Z - NASDAQ

Hello, welcome to

Thank you. Good afternoon, and welcome to

During the call, we will discuss GAAP and non-GAAP measures, including adjusted EBITDA, which we refer to as EBITDA, and adjusted free cash flow, which we refer to as free cash flow. We encourage you to read our shareholder letter and earnings release, which can be found on our investor relations website, as they contain important information about our GAAP and non-GAAP results, including reconciliations of historical non-GAAP financial measures. We will open the call with remarks followed by live Q&A. With that, I will now turn the call over to Jeremy Wacksman.

Good afternoon, everyone, and thank you for joining us. Q1 was another quarter of consistent execution and continued momentum across our business. We delivered revenue near the high end of our outlook range and EBITDA above our outlook, putting us on track toward achieving our full-year goals. That consistency reflects a winning strategy and a platform that is built to grow. Our strategy is straightforward: make moving easier by connecting the entire housing journey into one integrated experience, supporting both consumers and the professionals who serve them. In for sale, that encompasses shopping, touring, financing, agent collaboration, and closing for consumers, as well as a suite of agent software tools to make them more efficient at serving clients. In rentals, it spans search, tours, applications, leases, and payments. This integration is what drives better outcomes for everyone involved and fuels our growth.

Roughly 80% of our traffic comes directly to us. We have more than 2x the daily active app users of our next closest competitor. Buyers, sellers, renters, and professionals choose

In for sale, revenue grew 12% year-over-year in Q1 to $514 million, with 8% growth in residential revenue and 56% growth in mortgages revenue. Our for sale performance outpaced industry transaction trends, which were roughly flat, and reflects our ability to convert more high-intent movers as we improve outcomes for consumers through a more integrated experience. In rentals, Q1 revenue was up 42% year-over-year, driven by 57% growth in multifamily revenue. We are gaining wallet share for broad-based marketing spend with multifamily property managers as they continue to see strong ROI we are providing to their businesses. Our results this quarter reflect our ability to innovate and grow the business while delivering sustainable profitability regardless of macro conditions.

Before I give more detailed updates on what's driving our results in both for sale and rentals, I want to spend a moment on our company strategy and on how we're using AI to accelerate it. We laid out our thinking on this at our AI Investor Summit in March, and I'll reiterate it here. We have been building advanced technology in residential real estate for 20 years, from the

We have the most comprehensive and increasingly differentiated housing inventory in the country across existing for-sale homes, new construction homes, and rentals. Content that is elevated by proprietary rich media,

They're saving homes, they're booking tours, they're determining their viability range, messaging with their agents and loan officers, and preparing to make offers. That activity spanning every point in the transaction is sustained, deep intent that

Tools that operate only at the top of the funnel can only answer service-level questions, summarizing listings, providing market data, setting a search filter.

Structural complexity in housing shapes what AI can do and what it takes to do it well. Transactions are high dollar, high stakes, highly personal, and for most people, they happen only a handful of times over their entire lifetime. There are hundreds of thousands of brokers working across several hundred MLSs, powering 1.5 million real estate agents. We've spent 20 years navigating this landscape, putting in place the industry relationships and the infrastructure to provide products and services directly for the transaction, not just observe it from the outside. Our long history of innovation and investment enable us to deliver value that only increases as AI capabilities grow. At our AI summit last month, we also debuted

This new way of engaging throughout our site is live for about 5% of our audience so far, which equates to availability for millions of users, and we plan to expand access this year as we continue to test, learn, and refine the experience, consistent with how we approach all major product rollouts. Early signals are encouraging.

