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CoStar Group Q2 Revenue Increases 15% Year-over-Year, Achieves All-time High Quarterly Net New Bookings of $93 million and Increases Homes.com Members 56% from Q1 2025

ARLINGTON, Va.--(BUSINESS WIRE)--CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, analytics, and 3D digital twin technology in the property markets, announced today that revenue for the quarter ended June 30, 2025 was $781 million, up 15% over revenue of $678 million for the quarter ended June 30, 2024. Net income was $6.2 million and net income per diluted share was $0.01 for the second quarter 2025. Adjusted EBITDA was $85 million in Q2 2025, an increase of 108% from Q2 2024. 'We had an outstanding Q2 2025 as we delivered our 57 th consecutive quarter of double-digit revenue growth with a 15% year-over-year increase in revenue,' said Andy Florance, Founder and Chief Executive Officer of CoStar Group. 'We achieved our all-time high net new bookings in Q2 of $93 million, a 65% increase from last quarter, powered by highest net new bookings quarter in two years. Our dedicated sales team turned in its best net new bookings in Q2 as we added 6,300 Members, an increase of 56% from the end of Q1 2025. Our demo-to-close rate exceeded 50%. The investments in our sales force, mission critical products, and marketplaces are driving these outstanding results as our commercial information and marketplace brands 1 realized a 43% profit margin for Q2 2025.' Florance continued 'Member agents are winning 62% more listings than comparable non-Member agents. 2 We launched Boost on in Q2. Boost is a digital marketing package that gives sellers and their agents the ability to maximize exposure of a single property on To date, we have sold more than 1,200 Boosts to agents and home sellers. The Network is the second largest in the industry in the United States, with 111 million average monthly unique visitors. 3 _____________________ 1 References to 'commercial information and marketplace brands' refer to our consolidated financial position and results excluding the impact of OnTheMarket, and Matterport. 2 Based on CoStar Group's internal analysis comparing Members to non-Members on 3 Based on: (1) the Network (which includes the Apartments Network, and the Land Network) average monthly unique visitors (111 million) for the quarter ended June 30, 2025, according to Google Analytics, (2) average monthly unique users (66 million) of web and mobile sites according to internal data, for the quarter ended March 31, 2025, as reported in News Corp's press release on May 8, 2025, (3) Redfin's monthly average visitors (45.66 million) for the quarter ended March 31, 2025, according to Google Analytics, as reported in Redfin's Quarterly Report on Form 10-Q filed on May 6, 2025 and (4) Zillow Group's average monthly unique users (227 million) for the quarter ended March 31, 2025, as reported in Zillow Group's Quarterly Report on Form 10-Q dated May 7, 2025. Expand 2025 Outlook 'We exceeded the top-end of our revenue and adjusted EBITDA guidance in Q2 delivering strong revenue growth, exceptional net new bookings and continued cost discipline while we invest throughout the business,' said Christian Lown, CFO of CoStar Group. The Company now expects revenue in the range of $3.135 billion to $3.155 billion for the full year 2025, representing revenue growth of approximately 15% year-over-year at the midpoint of the range. The Company expects revenue for the third quarter 2025 in the range of $800 million to $805 million, representing revenue growth of approximately 16% year-over-year at the midpoint of the range. The Company is increasing its adjusted EBITDA guidance for the full year 2025 to a range of $370 million to $390 million, an increase of $10 million at the midpoint of the range from its previous guidance. For the third quarter 2025, the Company expects adjusted EBITDA in the range of $75 million to $85 million. The Company expects full year 2025 non-GAAP net income per diluted share in a range of $0.76 to $0.80 based on 421 million shares. For the third quarter 2025, the Company expects non-GAAP net income per diluted share in a range of $0.15 to $0.17 based on 425 million shares. These ranges include an estimated non-GAAP tax rate of 26% for the full year and the third quarter 2025. The preceding forward-looking statements reflect CoStar Group's expectations as of July 22, 2025, including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations, observations, and trends. Given the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in this release and in our quarterly reports on Form 10-Q and annual reports on Form 10-K, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement. Reconciliations of EBITDA, adjusted EBITDA, non-GAAP net income, and non-GAAP net income per diluted share to the most directly comparable GAAP measures are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non-GAAP guidance to the most directly comparable GAAP measure, net income (loss), can be found within the tables included in this release. Non-GAAP Financial Measures For information regarding the purpose for which management uses the non-GAAP financial measures disclosed in this release and why management believes they provide useful information to investors regarding the Company's financial condition and results of operations, please refer to the Company's latest periodic report. EBITDA is a non-GAAP financial measure that represents GAAP net income attributable to CoStar Group before interest income or expense, net and