EX-99.2 3 q12025992.htm EX-99.2 Document

Exhibit 99.2


Reported Consolidated Results

ZILLOW GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions, unaudited)
March 31, 2025December 31, 2024
Assets
Current assets:
Cash and cash equivalents$914 $1,082 
Short-term investments689 776 
Accounts receivable, net115 104 
Mortgage loans held for sale185 159 
Prepaid expenses and other current assets247 210 
Restricted cash4 3 
Total current assets2,154 2,334 
Contract cost assets27 25 
Property and equipment, net364 360 
Right of use assets57 59 
Goodwill2,823 2,823 
Intangible assets, net297 207 
Other assets24 21 
Total assets$5,746 $5,829 
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable$35 $30 
Accrued expenses and other current liabilities111 105 
Accrued compensation and benefits52 57 
Borrowings under credit facilities173 145 
Deferred revenue70 62 
Lease liabilities, current portion15 14 
Convertible senior notes
419 418 
Total current liabilities875 831 
Lease liabilities, net of current portion80 83 
Other long-term liabilities37 67 
Total liabilities992 981 
Shareholders’ equity:
Class A common stock
— — 
Class B common stock
— — 
Class C capital stock
— — 
Additional paid-in capital6,628 6,733 
Accumulated other comprehensive loss— (3)
Accumulated deficit(1,874)(1,882)
Total shareholders’ equity4,754 4,848 
Total liabilities and shareholders’ equity$5,746 $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 March 31,
 20252024
Revenue$598 $529 
Cost of revenue (1)
139 123 
Gross profit459 406 
Operating expenses:
Sales and marketing (1)
198 166 
Technology and development (1)
149 147 
General and administrative (1)
121 132 
Impairment costs— 6 
Total operating expenses468 451 
Loss from operations(9)(45)
Other income, net22 33 
Interest expense(5)(9)
Income (loss) before income taxes8 (21)
Income tax expense— (2)
Net income (loss)$8 $(23)
Net income (loss) per share:
Basic
$0.03 $(0.10)
Diluted$0.03 $(0.10)
Weighted-average shares outstanding:
Basic
242,256 234,695 
Diluted256,192 234,695 
(1) Includes share-based compensation expense as follows:
Cost of revenue$3 $4 
Sales and marketing18 18 
Technology and development38 42 
General and administrative38 44 
Total share-based compensation$97 $108 
Adjusted EBITDA (2)$153 $125 
(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)
 Three Months Ended
March 31,
 20252024
Operating activities
Net income (loss)$8 $(23)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization65 56 
Share-based compensation97 108 
Amortization of right of use assets2 3 
Amortization of contract cost assets5 5 
Amortization of debt issuance costs1 2 
Impairment costs
— 6 
Accretion of bond discount(3)(8)
Other adjustments to reconcile net income (loss) to net cash provided by operating activities (3)1 
Changes in operating assets and liabilities:
Accounts receivable(11)(4)
Mortgage loans held for sale(26)(32)
Prepaid expenses and other assets(38)(30)
Contract cost assets(7)(5)
Lease liabilities(2)(13)
Accounts payable5 6 
Accrued expenses and other current liabilities9 — 
Accrued compensation and benefits(5)— 
Deferred revenue8 6 
Other long-term liabilities(1)2 
Net cash provided by operating activities104 80 
Investing activities
Proceeds from maturities of investments150 139 
Proceeds from sales of investments2 — 
Purchases of investments(60)(297)
Purchases of property and equipment(36)(39)
Purchases of intangible assets(108)(7)
Net cash used in investing activities(52)(204)
Financing activities
Net borrowings on repurchase agreements28 30 
Repurchases of Class A common stock and Class C capital stock(250)(9)
Proceeds from exercise of stock options33 50 
Payment of contingent consideration for acquisition(30)— 
Net cash provided by (used in) financing activities(219)71 
Net decrease in cash, cash equivalents and restricted cash during period(167)(53)
Cash, cash equivalents and restricted cash at beginning of period1,085 1,495 
Cash, cash equivalents and restricted cash at end of period$918 $1,442 
Supplemental disclosures of cash flow information
Noncash transactions:
Write-off of fully depreciated property and equipment$46 $9 
Capitalized share-based compensation15 19 


Non-GAAP Net Income per Share
Our presentation of non-GAAP net income per share excludes the impact of the results of share-based compensation, impairment costs and income taxes. This measure is not a key metric used by our management or board of directors to measure operating performance or otherwise manage the business. However, we provide non-GAAP net income per share as supplemental information to investors, as we believe the exclusion of the results of share-based compensation, impairment costs and income taxes facilitates investors’ operating performance comparisons on a period-to-period basis. You should not consider non-GAAP net income per share in isolation or as a substitute for analysis of our results as reported under GAAP.

The following table sets forth a reconciliation of non-GAAP net income, adjusted, to net income (loss), as reported on a GAAP basis, and the calculation of non-GAAP net income per share - basic and diluted, for each of the periods presented (in millions, except share data, which are presented in thousands, and per share data, unaudited):
Three Months Ended
March 31,
 20252024
Net income (loss), as reported
$8 $(23)
Share-based compensation97 108 
Impairment costs
— 6 
Income taxes— 2 
Net income, adjusted$105 $93 
Non-GAAP net income per share:
Basic$0.43 $0.40 
Diluted$0.41 $0.36 
Weighted-average shares outstanding:
Basic242,256 234,695 
Diluted256,192 266,370 
Diluted non-GAAP net income per share for the periods presented is calculated using diluted weighted-average shares outstanding, which includes potential shares of Class C capital stock for the periods in which their effect would have been dilutive. The potential shares of Class C capital stock were excluded from the calculation of non-GAAP net income per share for certain periods presented if their effect would have been antidilutive. The following table reconciles the denominators used in the basic and diluted non-GAAP net income per share calculations (in thousands, unaudited):
Three Months Ended
March 31,
 20252024
Denominator for basic calculation242,256 234,695 
Effect of dilutive securities:
     Option awards9,668 3,191 
     Unvested restricted stock units4,268 3,038 
Convertible senior notes
— 25,446 
          Denominator for dilutive calculation256,192 266,370 




Key Metrics
The following table presents our visits and average monthly unique users for the periods presented (in millions, except percentages):
 Three Months Ended March 31,2024 to 2025
% Change
 20252024
Visits (1)
2,354 2,316 2%
Average monthly unique users (2)
227 217 5%
(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 our For Sale revenue per Total Transaction Value (“TTV”) for the periods presented:
Twelve Months Ended March 31,2024 to 2025
% Change
20252024
For Sale revenue (in millions)$1,773 $1,585 12%
Total transaction value (in trillions) (1)
$1.7 $1.6 7%
For Sale revenue per total transaction value (in basis points)10.29.75%
(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 March 31,2024 to 2025
% Change
20252024
Purchase loan origination volume$791 $601 32%
Refinance loan origination volume5 4 25%
Total loan origination volume$796 $605 32%