They are now under contract to buy one of the homes they found through this robust experience. That is the arc

Follow Up Boss, which top agents in the country rely on to manage their businesses, is becoming an AI-powered workflow engine that handles coordination, prioritization, and outreach so agents can stay focused on the judgment, advocacy, trust, and human relationships that get deals done. The result is that great agents become, in effect, super agents who can take on more transactions at higher quality without more hours, all enabled by

For property managers using AI Assist, it's streamlining lead management, application screening, and lease coordination, reducing friction at every step of the transaction. Our commitment to AI-fueled efficiency doesn't stop at our consumer and professional products. It runs all the way through how

We have spent two decades building the content, the context, and the integration that differentiates

For buyers, the integrated experience begins the moment they start shopping. BuyAbility, a tool from

Enhanced markets accounted for 49% of our connections in Q1, up from 44% in Q4 and well on our way to our target of at least 75%. Our new Shop with Pre-approval feature, which is now available across our entire platform, takes the integration a step further. Buyers who have a

Shop with Pre-approval is unique to

For sellers, we continue to expand our suite of products designed to provide differentiated ways to market homes and achieve stronger results.

New Harris Poll survey data backs up why this matters. Nearly 9 in 10 Americans would be interested in viewing pre-listed homes online if they were buying a home. 85% of soon-to-be sellers said they'd be more likely to hire an agent who can pre-market their home to the broadest online audience. It is no wonder agent adoption of

Showcase listings provide an immersive, high-impact listing experience that includes interactive floor plans, 3D tours, virtual staging, and Sky Tour. They drive more engagement and sell faster and for more money than non-Showcase listings.

Follow Up Boss is the customer relationship management system of choice for more than 80% of the highest volume real estate teams in the country, and it's seen more than 70% growth in monthly active users since

In rentals, we are building something that has not previously existed in the category: a true comprehensive two-sided marketplace that brings together the most and the widest variety of listings, high intent demand, and modern transaction tools. Our strategy is twofold. First, we're building a trusted destination for renters to find every type of property, from single-family homes to large apartment communities. Second, we're modernizing the rental transaction itself, streamlining how renters and property managers connect and manage applications, leases, and payments. We reached an all-time high of 76,000 multifamily properties as of the end of Q1, up from 55,000 properties a year ago. Combining this with our industry-leading inventory of long-tail rentals, the smaller buildings and single-family homes,

Because of our relentless focus on the consumer experience, renters rate

Our continued growth in rentals is a reflection of what happens when you build real value and improve the transaction experience on both sides of the marketplace, and we're not stopping there. For example, the Total Monthly Price feature we launched recently lets property managers display the all-in cost of a rental. That gives renters a clearer picture and property managers a differentiated way to present their inventory. In April, we launched two new tools for multifamily property managers, a live analytics dashboard that gives partners a single place to track portfolio performance, benchmark against market trends, and make smarter leasing and advertising decisions, and a paid social product that puts their listings in front of renters on Instagram, Facebook, and TikTok, fully built and managed by

The two are designed to work together, identify which units need more traffic in the dashboard, then dial up social reach instantly. It's all part of the growing list of ways

With a clear path toward our incremental mid-cycle target of $1 billion or more in annual revenue, rentals is one of our most compelling growth opportunities. Before I turn it over to our CFO, Jeremy Hofmann, I want to step back and put this quarter in context. We delivered 18% revenue growth, net income of $46 million, net income margin expansion, and continued growth in both for sale and rentals, all against a housing market that was essentially flat. Our revenue has consistently outperformed industry total transaction value for more than 3 years now. That kind of performance in this kind of environment does not happen by accident.

It reflects the durability of a multi-year strategy that is designed to perform across market cycles and a platform that operates across the entire housing transaction that consumers trust and return to throughout a months long journey and that professionals rely on every day to run their businesses. Underpinning all of it is a strong brand millions of people come to for help making one of the biggest financial decisions of their lives. We earn the trust of consumers and professionals by consistently showing up for them at every stage of the housing journey. It's why roughly 80% of our traffic comes directly to us. It's why

It's why

Thanks, Jeremy. Good afternoon, everyone. We delivered excellent results in Q1 and are well-positioned to continue delivering strong performance as we execute on our strategy in 2026 and beyond. In Q1, we generated revenue of $708 million, up 18% year-over-year and near the high end of our outlook range. EBITDA of $182 million was above the high end of our outlook range, resulting in an EBITDA margin of 26%, which was flat year-over-year. Excluding $11 million of incremental year-over-year legal costs, EBITDA would have been $193 million in Q1, representing a 27% margin and 160 basis points of margin expansion.