other income or expense, net; loss on debt extinguishment; income taxes, and depreciation and amortization expense. Adjusted EBITDA is a non-GAAP financial measure that represents EBITDA before stock-based compensation expense; acquisition- and integration-related costs; restructuring and related costs, including certain advisory fees; and settlements and impairments incurred outside the Company's ordinary course of business. Adjusted EBITDA margin represents adjusted EBITDA divided by revenues for the period. Non-GAAP net income is a non-GAAP financial measure determined by adjusting GAAP net income (loss) attributable to CoStar Group for stock-based compensation expense; acquisition- and integration-related costs, including gains or losses on equity investments acquired in prospective targets and related to deal-contingent financial instruments; restructuring costs; settlement and impairment costs incurred outside the Company's ordinary course of business, and loss on debt extinguishment, as well as amortization of acquired intangible assets and other related costs, and then subtracting an assumed provision for income taxes. In 2025, the Company is assuming a 26% tax rate to approximate its statutory corporate tax rate, excluding the impact of discrete items, to determine Non-GAAP net income for each quarterly period, year-to-date period, and the annual period. Non-GAAP net income per diluted share is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income per diluted share. For periods with GAAP net losses and non-GAAP net income, the weighted average outstanding shares used to calculate non-GAAP net income per share includes potentially dilutive securities that were excluded from the calculation of GAAP net income per share as the effect was anti-dilutive. Operating Metrics Net new bookings is calculated based on the annualized amount of change in the Company's sales bookings resulting from new subscription-based contracts, changes to existing subscription-based contracts, and cancellations of subscription-based contracts for the period reported. Information regarding net new bookings is not comparable to, nor should it be substituted for, an analysis of the Company's revenues over time. Earnings Conference Call Management will conduct a conference call to discuss the second quarter 2025 results and the Company's outlook at 5:00 PM ET on Tuesday, July 22, 2025. A live audio webcast of the conference will be available in listen-only mode through the Investors section of the CoStar Group website: A replay of the webcast audio will also be available in the Investors section of our website for a period of time following the call. CoStar Group, Inc. Reconciliation of Non-GAAP Financial Measures - Unaudited (in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) $ 6.2 $ 19.2 $ (8.6 ) $ 25.9 Income tax expense 15.4 16.7 23.5 21.5 Income before income taxes 21.6 35.9 14.9 47.4 Amortization of acquired intangible assets 43.6 18.1 71.3 37.9 Stock-based compensation expense 51.8 22.7 82.2 45.5 Acquisition and integration related costs included in loss from operations 5.4 6.0 26.0 8.3 Unrealized gains on investments and deal-contingent foreign currency forward contracts related to an expected acquisition (1) (22.1 ) — (24.6 ) — Restructuring and related costs (1.4 ) — 5.7 — Settlements and impairments 0.6 — 8.9 — Non-GAAP income before income taxes 99.5 82.7 184.4 139.1 Assumed rate for income tax expense (2) 26.0 % 26.0 % 26.0 % 26.0 % Assumed provision for income tax expense (25.9 ) (21.5 ) (47.9 ) (36.2 ) Non-GAAP net income $ 73.6 $ 61.2 $ 136.5 $ 102.9 Net income (loss) per share - diluted $ 0.01 $ 0.05 $ (0.02 ) $ 0.06 Non-GAAP net income per share - diluted $ 0.17 $ 0.15 $ 0.32 $ 0.25 Weighted average outstanding shares - basic 419.6 406.0 415.1 405.8 Weighted average outstanding shares - diluted 424.3 407.4 415.1 407.3 Non-GAAP dilutive shares (3) — — 4.8 — Non-GAAP weighted average shares, diluted 424.3 407.4 419.9 407.3 __________________________ (1) Recorded in other income (expense), net in the condensed consolidated statements of operations. (2) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period. (3) Includes the effect of potential common shares, such as the Company's stock options, restricted stock units, and deferred stock units, to the extent the effect is dilutive. In periods with a net loss available to common stockholders, the anti-dilutive effect of these potential common shares is excluded and diluted net loss per share is equal to basic net loss per share. Non-GAAP weighted average shares have been adjusted for these periods to include the dilutive impact. Expand CoStar Group, Inc. Reconciliation of Non-GAAP Financial Measures - Unaudited (in millions, except per share data) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 Net income (loss) $ 6.2 $ 19.2 $ (8.6 ) $ 25.9 Amortization of acquired intangible assets in cost of revenues 17.1 7.9 27.6 16.7 Amortization of acquired intangible assets in operating expenses 26.5 10.2 43.7 21.2 Depreciation and other amortization 12.2 10.1 26.5 20.4 Interest income, net (32.5 ) (53.5 ) (71.0 ) (109.7 ) Other (income) expense, net (1) (16.3 ) 1.5 (13.9 ) 3.4 Income tax expense 15.4 16.7 23.5 21.5 EBITDA 28.6 12.1 27.8 (0.6 ) Stock-based compensation expense 51.8 22.7 82.2 45.5 Acquisition and integration related costs 5.4 6.0 26.0 8.3 Restructuring and related costs (1.4 ) — 5.7 — Settlements and impairments 0.6 — 8.9 — Adjusted EBITDA $ 85.0 $ 40.8 150.6 $ 53.2 __________________________ (1) Includes $8.5 million and $8.3 million of