COSTAR GROUP, INC.
For the period ended Sep 30, 2025. Filed Oct 29, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Oct 29, 2025
CSGP$30.55-4.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-07-23.
0001057352-25-000097
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-10-29.
0001057352-25-000120
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 209 previous paragraphs and 205 current paragraphs.
96 unchanged; 75 reworded; 33 added; 34 removed; 4 previous and 1 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (33)
Current report
We manage our business geographically in two operating segments, with our primary areas of measurement and decision-making being North America, which includes the U.S. and Canada, and International, which primarily includes Asia-Pacific, Europe, and Latin America.
Current report
•an increase in Other revenues of $46 million, or 142%, primarily due to the Matterport Acquisition,
Current report
•an increase in Residential revenues of $27 million, or 98%, due to the Domain Acquisition and an increase in the number of Homes.com memberships,
Current report
•an increase in LoopNet revenues of $8 million, or 12%, due to an increase in the number of listings, as well as an increase in the average price per listing, and
Current report
•an increase in personnel costs of $6 million related to additional headcount from the Matterport Acquisition and Domain Acquisition, and
Current report
•an increase in software and equipment costs of $4 million, primarily driven by web hosting costs.
Current report
•an increase in commissions expense of $20 million related to increased sales force, and
Current report
•an increase in personnel costs of $21 million, primarily due to additional headcount from the Matterport and Domain acquisitions, as well as costs for our existing employees.
Current report
Other Expense, Net. Other expense, net increased $19 million to $21 million for the three months ended September 30, 2025. The increase in expense was primarily driven by:
Current report
•a gain of $3 million relating to the previously held equity interests in Domain, inclusive of dividend income of $6 million.
Current report
•an increase in Other revenues of $46 million, primarily due to the Matterport Acquisition,
Current report
•an increase in Multifamily revenues of $31 million, primarily due to an increase in the number of properties listed on our network,
Current report
•an increase in LoopNet revenues of $7 million, due to an increase in the number of listings, as well as an increase in the average price per listing, and
Current report
•an increase in Residential revenues of $4 million, primarily due to an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy.
Current report
Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
Current report
•an increase in Other Revenues of $104 million, or 110%, due to the Matterport Acquisition,
Current report
•an increase in Residential revenues of $38 million, or 52%, due to the Domain Acquisition and an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy,
Current report
•an increase in Information Services revenues of $21 million, or 21%, primarily attributable to the Visual Lease Acquisition, and
Current report
•an increase in LoopNet revenues of $18 million, or 9%, due to an increase in the number of listings, as well as an increase in the average price per listing.
Current report
•an increase in personnel costs of $18 million related to additional headcount from the Matterport Acquisition and Domain Acquisition,
Current report
•an increase in depreciation expense of $7 million driven by the increased headcount from the Matterport Acquisition and Domain Acquisition.
Current report
•an increase in commissions expense of $32 million related to increased sales force,
Current report
•an increase of $6 million in depreciation expense driven by increased headcount from the Matterport Acquisition and Domain Acquisition,
Current report
•an increase of $4 million in third party photography fees driven by the Matterport Acquisition,
Current report
•a decrease in marketing expenses of $20 million.
Current report
•an increase in personnel costs of $45 million, primarily due to additional headcount from the Matterport and Domain Acquisition, as well as costs for our existing employees, and
Current report
•an increase in depreciation expense of $5 million driven by the additional headcount.
Current report
•an increase in personnel costs of $74 million, primarily related to additional headcount from Matterport and Domain Acquisition, as well as costs for our existing employees,
Current report
•a decrease in depreciation expense of $11 million, primarily driven by headcount changes.
Current report
•a gain of $12 million relating to the previously held equity interests in Domain, inclusive of dividend income of $6 million .
Current report
•an increase in Other Revenues of $104 million, primarily due to the Matterport Acquisition,
Current report
•an increase in CoStar revenues of $42 million, primarily due to increased sales driven by inflation-based price increases on renewals and an increase in subscribers,
Current report
•an increase in Information Services revenues of $25 million, primarily attributable to the Visual Lease Acquisition,
Removed paragraphs (34)
Previous report
We manage our business geographically in two operating segments, with our primary areas of measurement and decision-making being North America, which includes the U.S. and Canada, and International, which primarily includes Europe, Asia-Pacific, and Latin America.
Previous report
•an increase in Other revenues of $44 million, or 139%, primarily due to the Matterport Acquisition,
Previous report
•an increase in Information Services revenues of $6 million, or 18%, primarily attributable to the Visual Lease Acquisition, and
Previous report
•an increase in personnel costs of $8 million related to additional headcount from the Matterport Acquisition, and
Previous report
•an increase of $2 million in third party sales commissions for Matterport products, partially offset by
Previous report
•an increase in personnel costs of $15 million primarily due to additional headcount from the Matterport Acquisition, as well as costs for our existing employees and
Previous report
•an increase in occupancy and equipment costs of $2 million.