We reported net income of $46 million with a net income margin of 6%, up more than 500 basis points year-over-year. Share-based compensation expense was down 16% year-over-year. Diluted net income per share was $0.19 compared to $0.03 a year ago. We generated $127 million of free cash flow in the quarter, a 44% increase compared with the same period a year ago. Now, let me take you through the details of the quarter. Our for sale revenue grew 12% year-over-year to $514 million. Within the for sale revenue category, residential revenue of $450 million was up 8% year-over-year and in line with our growth outlook.

The majority of the increase in residential revenue was due to growth in

Note that as

We see a clear path to $1 billion or more in annual rentals revenue. Q1 is another data point confirming we're on track. We produced strong growth in the quarter despite tougher than expected macro conditions, with winter weather and higher interest rates impacting for-sale shopping activity. As a result, the real estate industry grew 2% as reported by NAR, and we estimate purchase mortgage origination volume declined 1% year-over-year. Q1 EBITDA expenses of $526 million were below our outlook of $535 million-$540 million, as we benefited from lower people-related and legal costs than we anticipated. We ended the quarter with cash and investments of $788 million, down from $1.3 billion at the end of 2025.

We repurchased $626 million of our stock during the quarter, a meaningful level of activity that reflects our conviction in the long-term value of the business and our commitment to returning capital when the opportunity is compelling. This resulted in our diluted shares outstanding declining from 256 million shares a year ago to 240 million shares at quarter end. As of the end of March, we have approximately $1.3 billion remaining under our existing authorizations. Combining our $788 million of cash and investments with our $500 million undrawn revolving credit facility, we have total liquidity of approximately $1.3 billion.

This strong liquidity position gives us flexibility on our financial priorities to invest in growth, maintain an adequate risk-based capital reserve, support flexibility for potential M&A, and continue to be opportunistic with share buybacks. Turning to our Q2 outlook, we expect total revenue of $750 million-$765 million, implying year-over-year growth of approximately 16% at the midpoint of our outlook range. We expect for-sale revenue growth to be similar to Q1. Within for-sale, we expect residential revenue growth of mid-single digits year-over-year. For mortgages, we continue to see a strong pipeline, which we expect puts us on track for growth at similar levels to Q1. In rentals, we expect revenue growth of approximately 30% year-over-year for the quarter.

In Q2, we expect EBITDA expenses of $600 million and EBITDA of $150 million-$165 million. Our expectations include approximately $20 million of incremental legal expenses and approximately $16 million of incremental advertising spend compared to a year ago. Excluding the $20 million of anticipated incremental legal expenses year-over-year, we expect EBITDA would be approximately $170 million-$185 million in Q2, implying relatively flat year-over-year EBITDA margins. We are planning for approximately $80 million in total advertising spend in Q2, up from $64 million last year. The incremental year-over-year advertising growth is due to timing of planned product launches that were already included in our original full year outlook.

Taken together, our Q1 results and Q2 outlook have us squarely on track for the full year. Importantly, the structural drivers that we expect to accelerate margins in the back half of 2026 are already in motion. Turning to our full year outlook for 2026, we continue to expect to deliver mid-teens total revenue growth, approximately 30% growth in rentals revenue, and continued EBITDA margin expansion. We are updating our outlook for full year share-based compensation expense, which we now expect to be down more than 15% year-over-year, versus our previous guide of down more than 10%. We expect our fixed cost base of approximately $1.1 billion to grow with inflation and believe it is the right investment level as we execute our growth strategy.

