CoStar (CSGP)
Market Price (6/25/2026): $29.81 | Market Cap: $12.3 BilInvestor Relations Sector: Real Estate | Industry: Real Estate Services
CoStar (CSGP)
Market Price (6/25/2026): $29.81Market Cap: $12.3 BilSector: Real EstateIndustry: Real Estate Services
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 21% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 16% Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -58% Stock buyback supportStock Buyback 3Y Total is 1.0 Bil Low stock price volatilityVol 12M is 39% Megatrend and thematic driversMegatrends include Smart Buildings & Proptech, E-commerce & Digital Retail, and Cloud Computing. Themes include Real Estate Data Analytics, Show more. | Weak multi-year price returns2Y Excs Rtn is -93%, 3Y Excs Rtn is -131% | Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -26 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -0.8% Expensive valuation multiplesP/EPrice/Earnings or Price/(Net Income) is 496x Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.9% Key risksCSGP key risks include [1] significant profitability pressures from its substantial and costly investment to expand into the residential market and [2] intensifying competition from rivals like Zillow and technological threats that could erode its market dominance. |
| Strong revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is 21% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 16% |
| Valuation becoming less expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is -58% |
| Stock buyback supportStock Buyback 3Y Total is 1.0 Bil |
| Low stock price volatilityVol 12M is 39% |
| Megatrend and thematic driversMegatrends include Smart Buildings & Proptech, E-commerce & Digital Retail, and Cloud Computing. Themes include Real Estate Data Analytics, Show more. |
| Weak multi-year price returns2Y Excs Rtn is -93%, 3Y Excs Rtn is -131% |
| Not profitable at operating income levelOp Inc LTMOperating Income, Last Twelve Months is -26 Mil, Op Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is -0.8% |
| Expensive valuation multiplesP/EPrice/Earnings or Price/(Net Income) is 496x |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.9% |
| Key risksCSGP key risks include [1] significant profitability pressures from its substantial and costly investment to expand into the residential market and [2] intensifying competition from rivals like Zillow and technological threats that could erode its market dominance. |
Qualitative Assessment
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CoStar (CSGP) stock has lost about 35% since 2/28/2026 because of the following key factors:
1. Ongoing concerns regarding the heavy investment in Homes.com and its path to profitability. The market has shown impatience with the substantial capital deployed into CoStar's residential portal, particularly as analysts anticipated a slower pace of margin expansion than initially expected. While Homes.com revenue grew 58% year-over-year to $26 million in fiscal Q1 2026 and the company aims to reduce net investment by over $300 million in 2026, the long-term profitability timeline, targeting break-even by the end of 2029, continues to weigh on investor sentiment.
2. Intensifying competitive pressures and a challenging real estate market outlook. The real estate technology sector is experiencing increased competition, notably with Alphabet's entry into the national real estate search market. This, coupled with a more subdued macroeconomic environment for the broader real estate sector, including modest multifamily rent growth and varied home price increases in May 2026, has contributed to investor apprehension.
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CoStar (CSGP) stock has lost about 35% since 2/28/2026 because of the following key factors:
1. Ongoing concerns regarding the heavy investment in Homes.com and its path to profitability. The market has shown impatience with the substantial capital deployed into CoStar's residential portal, particularly as analysts anticipated a slower pace of margin expansion than initially expected. While Homes.com revenue grew 58% year-over-year to $26 million in fiscal Q1 2026 and the company aims to reduce net investment by over $300 million in 2026, the long-term profitability timeline, targeting break-even by the end of 2029, continues to weigh on investor sentiment.
2. Intensifying competitive pressures and a challenging real estate market outlook. The real estate technology sector is experiencing increased competition, notably with Alphabet's entry into the national real estate search market. This, coupled with a more subdued macroeconomic environment for the broader real estate sector, including modest multifamily rent growth and varied home price increases in May 2026, has contributed to investor apprehension.
3. Weaker-than-anticipated Q2 2026 revenue guidance and subsequent analyst downgrades. Despite exceeding fiscal Q1 2026 earnings per share and revenue estimates (EPS of $0.23 against $0.18 consensus, revenue of $897 million above $896.73 million consensus), CoStar's projected revenue for fiscal Q2 2026 of $922 million to $932 million fell below the analyst consensus of $931 million. This guidance miss led to several analyst price target reductions, including J.P. Morgan cutting its target to $70 from $82, further impacting the stock's valuation.
4. Significant litigation accrual impacting financial outlook. CoStar recorded a $99 million litigation accrual in fiscal Q1 2026 related to the Matterport judgment, representing a material financial impact that added to investor concerns during the period.