Previous report
Other Income (Expense), Net. Other income, net, for the three months ended June 30, 2025 primarily included:
Previous report
•an unrealized gain of $9 million related to the equity securities of Domain Group Holdings, LLC partially offset by
Previous report
•an increase in depreciation and amortization expense from leasing activities driven by a change in the useful life of improvements related to tenants who have modified their leases.
Previous report
•an increase in Other revenues of $44 million, primarily due to the Matterport Acquisition,
Previous report
•an increase in Multifamily revenues of $28 million, primarily due to an increase in the number of properties listed on our network,
Previous report
•an increase in Residential revenues of $1 million, primarily due to an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy, and
Previous report
•an increase in LoopNet revenues of $5 million, primarily due to an increase in the average price per listing, as well as the number of listings.
Previous report
Six Months Ended June 30, 2025 Compared to Six Months Ended June 30, 2024
Previous report
•an increase in Other Revenues of $58 million, or 93%, primarily due to the Matterport Acquisition,
Previous report
•an increase in CoStar revenues of $33 million, or 6%, due to increased sales driven by inflation-based price increases on renewals and an increase in subscribers,
Previous report
•an increase in Residential revenues of $11 million, or 24%, due to an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy, and
Previous report
•an increase in LoopNet revenues of $10 million, or 7%, due to an increase in the average price per listing, as well as the number of listings.
Previous report
•an increase of $6 million for web hosting costs.
Previous report
•an increase in travel costs of $5 million for trainings and customer engagement, and
Previous report
•an increase of $2 million related to third party sales commissions, partially offset by
Previous report
•a decrease in marketing expenses of $37 million.
Previous report
•an increase in personnel costs of $24 million due to additional headcount from the Matterport Acquisition,, as well as costs for our existing employees and
Previous report
•an increase in occupancy and equipment costs of $2 million.
Previous report
•an increase of $7 million in costs of intellectual property disputes.
Previous report
•an unrealized gain of $12 million related to the equity securities of Domain Group Holdings LLC, partially offset by
Previous report
•an increase in depreciation and amortization expense from leasing activities driven by a change in the useful life of improvements related to tenants who have modified their leases.
Previous report
•an increase in Other Revenues of $58 million, primarily due to the Matterport Acquisition,
Previous report
•an increase in CoStar revenues of $26 million, primarily due to increased sales driven by inflation-based price increases on renewals and an increase in subscribers,
Previous report
•an increase in LoopNet revenues of $9 million, primarily due to an increase in the average price per listing, as well as the number of listings, and
Previous report
Domain Transaction. From February 20, 2025 through February 21, 2025, in connection with the Domain Proposal, we acquired approximately 17% of the ordinary shares of Domain at A$4.20 per share for a total purchase price of A$452 million ($285 million).
Previous report
On May 9, 2025, the Company entered into a binding Domain SID to acquire 100% of the issued capital of Domain not previously acquired by CoStar Group by way of Scheme of Arrangement. Pursuant to the Domain SID, Domain shareholders will be entitled to receive total cash consideration of A$4.43 per Domain ordinary share, less any special dividend declared and paid by Domain after May 9, 2025, subject to all applicable conditions being satisfied (or waived) and the scheme being implemented. The Company expects to spend approximately A$2.4 billion ($1.5 billion) to acquire the remaining approximately 83% of Domain’s ordinary shares upon consummation of the Domain Transaction, which is expected to occur in Q3 2025. The Domain Transaction remains subject to a number of conditions, including Domain shareholder approval, Australian Foreign Investment Review Board approval, as well as other customary conditions. Accordingly, there is no guarantee that the Scheme Implementation Deed will result in a transaction.
Previous report
•the risks related to our equity investments;
Reworded paragraphs (75)
Previous wording
Our services are typically distributed to our customers under subscription-based license agreements that generally renew automatically, a majority of which have a term of at least one year. Upon renewal, many of the subscription contract rates may change in accordance with contract provisions or as a result of contract renegotiations. To encourage customers to use our services regularly, we generally charge a fixed monthly amount for our subscription-based services rather than charging fees based on actual platform usage or number of paid clicks. Depending on the type of service, contract rates are generally based on the number of sites, number of users, organization size, the customer’s business focus, the customer's geographic location, the number of properties reported on or analyzed, the number and types of services to which a customer subscribes, the number of digital twins hosted, the number of properties a customer advertises and the prominence and placement of a customer's advertised properties in the search results. Our subscription customers generally pay contract fees on a monthly basis, but in some cases may pay us on a quarterly or annual basis. Our transaction-based services primarily consist of auction fees from our Ten-X online auction platform for commercial real estate, the sales of Matterport cameras and capture equipment, and providing assistance with the data capture process to create digital twins through Matterport. Other transaction-based services are described by service offering below.