For variable costs, we are continuing to invest in rentals and loan officers in

We expect these structural drivers to result in mid-teens revenue growth, EBITDA growing faster than revenue, and net income growing faster than both revenue and EBITDA. From a revenue perspective, we continue to see a strong growth opportunity in 2026 and beyond. In for sale, more consumers are receiving the integrated housing super app experience, which results in conversion improving for our preferred agents,

The combination of our for sale and rentals offerings are durable and growing, setting us up to succeed in any market environment. From a cost perspective, there are four key drivers to margin expansion in the second half of the year. First, we expect to continue to leverage fixed costs, which is within our control. Second, variable expense growth will decelerate as we move through the year. In the first half of 2026, we expect variable costs to be a headwind of more than 400 basis points to EBITDA margins. By year-end, we expect that headwind to be close to neutral, a meaningful swing that flows directly to the bottom line. Third, we expect that legal expenses will be an approximately 200 basis point headwind to EBITDA margins in the first half of 2026.

We expect that legal expenses will be less of a headwind to margins in the second half of the year as we get through the FTC trial. Finally, our advertising spend is more heavily weighted in Q2 this year than in prior years due to planned product launches. In the back half of the year, we expect advertising to follow a more typical seasonal pattern, meaning less year-over-year pressure on margins than we're seeing now. To close, we are pleased with our results in Q1 and confident in our ability to deliver against our 2026 and mid-cycle financial targets. We are successfully executing on our strategy, and we have the right investments in place to support further revenue growth while expanding EBITDA margins, accelerating net income growth, and continuing to build the platform that we believe will define how people move into their next home.

With that, operator, we'll open the line for questions.

Thank you. At this time, if you would like to ask a question, please click on the Raise Hand button, which can be found on the black bar at the bottom of your screen. When it is your turn, you will receive a message on your screen from the host allowing you to talk, and then you will hear your name called. Please then accept, unmute your audio and ask your question. We will wait one moment to assemble the queue. Our first question today comes from Ryan McKeveny from

Great. Thank you for taking the questions. First, I wanted to dig in on

Thanks, Ryan. This is Jeremy Wacksman and I'll take that. On Preview early learnings, I mean, the response really has been more than we expected. We announced it just two months ago with five partners and as I said, now more than 60 have been announced. We are really heads down on onboarding agents and onboarding franchisees and getting it into the hands of those folks. We've been really pleased with the results, and I think that dovetails into your second question, you know, the collaboration with realtor.com. I mean, it's really just a win-win for both

We think that further increases the value and the demand for Preview listings, which was already very strong. I mean, as a reminder,

Great. Thanks for that. Then I guess on the EBITDA guidance, both in the context of 2Q but also the full year, maybe can you dig a bit more into how much of the cost is within your control to get the expected margin ramp? You know, I'm curious both from a fixed cost and variable cost perspective, just, you know, visibility you guys have into the business to have confidence in the margin ramp in the back half. Thank you.

Yep. Thanks, Ryan. It's Jeremy Hofmann. I'll take that one. Q2, two things are going on from a cost perspective. One is legal costs are up $20 million year-over-year. If you adjust for that, you'd see an EBITDA guide of $170 million-$185 million, which is, you know, more in line with margins from last year. The other is we're increasing advertising dollars by about $16 million in Q2. Those are the two factors. As we get into the back half of the year, we are confident in the full year guide, and there are a variety of reasons for why. The first half of the year in aggregate were right on plan, so that's a good start.

As we move into the second half of the year, the structural revenue drivers we have are well intact across for sale and rentals, that growth algorithm is durable regardless of macro environment, just because the business is scaling and diversifying so much. With respect to costs, you know, a lot is in our control. The first one is fixed costs. That's well within our control. We expect to leverage those. The second is variable costs, which were a 400 basis point headwind in the first half of the year. A lot of that's in our control, right? Our rentals investment pace slows down in the back half of the year, and we expect variable expenses to be closer to neutral to EBITDA margins by year-end. In our control primarily as well.

Legal costs were a headwind in the first half of the year. We expect they'll be less of a headwind in the second half, really as we move past the FTC trial. That is on an accelerated timeline, and as a result, the costs are on an accelerated timeline as well, but we're eager to get through that. Then the last one is well in our control, which is advertising spend. That's more heavily weighted in Q2 this year than in years prior just due to planned product launches. In the back half of the year, we expect advertising to follow a more typical seasonal pattern. EBITDA is on track for margins to expand this year, and we feel good about it.