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Stock Movement Drivers
Fundamental Drivers
The -33.2% change in CSGP stock from 2/28/2026 to 6/24/2026 was primarily driven by a -81.9% change in the company's P/E Multiple.| (LTM values as of) | 2282026 | 6242026 | Change |
|---|---|---|---|
| Stock Price ($) | 44.63 | 29.81 | -33.2% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,247 | 3,412 | 5.1% |
| Net Income Margin (%) | 0.2% | 0.7% | 247.1% |
| P/E Multiple | 2,737.5 | 496.4 | -81.9% |
| Shares Outstanding (Mil) | 417 | 413 | 1.0% |
| Cumulative Contribution | -33.2% |
Market Drivers
2/28/2026 to 6/24/2026| Return | Correlation | |
|---|---|---|
| CSGP | -33.2% | |
| Market (SPY) | 7.2% | -7.8% |
| Sector (XLRE) | 2.2% | 17.9% |
Fundamental Drivers
The -56.7% change in CSGP stock from 11/30/2025 to 6/24/2026 was primarily driven by a -64.9% change in the company's P/E Multiple.| (LTM values as of) | 11302025 | 6242026 | Change |
|---|---|---|---|
| Stock Price ($) | 68.80 | 29.81 | -56.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,056 | 3,412 | 11.6% |
| Net Income Margin (%) | 0.7% | 0.7% | 8.9% |
| P/E Multiple | 1,416.1 | 496.4 | -64.9% |
| Shares Outstanding (Mil) | 420 | 413 | 1.7% |
| Cumulative Contribution | -56.7% |
Market Drivers
11/30/2025 to 6/24/2026| Return | Correlation | |
|---|---|---|
| CSGP | -56.7% | |
| Market (SPY) | 7.9% | 6.3% |
| Sector (XLRE) | 8.7% | 17.9% |
Fundamental Drivers
The -59.5% change in CSGP stock from 5/31/2025 to 6/24/2026 was primarily driven by a -82.6% change in the company's Net Income Margin (%).| (LTM values as of) | 5312025 | 6242026 | Change |
|---|---|---|---|
| Stock Price ($) | 73.56 | 29.81 | -59.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,812 | 3,412 | 21.3% |
| Net Income Margin (%) | 4.2% | 0.7% | -82.6% |
| P/E Multiple | 257.4 | 496.4 | 92.8% |
| Shares Outstanding (Mil) | 410 | 413 | -0.6% |
| Cumulative Contribution | -59.5% |
Market Drivers
5/31/2025 to 6/24/2026| Return | Correlation | |
|---|---|---|
| CSGP | -59.5% | |
| Market (SPY) | 25.8% | 13.9% |
| Sector (XLRE) | 10.4% | 26.4% |
Fundamental Drivers
The -62.5% change in CSGP stock from 5/31/2023 to 6/24/2026 was primarily driven by a -95.5% change in the company's Net Income Margin (%).| (LTM values as of) | 5312023 | 6242026 | Change |
|---|---|---|---|
| Stock Price ($) | 79.40 | 29.81 | -62.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 2,251 | 3,412 | 51.6% |
| Net Income Margin (%) | 16.3% | 0.7% | -95.5% |
| P/E Multiple | 87.4 | 496.4 | 467.7% |
| Shares Outstanding (Mil) | 404 | 413 | -2.1% |
| Cumulative Contribution | -62.5% |
Market Drivers
5/31/2023 to 6/24/2026| Return | Correlation | |
|---|---|---|
| CSGP | -62.5% | |
| Market (SPY) | 82.4% | 36.1% |
| Sector (XLRE) | 36.9% | 41.4% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| CSGP Return | -14% | -2% | 13% | -18% | -6% | -55% | -67% |
| Peers Return | 41% | -26% | 23% | 15% | 3% | -27% | 13% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 96% |
Monthly Win Rates [3] | |||||||
| CSGP Win Rate | 33% | 33% | 50% | 33% | 33% | 0% | |
| Peers Win Rate | 63% | 28% | 60% | 57% | 48% | 27% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| CSGP Max Drawdown | -25% | -33% | -23% | -29% | -34% | -57% | |
| Peers Max Drawdown | -18% | -40% | -25% | -18% | -29% | -34% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: VRSK, EFX, JLL, CBRE, CSGP. See CSGP Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 6/24/2026 (YTD)
How Low Can It Go
| Event | CSGP | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -23.1% | -9.5% |
| % Gain to Breakeven | 30.1% | 10.5% |
| Time to Breakeven | 140 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -14.6% | -6.7% |
| % Gain to Breakeven | 17.1% | 7.1% |
| Time to Breakeven | 35 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -32.4% | -24.5% |
| % Gain to Breakeven | 48.0% | 32.4% |
| Time to Breakeven | 233 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -29.1% | -33.7% |
| % Gain to Breakeven | 41.0% | 50.9% |
| Time to Breakeven | 128 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -21.6% | -19.2% |
| % Gain to Breakeven | 27.6% | 23.8% |
| Time to Breakeven | 56 days | 105 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -18.9% | -3.7% |
| % Gain to Breakeven | 23.3% | 3.9% |
| Time to Breakeven | 147 days | 6 days |
In The Past
CoStar's stock fell -8.3% during the 2025 US Tariff Shock. Such a loss loss requires a 9.1% gain to breakeven.