Current wording
Our services are typically distributed to our customers under subscription-based license agreements that generally renew automatically, a majority of which have a term of at least one year. Upon renewal, many of the subscription contract rates may change in accordance with contract provisions or as a result of contract renegotiations. To encourage customers to use our services regularly, we generally charge a fixed monthly amount for our subscription-based services rather than charging fees based on actual platform usage or number of paid clicks. Depending on the type of service, contract rates are generally based on the number of sites, number of users, organization size, the customer’s business focus, the customer's geographic location, the number of properties reported on or analyzed, the number and types of services to which a customer subscribes, the number of digital twins hosted, the number of properties a customer advertises, and the prominence and placement of a customer's advertised properties in the search results. Our subscription customers generally pay contract fees on a monthly basis, but in some cases may pay us on a quarterly or annual basis. Our transaction-based services primarily consist of (i) providing premium listings for individual properties on our marketplaces, (ii) providing data capture services to create digital twins, (iii) the sale of Matterport cameras and capture equipment, and (iv) an online auction platform for commercial real estate through Ten-X auction fees from our Ten-X online auction platform for commercial real estate.
Previous wording
Our portfolio of information, analytics, online real estate marketplaces, and 3D digital twin technology is branded and marketed to our customers and marketplace end users under the primary brands of CoStar®, Apartments.com®, LoopNet®, OnTheMarket, Homes.com®, Matterport®, Land.com®, and Ten-X®. Our services are accessible via the internet and through our mobile applications. Our services are primarily derived from a database of building-specific information and offer customers specialized tools for accessing, analyzing, and using our information. Over time, we have enhanced and expanded, and we expect to continue to enhance and expand, our existing information, analytics, and online marketplaces. We have developed and we expect to continue to develop additional services leveraging our centralized database and 3D digital twin technology to meet the needs of our existing customers as well as potential new categories of customers.
Current wording
Our portfolio of information, analytics, online real estate marketplaces, and 3D digital twin technology is branded and marketed to our customers and marketplace end users under the primary brands of CoStar®, Apartments.com®, LoopNet®, Homes.com®, Domain®, OnTheMarket, Matterport®, Land.com®, and Ten-X®. Our services are accessible via the internet and through our mobile applications. Our services are primarily derived from a database of building-specific information and offer customers specialized tools for accessing, analyzing, and using our information. Over time, we have enhanced and expanded, and we expect to continue to enhance and expand, our existing information, analytics, and online marketplaces. We have developed and we expect to continue to develop additional services leveraging our centralized database and 3D digital twin technology to meet the needs of our existing customers as well as potential new categories of customers.
Previous wording
CoStar is our subscription-based integrated platform for commercial real estate intelligence, which includes information about commercial real estate properties, properties for sale, comparable sales, tenants, space available for lease, industry professionals and their business relationships, industry news and market status and provides benchmarking for the hospitality industry, lease analytical capabilities, and risk management capabilities for lenders. CoStar's revenue growth rate for the six months ended June 30, 2025 decreased compared to the revenue growth rate for the six months ended June 30, 2024, due to a lack of benefit from converting legacy STR customers to our new CoStar-based benchmarking product realized in 2024. We expect CoStar's revenue growth rate for the year ending December 31, 2025 to decrease compared to the revenue growth rate for the year ended December 31, 2024, primarily due to a lack of benefit from converting legacy STR customers to our new CoStar-based benchmarking product realized in 2024.
Current wording
CoStar is our subscription-based integrated platform for commercial real estate intelligence, which includes information about commercial real estate properties, properties for sale, comparable sales, tenants, space available for lease, industry professionals and their business relationships, industry news and market status and provides benchmarking for the hospitality industry, lease analytical capabilities, and risk management capabilities for lenders. CoStar's revenue growth rate for the nine months ended September 30, 2025 decreased compared to the revenue growth rate for the nine months ended September 30, 2024, due to a lack of benefit from converting legacy STR customers to our new CoStar-based benchmarking product realized in 2024. We expect CoStar's revenue growth rate for the year ending December 31, 2025 to decrease compared to the revenue growth rate for the year ended December 31, 2024, primarily due to a lack of benefit from converting legacy STR customers to our new CoStar-based benchmarking product realized in 2024.
Previous wording
We provide real estate and lease management technology solutions, including lease administration, lease accounting, transaction management, and professional services through our CoStar Real Estate Manager and Visual Lease service offerings. Information Services' revenue growth rate for the six months ended June 30, 2025 increased compared to the revenue growth rate for the six months ended June 30, 2024 primarily as a result of the Visual Lease Acquisition. We expect the Information Services revenue growth rate for the year ending December 31, 2025 to increase compared to the revenue growth rate for the year ended December 31, 2024 as a result of the Visual Lease Acquisition.