Great. Thank you.

Thank you. Our next question comes from Ron Josey at Citi. Ron, you may now unmute your line and ask your question. Thank you.

Great. Great. Thanks for taking the question. Jeremy, I wanna ask a little bit more on rentals here, just given the strength that we're seeing across multifamily in both properties, but also revenue growth. We're lapping the Redfin partnership in the back half of the year. Just talk to us about the outlook and thoughts on the broader competitive environment of rentals, only because I know we're marching towards that $1 billion opportunity, but we do have tougher comps in the back half. As a separate question, just

I know it's early days here, but just lessons learned and thoughts about rolling this out more broadly. Thank you.

Yep. Thanks, Ron. I'll take the first one, then hand it to Jeremy on the AI mode. On rentals, we expect continued strong growth and execution in the second half of the year. Our full year guide of 30% implies second half rentals revenue growth of upper 20%, even after lapping the Redfin-related revenue growth acceleration in the second half of last year. When we step back and look at the last few years of growth, in 2024, we grew rentals 27%. In 2025, we grew rentals revenue 39%, and we expect to grow another 30% this year.

Almost doubling the business over that period and growing the business faster in 2026 at nearly double the size is something we're really proud of, and we're obviously well on track for that billion-dollar-plus annual revenue target. I will say the opportunity from here does still feel early and like we're just getting started just because the strategy that we have to aggregate, you know, as much of the supply as possible, both for single family homes for rent and apartments for rent is really differentiated. The value proposition we're bringing to consumers and advertisers is so compelling. You see that in the growth that we've had the last few years, and we expect it to continue from here.

Just to add on to that, I mean, that's part of why we have that target out there, $1 billion annualized revenue target, but that's not the end state, you know. We expect growth beyond that because, as Jeremy said, the strategy continues to be really unique, and we see it as more and more valuable. I mean, the rental audience growing to 36 million unique visitors and, as I mentioned, number one brand preference, that's what drives this ROI for advertisers, right? They want to fill their leases, and they want a high-quality audience to do it. That's why we continue to see we are the best ROI advertising tool they have. Again, not just against apartment-focused sites, but against search and social platforms as well.

That's really the category of ad spend here, is they're spending everywhere trying to find renters, and

The example I gave is just one of many examples of people just spending time going deeper. For the transaction, that's a higher-intent customer at the end of the day, right? It's keeping that person on

Once you start in our category, triaging homes is the very top of the funnel, and ultimately you are trying to get your financing, go tour homes, virtually tour homes, meet with your agent, message with your agent, make an offer, and ultimately close. That's what we're helping you do. AI mode is just the start of our ability to take AI in the hands of consumers and really help them with that in an AI-native way.

Thank you. Our next question comes from Brad Erickson at RBC Capital Markets. Thank you.

Hi, guys. Can you hear me?

Yeah, we got you.

All right. Great. Thanks for taking the question. I guess resi, you know, starting the year out a little softer here, obviously the question becomes what's kind of instructing the back half confidence that you're guiding to. Markets clearly weakened starting out the quarter. We'd just be curious on sort of how much cushion is in there and sort of your market assumptions, you're embedding in your outlook for for sale and resi in particular. Secondarily, as we think about mortgage, really performing well here, picking up the slack, you know, the critique there is obviously around the lower margin profile and that sort of thing. Can you speak to that?

Just maybe how do you think investors should sort of ascribe credit to that segment given, the potential you see margin wise, over the longer term? Thanks.

Yeah. Thanks, Brad. I'll take those. In terms of what we're looking for in the back half of the year and how we've thought about it, we're planning for the housing market to continue to be effectively flat. You're right that it started off slower than I think folks anticipated. We're not planning for that to get any better. Against that backdrop, we're expecting mid-single digit growth in residential. We're expecting for sale growth to be faster than residential, given mortgages are outperforming our expectations thus far. The enhanced markets playbook is clearly working regardless of housing market conditions. That gives us confidence on the for sale category overall, regardless of what housing does.

