CSGP
CoStar Group, Inc.63.62
-0.13-0.2%
Dec 16, 4:00:00 PM EST
Earnings Call Transcripts
This Quarter (Q1 '26)
No earnings call transcript available yet
Last Quarter (Q4 '25)
FY Q4 '25
Reaffirms bookings, details investments
Q&A largely reaffirmed prepared remarks on record net new bookings—the second-highest Q4 ever—while dismissing lightness concerns and affirming guidance. Management detailed 2026 commercial investments like CoStar Australia, Debt Solutions workflows, REM integration, and AI expansions to explain flat margins amid inorganic drag. Homes.com stands to gain from MLS upheaval as agents reject syndication diverting leads. AI disruption to CRE brokers downplayed; pricing resilient, non-broker revenue dominates. Sales ramps track historical 2-3x productivity gains by year five. Confident tone; investors watch investment payoffs.
Key Stats
Market Cap
26.96BP/E (TTM)
1060.33Basic EPS (TTM)
0.06Dividend Yield
0%Recent Filings
10-K
FY2025 results
CoStar Group's FY2025 revenue surged 19% to $3.2B, fueled by Matterport and Domain acquisitions—closed February and August—lifting Commercial Real Estate 18% and Residential 20%; Q4 saw $385M share repurchases under the prior program, completing its $500M authorization, with a fresh $1.5B program approved in December. Yet operating loss widened to $(72)M amid integration costs and sales investments, while Residential Adjusted EBITDA improved to $(230)M. Q4 accelerated Homes.com momentum via AI tools. Cash fell to $1.7B post-deals, with $1.0B debt steady. Cyberattacks threaten data-reliant operations.
8-K
2025 revenue up 19%
CoStar Group reported 2025 revenue of $3.2B, up 19% year-over-year, with net income at $7M dragged by Matterport and Domain acquisition costs, yet Adjusted EBITDA soared 83% to $442M. Record net new bookings hit $308M. Homes.com network drew 108M monthly uniques. Plans $700M share repurchases in 2026. Affirming 17% revenue growth guidance.
8-K
Severance plan clause removed
CoStar Group amended its Executive Severance Plan on February 13, 2026, removing the Board composition clause from 'Change in Control' definition. Designed to protect management continuity, it drew activist fire from Third Point and D.E. Shaw. Board axed it at management's request to dodge costly Delaware lawsuits. All other terms unchanged.
8-K
2026 guidance, severance plan, $1.5B buyback
CoStar amended CEO Andrew Florance's employment agreement effective January 1, 2026, scrapping his 1998 tax gross-up while adopting an Executive Severance Plan for VPs and above with cash severance up to 2x base for CEO, bonus, COBRA, and equity acceleration—enhanced in change-in-control scenarios. Press release reveals 2026 guidance of $3.78-3.82B revenue, $740-800M Adjusted EBITDA, Homes.com net investment cut over $300M, and $1.5B buyback. Shareholder value surges.
10-Q
Q3 FY2025 results
CoStar Group posted Q3 revenues of $833.6M, up 20% y/y from $692.6M, fueled by Matterport and the Domain acquisition closed August 27, 2025 for $1.6B cash (recognizing $1.2B goodwill and $944.6M intangibles amortized over 2-20 years). Gross margin held at 79%, but operating loss widened to $(51.1)M from $23.7M profit as selling/marketing jumped 26% on sales hires and stock-based comp hit $70.8M. Cash fell to $1.9B after $2.3B YTD acquisitions, with $1B Senior Notes due 2030 and $1.1B revolver undrawn. Operating loss exceeded net loss of $(30.9)M due to $20.7M other expense from Domain hedge losses. Matterport litigation lingers.
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