depreciation and amortization expense, including above-market lease amortization associated with lessor activities for the three months ended June 30, 2025 and 2024, respectively, and $13.5 million and $13.8 million for the six months ended June 30, 2025 and 2024, respectively. Expand CoStar Group, Inc. Condensed Consolidated Balance Sheets - Unaudited (in millions) June 30, 2025 December 31, 2024 ASSETS Current assets: Cash and cash equivalents $ 3,628.6 $ 4,681.0 Restricted cash 98.4 — Equity investment 308.1 — Accounts receivable 231.0 210.7 Less: Allowance for credit losses (27.2 ) (22.8 ) Accounts receivable, net 203.8 187.9 Prepaid expenses and other current assets 92.6 81.3 Total current assets 4,331.5 4,950.2 Deferred income taxes, net 55.4 30.6 Property and equipment, net 1,206.7 1,014.9 Lease right-of-use assets 93.8 103.0 Goodwill 3,689.6 2,527.6 Intangible assets, net 915.6 433.2 Deferred commission costs, net 184.4 169.6 Deposits and other assets 30.1 27.7 Total assets $ 10,507.1 $ 9,256.8 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 51.5 47.0 Accrued wages and commissions 135.9 133.3 Accrued expenses 220.3 163.7 Litigation accrual 96.7 — Income taxes payable 1.0 23.2 Lease liabilities 25.8 32.0 Deferred revenue 187.4 137.1 Other current liabilities 23.8 16.0 Total current liabilities 742.4 552.3 Long-term debt, net 992.5 991.9 Deferred income taxes, net 8.2 7.6 Income taxes payable 26.4 25.0 Lease and other long-term liabilities 136.2 126.5 Total liabilities 1,905.7 1,703.3 Total stockholders' equity 8,601.4 7,553.5 Total liabilities and stockholders' equity $ 10,507.1 $ 9,256.8 Expand CoStar Group, Inc. Condensed Consolidated Statements of Cash Flows - Unaudited (in millions) Six Months Ended June 30, 2025 2024 Operating activities: Net income (loss) $ (8.6 ) $ 25.9 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 112.8 72.1 Amortization of deferred commissions costs 66.9 56.3 Non-cash lease expense 16.0 16.5 Stock-based compensation expense 82.2 45.5 Deferred income taxes, net (5.5 ) (6.4 ) Credit loss expense 16.9 17.0 Unrealized gains on investments and deal-contingent foreign currency forward contracts (24.6 ) — Other operating activities, net (1.9 ) 1.8 Changes in operating assets and liabilities, net of acquisitions: Accounts receivable (18.8 ) (31.1 ) Prepaid expenses and other current assets and other assets 13.4 (13.9 ) Deferred commissions (80.0 ) (67.6 ) Accounts payable and other liabilities 54.2 88.0 Lease liabilities (18.8 ) (18.4 ) Income taxes payable, net (21.3 ) (7.0 ) Deferred revenue 16.8 19.0 Net cash provided by operating activities 199.7 197.7 Investing activities: Proceeds from sale and settlement of investments 203.4 — Proceeds from sale of property, equipment, and other assets 0.8 — Purchases of property, equipment, and other assets for new campuses (172.5 ) (449.5 ) Purchases of property, equipment, and other assets (58.2 ) (23.0 ) Purchases of equity securities (284.8 ) — Cash paid for acquisitions, net of cash acquired (750.1 ) (5.1 ) Net cash used in investing activities (1,061.4 ) (477.6 ) Financing activities: Payments of debt issuance costs — (3.4 ) Repurchase of restricted stock to satisfy tax withholding obligations (47.0 ) (26.9 ) Stock repurchase (63.8 ) — Proceeds from exercise of stock options and employee stock purchase plan 14.4 17.2 Principal repayments of financing lease obligations (2.0 ) (2.2 ) Net cash used in financing activities (98.4 ) (15.3 ) Effect of foreign currency exchange rates on cash, cash equivalents, and restricted cash 6.1 (1.2 ) Net decrease in cash, cash equivalents, and restricted cash (954.0 ) (296.4 ) Cash, cash equivalents, and restricted cash at the beginning of period 4,681.0 5,215.9 Cash, cash equivalents, and restricted cash at the end of period $ 3,727.0 $ 4,919.5 Expand CoStar Group, Inc. Disaggregated Revenues - Unaudited (in millions) Three Months Ended June 30, 2025 2024 North America International Total North America International Total CoStar $ 251.6 $ 19.3 $ 270.9 $ 237.1 $ 15.9 $ 253.0 Information Services 35.7 3.6 39.3 27.9 5.5 33.4 Multifamily 292.3 — 292.3 264.2 — 264.2 LoopNet 72.6 3.1 75.7 67.2 2.6 69.8 Residential 17.1 11.3 28.4 16.2 10.0 26.2 Other Revenues 74.7 — 74.7 31.2 — 31.2 Total revenues $ 744.0 $ 37.3 $ 781.3 $ 643.8 $ 34.0 $ 677.8 Expand CoStar Group, Inc. Disaggregated Revenues - Unaudited (in millions) Six Months Ended June 30, 2025 2024 North America International Total North America International Total CoStar $ 499.2 $ 36.8 $ 536.0 $ 472.8 $ 30.5 $ 503.3 Information Services 71.7 7.4 79.1 55.3 11.1 66.4 Multifamily 574.8 — 574.8 519.0 — 519.0 LoopNet 142.6 5.9 148.5 133.6 5.3 138.9 Residential 33.6 22.0 55.6 24.6 20.2 44.8 Other Revenues 119.5 — 119.5 61.8 — 61.8 Total revenues $ 1,441.4 $ 72.1 $ 1,513.5 $ 1,267.1 $ 67.1 $ 1,334.2 Expand CoStar Group, Inc. Results of Segments - Unaudited (in millions) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 EBITDA North America $ 43.3 $ 30.8 $ 52.4 $ 34.0 International (14.7 ) (18.7 ) (24.6 ) (34.6 ) Total EBITDA $ 28.6 $ 12.1 $ 27.8 $ (0.6 ) Expand CoStar Group, Inc. Reconciliation of Non-GAAP Financial Measures with Quarterly Results - Unaudited (in millions, except per share data) 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Net income (loss) $6.7 $19.2 $53.0 $59.8 ($14.8) $6.2 Income tax expense 4.8 16.7 24.7 25.2 8.1 15.4 Income (loss) before income taxes 11.5 35.9 77.7 85.0 (6.7) 21.6 Amortization of acquired intangible assets 19.8 18.1 16.5 19.8 27.7 43.6 Stock-based compensation expense 22.8 22.7 21.8 21.8 30.4 