Rentals I talked about before, but that continues to be a real bright spot for us and one of the most compelling growth opportunities we have. When we put that all together, total revenue continues to be on track for mid-teens growth, given the consistent diversification of the business and all of those structural growth drivers are well intact. With respect to the mortgages, margin question, you know, we are making great progress on growing the mortgage business, but we're not yet at scale. Margins are improving. We are seeing better loan officer productivity. We are seeing better processor productivity. You know, even last year, we improved loan officer productivity by 11% despite growing loan officer count by about 40%. That just gives you a sense.

That will take time, but when we look at the mortgage opportunity overall, we see a far bigger opportunity for us than being a top 25 lender. We're a top 25 lender in the country today. We're proud of that and the progress we've made. Our goal is to be one of the biggest purchase mortgage originators in the country. As we build that scale, the margin dollars potential is really compelling because we don't spend the same amount of money on customer acquisition costs. We think mortgage origination is purpose-built for AI applications over time too. That's how we're thinking about it. It's still a nascent business, but one that we see big revenue potential for and big margin dollars potential for. Not to mention the consumer benefits we see when integrating mortgage with great real estate.

Understood. Thank you.

Thank you. Our next question comes from Nick Jones at BNP Paribas. Nick, you may now unmute your line and ask your question. Thank you.

Great. Thank you. I guess a follow-up on rentals. I'm just curious, as that business continues to kind of grow nicely here, is there kind of a threshold where kind of the product velocity on the rental side may start looking kind of what you've done in residential? It seems like you're seeing a lot of success there. Some of the products you're rolling out are being well received. You know, as you kind of approach this $1 billion revenue threshold, might your posture on the segment start to change? That's kind of the first question. The second question more broadly is you kind of build this end-to-end stack. Are you getting more visibility into the consumer behavior than you would have had historically?

Since I guess you're ostensibly getting more views into their psychology, whether they're looking at pre-approvals. I think you gave a stat at the AI Summit that 65% of renters also look at maybe buying a home. I guess ostensibly, you're getting better and better data as to, maybe how the macro environment is starting to look. Just curious if that's, if that's the right way to think about it. Thank you.

Maybe I'll take the first and you can weigh in on the second. I think on rentals, I mean, no, I don't think you should expect our posture to change. We're excited about the march we're making towards the $1 billion target we put out there. As we've said for some time now, we don't think that's the end. The reason for that is just look at the strategy and the penetration of the strategy. We are, you know, mid 70,000 buildings out of the, you know, 140,000, 150,000 buildings that are out there in multifamily, and we are very high ROI advertiser source for them against all of their advertising sources.

Our ability to see packages get upgraded as they bring more of their portfolios on to our high ROI provides a long runway for multifamily rentals growth. Remember, our strategy is twofold. It's multifamily plus single family and long tail, which is, you know, combined 2.7 million rental listings becoming a one-stop shop for all renters. All of our property management tools for the semi-pro and long tail professionals start to contribute more to the platform, provide more digital tools and services and integrate those across the segments. We see tremendous growth coming from there as well. I think your second question, correct me if I'm wrong, was more about can we see more of the context?

Of the real estate transaction and for sale. Yes, I mean, that's kind of been our strategy really for the last decade now as we've gone down funnel and become a transaction platform. When you are the software platform for a buyer, not just to look for what listings are for sale, but to actually get pre-approved, book tours, virtually tour, hire your agent, message with your agent, bring your co-shopper into the messaging platform, start to write offers, then close on the transaction. You're using

Follow Up Boss, it's CRM for top teams, is seeing all that data about those buyers and sellers to help those agents be more responsive and being the operating system for everything the agent does from buyer management and project management and coordination to tour management and scheduling to listing marketing with Preview and Showcase. That platform provides, I think, really unparalleled context in the real estate category, and that's what helps us build a better platform overall for this one-stop shop that we keep talking about, and we're increasingly delivering. It also helps us build the most capable AI platform, so that as we all begin to expect AI-enabled services in our verticals, you will expect the