Current wording
We provide real estate and lease management technology solutions, including lease administration, lease accounting, and transaction management through our CoStar Real Estate Manager and Visual Lease service offerings. Information Services' revenue growth rate for the nine months ended September 30, 2025 increased compared to the revenue growth rate for the nine months ended September 30, 2024, primarily as a result of the Visual Lease Acquisition. We expect the Information Services revenue growth rate for the year ending December 31, 2025 to increase compared to the revenue growth rate for the year ended December 31, 2024 as a result of the Visual Lease Acquisition.
Previous wording
Apartments.com is the flagship brand of our apartment marketing network of subscription-based advertising services and provides property management companies and landlords with a comprehensive advertising destination for their available rental units. In addition, it offers renters a platform for searching for available rentals and earns transaction-based revenue primarily from providing online tenant applications, including background and credit checks, and rental payment processing. Multifamily's revenue growth rate for the six months ended June 30, 2025 moderated compared to the revenue growth rate for the six months ended June 30, 2024, primarily due to the impact in 2025 of pivoting the Apartments.com sales force to support the Homes.com product launch in 2024. We expect the Multifamily revenue growth rate for the year ending December 31, 2025 to moderate compared to the revenue growth rate for the year ended December 31, 2024, due to the impact in 2025 of pivoting the Apartments.com sales force to support the Homes.com product launch in 2024.
Current wording
Apartments.com is the flagship brand of our apartment marketing network of subscription-based advertising services and provides property management companies and landlords with a comprehensive advertising destination for their available rental units. In addition, it offers renters a platform for searching for available rentals. Multifamily's revenue growth rate for the nine months ended September 30, 2025 moderated compared to the revenue growth rate for the nine months ended September 30, 2024, primarily due to the impact in 2025 of pivoting the Apartments.com sales force to support the Homes.com product launch in 2024. We expect the Multifamily revenue growth rate for the year ending December 31, 2025 to moderate compared to the revenue growth rate for the year ended December 31, 2024 primarily due to the impact in 2025 of pivoting the Apartments.com sales force to support the Homes.com product launch in 2024.
Previous wording
Our LoopNet Network of commercial real estate websites offers subscription-based, online marketplace services that enable commercial property owners, landlords, and real estate agents working on their behalf to advertise properties for sale or for lease. Commercial real estate agents, buyers, and tenants use the LoopNet Network of online marketplace services to search for available property listings that meet their criteria. LoopNet's revenue growth rate for the six months ended June 30, 2025 was consistent with the revenue growth rate for the six months ended June 30, 2024. We expect LoopNet's revenue growth rate for the year ending December 31, 2025 to increase compared to the revenue growth rate for the year ended December 31, 2024 due to an increase in the average revenue per listing, as well as an increase in the number of listings on our sites.
Current wording
Our LoopNet Network of commercial real estate websites offers subscription-based, online marketplace services that enable commercial property owners, landlords, and real estate agents working on their behalf to advertise properties for sale or for lease. Commercial real estate agents, buyers, and tenants use the LoopNet Network of online marketplace services to search for available property listings that meet their criteria. LoopNet's revenue growth rate for the nine months ended September 30, 2025 increased compared to the revenue growth rate for the nine months ended September 30, 2024. We expect LoopNet's revenue growth rate for the year ending December 31, 2025 to increase compared to the revenue growth rate for the year ended December 31, 2024 due to an increase in the average revenue per listing, as well as an increase in the number of listings on our sites.
Previous wording
Homes.com offers real estate agents subscription memberships promoting the agent's home listings and profile on our websites. Homebuyers and real estate agents use Homes.com to find their dream homes using our proprietary research and neighborhood content combined with listing information. OnTheMarket is a property portal in the U.K., which primarily hosts agents' listings on a subscription basis. Residential's revenues for the six months ended June 30, 2025 increased compared to the six months ended June 30, 2024, primarily due to an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy. We expect Residential's revenues for the year ending December 31, 2025 to increase compared to the year ended December 31, 2024, due to additional sales of our Homes.com memberships.
Current wording
Homes.com offers real estate agents subscription memberships promoting the agent's home listings and profile on our websites. Homebuyers and real estate agents use Homes.com to find their dream homes using our proprietary research and neighborhood content combined with listing information. Domain is an Australian property listings platform that generates revenue by promoting listings of for sale and rental properties on its portals. OnTheMarket is a property portal in the U.K., which primarily hosts agents' listings on a subscription basis. Residential's revenues for the nine months ended September 30, 2025 increased compared to the nine months ended September 30, 2024, primarily due to the Domain Acquisition and an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy. We expect Residential's revenues for the year ending December 31, 2025 to increase compared to the year ended December 31, 2024 due to the Domain Acquisition and additional sales of our Homes.com memberships.