51.8 Acquisition and integration related costs 2.3 6.0 4.4 16.7 20.6 5.4 Unrealized gains on investments and deal-contingent foreign currency forward contracts related to an expected acquisition (1) — — — — (2.5) (22.1) Restructuring and related costs — — 0.2 0.5 7.1 (1.4) Settlements and impairments — — (1.3) — 8.3 0.6 Non-GAAP income before income taxes (2) 56.4 82.7 119.3 143.8 84.9 99.5 Assumed rate for income tax expense (3) 26.0% 26.0% 26.0% 26.0% 26.0% 26.0% Assumed provision for income tax expense (14.7) (21.5) (31.0) (37.4) (22.1) (25.9) Non-GAAP net income (2) $41.7 $61.2 $88.3 $106.4 $62.8 $73.6 Non-GAAP net income per share - diluted $0.10 $0.15 $0.22 $0.26 $0.15 $0.17 Weighted average outstanding shares - diluted 406.2 407.4 408.0 408.4 410.5 424.3 Non-GAAP dilutive shares (4) — — — — 5.0 — Non-GAAP weighted average shares, diluted 406.2 407.4 408.0 408.4 415.5 424.3 __________________________ (1) Recorded in other income (expense), net in the condensed consolidated statements of operations. (2) Totals may not foot due to rounding. (3) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period. (4) Diluted loss per share includes the effect of potential common shares, such as the Company's stock options, restricted stock units, and deferred stock units, to the extent the effect is dilutive. In periods with a net loss available to common stockholders, the anti-dilutive effect of these potential common shares is excluded and diluted net loss per share is equal to basic net loss per share. Non-GAAP weighted average shares have been adjusted for these periods to include the dilutive impact. 2024 2025 Q1 Q2 Q3 Q4 Q1 Q2 Net income (loss) $6.7 $19.2 $53.0 $59.8 $(14.8) $6.2 Amortization of acquired intangible assets 19.8 18.1 16.5 19.8 27.7 43.6 Depreciation and other amortization 10.3 10.1 10.6 13.1 14.3 12.2 Interest income, net (56.2) (53.5) (55.6) (47.2) (38.5) (32.5) Other expense (income), net (1) 1.9 1.5 1.6 2.2 2.4 (16.3) Income tax expense 4.8 16.7 24.7 25.2 8.1 15.4 EBITDA (2) $(12.7) $12.1 $50.8 $72.9 $(0.8) $28.6 Stock-based compensation expense 22.8 22.7 21.8 21.8 30.4 51.8 Acquisition and integration related costs 2.3 6.0 4.4 16.7 20.6 5.4 Restructuring and related costs — — 0.2 0.5 7.1 (1.4) Settlements and impairments — — (1.3) — 8.3 0.6 Adjusted EBITDA (2) $12.4 $40.8 $75.9 $111.9 $65.6 $85.0 __________________________ (1) Includes $5.5 million, $8.3 million, $8.3 million, $5.0 million, $6.5 million, and $8.5 million of depreciation and amortization expense, including above-market lease amortization, associated with lessor activities, for the three months ending March 31, 2024, June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, and June 30, 2025, respectively. (2) Totals may not foot due to rounding. Expand CoStar Group, Inc. Reconciliation of Forward-Looking Guidance - Unaudited (in millions, except per share data) Guidance Range Guidance Range For the Three Months For the Year Ending Ending September 30, 2025 December 31, 2025 Low High Low High Net income (loss) $ (5.4 ) $ 0.6 $ 37.0 $ 46.0 Income tax expense 2.4 6.4 43.0 54.0 Income (loss) before taxes (3.0 ) 7.0 80.0 100.0 Amortization of acquired intangible assets 42.0 42.0 156.0 156.0 Stock-based compensation expense 50.0 50.0 177.0 177.0 Acquisition and integration related costs 3.0 3.0 31.0 31.0 Restructuring and related costs — — 6.0 6.0 Settlements and impairments — — 9.0 9.0 Unrealized gains on investments and deal-contingent foreign currency forward contracts related to an expected acquisition — — (25.0 ) (25.0 ) Non-GAAP income before income taxes 92.0 102.0 434.0 454.0 Assumed rate for income tax expense (1) 26.0 % 26.0 % 26.0 % 26.0 % Assumed provision for income tax expense (23.9 ) (27.0 ) (112.8 ) (118.0 ) Non-GAAP net income 68.0 75.0 321.0 336.0 Net income (loss) per share - diluted $ (0.01 ) $ — $ 0.09 $ 0.11 Non-GAAP net income per share - diluted $ 0.16 $ 0.18 $ 0.76 $ 0.80 Weighted average outstanding shares - diluted 424.6 424.6 421.1 421.1 (1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period. Guidance Range Guidance Range For the Three Months For the Year Ending Ending September 30, 2025 December 31, 2025 Low High Low High Net income (loss) $ (5.4 ) $ 0.6 $ 37.0 $ 46.0 Amortization of acquired intangible assets $ 42.0 $ 42.0 $ 156.0 $ 156.0 Depreciation and other amortization $ 13.0 $ 13.0 $ 54.0 $ 54.0 Interest income, net $ (32.0 ) $ (32.0 ) $ (133.0 ) $ (133.0 ) Other expense (income), net $ 2.0 $ 2.0 $ (10.0 ) $ (10.0 ) Income tax expense $ 2.4 $ 6.4 $ 43.0 $ 54.0 Stock-based compensation expense $ 50.0 $ 50.0 $ 177.0 $ 177.0 Acquisition and integration related costs $ 3.0 $ 3.0 $ 31.0 $ 31.0 Restructuring and related costs $ — $ — $ 6.0 $ 6.0 Settlements and impairments $ — $ — $ 9.0 $ 9.0 Adjusted EBITDA $ 75.0 $ 85.0 $ 370.0 $ 390.0 Expand About CoStar Group CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world's real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives. CoStar Group's major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; the leading platform for apartment rentals; and the fastest-growing residential real estate marketplace. CoStar Group's industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom. CoStar Group's websites attracted over 111 million average monthly unique visitors in the second quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit This news release and the Company's earnings conference call contain 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about CoStar Group's plans, objectives, expectations, beliefs and intentions and