Zillow issues strong Q4 guidance after Q3 revenue, adjusted EBITDA beat consensus

[Entrance to 535 Mission street office building, San Francisco]
Sundry Photography

Zillow Group (Z [https://seekingalpha.com/symbol/Z]) (ZG [https://seekingalpha.com/symbol/ZG]) stock gained 1.8% in Thursday after-hours trading as its Q4 revenue guidance exceeded the consensus estimate, and Q3 revenue indicated growth outperforming that of the residential real estate industry.

The real estate platform expects Q4 revenue of $645M-$655M [https://seekingalpha.com/filings/pdf/18877983](midpoint $650M vs. $644M consensus). Q4 adjusted EBITDA is expected to be $145M-$155M (midpoint $150M vs. Visible Alpha consensus of $150M).

Q3 GAAP net income [https://seekingalpha.com/pr/20287375-zillow-group-reports-third-quarter-2025-financial-results]of $10M compared with $2M in Q2 and -20$M in last year’s Q3. GAAP EPS of $0.04 swung from -$0.08 in Q3 2025.

Q3 revenue of $676M, topping the average analyst estimate of $671M, rose from $655M in the prior quarter and $581M a year ago. The company said its quarterly revenue outperformed the residential real estate industry's Y/Y transaction value growth of ~5%. Zillow (Z [https://seekingalpha.com/symbol/Z]) estimates Q3 purchase mortgage origination volume of the industry was nearly flat from a year ago.

Residential revenue increased to $435M from $434M in Q2 and $405M in Q3 2024.

Adjusted EBITDA of $165M, beating the Visible Alpha estimate of $156M, grew from $155M in the prior quarter and $127M a year ago.

Conference call [https://investors.zillowgroup.com/investors/financials/quarterly-results/default.aspx]at 5:00 PM ET.

Earlier, Zillow Non-GAAP EPS of $0.44 in-line, revenue of $676M beats by $5.1M [https://seekingalpha.com/news/4511753-zillow-non-gaap-eps-of-044-in-line-revenue-of-676m-beats-by-51m#source=section%3Asummary%7Csection_asset%3Anews_news%7Cfirst_level_url%3Asymbol%7Cbutton%3ATitle%7Clock_status%3ANo%7Cline%3A1]

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