Previous wording
Our other revenues include revenues from the Matterport Acquisition, our Land.com Network, BizBuySell Network, and Ten-X, an online auction platform for commercial real estate. Matterport primarily provides hosting services for its 3D digital twins on a subscription basis. Matterport also provides capture services of spatial data and other add-on services to existing subscription customers and sells 3D capture cameras and third-party capture devices to customers. The Land.com Network provides online marketplaces for rural lands for sale. Our BizBuySell Network provides online marketplaces for businesses and franchises for sale. Other revenues for the six months ended June 30, 2025 increased compared to the six months ended June 30, 2024, primarily due to the Matterport Acquisition. We expect other revenues for the year ending December 31, 2025 to increase compared to the year ended December 31, 2024 primarily due to the Matterport Acquisition.
Current wording
Our other revenues include revenues from the Matterport Acquisition, our Land.com Network, BizBuySell Network, and Ten-X, an online auction platform for commercial real estate. Matterport primarily provides hosting services for its 3D digital twins on a subscription basis. Matterport also provides capture services of spatial data and other add-on services to existing subscription customers and sells 3D capture cameras and third-party capture devices to customers. The Land.com Network provides online marketplaces for rural lands for sale. Our BizBuySell Network provides online marketplaces for businesses and franchises for sale. Other revenues for the nine months ended September 30, 2025 increased compared to the nine months ended September 30, 2024, primarily due to the Matterport Acquisition. We expect other revenues for the year ending December 31, 2025 to increase compared to the year ended December 31, 2024 primarily due to the Matterport Acquisition.
Previous wording
For the three months ended June 30, 2025 and 2024, our annualized net new bookings of subscription-based services on all contracts were$93 million and $67 million, respectively. Net new bookings is calculated based on the annualized amount of change in our sales bookings resulting from new subscription-based contracts, changes to existing subscription-based contracts, and cancellations of subscription-based contracts for the period reported. Net new bookings is calculated on all subscription-based contracts without regard to contract term. Net new bookings is considered an operating metric that is an indicator of future subscription revenue growth and is also used as a metric of sales force productivity by us and investors. However, information regarding net new bookings is not comparable to, nor should it be substituted for, an analysis of our revenues over time. Revenues from our subscription-based contracts were approximately 95% and 96% of total revenues for the three months ended June 30, 2025 and 2024, respectively.
Current wording
For the three months ended September 30, 2025 and 2024, our annualized net new bookings of subscription-based services on all contracts were$84 million and $44 million, respectively. Net new bookings is calculated based on the annualized amount of change in our sales bookings resulting from new subscription-based contracts, changes to existing subscription-based contracts, and cancellations of subscription-based contracts for the period reported. Net new bookings is calculated on all subscription-based contracts without regard to contract term. Net new bookings is considered an operating metric that is an indicator of future subscription revenue growth and is also used as a metric of sales force productivity by us and investors. However, information regarding net new bookings is not comparable to, nor should it be substituted for, an analysis of our revenues over time. Revenues from our subscription-based contracts were approximately 92% and 96% of total revenues for the three months ended September 30, 2025 and 2024, respectively. The decrease in our percentage of subscription-based revenues is primarily due to Domain, which sells listings on its platforms on a transactional basis, as well as the transactional products and services sold by Matterport.
Previous wording
For the trailing 12 months ended June 30, 2025 and 2024, our contract renewal rates for existing company-wide CoStar Group subscription-based services for contracts with a term of at least one year were approximately 89% and 90%, respectively, and, therefore, our cancellation rates for those services for the same periods were approximately 11% and 10%, respectively. Contract renewal rates are calculated on all subscription-based contracts with a term of at least one year. Our contract renewal rate is a quantitative measurement that is typically closely correlated with our revenue results. As a result, we believe that the rate may be a reliable indicator of short-term and long-term performance absent extraordinary circumstances. Our trailing 12-month contract renewal rate may decline as a result of negative economic conditions, consolidations among our customers, reductions in customer spending or decreases in our customer base. Revenues from our subscription-based contracts with a term of at least one year were approximately 79% and 81% of total revenues for the trailing 12 months ended June 30, 2025 and 2024, respectively. The decrease in the percentage of revenues from our subscription-based contracts with a term of at least one year is due to the transactional product sales and services from Matterport.
Current wording
For the trailing 12 months ended September 30, 2025 and 2024, our contract renewal rates for existing company-wide CoStar Group subscription-based services for contracts with a term of at least one year were approximately 89% for each year, and, therefore, our cancellation rates for those services during the same periods were approximately 11%. Contract renewal rates are calculated on all subscription-based contracts with a term of at least one year. Our contract renewal rate is a quantitative measurement that is typically closely correlated with our revenue results. As a result, we believe that the rate may be a reliable indicator of short-term and long-term performance absent extraordinary circumstances. Our trailing 12-month contract renewal rate may decline as a result of negative economic conditions, consolidations among our customers, reductions in customer spending or decreases in our customer base. Revenues from our subscription-based contracts with a term of at least one year were approximately 75% and 80% of total revenues for three months ended September 30, 2025 and 2024, respectively. The decrease in the percentage of revenues from our subscription-based contracts with a term of at least one year is primarily due to Domain, which sells listings on its platforms on a transactional basis, as well as the transactional products and services sold by Matterport.