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| Event | CSGP | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -23.1% | -9.5% |
| % Gain to Breakeven | 30.1% | 10.5% |
| Time to Breakeven | 140 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -32.4% | -24.5% |
| % Gain to Breakeven | 48.0% | 32.4% |
| Time to Breakeven | 233 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -29.1% | -33.7% |
| % Gain to Breakeven | 41.0% | 50.9% |
| Time to Breakeven | 128 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -21.6% | -19.2% |
| % Gain to Breakeven | 27.6% | 23.8% |
| Time to Breakeven | 56 days | 105 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -24.1% | -12.2% |
| % Gain to Breakeven | 31.7% | 13.9% |
| Time to Breakeven | 81 days | 62 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -49.8% | -53.4% |
| % Gain to Breakeven | 99.3% | 114.4% |
| Time to Breakeven | 564 days | 1085 days |
In The Past
CoStar's stock fell -8.3% during the 2025 US Tariff Shock. Such a loss loss requires a 9.1% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About CoStar (CSGP)
CoStar Group, Inc. (CSGP) is a premier global provider of information, analytics, and online marketplace services primarily serving professionals in the commercial real estate, hospitality, and residential industries. The company's core mission is to empower these professionals, including brokers, investors, developers, property managers, and even consumers, with critical data, insights, and platforms. This enables them to make informed decisions, efficiently manage assets, and facilitate property transactions across key markets in the United States, Canada, Europe, Asia Pacific, and Latin America.
CoStar's extensive product portfolio spans several key areas. For commercial real estate, its flagship CoStar product suite offers comprehensive databases of property inventories, sales and lease comparables, market analytics, and tenant information, complemented by property management and accounting software solutions. The company also operates major online marketplaces such as LoopNet for commercial property listings and Ten-X for online commercial real estate auctions. In the residential sector, CoStar provides a robust network of apartment marketing sites, including ApartmentFinder.com, and homes for sale listings via Homes.com. Additionally, it offers specialized services for the hospitality industry, like the STAR Report for benchmarking, and niche marketplaces for rural land (e.g., LandsofAmerica.com) and businesses for sale (e.g., BizBuySell.com).
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CoStar Group is like Bloomberg for commercial real estate.
CoStar Group is like Zillow for commercial properties and apartment rentals.
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- CoStar Property: Provides an extensive inventory of various commercial property types and land.
- CoStar COMPS: A robust database of comparable commercial real estate sales transactions.
- CoStar Market Analytics: Offers tools to view and report on aggregated commercial real estate market and submarket trends.
- CoStar Tenant: An online business-to-business prospecting and analytical tool offering tenant information.
- CoStar Lease Management: Tools designed to capture, manage, maintain, and analyze lease data.
- CoStar Public Record: A searchable database providing information on commercially-zoned parcels.
- CoStar Real Estate Manager: A software solution for lease administration, portfolio management, and lease accounting compliance.
- CoStar Risk Analytics & Investment Analysis: Services offering market research, consulting, portfolio and debt analysis, and management reporting.
- STAR Report: Provides benchmarking and analytics services specifically for the hospitality industry.
- Apartment Marketing Sites (e.g., ApartmentFinder.com): A collection of online platforms for marketing and discovering apartments and corporate housing.
- LoopNet: An online commercial real estate marketplace providing various listing advertisement options.
- Rural Land Marketplace Sites (e.g., LandsofAmerica.com): Online platforms dedicated to listing and finding rural land for sale.
- Business & Franchise Marketplace Sites (e.g., BizBuySell.com): Online platforms for buying and selling operating businesses and franchises.
- Ten-X: An online auction platform facilitating commercial real estate transactions.
- HomeSnap: An online and mobile software platform primarily for residential real estate professionals and consumers.
- Homes.com: A prominent website for browsing and finding homes for sale.
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Andrew Florance, Founder and Chief Executive Officer
Andrew Florance founded CoStar Group in 1987 from his college dorm room at Princeton University. He led the company through its successful initial public offering (IPO) in 1998 and has since grown it into a publicly traded S&P 500 and NASDAQ 100 company. His career has been primarily focused on CoStar Group, where he has been instrumental in digitizing the real estate industry.
Christian M. Lown, Chief Financial Officer
Christian M. Lown was appointed Chief Financial Officer of CoStar Group, effective July 1, 2024. Prior to joining CoStar Group, he served as Executive Vice President and Chief Financial Officer at Freddie Mac from 2020 to 2024, and previously held the same role at Navient Corporation from 2017 to 2020. Before his CFO roles, Mr. Lown spent 11 years at Morgan Stanley, rising to Managing Director in the Financial Institutions Group, where he co-led the Global FinTech and North America Banks/Diversified Finance investment banking practices. In this capacity, he advised clients on capital markets transactions and mergers and acquisitions. His earlier career included positions at UBS, Credit Suisse First Boston, Peregrine Investment Bank, and Credit Lyonnaise Global Emerging Markets.
Frank Simuro, Chief Technology Officer
Frank Simuro joined CoStar Group in December 1999 as Director of Information Systems. He progressed through roles including Senior Vice President of Information Systems and Chief Information Officer before becoming Chief Technology Officer. Before his tenure at CoStar, Mr. Simuro was the Director of Data Warehousing at GRC International and worked as a technology consultant, specializing in operational efficiency and database technologies.