other statements including words such as 'hope,' 'anticipate,' 'may,' 'likely,' 'might,' 'believe,' 'expect,' 'observe,' 'consider', 'think,' 'intend,' 'envision,' 'will,' 'should,' 'could', 'would,' 'plan,' 'target,' 'goal,' 'estimate,' 'predict,' 'continue,' 'commit,' and 'potential' or the negative of these terms or other comparable terminology. Such statements are based upon the current beliefs and expectations of management of CoStar Group and are subject to many risks and uncertainties. Actual results may differ materially from the results anticipated in the forward-looking statements and the assumptions and estimates used as a basis for the forward-looking statements. The following factors, among others, could cause or contribute to such differences: the risks related to the specific timing, price, and size of repurchases under the Stock Repurchase Program, including that the Stock Repurchase Program may be suspended or discontinued at any time at the Company's discretion; our inability to attract and retain new clients; our inability to successfully develop and introduce new or updated online marketplace services, information, and analytics; our inability to compete successfully against existing or future competitors in attracting advertisers and in general; the effects of fluctuations and market cyclicality; the effects of global economic uncertainties and downturns or a downturn or consolidation in the real estate industry; our inability to hire qualified persons for, or retain and continue to develop our sales force, or unproductivity of our sales force; our inability to retain and attract highly capable management and operating personnel; the downward pressure that our internal and external investments may place on our operating margins; our inability to increase brand awareness; our inability to maintain or increase internet traffic to our marketplaces, and the risk that the methods, including Google Analytics, that we use to measure average monthly unique visitors to our portals may misstate the actual number of unique persons who visit our network of mobile applications and websites for a given month or may differ from the methods used by competitors; our inability to attract new advertisers; our inability to successfully identify, finance, integrate, and/or manage costs related to acquisitions; our inability to complete certain strategic transactions if a proposed transaction is subject to review or approval by regulatory authorities pursuant to applicable laws or regulations; our inability to realize the benefits of the acquisition of Matterport; the effects of cyberattacks and security vulnerabilities, and technical problems or disruptions; the significant costs associated with undertaking a large infrastructure project to build out our campus in Richmond, Virginia; our inability to generate increased revenues from our current or future geographic expansion plans; the risks related to acceptance of credit cards and debit cards and facilitation of other customer payments; the effects of climate related events and other events beyond our control; the effects related to attention to climate-related risks and opportunities; our inability to obtain and maintain accurate, comprehensive, or reliable data; our inability to obtain and maintain stable data feeds, or disruption of our data feeds; our inability to enforce or defend our ownership and use of intellectual property; the effects of use of new and evolving technologies, including artificial intelligence, on our ability to protect our data and intellectual property from misappropriation by third parties; our inability to defend against potential legal liability for collecting, displaying, or distributing information; our inability to obtain or retain listings from real estate brokers, agents, property owners, and apartment property managers; our inability to maintain or establish relationships with third-party listing providers; our inability to comply with the rules and compliance requirements of Multiple Listing Services; the risks related to international operations; the effects of foreign currency exchange rate fluctuations; our indebtedness; the effects of a lowering or withdrawal of the ratings assigned to our debt securities by rating agencies; the effects of any actual or perceived failure to comply with privacy laws and standards; the effects of changes in tax laws, regulations, or fiscal and tax policies; the effects of third-party claims, litigation, regulatory proceedings, or government investigations; and risks related to return on investment; the inability of third-party suppliers upon which Matterport relies to fulfill its needs; the risks related to our equity investments; the risks associated with the ability to consummate the transaction to acquire Domain Holdings Australia Limited (the "Domain Transaction") and realize the benefits of the Domain Transaction; and the risks related to open source software. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar Group's filings from time to time with the Securities and Exchange Commission (the "SEC"), including in CoStar Group's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, each of which is filed with the SEC, including in the 'Risk Factors' section of those filings, as well as CoStar Group's other filings with the SEC (including Current Reports on Form 8-K) available at the SEC's website ( All forward-looking statements are based on information available to CoStar Group on the date hereof, and CoStar Group assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

