Zillow Says It's Shooting for $5 Billion Revenue and 45% EBITDA Margins

The American portal operator Zillow Group is setting ambitious financial targets and doubling down on market expansion as outlined at the Morgan Stanley Technology, Media & Telecom Conference on March 5th.

Zillow CEO Jeremy Wacksman told the audience that the company's focus is on revenue growth, AI-driven innovation, and a disciplined cost structure. Echoing a claim made by his predecessor, Rich Barton back in 2021 Wacksman said the company aims to hit $5 billion in revenue and a 45%  EBITDA margin in the coming years without making the same mistake of giving a fixed timeline.

Zillow is committed to aggressively expanding its enhanced market offerings which see the portal employ a 'post pay' business model where agents pay Zillow a percentage (typically between 25-35%) of the commission they earn on a sale. The enhanced markets currently cover 21% of connections between users and agents across 43 metros, the company expects to increase this to 35% by the end of 2025, with a long-term goal of reaching 75%.

“We’ve been really pleased with what we’ve done in enhanced markets to date,” said Wacksman. “The four most mature markets—Phoenix, Raleigh, Atlanta, and Denver—have grown total transaction value over 100% since early 2023. That’s a great set of proof points in the earliest markets to say this formula feels quite good.”

Zillow anticipates $1 billion in incremental revenue from for-sale properties, driven by its core Premier Agent offering as well as its  Showcase product (increased exposure and enhanced media for listings) and Zillow Home Loans.

As highlighted by its recent Q4 filings, Zillow is also betting big on rentals and increasingly competing for multifamily business with CoStar-owned Apartments.com. The company’s rental revenue hit $450 million in 2024, and it sees a clear path to $1 billion by leveraging a two-sided marketplace model.

Wacksman told the room full of investment bankers that Zillow would be keeping a close eye on fixed costs, which currently sit at $1 billion. Although the company has reported profit on an Adjusted EBITDA basis for the last few years, it has famously made substantial losses totalling over $1 billion over the last five years. The company says it expects to achieve GAAP net income profitability in 2025, with plans for potential inclusion in the S&P 500.

Zillow Notches Another Win in Protracted Legal Battle

In other Zillow-related news this week, the portal and the National Association of Realtors (NAR) have prevailed in a four-year legal battle against the now defunct discount brokerage REX, as the U.S. Ninth Circuit Court of Appeals upheld a district court ruling rejecting claims of anticompetitive practices.

The long-running case centred on NAR’s no-commingling policy, a guideline that encourages real estate websites to separate MLS-based listings from those outside the system. REX, which operated without an MLS affiliation, argued that the rule hurt its business by relegating its listings to a separate tab on Zillow, leading to a decline in visibility and traffic.

The appeals court ruled that NAR’s policy did not constitute an antitrust conspiracy, noting that regional MLSes independently decided whether to follow the rule, with about one-third opting out. The justices also found that Zillow developed its separate tab display without NAR’s involvement, further undermining REX’s claims.

The NAR welcomed the decision, reiterating that its policy is optional and does not violate antitrust laws. Zillow also responded to the ruling, with a company representative stating:

“Zillow was founded on increasing transparency in real estate, and we have a long history of advocating for consumers through our products and services. We’re pleased with the Ninth Circuit having affirmed what we’ve said all along — REX’s claims have been without merit since the start of this matter.”

The dispute began in 2021 when REX sued Zillow over its listing display, arguing that the two-tab system made it harder for consumers to find non-MLS listings. Zillow adopted the format after joining NAR to gain nationwide MLS access.

Last year, the U.S. Department of Justice weighed in on REX’s side, arguing that even though the no-commingling rule is optional, it could still facilitate anticompetitive cooperation between MLS organizations and real estate platforms. Despite that intervention, the Ninth Circuit’s decision marks another setback for REX as it continues to pursue legal action post-shutdown.