Lisa Ruggles, Senior Vice President, Global Operations
Lisa Ruggles joined CoStar Group in 1999, initially as a Field Research Photographer. Over her career at CoStar, she has held various positions in Field Research, spearheading the launch of CoStar's research coverage across numerous markets in the United States, Canada, the United Kingdom, and Europe. She was promoted to Senior Vice President, Global Research in 2016 and to Senior Vice President, Global Operations in 2022. Ms. Ruggles was also instrumental in establishing CoStar Group's Richmond-based office.
Fred G. Saint, President, Marketplaces
Fred G. Saint is the President of Marketplaces at CoStar Group, overseeing product, marketing, and business development for key platforms such as Apartments.com, Land.com, and BizBuySell. He joined CoStar Group as part of the LoopNet acquisition in 2012, having previously held multiple leadership positions at LoopNet from 2008 to 2015, including President and Senior Vice President of Product and Business Development. Mr. Saint also served as President of LoopNet (2012–2016) and President of Apartments.com (2016–2018) before assuming his current role in September 2018.
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Key Risks to CoStar (CSGP)
The primary risks to CoStar Group's business largely stem from its strategic pivot and aggressive investments into the residential real estate market, alongside challenges in integrating acquisitions and maintaining investor confidence through transparent financial reporting.
- High-Stakes Expansion into Residential Market and Profitability Challenges: CoStar is making substantial investments, particularly with its Homes.com platform, to compete in the residential real estate sector. This aggressive expansion involves a "multi-billion dollar marketing blitz" and significant capital allocation, which has negatively impacted near-term profitability, leading to net losses and compressed GAAP margins. The profitability timeline for Homes.com has been pushed back, with some announcements suggesting it may not reach positive EBITDA until 2030, raising investor confidence concerns. The company faces intense competition, often described as "Portal Wars," against established players like Zillow Group and Redfin, and there is an execution risk that consumer traffic may not convert into paying subscribers, making the capital burn unsustainable.
- Regulatory Scrutiny and Integration Challenges from Acquisitions: CoStar's growth strategy frequently involves acquisitions, which can introduce significant risks. For instance, the acquisition of Matterport faced regulatory hurdles, including a Second Request from the FTC, which delayed the process, incurred substantial expenses, and diverted resources. Furthermore, integrating acquired companies, particularly those in new technological domains like 3D digital twin technology (Matterport), presents complexity and raises concerns about successfully realizing anticipated growth and synergies.
- Concerns over Financial Transparency and Investor Scrutiny: CoStar has faced criticism from activist investors, such as D. E. Shaw, regarding its financial transparency, especially concerning the performance metrics of the Homes.com segment. Recent changes in reporting segments and a reduction in the disclosure of key operating metrics for Homes.com have led to investor scrutiny and a loss of shareholder value, challenging investor confidence and accountability. This lack of transparency around profitability and operating metrics can significantly influence how investors assess the core risks and the long-term viability of its residential market investments.
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CoStar Group, Inc. (CSGP) addresses several significant markets with its diverse portfolio of information, analytics, and online marketplace services. The company's overall global addressable market for real estate information and marketplaces is estimated to be over $100 billion.
Commercial Real Estate Market
For its core commercial real estate products and services, including CoStar Property, CoStar COMPS, CoStar Market Analytics, and LoopNet, CoStar operates within a substantial global market. While the total value of commercial real estate assets globally was estimated at $13.3 trillion in 2022, and approximately $5.3 trillion in the U.S. in 2022, CoStar's addressable market relates to the provision of data, analytics, and online marketplaces for these assets. The global commercial real estate software market, which aligns with some of CoStar's offerings, was valued at approximately $26.36 billion in 2024 and is projected to grow to around $49.94 billion by 2034. North America is a dominant region in the commercial real estate market, holding 36.8% of the global market share in 2024.
Residential Real Estate Market
CoStar's residential portfolio, encompassing brands like Apartments.com, Homes.com, and Land.com, targets a large and expanding market. The broader residential and apartment sector has an estimated total addressable market of over $9 billion. The online residential home sale listings industry in the U.S. alone is expected to generate $2.2 billion in revenue in 2025. The global residential real estate market (covering buying, selling, and renting of properties) was estimated at $10,345.5 billion in 2024 and is projected to reach $34,941.1 billion by 2035.
Hospitality Industry Market
Through its STR brand, CoStar provides hospitality data and benchmarking services. The global hospitality revenue management & pricing analytics market, which directly relates to STR's offerings, was valued at $4.1 billion in 2024 and is expected to reach $13.1 billion by 2034. The global hospitality software market, another relevant segment, was valued at $4,406 million in 2026 and is expected to reach $6,380.54 million by 2035.
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CoStar Group, Inc. (CSGP) is expected to drive future revenue growth over the next two to three years through a multifaceted strategy that includes aggressive expansion in the residential real estate market, strategic international growth, continuous enhancement of its core commercial real estate offerings, the leveraging of artificial intelligence, and an expanded sales force.
1. Aggressive Expansion and Monetization of Homes.com
A primary driver of future revenue growth for CoStar is its significant investment and strategic push into the residential real estate market, particularly through Homes.com. The company is actively working to scale this platform, which has seen substantial increases in unique visitors and subscriber growth. For example, Homes.com achieved an average of 102 million unique visitors per month in the first quarter of 2025, a notable year-over-year increase. The subscriber base for Homes.com has also surged by 337% since Q1 2024. While Homes.com has been in an investment phase, CoStar plans to reduce net investment in the platform by over $300 million in 2026 and expects it to generate revenue exceeding expenses by the end of 2029, with positive Adjusted EBITDA by 2030. The company plans to triple the Homes.com sales force to approximately 750 representatives by the end of 2025 to support this growth.
