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Zillow Group reported $8 million in GAAP net income for the first quarter of 2025, reversing a $23 million loss a year earlier. Revenue reached $598 million, up 13% year over year. The profit was modest, and the company’s later results show why the quarter should not be treated as a permanent turn: Zillow reported full-year 2025 GAAP net income, then a GAAP loss in Q2 2026.
Remote work is a separate part of the story. Zillow’s CEO described nationwide recruiting as a strategic advantage, while the company’s filings describe broad employee flexibility with some role-specific location or time-zone requirements. The reported reduction in office rent expense is a cost effect—not evidence that remote work caused the quarterly profit.
What Zillow’s Q1 2025 results actually showed
Zillow’s first-quarter 2025 result was $8 million of GAAP net income, compared with a $23 million GAAP net loss in Q1 2024. Revenue was $598 million, a 13% increase from a year earlier. The company characterized it as its first GAAP profit since 2022. Zillow Group’s Q1 2025 results
That is a positive change in the income statement, but the scale matters: $8 million is small relative to $598 million in quarterly revenue. Revenue growth is not the same as profit growth, and a single profitable quarter does not establish sustained profitability.
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Zillow also said revenue growth outpaced the housing-industry comparison it cited for the quarter. That comparison used defined measures of residential real-estate activity, rather than an all-purpose measure of housing conditions. It should not be read to mean that every part of the housing market was growing or that the company’s revenue is directly comparable to home-sale volume. The company’s release describes its comparison and measures.
How the later results changed the picture
The Q1 2025 headline is a snapshot, not a description of Zillow’s current earnings trend. Subsequent results include both a profitable full year and a loss-making quarter:
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| Period | Revenue | GAAP net income (loss) | Context |
|---|---|---|---|
| Q1 2025 | $598 million, up 13% year over year | $8 million | Compared with a $23 million GAAP net loss in Q1 2024. Zillow Group, 2025 |
| Full year 2025 | $2.6 billion, up 16% year over year | $23 million | Full-year GAAP figures. Zillow Group, 2026 |
| Q2 2026 | $772 million, up 18% year over year | $(4) million | Revenue grew even as GAAP net income was negative. Zillow Group, 2026 |
For Q2 2026, Zillow also reported $118 million in adjusted net income and $176 million in Adjusted EBITDA. Those are non-GAAP measures; they do not change the quarter’s $4 million GAAP net loss. Zillow Group’s Q2 2026 release
Zillow’s Q2 2026 release said the residential real-estate industry grew 6% year over year using existing-home sales multiplied by average selling price, based on National Association of Realtors data. The company separately estimated that industry purchase-mortgage origination volume was approximately flat year over year. These are distinct benchmarks, not one universal measure of the market. Zillow Group, Q2 2026
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Why Zillow says remote work matters
In a May 2025 interview, CEO Jeremy Wacksman presented remote work as a way to recruit beyond the areas around company offices. He called it “a strategic approach that allows us to recruit nationwide.” GeekWire reported that Zillow had employees in all 50 states and that applicants per job opening had increased, attributing those observations to the company and its CEO rather than to an independently audited workforce dataset. GeekWire’s interview with Wacksman
Wacksman also said that, knowing how the model had worked, “If we were starting in 2025, and we had this clairvoyance of how this had already been working, I feel like we would have.” That is the CEO’s assessment of Zillow’s experience, not independent proof that remote work caused better hiring outcomes.
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The policy language in Zillow’s 2025 Form 10-K is broad but not unlimited: “We offer nearly all Zillow employees the choice to work from wherever they are most productive.” The filing also notes that some remote-designated roles may require an employee to live in a specific region or time zone to support customers or clients. Zillow Group’s 2025 Form 10-K
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GeekWire reported that Zillow’s 2024 rent expense fell by $31 million, citing the company’s annual report. The filing attributed the change primarily to savings associated with changes in use of certain leased office space. GeekWire’s report on Zillow’s results and workplace policy
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This is evidence of a separate cost reduction associated with office-space changes. It does not establish that remote work alone generated the savings, nor does it quantify remote work’s contribution to Q1 2025 net income. The recruiting rationale and the rent-expense reduction are different claims: one is management’s strategic explanation, and the other is a reported financial effect.
How to read Zillow’s latest earnings without mixing measures
- Check the period. A quarterly result, full-year result and later-quarter result answer different questions. Zillow’s $23 million full-year 2025 GAAP net income does not erase the Q2 2026 GAAP loss.
- Separate GAAP from adjusted results. GAAP net income or loss is the reported accounting result. Adjusted net income and Adjusted EBITDA are non-GAAP measures and should be labeled as such.
- Distinguish company growth from market benchmarks. Zillow’s revenue growth and its cited housing-activity comparisons use different measures.
- Keep workplace claims in their proper category. Management’s view of remote work as a recruiting strategy is not the same as a verified causal finding about hiring or profitability.
As of Zillow’s August 5, 2026 Q2 release, management described the quarter as strong and said the company was on track toward its full-year goals. That characterization appeared alongside the $772 million in revenue and the $4 million GAAP net loss; both facts matter when assessing the result. Zillow Group’s Q2 2026 results
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