CoStar Group Inc Earnings
In a standout third quarter of 2025, CoStar Group Inc (NASDAQ: CSGP), a leading provider in the domains of online property marketplaces and 3D digital twin technology, has reported impressive revenue growth. For Q3, the company generated $834 million, symbolizing a substantial 20% increase from $693 million in the equivalent quarter of the prior year. Despite a net loss of $31 million, translating to a loss of $0.07 per diluted share, CoStar's Non-GAAP net income presented a more positive outlook at $97 million, marking a 10% increase year-over-year. Moreover, its adjusted EBITDA rose significantly by 51% to reach $115 million, emphasizing CoStar's ability to navigate and thrive amidst financial challenges.
CoStar Group Inc Results
The third-quarter financial results of CoStar Group Inc elucidate the company's performance in various key metrics as outlined in the table below:
| Metric | Q3 2025 | Q3 2024 | Year-over-Year Growth |
|---|---|---|---|
| Total Revenue | $834 million | $693 million | 20% |
| Net Loss | $31 million | ||
| Net Loss per Diluted Share | $0.07 | ||
| Non-GAAP Net Income | $97 million | 10% | |
| Non-GAAP Net Income/Share | $0.23 | 6% | |
| Adjusted EBITDA | $115 million | 51% |
The table highlights the company's total revenue performance as well as its adjusted earnings in comparison with the previous year, providing insight into CoStar's financial health and strategic positioning.
Revenue Breakdown
Here, we segment the revenue performance to identify growth patterns across CoStar Group’s major operational segments:
| Segment | Revenue (Q3 2025) | Year-over-Year Growth |
|---|---|---|
| Commercial Information and Marketplaces | Not specified | 47% |
| Homes.com | Achieved Best Net New Bookings | Up nearly 150% Members growth |
The above table shows exceptional growth in CoStar's commercial information and marketplace businesses, achieving a 47% profit margin. Furthermore, Homes.com has achieved significant milestones in net new bookings and has witnessed a nearly 150% increase in its member base since Q3 2024.
Analysis
CoStar Group’s diverse portfolio continues to exhibit strong growth dynamics, particularly in its commercial and residential information segments. The company’s strategic investments and acquisitions, such as Homes.com, demonstrated resilience with remarkable growth in both customer base and new bookings. The record profit margins are indicative of CoStar's operational efficiency and robust marketplace growth strategies. The integration of recent acquisitions like Domain and Matterport further bolsters CoStar’s market penetration, underpinning its prolonged trajectory of revenue expansion.
Key Developments
Several notable advances were made by CoStar Group in Q3 2025, sustaining its growth momentum:
- Introduction of the Smart Search feature on Homes.com, enabling users to utilize proprietary AI and natural language processing for real estate searches.
- Launch of Community Boost, attracting new home builders and expanding CoStar’s marketplace influence.
- Expansion in Members and net new bookings, reflecting strong market demand for CoStar’s robust platforms and innovative solutions.
Comments from Company Officers
Andy Florance, Founder and CEO of CoStar Group, remarked, "We had an outstanding Q3 2025 as we delivered our 58th consecutive quarter of double-digit revenue growth... We are hard at work integrating our two recent acquisitions of Domain and Matterport across CoStar."
Mr. Florance’s confidence is echoed in the numbers. His emphasis on the innovation pipeline, coupled with tactical acquisitions, showcases CoStar’s forward-thinking leadership in real estate technology.
Christian Lown, CFO, added, "We delivered strong revenue growth and adjusted EBITDA growth well ahead of our guidance... The Company expects further growth going forward."
These statements reflect a focused and upward-looking management strategy intended to capitalize on emergent trends in the property tech industry.
Dividends and Share Repurchases
While dividends and specific share repurchase strategies were not highlighted this quarter, CoStar Group remains focused on reinvestment in growth through robust strategic initiatives and potential market opportunities.
CoStar Group Inc Stock Forecast
Considering CoStar’s robust performance metrics and strategic developments, the stock forecast presents a range predicated on current economic conditions and market trends. The high projection estimates an increase in stock prices driven by continued revenue growth and increased market share, while the low projection accounts for potential market volatility. Given current trends and execution on strategic growth plans, CoStar Group’s stock may be poised for upward mobility, leveraging its market leadership and innovative expansions.
Conclusion
CoStar Group Inc's Q3 2025 earnings report underscores its expansive growth and strategic integration achievements. By leveraging proprietary technology and expanding its market presence, CoStar demonstrates a steadfast commitment to increasing shareholder value and fortifying leadership in the real estate information and analytics industry.
