Zillow Group Inc at UBS Global Technology and AI Conference Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Steven Zhu - UBS Investment Bank - Analyst : All right, awesome. So let's just kind of start at the top. So Zillow for the longest time, has been known for its brand and large audience and engagement assets. So the big question has always been, when and how you would truly leverage that into building a big sustainable and profitable business. So perhaps you can touch on the arc of the story so far, and where you are in that journey with the housing super app.

Question: Steven Zhu - UBS Investment Bank - Analyst : When I hear super app, when I hear companies talk super app, I always think there's multiple ways to skin the cat. Yeah, so you probably can't talk about the entirety of your product development roadmap right now, but there's probably other things coming forward because

Question: Steven Zhu - UBS Investment Bank - Analyst : Yeah, I mean within Zillow Pro, I mean there's the concept of the sphere of influence, right? So can we talk about that a little bit and how you're expanding to support an agent's spirit of influence.

Question: Steven Zhu - UBS Investment Bank - Analyst : Okay, so you're serving as sort of their digital agency. Is that a pretty too presumptuous a term, or --

Question: Steven Zhu - UBS Investment Bank - Analyst : Okay, understood. I think Zillow has been executing pretty well on the housing super app and rolling out enhanced markets during what we've called, I think term it bouncing along the bottom of the housing market, revenue growth, like you said, is in the mid-teens, even the margins are expanding. Rentals accelerated to plus 40% growth year-over-year and GAAP profitability. So what's driving the outperformance versus the industry?

Question: Steven Zhu - UBS Investment Bank - Analyst : Got it, hitting some of those products, one by one, I think enhanced markets climbed to 34%, of connections in the third quarter. And so what's been the hardest part of scaling that experience, product readiness, operational consistency, or (technical difficulty) agent enablement, and. You know what milestone signals should investors, be looking for?

Question: Steven Zhu - UBS Investment Bank - Analyst : Okay. I mean, the home loans, the purchase originations rose 57% year-over-year, right? So the primary driver of that growth what you just talked about, or are there other factors that you can or levers that you can pull to drive that growth?

Question: Steven Zhu - UBS Investment Bank - Analyst : Got it, okay. Follow-up boss, right, that has evolved into the CRM backbone for in-house markets, and so what are the AI capabilities within follow-up boss that get you excited? Yeah.

Question: Steven Zhu - UBS Investment Bank - Analyst : Got it. Alright, so rentals revenue, that grew 41% year-over-year. I think multi-family growth was 62%, I believe, yeah, so which drivers matters more, for momentum carrying into 2026? Is it going to be a matter of just expanding the property count? I think you're now at what -- like 69,000 multi-family, or is it a matter of you deepening, the wallet share through, upgraded ad packages or other products, yeah.

Question: Steven Zhu - UBS Investment Bank - Analyst : Got it. So let's roll what we just talked about into, I guess, the forecast and expectations for next year. So I think you're projecting mid-teens revenue growth and margin expansion again next year, despite the muted housing backdrop. So, what's the underlying formula, that makes all of that possible. And what are the more durable, I guess levers in that algorithm that we're talking about. And how are you setting the stage for the next phase of Zillow's growth. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 4:35PM, Z.OQ - Zillow Group Inc at UBS Global Technology and AI Conference

Question: Steven Zhu - UBS Investment Bank - Analyst : A sort of a sideways question here, the eternal optimist that I am -- I want to think about a housing market that's not kind of bouncing off the bottom here, you and me both, so, what does that look like if we start to see some sort of a recovery, and the macro helps you instead of being sort of a hindrance? Yeah.

Question: Steven Zhu - UBS Investment Bank - Analyst : Got it. All right, so the tech and AI conference, so we got to talk about AI. All right, so, I think, all of us have seen Zillow as being the first, real estate app being integrated to chat GPT or part of the slide deck that they presented. So, how are you thinking about -- I guess that's another doorway for traffic to arrive on Zillow, and what are the incremental opportunities there and what should we be worrying about in terms of potential disruption. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 4:35PM, Z.OQ - Zillow Group Inc at UBS Global Technology and AI Conference

Question: Steven Zhu - UBS Investment Bank - Analyst : Yeah. And speaking of what you're bringing in-house, right, so, how are you deploying AI internally at the company with employees, not just external consumer facing, and where do you see internally some of the benefits from this technology?

Question: Steven Zhu - UBS Investment Bank - Analyst : And I think you hinted earlier that you're going to endeavour to keep the cost base, the fixed cost base at a relatively flat level. So is this a help in that regard?

Question: Steven Zhu - UBS Investment Bank - Analyst : Okay. So it makes you more agile, yeah, okay, and I think switching gears a little bit to the cash flows, I think you introduced a new free cash flow metric in the third quarter. So, walk us through the thinking there --

Question: Steven Zhu - UBS Investment Bank - Analyst : Got it. And I think you've also settled all of your convertible debt as well. So you walk us through your capital allocation, philosophy and, as well as your thoughts on the stock-based compensation.

Question: Steven Zhu - UBS Investment Bank - Analyst : Got it. Well, here's to hoping for a more cooperative macro going forward, but you know that's gaze into our crystal ball. So it's December of [2026]. We're sitting here, discussing what might have happened in the trailing 12 months, right? So what do you think we'll be talking about in terms of what Zillow has been able to accomplish in the trailing 12 months? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 02, 2025 / 4:35PM, Z.OQ - Zillow Group Inc at UBS Global Technology and AI Conference