Previous wording
•Continuing to invest in and develop Homes.com. In 2024, we launched Homes.com memberships giving real estate agents the ability to advertise and promote their listings on our website featuring original, media rich content. We plan to continue hiring our dedicated Homes.com sales force; raising unaided brand awareness of the site through targeted marketing campaigns; and focusing on attracting recurring visitors to the site. In addition, we plan to develop and market additional products.
Current wording
•Continuing to invest in and develop Homes.com. In 2024, we launched Homes.com memberships giving real estate agents the ability to advertise and promote their listings on our website featuring original, media rich content. We plan to continue developing our dedicated Homes.com sales force; raising unaided brand awareness of the site through targeted marketing campaigns; and focusing on attracting recurring visitors to the site. In addition, we plan to develop and market additional products and improve the site's functionality, including AI-enabled search technology. We plan to continue integrating Domain within CoStar Group in preparation to eventually launch Homes.com in the Australian market.
Previous wording
•Continuing to expand our CoStar and LoopNet products internationally. We continue to increase our international research team to collect data in European markets. We have launched our LoopNet branded advertising products in Spain and plan to launch our LoopNet brand in France and continue to expand our footprint of commercial listings.
Current wording
•Continuing to expand our CoStar and LoopNet products internationally. We continue to increase our international research team to collect data in the Australian and European markets. We have launched our LoopNet branded advertising products in Spain and France and continue to expand our footprint of commercial listings in these markets. We plan to continue integrating Domain within CoStar Group and to build the technology necessary to launch CoStar and LoopNet into the Australian market.
Previous wording
We view EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share as operating performance measures. We believe that the most directly comparable GAAP financial measure to EBITDA, adjusted EBITDA, and non-GAAP net income is net income (loss). We believe the most directly comparable GAAP financial measure to non-GAAP net income per diluted share and adjusted EBITDA margin are net income (loss) per diluted share and net income (loss) divided by revenues, respectively. In calculating EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share, we exclude from net income (loss) the financial items that we believe should be separately identified to provide additional analysis of the financial components of the day-to-day operation of our business. We have outlined below the type and scope of these exclusions and the material limitations on the use of these non-GAAP financial measures as a result of these exclusions. EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share are not measurements of financial performance under GAAP and should not be considered as a measure of liquidity, as an alternative to net income (loss), or as an indicator of any other measure of performance derived in accordance with GAAP. Investors and potential investors in our securities should not rely on EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share as a substitute for any GAAP financial measure, including net income (loss) and net income (loss) per diluted share. In addition, we urge investors and potential investors in our securities to carefully review the GAAP financial information included as part of our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q that are filed with the
Current wording
We view EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share as operating performance measures. We believe that the most directly comparable GAAP financial measure to EBITDA, adjusted EBITDA, and non-GAAP net income is net income (loss). We believe the most directly comparable GAAP financial measure to non-GAAP net income per diluted share and adjusted EBITDA margin are net income (loss) per diluted share and net income (loss) divided by revenues, respectively. In calculating EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share, we exclude from net income (loss) the financial items that we believe should be separately identified to provide additional analysis of the financial components of the day-to-day operation of our business. We have outlined below the type and scope of these exclusions and the material limitations on the use of these non-GAAP financial measures as a result of these exclusions. EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share are not measurements of financial performance under GAAP and should not be considered as a measure of liquidity, as an alternative to net income (loss), or as an indicator of any other measure of performance derived in accordance with GAAP. Investors and potential investors in our securities should not rely on EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share as a substitute for any GAAP financial measure, including net income (loss) and net income (loss) per diluted share. In addition, we urge investors and potential investors in our securities to carefully review the GAAP financial information included as part of our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q that are filed with the SEC, as well as our quarterly earnings releases, and compare the GAAP financial information with our EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share.
Previous wording
Revenues. Revenues increased $104 million, or 15%, to $781 million. The increase in our revenues included:
Current wording
Revenues. Revenues increased $141 million, or 20%, to $834 million. The increase in our revenues included:
Previous wording
•an increase in Multifamily revenues of $28 million, or 11%, due to an increase in the number of properties listed on our network,
Current wording
•an increase in Multifamily revenues of $31 million, or 11%, due to an increase in the number of properties listed on our network,
Previous wording
•an increase in LoopNet revenues of $6 million, or 8%, due to an increase in the average price per listing, as well as the number of listings,
Current wording
•an increase in CoStar revenues of $20 million, or 8%, due to increased sales driven by inflation-based price increases on renewals and an increase in subscribers,
Previous wording
•an increase in Information Services revenues of $8 million, primarily attributable to the Visual Lease Acquisition,
Current wording
•an increase in Information Services revenues of $8 million, or 25%, primarily attributable to the Visual Lease Acquisition.