Yeah. Maybe just to layer on top of that, Nick. Jeremy said it well, but, you know, think about the consumer problem to solve. The consumer wants to see as much inventory as possible as a buyer or a renter, and they are often the same person. Having that inventory all in one place, for sale homes, apartments, new homes and existing homes, and the most of it is solving the consumer problem. It's giving us great context. Yes, we're building relationships with these consumers over multiple transactions. If we do a good job on the rentals front, why shouldn't we earn the right for the for sale business if and when that person becomes a buyer? That's all part of the strategy, but it starts at the fundamental solve the consumer need, and we think we're doing that quite well.

Thanks.

Thank you. Our next question comes from John Colantuoni at Jefferies. John, you may now unmute your line and ask your question. Thank you.

Can you hear me?

Yep, we got you.

Okay, great. Thanks for taking my questions. First one, wanted to ask about resi revenue growth. I was just hoping you could help reconcile the slowdown that you're looking for in the second quarter, relative to your expectation for the housing market to sort of bounce along the bottom again. Just curious if there's anything transitory there and maybe you're expecting a pickup in the second half. Then second, just talk a little bit about early responses from agents and sellers regarding the

Jeremy, I can take the first one, and then maybe you take the second one.

Yeah.

Yeah, I think on John, for Q2, the market started out slower than we, you know, folks anticipated. Weather and rates throughout the first quarter was worse than folks were anticipating. That impacts sentiment. That impacts agent sentiment when there is some excitement around the real estate industry, albeit muted, heading into the year and the transactions don't end up occurring. As a result, I'd say the agent sentiment heading into the spring selling season impacts MBP. As a result, you know, we've seen this now a number of years in a row, but MBP lags a bit because of that agent sentiment.

You're seeing that play through in the numbers from Q1 to Q2, and we're just not anticipating or planning for any recovery in transaction volume throughout the course of the year. You're not seeing that come through in

The on the margin move is really around MBP sentiment.

Your second question on Preview. I mean, Preview, the response to Preview, I think, kind of proves that it's, you know, something that's broadly desired by most of the market, and that's just because public is better than private. You know, the vast majority of sellers want to sell their home for the most money and sell it fastest, using the public market and making it available to a broad pool of buyers is how you do that. It's why, you know, we gave out some consumer sentiment stats. You know, most sellers are gonna use agents who can help them maximize price. The only benefit of private is it benefits the brokerage that hides listings for their own gain.

It's not surprising you're seeing such strong support from brokers and agents, even in just the first two months. You know, we're excited to continue to grow and expand it.

Thank you. Our final question today comes from Nikhil Devnani at Bernstein. You may now unmute your line and ask your question. Thank you.

Hey, thanks for squeezing me in. Appreciate it. I wanted to just follow up on John's question there around the revenue guidance. If I think about 2026, is there an expectation on your part that residential improves from mid-single digits in the back half, or is mid-teens achievable even if that becomes the run rate for residential for the rest of the year?

Yeah, I can take that one. I'll say this, Nikhil. Housing market's been effectively flat. We're not planning for that to get better. It may, we're not planning for it. Against that backdrop, what informs the mid-teen guide is we expect mid-single digit growth in residential. We expect for sale to grow faster than residential because of the enhanced markets working so well and mortgage growing so nicely. Total revenue continues to be on track for mid-teen growth because you include rentals as well. They all layer on top of each other. We're not planning for any macro changes versus what we saw in the first quarter. Despite that, well intact for mid-teens revenue growth for the year.

This completes the allotted time for questions. I will now turn the call back over to Jeremy Wacksman for closing remarks. Thank you.

Great. Thanks everyone for joining us today and for staying a few minutes longer. We really appreciate your continued support. We are tremendously excited for what's ahead, and we look forward to speaking with you next quarter. Thanks, all.

Thank you for joining