CoStar Group announces Q3 adjusted EPS of 23 cents, surpassing consensus estimate of 19 cents.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 28 2025
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Q3 Revenue Performance: CoStar Group reported Q3 revenue of $834 million, exceeding the consensus estimate of $825.2 million, marking the 58th consecutive quarter of double-digit revenue growth with a 20% year-over-year increase.
Net New Bookings and Membership Growth: The company achieved net new bookings of $84 million in Q3, a 92% increase year-over-year, and grew its Homes.com membership to over 26,000, a nearly 150% increase since Q3 2024.
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Analyst Views on CSGP
Wall Street analysts forecast CSGP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CSGP is 78.60 USD with a low forecast of 55.00 USD and a high forecast of 100.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
13 Analyst Rating
8 Buy
4 Hold
1 Sell
Moderate Buy
Current: 61.930
Low
55.00
Averages
78.60
High
100.00
Current: 61.930
Low
55.00
Averages
78.60
High
100.00
About CSGP
CoStar Group, Inc. is a provider of online real estate marketplaces, information, and analytics in the property markets. It manages its business in two segments: North America, which includes the United States and Canada, and International, which primarily includes Europe, Asia-Pacific and Latin America. Its major brands include CoStar, a global provider of commercial real estate data, analytics, and news; LoopNet, a commercial real estate marketplace; Apartments.com, a platform for apartment rentals; and Homes.com, a residential real estate marketplace. Its other brands include STR, which is engaged in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a residential property portal in the United Kingdom. The Company, through Matterport, Inc., is advancing property insights and driving the growth of AI-driven digital twin technology across the global commercial and residential real estate sector.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
CoStar Group Board Approves New Strategic Initiatives
- Board Restructuring: CoStar Group has added three new independent directors, including two nominated by Third Point, resulting in 50% of the board being appointed in the last three years, aimed at enhancing corporate governance and shareholder value.
- Capital Allocation Committee Formation: The newly formed Capital Allocation Committee will conduct a comprehensive review of the company's capital structure and investment priorities, supporting significant investments in major brands, which is expected to enhance the company's competitive position in the market.
- Accelerated Buyback Program: CoStar Group has initiated a new $1.5 billion stock repurchase program in 2026 and is accelerating the completion of a $500 million buyback, reflecting the company's confidence in future profitability.
- Revenue Growth Outlook: The company expects revenue to reach $3.8 billion in 2026, an 18% increase over 2025, with adjusted EBITDA projected to grow by 83% to $770 million, marking the beginning of a new phase of profitable growth.
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Activist Investor Critiques CoStar's Strategy
- Investor Pressure: Activist investor Third Point sent an open letter to CoStar's board demanding significant changes in corporate governance, indicating market dissatisfaction with the company's current state and potentially sparking a proxy fight.
- Stock Price Reaction: Following news of the activist investor's pressure, CoStar's stock rose by 0.6%, slightly surpassing the S&P 500's 0.4% gain, reflecting cautious optimism among investors regarding potential changes.
- Performance Critique: Third Point criticized CoStar's current leadership for 'weak board oversight, misaligned management incentives, and disastrous capital allocation policies,' which have led to a 27% decline in stock price over the past five years, while the S&P 500 gained 94%.
- Call for Strategic Shift: Third Point urged CoStar to take immediate action to improve operations, including considering strategic alternatives for Homes.com, highlighting urgent concerns about the company's future direction.
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