Previous wording
Gross Profit and Cost of Revenues. Gross profit increased $72 million, or 13%, to $614 million, and the gross profit margin decreased from 80% to 79%. The increase in gross profit was due to higher revenues, partially offset by an increase in cost of revenues. Cost of revenues increased $32 million, or 24%, to $168 million and, as a percentage of revenues, increased from 20% to 21%. The increase in cost of revenues primarily included:
Current wording
Gross Profit and Cost of Revenues. Gross profit increased $109 million, or 20%, to $661 million, and the gross profit margin decreased from 80% to 79%. The increase in gross profit was due to higher revenues, partially offset by an increase in cost of revenues. Cost of revenues increased $32 million, or 22%, to $172 million and, as a percentage of revenues, increased from 20% to 21%. The increase in cost of revenues primarily included:
Previous wording
•an increase of $13 million in amortization expense for the acquired technology and trade name from the Matterport Acquisition,
Current wording
•an increase of $13 million in amortization expense for the acquired technology and trade names from the Matterport Acquisition and Domain Acquisition,
Previous wording
•an increase in $8 million in costs related to sales of Matterport capture equipment and services,
Current wording
•an increase in $7 million in costs related to sales of Matterport capture equipment and services,
Previous wording
Selling and Marketing Expenses (Excluding Customer Base Amortization). Selling and marketing expenses increased $37 million, or 10%, to $395 million and, as a percentage of revenues, decreased from 53% to 51%. The increase primarily included:
Current wording
Selling and Marketing Expenses (Excluding Customer Base Amortization). Selling and marketing expenses increased $87 million, or 26%, to $418 million and, as a percentage of revenues, increased from 48% to 50%. The increase primarily included:
Previous wording
•an increase in personnel costs of $40 million related to sales hiring and the sales force from the Matterport Acquisition,
Current wording
•an increase in personnel costs of $45 million primarily related to sales hiring and the sales force from the Matterport Acquisition and Domain Acquisition,
Previous wording
•a decrease in marketing expenses of $13 million.
Current wording
•an increase in marketing expenses of $17 million for advertising of our brands.
Previous wording
Software Development Expenses. Software development expenses increased $30 million, or 18% to $192 million and, as a percentage of revenues, increased from 12% to 13%. The increase primarily included:
Current wording
Software Development Expenses. Software development expenses increased $24 million, or 30%, to $105 million and, as a percentage of revenues, increased from 12% to 13%. The increase primarily included:
Previous wording
General and Administrative Expenses. General and administrative expenses increased $12 million, or 11%, to $122 million and, as a percentage of revenues, were consistent at 16%. The increase primarily included:
Current wording
General and Administrative Expenses. General and administrative expenses increased $51 million, or 48%, to $157 million and, as a percentage of revenues, increased from 15% to 19%. The increase primarily included:
Previous wording
•an increase in personnel and related costs of $33 million, primarily related to additional headcount from the Matterport Acquisition, as well as an increase in costs for our existing employees,
Current wording
•an increase in personnel costs of $40 million, primarily due to additional headcount from the Matterport and Domain Acquisitions, as well as an increase in costs for our existing employees,
Previous wording
•a decrease in professional service fees of $9 million, primarily related to acquisition activities, and
Current wording
•an increase in professional services and third-party costs of $9 million primarily related to acquisition activities, and
Previous wording
•a decrease in occupancy and equipment costs of $3 million.
Current wording
•an increase in software and equipment costs of $3 million, primarily driven by the Matterport acquisition.
Previous wording
Customer Base Amortization Expense. Customer base amortization expense increased $16 million, or 160%, to $27 million, and, as a percentage of revenues, increased from 2% to 3%. The increase was primarily due to the Matterport Acquisition and Visual Lease Acquisition.
Current wording
Customer Base Amortization Expense. Customer base amortization expense increased $22 million, or 209%, to $32 million, and, as a percentage of revenues, increased from 1% to 4%. The increase was primarily due to the Matterport Acquisition, Domain Acquisition, and Visual Lease Acquisition.
Previous wording
Interest Income, Net. Interest income, net decreased $21 million, or 39%, to $33 million. The decrease was primarily due to a decrease in our cash and cash equivalents.
Current wording
Interest Income, Net. Interest income, net decreased $30 million, or 53%, to $26 million. The decrease was primarily due to a decrease in our cash and cash equivalents.
Previous wording
•an unrealized gain of $13 million on the deal-contingent forward U.S. dollar to Australian dollar contracts entered into in conjunction with the Domain Transaction, and
Current wording
•a realized loss of $23 million on the deal-contingent forward U.S. dollar to Australian dollar contracts entered into in conjunction with the Domain Transaction, partially offset by
Previous wording
Income Tax Expense. Income tax expense increased $2 million, or 9%, to $24 million and the effective tax rate was 158% of income before income taxes for the six months ended June 30, 2025 compared to 45% of income before income taxes for the six months ended June 30, 2024. The increase in income tax expense was primarily attributable to a discrete tax expense for transaction costs, partially offset by lower income before income taxes.