2. International Expansion through Organic Growth and Acquisitions
CoStar Group is deepening its international presence, particularly in European and Asian markets, through both organic growth and strategic acquisitions. The company's international businesses have shown strong performance, with three consecutive quarters of record net new bookings and over $5 million in annualized recurring revenue (ARR) as of Q1 2025. A key example of this expansion is the planned acquisition of Domain Group, a major Australian real estate portal, expected to be completed in Q3 2025. CoStar also expanded its United Kingdom headquarters in London, consolidating offices and providing space for continued growth.
3. Enhancement and Expansion of Core Commercial Real Estate Offerings and New Product Launches
CoStar continues to enhance its existing commercial real estate platforms by adding new features and analytics. This includes investments in new commercial product offerings such as real estate lease benchmarking, a loan origination module, and new homes construction information and analytics. The company also plans to launch a new rent analytics product and a new lease platform in 2026. Acquisitions like Matterport, completed in February 2025, also bolster CoStar's digital capabilities by integrating 3D digital twin technology and AI. CoStar's commercial information and marketplace businesses have demonstrated strong profitability, with a 47% profit margin in Q3 2025.
4. Leveraging Artificial Intelligence (AI) Technology
The deployment of AI technology across the entire CoStar Group organization is anticipated to drive revenue growth and create significant efficiencies. CoStar intends to use AI for enhanced data accuracy through AI-driven collection and verification, improved market insights via sophisticated predictive analytics, and more intuitive user experiences across its digital platforms. The launch of Homes AI is seen as the beginning of a new era, with plans to deploy this capability across all platforms.
5. Growth of Sales Force and Customer Acquisition
CoStar is actively expanding its sales force across various business units to drive customer acquisition and increase bookings. The company plans to grow its core sales team by 20% in 2025 and is hiring approximately 1,000 new employees, including 500 for Homes.com sales and 100 market analysts. This increased sales capacity, along with improved sales representative productivity, is expected to contribute to accelerated revenue growth. Net new bookings for the third quarter of 2025 increased by 92% compared to Q3 2024, driven by every major product and a larger sales force.
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Share Repurchases
- CoStar Group completed a $500 million share repurchase program in the fourth quarter of 2025.
- A new $1.5 billion share repurchase program was authorized in December 2025 / January 2026.
- The company plans to repurchase $700 million in shares during fiscal year 2026, which includes a $500 million Accelerated Share Repurchase (ASR) program in the first quarter of 2026.
Share Issuance
- CoStar Group's shares outstanding increased from 0.398 billion in 2022 to 0.407 billion in 2023, and 0.408 billion in 2024.
- As of February 20, 2026, approximately 419.79 million shares were outstanding.
Outbound Investments
- CoStar Group completed the acquisitions of Visual Lease in late 2024, Matterport in February 2025, and Domain in August 2025, extending into lease management SaaS, 3D digital twin technology, and Australian marketplaces.
- Net cash used in investing activities, which includes acquisitions, reached $2.82 billion in 2025.
- Over the last 15 years, the company has acquired more than 40 businesses for approximately $7.3 billion.
Capital Expenditures
- CoStar's capital expenditures peaked at $637.9 million in 2024.
- The company reported capital expenditures of $401.3 million for the twelve months ending September 30, 2025, and expects capital expenditures of $221.4 million for 2026.
- The primary focus of capital expenditures includes expanding the sales force for Homes.com, innovative product development, enhancing commercial product offerings, and international expansion, with a plan to reduce net investment in Homes.com by more than $300 million in 2026 and over $100 million annually thereafter.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 157.61 |
| Mkt Cap | 18.9 |
| Rev LTM | 6,281 |
| Op Inc LTM | 1,228 |
| FCF LTM | 971 |
| FCF 3Y Avg | 864 |
| CFO LTM | 1,280 |
| CFO 3Y Avg | 1,219 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 11.2% |
| Rev Chg 3Y Avg | 8.9% |
| Rev Chg Q | 14.3% |
| QoQ Delta Rev Chg LTM | 3.4% |
| Op Inc Chg LTM | 7.0% |
| Op Inc Chg 3Y Avg | 8.2% |
| Op Mgn LTM | 4.6% |
| Op Mgn 3Y Avg | 4.0% |
| QoQ Delta Op Mgn LTM | 0.2% |
| CFO/Rev LTM | 15.5% |
| CFO/Rev 3Y Avg | 15.5% |
| FCF/Rev LTM | 4.9% |
| FCF/Rev 3Y Avg | 2.6% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 18.9 |
| P/S | 3.0 |
| P/Op Inc | 16.5 |
| P/EBIT | 16.3 |
| P/E | 27.1 |
| P/CFO | 17.6 |
| Total Yield | 4.7% |
| Dividend Yield | 0.0% |
| FCF Yield 3Y Avg | 3.1% |
| D/E | 0.3 |
| Net D/E | 0.2 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 2.2% |
| 3M Rtn | -2.4% |
| 6M Rtn | -18.8% |
| 12M Rtn | -39.2% |
| 3Y Rtn | -18.1% |
| 1M Excs Rtn | 3.7% |
| 3M Excs Rtn | -18.9% |
| 6M Excs Rtn | -24.8% |
| 12M Excs Rtn | -59.7% |
| 3Y Excs Rtn | -85.0% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Commercial Real Estate | 1,787 | 1,515 | |||
| Residential Real Estate | 1,460 | 1,221 | |||
| CoStar | 925 | 837 | 723 | ||
| Information services | 171 | 157 | 142 | ||
| LoopNet | 265 | 231 | 208 | ||
| Multifamily | 914 | 745 | 679 | ||
| Other Marketplaces | 134 | 138 | 119 | ||
| Residential | 46 | 74 | 75 | ||
| Total | 3,247 | 2,736 | 2,455 | 2,182 | 1,944 |
| $ Mil | 2025 | 2024 |
|---|---|---|
| Commercial Real Estate | 480 | 519 |
| Depreciation and other amortization | -50 | -44 |
| Amortization of acquired intangible assets in cost of revenue | -74 | -30 |
| Amortization of acquired intangible assets in operating expenses | -118 | -44 |
| Residential Real Estate | -310 | -396 |
| Total | -72 | 5 |
| $ Mil | 2015 | 2014 | 2013 | 2012 | 2011 |
|---|---|---|---|---|---|
| North America | 2,130 | 2,139 | |||
| International | 41 | 42 | 43 | 41 | 38 |
| Intersegment eliminations | -92 | ||||
| Elimination | -97 | -98 | -92 | -76 | |
| United States | 1,311 | 1,216 | 809 | ||
| Total | 2,080 | 2,084 | 1,257 | 1,165 | 771 |
Price Behavior
| Market Price | $29.81 | |
| Market Cap ($ Bil) | 12.3 | |
| First Trading Date | 07/01/1998 | |
| Distance from 52W High | -69.2% | |
| 50 Days | 200 Days | |
| DMA Price | $34.12 | $55.97 |
| DMA Trend | down | down |
| Distance from DMA | -12.6% | -46.7% |
| 3M | 1YR | |
| Volatility | 38.4% | 39.3% |
| Downside Capture | 50.29 | 138.33 |
| Upside Capture | -84.61 | -14.38 |
| Correlation (SPY) | -16.6% | 12.3% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | -2.52 | -0.50 | 0.00 | 0.46 | 0.60 | 0.84 |
| Up Beta | -2.25 | -0.31 | -0.45 | -0.58 | 0.03 | 0.77 |
| Down Beta | -1.82 | -2.52 | 0.26 | 0.78 | 0.96 | 0.88 |
| Up Capture | -194% | -79% | -47% | -20% | 1% | 26% |
| Bmk +ve Days | 13 | 28 | 36 | 67 | 141 | 432 |
| Stock +ve Days | 10 | 18 | 28 | 59 | 125 | 391 |
| Down Capture | -392% | 81% | 99% | 173% | 129% | 104% |
| Bmk -ve Days | 7 | 13 | 27 | 57 | 109 | 318 |
| Stock -ve Days | 10 | 23 | 35 | 65 | 124 | 358 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CSGP | |
|---|---|---|---|---|
| CSGP | -63.0% | 39.3% | -2.44 | - |
| Sector ETF (XLRE) | 8.6% | 14.1% | 0.35 | 26.3% |
| Equity (SPY) | 23.3% | 12.5% | 1.40 | 12.9% |
| Gold (GLD) | 17.7% | 27.7% | 0.57 | -14.0% |
| Commodities (DBC) | 18.2% | 18.6% | 0.76 | -0.6% |
| Real Estate (VNQ) | 11.6% | 13.8% | 0.56 | 24.3% |
| Bitcoin (BTCUSD) | -40.6% | 42.4% | -1.11 | 11.1% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CSGP | |
|---|---|---|---|---|
| CSGP | -19.4% | 34.8% | -0.55 | - |
| Sector ETF (XLRE) | 3.2% | 19.1% | 0.07 | 46.2% |
| Equity (SPY) | 13.2% | 17.1% | 0.60 | 48.8% |
| Gold (GLD) | 16.4% | 18.3% | 0.73 | -1.2% |
| Commodities (DBC) | 6.9% | 19.5% | 0.26 | 7.7% |
| Real Estate (VNQ) | 2.7% | 18.9% | 0.04 | 46.9% |
| Bitcoin (BTCUSD) | 10.4% | 54.1% | 0.39 | 20.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with CSGP | |
|---|---|---|---|---|
| CSGP | 3.5% | 32.7% | 0.18 | - |
| Sector ETF (XLRE) | 6.9% | 20.4% | 0.30 | 46.9% |
| Equity (SPY) | 15.3% | 18.0% | 0.73 | 54.0% |
| Gold (GLD) | 11.5% | 16.1% | 0.59 | 0.9% |
| Commodities (DBC) | 5.7% | 18.0% | 0.24 | 15.0% |
| Real Estate (VNQ) | 5.6% | 20.7% | 0.23 | 47.0% |
| Bitcoin (BTCUSD) | 57.2% | 66.5% | 0.97 | 14.3% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Earnings Returns History
Updated 6/3/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/28/2026 | -5.1% | -2.9% | -10.2% |
| 2/24/2026 | -8.9% | -4.8% | -15.7% |
| 10/28/2025 | -9.9% | -10.8% | -13.3% |
| 7/22/2025 | 6.9% | 12.2% | 3.6% |
| 4/29/2025 | -10.3% | -9.8% | -10.4% |
| 2/18/2025 | 5.0% | 2.8% | 5.2% |
| 10/22/2024 | -5.3% | -4.7% | -0.8% |
| 7/23/2024 | 2.0% | 4.9% | 1.0% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 10 | 11 | 12 |
| # Negative | 14 | 13 | 12 |
| Median Positive | 6.5% | 8.2% | 6.8% |
| Median Negative | -6.6% | -7.1% | -10.3% |
| Max Positive | 15.7% | 17.0% | 18.5% |
| Max Negative | -15.0% | -14.7% | -20.1% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 4/28/2026 | -5.1% | -2.9% | -10.2% |
| 2/24/2026 | -8.9% | -4.8% | -15.7% |
| 10/28/2025 | -9.9% | -10.8% | -13.3% |
| 7/22/2025 | 6.9% | 12.2% | 3.6% |
| 4/29/2025 | -10.3% | -9.8% | -10.4% |
| 2/18/2025 | 5.0% | 2.8% | 5.2% |
| 10/22/2024 | -5.3% | -4.7% | -0.8% |
| 7/23/2024 | 2.0% | 4.9% | 1.0% |
| 4/23/2024 | 8.7% | 8.2% | 3.0% |
| 2/20/2024 | 3.4% | 4.5% | 18.5% |
| 10/24/2023 | -4.4% | -1.0% | 13.1% |
| 7/25/2023 | -8.1% | -9.5% | -12.5% |
| 4/25/2023 | 5.0% | 9.1% | 14.8% |
| 2/21/2023 | -5.1% | -7.1% | -13.2% |
| 10/25/2022 | 7.4% | 9.0% | 7.4% |
| 7/26/2022 | 14.8% | 17.0% | 17.1% |
| 4/26/2022 | 6.2% | 5.6% | -1.8% |
| 2/22/2022 | -15.0% | -4.9% | 6.2% |
| 10/26/2021 | -9.9% | -14.7% | -20.1% |
| 7/27/2021 | -2.3% | -1.9% | -5.6% |
| 4/27/2021 | -8.0% | -9.2% | -9.2% |
| 2/23/2021 | -3.5% | -8.9% | -7.2% |
| 10/27/2020 | -4.3% | 6.2% | 6.2% |
| 7/28/2020 | 15.7% | 15.7% | 17.4% |
| SUMMARY STATS | |||
| # Positive | 10 | 11 | 12 |
| # Negative | 14 | 13 | 12 |
| Median Positive | 6.5% | 8.2% | 6.8% |
| Median Negative | -6.6% | -7.1% | -10.3% |
| Max Positive | 15.7% | 17.0% | 18.5% |
| Max Negative | -15.0% | -14.7% | -20.1% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/29/2026 | 10-Q |
| 12/31/2025 | 02/26/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/23/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/20/2025 | 10-K |
| 09/30/2024 | 10/23/2024 | 10-Q |
| 06/30/2024 | 07/25/2024 | 10-Q |
| 03/31/2024 | 04/24/2024 | 10-Q |
| 12/31/2023 | 02/22/2024 | 10-K |
| 09/30/2023 | 10/25/2023 | 10-Q |
| 06/30/2023 | 07/26/2023 | 10-Q |
| 03/31/2023 | 04/26/2023 | 10-Q |
| 12/31/2022 | 02/22/2023 | 10-K |
| 09/30/2022 | 10/26/2022 | 10-Q |
| 06/30/2022 | 07/27/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 03/31/2026 | 04/29/2026 | 10-Q |
| 12/31/2025 | 02/26/2026 | 10-K |
| 09/30/2025 | 10/29/2025 | 10-Q |
| 06/30/2025 | 07/23/2025 | 10-Q |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 02/20/2025 | 10-K |
| 09/30/2024 | 10/23/2024 | 10-Q |
| 06/30/2024 | 07/25/2024 | 10-Q |
| 03/31/2024 | 04/24/2024 | 10-Q |
| 12/31/2023 | 02/22/2024 | 10-K |
| 09/30/2023 | 10/25/2023 | 10-Q |
| 06/30/2023 | 07/26/2023 | 10-Q |
| 03/31/2023 | 04/26/2023 | 10-Q |
| 12/31/2022 | 02/22/2023 | 10-K |