5 Insightful Analyst Questions From CoStar's Q1 Earnings Call

Yahoo

25-06-2025

Business
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5 Insightful Analyst Questions From CoStar's Q1 Earnings Call

CoStar's first quarter results were met with a marked negative market reaction, as concerns emerged regarding the company's forward outlook despite solid operational performance. Management pointed to ongoing double-digit revenue growth, with CEO Andy Florance highlighting strong momentum in the core commercial real estate data and marketplace businesses and the integration of recent acquisitions such as Matterport. However, Florance acknowledged continued headwinds in the broader commercial real estate environment, describing conditions as 'one of the worst commercial real estate environments in decades,' with high office vacancies and weak transaction volumes. The company also experienced significant cost reductions, particularly in the business, and noted a sharp improvement in customer retention metrics following product repositioning. Is now the time to buy CSGP? Find out in our full research report (it's free). Revenue: $732.2 million vs analyst estimates of $730 million (11.5% year-on-year growth, in line) Adjusted EPS: $0.19 vs analyst estimates of $0.11 (81.7% beat) Adjusted EBITDA: $65.6 million vs analyst estimates of $30.51 million (9% margin, significant beat) Revenue Guidance for the full year is $3.14 billion at the midpoint, roughly in line with what analysts were expecting EBITDA guidance for the full year is $370 million at the midpoint, below analyst estimates of $389.9 million Operating Margin: -5.8%, in line with the same quarter last year Market Capitalization: $34.17 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Alexei Gogolev (JPMorgan) asked about the industry's response to Zillow's delayed market listing policy. CEO Andy Florance reported 'overwhelmingly negative' feedback from agents and positioned this as a competitive opportunity for Peter Christiansen (Citi) inquired about Matterport's integration timeline and monetization. Florance highlighted plans for deep product embedding and R&D expansion, while CFO Christian Lown emphasized expected reductions in customer cancellations as usage increases. George Tong (Goldman Sachs) questioned investment levels for and the impact of the Board's capital allocation committee. Lown confirmed investment plans remain unchanged, with cost savings being reallocated to sales force growth. Ryan Tomasello (KBW) asked about the deceleration in multifamily growth and the outlook for Lown explained that seasonal dynamics and new sales hires will drive acceleration in the second half, and the addition of experienced sales staff is expected to improve results. Stephen Sheldon (William Blair) queried the potential for more aggressive pricing in the CoStar Suite. Florance suggested that as market conditions improve, the company may pursue higher annual price increases, but will remain cautious if headwinds persist. Over the next few quarters, the StockStory team will focus on (1) the pace of sales force expansion and its impact on net new bookings, (2) the effectiveness of Matterport's integration in driving higher engagement and retention across the product suite, and (3) signs of improvement in commercial real estate transaction volumes and office vacancy rates. Execution on cost control and the ability to successfully monetize new product offerings will also be key indicators of progress. CoStar currently trades at $81, down from $82.61 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