Current wording
Income Tax Expense (Benefit). Income tax expense (benefit) changed from $25 million of tax expense for the three months ended September 30, 2024 to a $15 million tax benefit for the three months ended September 30, 2025. The effective tax rate was 33% of loss before income taxes for the three months ended September 30, 2025, compared to 32% of income before income taxes for the three months ended September 30, 2024. The change in income tax expense (benefit) was primarily attributable to lower income before taxes.
Previous wording
We manage our business geographically in two operating segments, with our primary areas of measurement and decision-making being North America, which includes the U.S. and Canada, and International, which primarily includes Europe, Asia-Pacific, and Latin America. Management relies on an internal management reporting process that provides revenue and operating segment EBITDA. Management believes that operating segment EBITDA is an appropriate measure for evaluating the operational performance of our operating segments. EBITDA is used by management internally to measure our operating and management performance and to evaluate the performance of our business. However, this measure should be considered in addition to, not as a substitute for or superior to, (loss) income from operations or other measures of financial performance prepared in accordance with GAAP. See “Non-GAAP Financial Measures” for further information regarding our segment operating results.
Current wording
We manage our business geographically in two operating segments, with our primary areas of measurement and decision-making being North America, which includes the U.S. and Canada, and International, which primarily includes Asia-Pacific, Europe, and Latin America. Management relies on an internal management reporting process that provides revenue and operating segment EBITDA. Management believes that operating segment EBITDA is an appropriate measure for evaluating the operational performance of our operating segments. EBITDA is used by management internally to measure our operating and management performance and to evaluate the performance of our business. However, this measure should be considered in addition to, not as a substitute for or superior to, (loss) income from operations or other measures of financial performance prepared in accordance with GAAP. See “Non-GAAP Financial Measures” for further information regarding our segment operating results.
Previous wording
Segment Revenues. North America revenues increased $100 million, or 16%, to $744 million and included:
Current wording
Segment Revenues. North America revenues increased $111 million, or 17%, to $769 million and included:
Previous wording
The $3 million, or 10%, increase in International revenues was primarily attributable to an increase in CoStar sales driven by inflation-based price increases on renewals and an increase in subscribers.
Current wording
The $30 million, or 88%, increase in International revenues was primarily attributable to the Domain Acquisition and an increase in CoStar sales driven by inflation-based price increases on renewals and an increase in subscribers.
Previous wording
Segment EBITDA. North America EBITDA increased $13 million, or 41%, to $43 million. The increase in North America EBITDA was primarily due to an increase in revenues described above, partially offset by increases in personnel costs and general and administrative costs. International EBITDA increased $4 million to a loss of $15 million. The increase was primarily due to an increase in revenues and a decrease in marketing expenses, partially offset by an increase in occupancy costs.
Current wording
Segment EBITDA. North America EBITDA decreased $30 million, or (48)%, to $33 million. The decrease in North America EBITDA was primarily due to increases in personnel costs and general and administrative costs, partially offset by increases in revenue. International EBITDA decreased $8 million to a loss of $21 million. The decrease was primarily due to additional transaction costs associated with the Domain Acquisition.
Previous wording
The following table provides a comparison of our selected condensed consolidated results of operations for the six months ended June 30, 2025 and 2024 (in millions):
Current wording
The following table provides a comparison of our selected condensed consolidated results of operations for the nine months ended September 30, 2025 and 2024 (in millions):
Previous wording
Revenues. Revenues increased $179 million, or 13%, to $1.5 billion. The increase in our revenues included:
Current wording
Revenues. Revenues increased $320 million, or 16%, to $2.3 billion. The increase in our revenues included:
Previous wording
•an increase in Multifamily revenues of $56 million, or 11%, due to an increase in the number of properties listed on our network, as well as customers selecting higher-priced ad packages,
Current wording
•an increase in Multifamily revenues of $87 million, or 11%, due to an increase in the number of properties listed on our network, as well as customers selecting higher-priced ad packages,
Previous wording
•an increase in CoStar revenues of $18 million, or 7%, due to increased sales driven by inflation-based price increases on renewals and an increase in subscribers,
Current wording
•an increase in CoStar revenues of $53 million, or 7%, due to increased sales driven by inflation-based price increases on renewals and an increase in subscribers,
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Current report — wording carried from elsewhere
•an increase in Information Services revenues of $9 million, primarily attributable to the Visual Lease Acquisition,
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Previous report — wording carried elsewhere
SEC, as well as our quarterly earnings releases, and compare the GAAP financial information with our EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share.
Previous report — wording carried elsewhere
•an increase in Residential revenues of $2 million, or 8%, due to an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy.
Previous report — wording carried elsewhere
•an increase of $3 million for web hosting costs.
Previous report — wording carried elsewhere
•an increase in Residential revenues of $9 million, primarily due to an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy.