ZG

Zillow Group runs the leading U.S. residential real-estate marketplace, and FY2025 showed the model regaining momentum. Revenue grew 15.5% to $2.58B — its best growth in years after the 2022-23 housing-driven stall — on a software-like 74.1% gross margin. The company crossed into GAAP profitability with net income of $23.0M (from -$112M), though operating income was still slightly negative at -$34.0M (-1.3% margin), so the bottom-line profit is razor-thin and partly below-the-line. The trailing P/E of 361x is therefore not a meaningful valuation anchor.

The balance sheet is excellent and de-risks the story. Liabilities fell 18.3% to $801M against $4.88B equity — a pristine 0.16x leverage — with $768M cash. That financial strength let Zillow repurchase $670M of stock (up 122.6%), a strong signal of management confidence and a meaningful per-share tailwind. Operating cash flow of $368M (down 14.0%) remains solidly positive and funds both R&D ($607M, the core investment in product) and buybacks.