Business Wire

15-05-2025

Business
Business Wire

CoStar Group Founder and CEO Andy Florance Recognized on Commercial Observer's Power 100 List

ARLINGTON, Va.--(BUSINESS WIRE)--CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, analytics and 3D digital twin technology in the property markets, announced today that Andy Florance, Founder and Chief Executive Officer has been named to Commercial Observer's prestigious Power 100 list for the third consecutive year. Published annually, the Power 100 List recognizes the most influential people, businesses, and organizations shaping the future of commercial real estate. Mr. Florance's recognition on the list underscores the exceptional performance and growth CoStar Group continued to experience in 2024. The company reported $2.74 billion for the year, marking an 11% increase from the previous year's $2.46 billion. This momentum has continued with CoStar Group reporting $732 million in revenue for the first quarter of 2025, up 12% year-over-year and marking its 56th consecutive quarter of double-digit revenue growth. Under Mr. Florance's leadership, CoStar Group continues to demonstrate strong momentum across its industry-leading businesses, led by which has become the second largest and fastest-growing residential real estate marketplace in the country. Recent strategic acquisitions, including Visual Lease and 3D digital twin leader Matterport, have allowed CoStar Group to expand its global reach and technological edge. also delivered a standout quarter, generating $282 million in revenue, up 11% year-over-year, and adding 4,300 new properties, the highest in nearly a decade. 'It is an incredible honor to be recognized alongside some of the most impactful leaders in the commercial real estate sector,' said Andy Florance, Founder and Chief Executive Officer of CoStar Group. 'As a leading provider of commercial and residential real estate data and analytics, we remain committed to offering advanced, innovative platforms that empower the industry to achieve new levels of growth and success. This recognition wouldn't be possible without the dedication of our global workforce and I'm excited to see what we will accomplish together this year.' About CoStar Group CoStar Group (NASDAQ: CSGP) is a global leader in commercial real estate information, analytics, online marketplaces and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world's real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives. CoStar Group's major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; the leading platform for apartment rentals; and the fastest-growing residential real estate marketplace. CoStar Group's industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom. CoStar Group's websites attracted over 130 million average monthly unique visitors in the first quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through innovative technology and comprehensive market intelligence. From time to time, we plan to utilize our corporate website as a channel of distribution for material company information. For more information, visit

Richmond-based Homes.com now country's second-largest residential real estate portal

Business Journals

30-04-2025

Business
Business Journals

Richmond-based Homes.com now country's second-largest residential real estate portal

CoStar Group Inc. CEO Andy Florance said Tuesday on the company's first-quarter earnings call that its Richmond-based unit has grown to become the second-largest residential real estate sales portal in the U.S. Florance said recorded 104 million monthly unique visitors in the quarter. He credited a successful media campaign for increasing awareness, including ads with celebrities Dan Levy, Heidi Gardner, Morgan Freeman, Lil Wayne and Jeff Goldblum that aired during major sports and awards broadcasts. Florance had previously estimated the campaign cost more than $1 billion.

Otago Daily Times

23-04-2025

Entertainment
Otago Daily Times

Living a life by the books

A deep love for books has shaped Dr Caren Florance's life. The Australian artist, book designer-topographer and former University of Otago printer in residence returned to Dunedin recently for World Book Day. She talked to Rebecca Fox about finding her 'jam' and her dream home. Dr Caren Florance lovingly runs a hand over an early 19-century royal Columbian "Eagle" handpress in the Otakou Press Room at the University of Otago. It was a chance opportunity to work with machines like this that changed Florance's life. At university studying English — as any great book lover does — she took a bibliography and scholarship class, which involved a letterpress workshop at art school. "That just changed everything. It was one of those things where everyone else was setting their poem for this book we made and I had set my poem and the title page and then the colophon [the publishers emblem]. "Because I was just like, this is my jam." She loved how it was upside down and back to front. "It just felt so exciting to set words by hand." So exciting, in fact, she "busted a gut" to get into art school so she could get back to that equipment. "I went there to get to the letterpress and discovered that people were using it to make artist books. And that just shifted everything. "So now I make normal books but I also make artist books [works of art in the form of a book]." Florance, adjunct assistant professor in the Centre for Creative and Cultural Research at the University of Canberra, puts her love of letters and words down to her love of books, which developed, she thinks, from not knowing she needed eye glasses as a child. "Everything was a bit fuzzy out there and no-one knew. I was just reading all the time because that was what I could do and the stories were so great." When the Australian government introduced eyesight and dental checks in schools in the 1970s, it was discovered she needed glasses. "Suddenly I had this sharp world but by then I'd got the book bug." Florance also remembers her great-aunt sending her little pads of multi-coloured paper which she would fill with stories and pictures and send back to her. "I remember doing them. It was fun to make a book." These days Florance, who was based in Canberra for 35 years, makes books — from beautifully made fine press books to photocopy zines, little pamphlets that have fun things in them, often produced under the imprint Ampersand Duck. "Then in between is this whole world of artist books, which can be any shape, they can be unique or an edition of 50 or whatever." Sometimes they are repurposed dictionaries or encyclopedias, made out of recycled materials, a collection of a printmaker's works or it is people wanting to publish their own stories in an imaginative way. As many book artists use other creatives' material in their creations, Florance used her PhD at the University of Canberra to try to work out a way she and poets could collaborate equally on a work. So she made elaborate books using poetry by "real poets, in real time", but also created poetry books for poets to sell at their readings. "They were versions of the sort of things I was making. I really like working with poets because they think differently and it makes me think differently." In a collaboration with poet Melinda Smith the pair reimagined text from the Old Parliament House sign room. Smith took text off old signs and moved them around and Florance printed new signs. They also made poetry books. "So it was sort of like trying to make it a good deal for the poet and for the artist, rather than just making work that uses someone else's ideas. And I actually got a good deal out of it, and it was an interesting exercise." To exhibit the works she made as part of her PhD, she created different reading zones in a gallery in Canberra. "I think my best idea of my PhD, apart from the being equitable with the poets, is I made a room, so there was a kitchen table where you could sit and read smaller books and there was a lounge area where you could read the sort of the poets' books and zines and things." She found people struggle to know how to read or handle artist books and they often sit on a shelf as people do not know why they are made or who they are for. So at auction she bought a large newspaper reading table originally from the National Library of Australia to put the huge books she had made. "I just wanted them to recognise, or feel comfortable in a space to approach that book. "We all know what a bathroom is, we all know what a bedroom is, but if they can feel comfortable looking through a book in a space that suits the book, if they're something they can actually sit comfortably with, it might make a difference." Artists are often concerned about damage to their books if displayed, requiring people to put on gloves or chaining books to tables. In libraries and museums they are often displayed behind glass. "It's a risk. If you want people to engage with it, then you have to take risks. "I did get one page stolen from one book and luckily I had a spare and I only realised it when I sold it to someone and realised there was a piece missing." Florance had hoped to do a similar exercise in other places but Covid put paid to that, although she hopes she may be able to resurrect the idea. Alongside making books, Florance was for many years a sessional lecturer for the Australian National University School of Art & Design's printmedia and drawing workshop, and also lectured for visual communications, heritage and environment, and creative writing at the Faculty of Arts & Design, University of Canberra, although since Covid she has reduced the amount of teaching she does. Creating books was really satisfying for Florance, even though it can be dirty and painstaking work at times. "There's this sense of achievement. I've got something in the world. "It's this thing that's going to hopefully outlast me, maybe. I think every time I get a buzz." Over the years she has amassed much of the equipment to make her own books. By getting to know old printers and those in industry she has been able to collect presses and type when they closed down. "I love the wood type because it's always, no matter if you have, you know, all the letters and multiples of the letters, they're always different because they age." Then in 2021, her close friends Michael Hudson and Jadwiga Jarvis, who ran Wayzgoose Press died, and as executor Florance spent 18 months sorting their estate. She inherited their letterpress equipment and their large type for making posters. "It was very nice of them to basically leave me their letterpress and leave me the money to buy the shed. And basically Yadwiga said stop doing all this other stuff, just get on with it." She has recently moved on to a property in Bega, New South Wales, 2.5 hours south of Canberra, where she has created her "dream, forever home" — including a large shed built to house her three printing presses, 16 cabinets of type and bookbinding equipment. It has also enabled her to unpack her collection of books that have been in a storage unit, making friends again with old favourites. "For the next 10 to 15 years I'm going to be stable and productive ."