ZILLOW GROUP, INC.ZG

ZILLOW GROUP, INC. Segments Disclosure

10-KFiled Feb 11, 20262 min read
Segment Information
Our CODM is our CEO who manages our business, makes operating decisions and evaluates operating performance on the basis of the company as a whole. This aligns to our ongoing growth strategy and our intent to provide integrated customer solutions for all tasks and services related to facilitating real estate transactions. Accordingly, we have a single operating and reportable segment.
Our CODM assesses performance and decides how to allocate resources based on net income (loss) as reported in our consolidated statements of operations. The measure of segment assets is reported on the consolidated balance sheets as total assets. The CODM uses net income (loss) to evaluate return on total assets in deciding whether to invest in the development and expansion of our consolidated operations or into strategic transactions, such as acquisitions and capital repurchases. Net income (loss) is also used to monitor budget versus actual results, perform competitive benchmarking analyses, and is considered in evaluating our executives’ compensation.
Significant Segment Expenses
The following table presents our significant expense categories included in our reported measure of segment profitability for the periods presented (in millions):
 Year Ended December 31,
202520242023
Revenue$2,583 $2,236 $1,945 
Less:
Headcount-related expenses, excluding share-based compensation1,187 1,110 993 
Share-based compensation390 448 451 
Depreciation and amortization264 240 187 
Marketing and advertising costs
191 194 155 
Direct product and service costs
300 184 144 
Software and hardware costs
113 98 85 
Third-party professional service fees
90 70 75 
Facility expenses26 28 59 
Impairment and restructuring costs
2 6 19 
Acquisition-related costs
— 1 4 
Other items (1)
54 54 43 
Loss from operations(34)(197)(270)
Gain (loss) on extinguishment of debt
— (1)1 
Other income, net
77 127 151 
Interest expense
(18)(36)(36)
Income tax expense
(2)(5)(4)
Net income (loss)$23 $(112)$(158)

Historical Timeline

Fiscal YearFiled
2025Feb 11, 2026Showing above
2024Feb 11, 2025
2022Feb 15, 2023
2021Feb 10, 2022
2020Feb 12, 2021
2019Feb 19, 2020
2018Feb 21, 2019
2017Feb 15, 2018
2016Feb 7, 2017
2015Feb 12, 2016

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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