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Zillow (ZG) is trading higher after delivering a solid Q3 report, featuring modest EPS upside and stronger-than-expected revenue growth. Q3 revenue climbed 16.4% yr/yr to $676 mln, above prior guidance of $663-673 mln. Adjusted EBITDA rose 30% yr/yr to $165 mln, exceeding guidance of $150-160 mln, and showing improved momentum from Q2's +22% growth. Q4 revenue guidance of $645-655 mln came in roughly in line with expectations.

• For Sale segment revenue rose 10% yr/yr to $488 mln, led by a 36% jump in Mortgages to $53 mln as financing activity modestly recovered.
• Rentals remained the standout, with revenue up 41% yr/yr to $174 mln, powered by a 62% surge in multifamily revenue.
• Zillow Rentals averaged 2.5 mln monthly active listings in Q3, including 69,000 multifamily properties, nearly double the 35,000 listed two years ago. The company sees significant runway ahead, with roughly 140,000 multifamily properties nationwide still untapped.

Zillow characterized the housing market as "bouncing along the bottom," but emphasized that it continues to outperform the broader real estate industry. The company's strategy has evolved well beyond simple home search—Zillow is now positioning itself as a diversified, transaction-focused platform connecting users through the full housing journey: from discovery and touring to agent matching and financing.

Briefing.com Analyst Insight:

Zillow's strong Q3 print highlights its resilience in a weak housing market and the traction of its Rentals and Mortgage businesses. The pivot toward a broader housing transaction ecosystem appears to be paying off, particularly as multifamily inventory and digital rental demand accelerate. However, with home listings still constrained and rates high, top-line growth could remain choppy in the near term. We view Zillow as an emerging cyclical recovery story—solid execution, expanding optionality, but tied to a housing rebound that may take several quarters to fully materialize.