| 09/30/2022 | 10/26/2022 | 10-Q |
| 06/30/2022 | 07/27/2022 | 10-Q |
| 03/31/2022 | 04/28/2022 | 10-Q |
| 12/31/2021 | 02/23/2022 | 10-K |
| 09/30/2021 | 10/27/2021 | 10-Q |
| 06/30/2021 | 07/28/2021 | 10-Q |
| 03/31/2021 | 04/28/2021 | 10-Q |
| 12/31/2020 | 02/24/2021 | 10-K |
| 09/30/2020 | 10/28/2020 | 10-Q |
| 06/30/2020 | 07/29/2020 | 10-Q |
| 03/31/2020 | 04/29/2020 | 10-Q |
| 12/31/2019 | 02/26/2020 | 10-K |
| 09/30/2019 | 10/23/2019 | 10-Q |
| 06/30/2019 | 07/24/2019 | 10-Q |
Recent Forward Guidance
Updated 5/31/2026Latest: Q1 2026 Earnings Reported 4/28/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 922.00 Mil | 927.00 Mil | 932.00 Mil | ||||
| Q2 2026 Adjusted EBITDA | 160.00 Mil | 170.00 Mil | 180.00 Mil | ||||
| Q2 2026 Adjusted EPS | 0.27 | 0.28 | 0.3 | ||||
| 2026 Revenue | 3.78 Bil | 3.80 Bil | 3.82 Bil | 0 | Affirmed | Guidance: 3.80 Bil for 2026 | |
| 2026 Adjusted EBITDA | 780.00 Mil | 800.00 Mil | 820.00 Mil | 3.9% | Raised | Guidance: 770.00 Mil for 2026 | |
| 2026 Adjusted EPS | 1.32 | 1.35 | 1.39 | 6.3% | Raised | Guidance: 1.27 for 2026 | |
Prior: Q4 2025 Earnings Reported 2/24/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2026 Revenue | 890.00 Mil | 895.00 Mil | 900.00 Mil | 11.5% | Higher New | Actual: 802.50 Mil for Q3 2025 | |
| Q1 2026 Adjusted EBITDA | 95.00 Mil | 105.00 Mil | 115.00 Mil | 31.2% | Higher New | Actual: 80.00 Mil for Q3 2025 | |
| Q1 2026 Adjusted EPS | 0.16 | 0.17 | 0.19 | 9.4% | Higher New | Actual: 0.16 for Q3 2025 | |
| 2026 Revenue | 3.78 Bil | 3.80 Bil | 3.82 Bil | 20.8% | Higher New | Actual: 3.15 Bil for 2025 | |
| 2026 Adjusted EBITDA | 740.00 Mil | 770.00 Mil | 800.00 Mil | 102.6% | Higher New | Actual: 380.00 Mil for 2025 | |
| 2026 Adjusted EPS | 1.22 | 1.27 | 1.33 | 63.5% | Higher New | Actual: 0.78 for 2025 | |
Insider Activity
Updated 6/24/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Florance, Andrew C | President and CEO | Direct | Buy | 5042026 | 35.20 | 71,430 | 2,514,208 | 60,641,764 | Form |
| 2 | Sams, Louise S | Direct | Buy | 3092026 | 48.36 | 1,000 | 48,360 | 986,979 | Form | |
| 3 | Florance, Andrew C | President and CEO | Direct | Buy | 3022026 | 44.52 | 55,720 | 2,480,654 | 70,647,276 | Form |
| 4 | Hill, John W | Direct | Sell | 11172025 | 68.68 | 2,250 | 154,530 | 1,252,105 | Form | |
| 5 | Cann, Cynthia Cammett | Chief Accounting Officer | Direct | Sell | 11172025 | 68.79 | 1,841 | 126,642 | 1,596,685 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Florance, Andrew C | President and CEO | Direct | Buy | 5042026 | 35.20 | 71,430 | 2,514,208 | 60,641,764 | Form |
| 2 | Sams, Louise S | Direct | Buy | 3092026 | 48.36 | 1,000 | 48,360 | 986,979 | Form | |
| 3 | Florance, Andrew C | President and CEO | Direct | Buy | 3022026 | 44.52 | 55,720 | 2,480,654 | 70,647,276 | Form |
| 4 | Hill, John W | Direct | Sell | 11172025 | 68.68 | 2,250 | 154,530 | 1,252,105 | Form | |
| 5 | Cann, Cynthia Cammett | Chief Accounting Officer | Direct | Sell | 11172025 | 68.79 | 1,841 | 126,642 | 1,596,685 | Form |
| 6 | Saint, Frederick G | President, Marketplaces | Direct | Sell | 9022025 | 90.33 | 25,000 | 2,258,250 | 26,475,994 | Form |
| 7 | Saint, Frederick G | President, Marketplaces | Direct | Sell | 7292025 | 93.23 | 25,000 | 2,330,750 | 29,790,621 | Form |
| 8 | Cann, Cynthia Cammett | Chief Accounting Officer | Direct | Sell | 7292025 | 92.85 | 2,033 | 188,764 | 2,392,837 | Form |
| 9 | Saint, Frederick G | President, Marketplaces | Direct | Sell | 6122025 | 81.10 | 25,000 | 2,027,500 | 27,942,113 | Form |
Industry Resources
| Real Estate Resources |
| The Real Deal |
| Commercial Observer |
| Inman |
| Real Estate Services Resources |
| CBRE Research |
| JLL Trends & Insights |
| Cushman & Wakefield Insights |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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