more information regarding our presentation of Adjusted EBITDA and for a reconciliation of Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, for each of the periods presented.

ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions, unaudited)

| Nine Months Ended September 30,
| 2025 |  | 2024
Operating activities |  |  |
Net income (loss) | $ | 20 |  |  | $ | (60) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |  |  |
Depreciation and amortization | 199 |  |  | 178 |
Share-based compensation | 295 |  |  | 329 |
Amortization of right of use assets | 6 |  |  | 8 |
Amortization of contract cost assets | 16 |  |  | 14 |
Amortization of debt issuance costs | 1 |  |  | 4 |
Impairment costs | 2 |  |  | 6 |
Accretion of bond discount | (7) |  |  | (23) |
Other adjustments to reconcile net income (loss) to net cash provided by operating activities | (6) |  |  | 14 |
Changes in operating assets and liabilities: |  |  |
Accounts receivable | (53) |  |  | (21) |
Mortgage loans held for sale | (132) |  |  | (64) |
Prepaid expenses and other assets | (67) |  |  | (73) |
Contract cost assets | (18) |  |  | (15) |
Lease liabilities | (9) |  |  | (31) |
Accounts payable | 8 |  |  | 25 |
Accrued expenses and other current liabilities | 32 |  |  | 8 |
Accrued compensation and benefits | 2 |  |  | 2 |
Deferred revenue | 7 |  |  | 5 |
Net cash provided by operating activities | 296 |  |  | 306 |
Investing activities |  |  |
Proceeds from maturities of investments | 338 |  |  | 906 |
Proceeds from sales of investments | 61 |  |  | 13 |
Purchases of investments | (127) |  |  | (668) |
Purchases of property and equipment | (105) |  |  | (109) |
Purchases of intangible assets | (123) |  |  | (21) |
Net cash provided by investing activities | 44 |  |  | 121 |
Financing activities |  |  |
Net borrowings on repurchase agreements | 127 |  |  | 55 |
Repurchases of Class A common stock and Class C capital stock | (438) |  |  | (301) |
Settlement of convertible senior notes | (419) |  |  | (697) |
Proceeds from settlement of capped call transactions | 38 |  |  | — |
Proceeds from exercise of stock options | 176 |  |  | 96 |
Payment of contingent consideration for acquisition | (30) |  |  | — |
Net cash used in financing activities | (546) |  |  | (847) |
Net decrease in cash, cash equivalents and restricted cash during period | (206) |  |  | (420) |
Cash, cash equivalents and restricted cash at beginning of period | 1,085 |  |  | 1,495 |
Cash, cash equivalents and restricted cash at end of period | $ | 879 |  |  | $ | 1,075 |
Supplemental disclosures of cash flow information |  |  |
Noncash transactions: |  |  |
Write-off of fully depreciated property and equipment | $ | 116 |  |  | $ | 63 |
Write-off of fully amortized intangible assets | 58 |  |  | 21 |
Capitalized share-based compensation | 48 |  |  | 56 |

Key Metrics
The following table presents our visits and average monthly unique users for the periods presented (in millions, except percentages):

| Three Months Ended September 30, |  | 2024 to 2025 % Change |  | Nine Months Ended September 30, |  | 2024 to 2025 % Change
| 2025 |  | 2024 |  |  | 2025 |  | 2024 |
Visits (1) | 2,546 |  |  | 2,440 |  |  | 4% |  | 7,490 |  | 7,251 |  | 3%
Average monthly unique users (2) | 250 |  |  | 233 |  |  | 7% |  | 240 |  |  | 227 |  |  | 6%
(1) Visits includes groups of interactions by users with the Zillow, Trulia and StreetEasy mobile apps and websites. Zillow and StreetEasy measure visits with an internal measurement tool and Trulia measures visits with Adobe Analytics.
(2) Zillow, StreetEasy and HotPads measure unique users with an internal measurement tool and Trulia measures unique users with Adobe Analytics.

The following table presents For Sale revenue per Total Transaction Value (“TTV”) for the periods presented:

| Twelve Months Ended September 30, |  | 2024 to 2025 % Change
| 2025 |  | 2024 |
For Sale revenue (in millions) | $ | 1,856 |  |  | $ | 1,682 |  |  | 10%
Total Transaction Value (in trillions) (1) | $ | 1.8 |  |  | $ | 1.7 |  |  | 7%
For Sale revenue per Total Transaction Value (in basis points) | 10.1 |  | 9.8 |  | 3%
(1) TTV is calculated as the number of existing residential homes sold during the relevant period multiplied by the average sales price of existing residential homes sold during the same period according to residential real estate data collected and estimated by Zillow Group, as published monthly on our site.

The following table presents loan origination volume by purpose and in total for Zillow Home Loans for the periods presented (in millions, except percentages):

| Three Months Ended September 30, |  | 2024 to 2025 % Change |  | Nine Months Ended September 30, |  | 2024 to 2025 % Change
| 2025 |  | 2024 |  |  | 2025 |  | 2024 |
Purchase loan origination volume | $ | 1,276 |  |  | $ | 812 |  |  | 57% |  | $ | 3,183 |  |  | $ | 2,169 |  |  | 47%
Refinance loan origination volume | 5 |  |  | 7 |  |  | (29)% |  | 20 |  |  | 14 |  |  | 43%
Total loan origination volume | $ | 1,281 |  |  | $ | 819 |  |  | 56% |  | $ | 3,203 |  |  | $ | 2,183 |  |  | 47%