Stock Analysis

Zillow Group (ZG) Is Up 6.7% After Return to Profitability in Q2 2025 Results

NasdaqGS:ZG
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  • Zillow Group, Inc. recently reported its second quarter 2025 results, showing sales of US$655 million, up from US$572 million a year earlier, and a net income of US$2 million, reversing a net loss in the prior year period.
  • This marks the company's return to profitability and aligns with analyst expectations for Zillow to soon achieve sustained breakeven, reflecting momentum in its platform strategy and operational execution.
  • We'll explore how Zillow’s renewed profitability in the recent quarter may influence its investment narrative and outlook for platform-driven growth.

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Zillow Group Investment Narrative Recap

To be a Zillow Group shareholder, you must believe in the potential of its digital real estate marketplace to capture more housing, rentals, and transaction services revenue, even as the housing market remains challenged by affordability headwinds. The latest swing to profitability may support confidence in near-term platform-driven growth; however, it does not materially reduce the immediate risk tied to inventory shortages, high interest rates, or rental market exposures that remain central to the Zillow narrative.

Among the recent developments, Zillow’s launch of new platform features such as SkyTour and Offer Insights stands out, advancing its strategy to deliver more immersive and data-driven home shopping experiences. This aligns directly with the ongoing catalyst of deepening user engagement and increasing conversion, which management bets will expand both advertising revenues and transaction volumes despite current housing sector constraints.

On the other hand, investors should not overlook the risk that persistent affordability barriers may...

Read the full narrative on Zillow Group (it's free!)

Zillow Group's outlook suggests $3.5 billion in revenue and $372.9 million in earnings by 2028. This scenario assumes a 14.9% annual revenue growth rate and an increase in earnings of $453.9 million from the current level of -$81.0 million.

Uncover how Zillow Group's forecasts yield a $80.29 fair value, in line with its current price.

Exploring Other Perspectives

ZG Community Fair Values as at Aug 2025
ZG Community Fair Values as at Aug 2025

Seven Simply Wall St Community members estimate Zillow Group's fair value between US$25.79 and US$95.35 per share. Varied views reflect differing future expectations for platform growth and cyclical real estate risks, consider these perspectives before settling on your outlook.

Explore 7 other fair value estimates on Zillow Group - why the stock might be worth as much as 17% more than the current price!

Build Your Own Zillow Group Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Zillow Group research is our analysis highlighting 3 key rewards that could impact your investment decision.
  • Our free Zillow Group research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Zillow Group's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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