Zillow Group’s revenue rose 18% to $772 million in the second quarter, beating its own forecast, but a $36 million restructuring charge from severance and other costs stemming from this week’s layoffs pushed it to a $4 million net loss.
The Seattle-based online real estate company, which on Tuesday laid off more than 500 people, or 7% of its workforce, expects the restructuring to cost $59 million to $64 million in total, with the rest recorded in the third quarter, according to the company’s 10-Q regulatory filing.
Zillow also announced a series of executive changes, including expanding CFO Jeremy Hofmann‘s role to include chief operating officer. Jun Choo, who became COO in 2024, is stepping down to focus on his health, serving as an advisor through the end of the year.
The company created a chief legal and policy officer role and hired Cassandra “Sandi” Knight, a Google vice president of litigation and discovery, who was previously PayPal chief litigation counsel. Knight starts next week.
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Zillow and Redfin are set to go to trial Aug. 24 as defendants in an antitrust case brought by the FTC and five state attorneys general over the $100 million rental listings deal between the two companies. Zillow has spent $26 million on the case so far this year, including $10 million in the second quarter.
In addition, Zillow promoted Kathleen Berroth to senior vice president of strategy and operations, and Eric Wilson to senior vice president and GM of mortgages.
For the second quarter, Zillow said the residential real estate industry grew 6%, while industry-wide lending for home purchases was roughly flat compared with a year ago. The number of people visiting real estate sites and apps declined overall as mortgage rates rose, the company said, citing Comscore. Zillow’s own traffic fell 2%, to an average of 239 million monthly users.
Most of the revenue growth came from Zillow’s newer businesses. Mortgage revenue rose 75% to $84 million as Zillow directed buyers on its site to its own lending arm, and rentals revenue rose 31% to $209 million. Residential revenue, from advertising sold to real estate agents, grew 7% to $465 million.
