The house always wins — and for ZillowZG

, that house is finally its own bottom line. The real estate platform is positioned to deliver its first annual profit since 2012, driven by revenue growth across rentals and mortgages while keeping operational expenses steady. This turnaround comes despite a sluggish housing market that sent shares tumbling ~8% last week.

• Zillow reported consecutive quarterly profits of $8M and $2M in the first two quarters, marking its first back-to-back profitable periods since 2022.
• The company’s mortgage division surged 41% in revenue last quarter, powered by increased loan origination volume.

Double bind: Legal pressure is building as a new class-action suit accuses Zillow of steering buyers to affiliated agents while concealing commission rates that can reach 40% of total fees. Still, analysts at JMP Securities and Bernstein rated the stock “outperform,” with targets reaching $105. CFO Jeremy Hofmann reinforced that outlook, saying, “Even if the housing market were to stay where it is, we think there’s a lot of growth to come.” Yet with rivals closing in, Zillow must prove its momentum can overcome the legal drag if it wants to secure a spot in the S&P 500.