CoStar Group Inc.

02/25/2026 | Press release | Distributed by Public on 02/25/2026 13:23

Q4 Financial Results (082dda11 3aa9 4212 8476 efd00c969838)

ER Tables

0 Highlights

Table 0: Highlights
Year 2024-2025 Quarterly Results - Unaudited
(in millions, except per share data)
2024 2025
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Revenue $ 656 $ 678 $ 693 $ 709 $ 732 $ 781 $ 834 $ 900
Net income (loss) $ 7 $ 19 $ 53 $ 60 $ (15) $ 6 $ (31) $ 47
Earnings per share - diluted $ 0.02 $ 0.05 $ 0.13 $ 0.15 $ (0.04) $ 0.01 $ (0.07) $ 0.11
Weighted average outstanding shares - diluted 407 407 408 408 411 424 420 420
EBITDA $ (13) $ 12 $ 51 $ 73 $ (1) $ 29 $ 13 $ 129
Adjusted EBITDA $ 12 $ 41 $ 76 $ 112 $ 66 $ 85 $ 114 $ 177
Adjusted Net Income $ 42 $ 61 $ 88 $ 106 $ 63 $ 74 $ 96 $ 131
Adjusted EPS $ 0.10 $ 0.15 $ 0.22 $ 0.26 $ 0.15 $ 0.17 $ 0.23 $ 0.31

1 IS

Table 1: Income Statement
CoStar Group, Inc.
Consolidated Statements of Operations - Unaudited
(in millions, except per share data)
Three Months Ended December 31, Year Ended December 31,
2025 2024 2025 2024
Revenue $ 900 $ 709 $ 3,247 $ 2,736
Cost of revenue 193 140 686 558
Gross profit 707 569 2,561 2,178
Operating expenses:
Selling and marketing (excluding customer base amortization) 378 309 1,560 1,364
Software development 109 82 406 326
General and administrative 129 125 549 439
Customer base amortization 42 13 118 44
658 529 2,633 2,173
Income (loss) from operations 49 40 (72) 5
Interest income, net 13 47 110 213
Other expense, net (1) (2) (8) (8)
Income before income taxes 61 85 30 210
Income tax expense 14 25 23 71
Net income $ 47 $ 60 $ 7 $ 139
Earnings per share - basic $ 0.11 $ 0.15 $ 0.02 $ 0.34
Earnings per share - diluted $ 0.11 $ 0.15 $ 0.02 $ 0.34
Weighted-average outstanding shares - basic 417.2 406.9 416.8 406.3
Weighted-average outstanding shares - diluted 419.6 408.4 420.7 407.8

2 BS

Table 2: Balance Sheet
COSTAR GROUP, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in millions)
(unaudited)
mmmm d46,022_xayyy mmmm d45,657_xayyy
ASSETS
Current assets:
Cash and cash equivalents $ 1,633 $ 4,681
Restricted cash 100 -
Accounts receivable 263 211
Less: Allowance for credit losses (29) (23)
Accounts receivable, net 234 188
Income taxes receivable 18 -
Prepaid expenses and other current assets 134 81
Total current assets 2,119 4,950
Deferred income taxes, net 47 31
Property and equipment, net 1,323 1,015
Lease right-of-use assets 123 103
Goodwill 4,944 2,528
Intangible assets, net 1,771 433
Deferred commission costs, net 184 170
Deposits and other assets 27 27
Total assets $ 10,538 $ 9,257
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 42 $ 44
Accrued wages and commissions 145 133
Accrued expenses 203 164
Litigation accrual 99 -
Income taxes payable 1 23
Lease liabilities 28 32
Deferred revenue 205 137
Other current liabilities 23 19
Total current liabilities 746 552
Long-term debt, net 993 992
Deferred income taxes, net 238 8
Income taxes payable 27 25
Lease and other long-term liabilities 163 127
Total liabilities 2,167 1,704
Stockholders' equity attributable to CoStar Group 8,334 7,553
Equity attributable to NCI $ 37 $ -
Total equity 8,371 7,553
Total liabilities and stockholders' equity $ 10,538 $ 9,257

3 SCF

Table 3: Cash Flow Statement
COSTAR GROUP, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in millions)
(unaudited)
Year Ended December 31,
2025 2024
Operating activities:
Net income $ 7 $ 139
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization 263 147
Amortization of deferred commissions costs 141 117
Non-cash lease expense 30 33
Stock-based compensation expense 194 89
Deferred income taxes, net 36 (50)
Credit loss expense 32 36
Other operating activities, net (5) 1
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable (28) (30)
Prepaid expenses, other current assets and other assets (21) (8)
Deferred commissions (152) (120)
Accounts payable and other liabilities (12) 44
Lease liabilities (31) (38)
Income taxes payable, net (45) 22
Deferred revenue 21 11
Net cash provided by operating activities 430 393
Investing activities:
Proceeds from sale and settlement of investments and other assets 205 2
Purchases of property, equipment, and other assets for new campuses (307) (579)
Purchases of property, equipment, and other assets (82) (59)
Purchases of equity securities (285) -
Cash paid for acquisitions, net of cash acquired (2,347) (277)
Net cash used in investing activities (2,816) (913)
Financing activities:
Repurchase of restricted stock to satisfy tax withholding obligations (75) (30)
Stock repurchase (500) -
Proceeds from exercise of stock options and employee stock purchase plan 24 25
Other financing activities, net (8) (9)
Net cash used in financing activities (559) (14)
Effect of foreign currency exchange rates on cash, cash equivalents, and restricted cash (3) (1)
Net decrease in cash, cash equivalents, and restricted cash (2,948) (535)
Cash, cash equivalents, and restricted cash at the beginning of period 4,681 5,216
Cash, cash equivalents, and restricted cash at the end of period $ 1,733 $ 4,681

4 Disaggregated Revenue

Table 4: Disaggregated Revenue
During the fourth quarter of 2025, we changed the composition of our segments from geography-based to product portfolio-based.
CoStar Group, Inc.
Disaggregated Revenues - Unaudited
(in millions)
Three Months Ended December 31, Year Ended December 31,
2025 2024 2025 2024
Commercial Real Estate
CoStar $ 325 $ 297 $ 1,259 $ 1,156
LoopNet 84 72 312 282
Other Commercial Real Estate 62 22 216 77
Total Commercial Real Estate 471 391 1,787 1,515
Residential Real Estate 429 318 1,460 1,221
Total revenue $ 900 $ 709 $ 3,247 $ 2,736
CoStar Group, Inc.
Disaggregated Revenues - Unaudited
(in millions)
2023 2024 2025
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Commercial Real Estate
CoStar $ 267 $ 271 $ 278 $ 280 $ 283 $ 286 $ 290 $ 297 $ 305 $ 310 $ 318 $ 325
LoopNet 63 66 68 69 69 70 71 72 73 76 79 84
Other Commercial Real Estate 18 19 20 24 17 18 19 22 31 60 64 62
Total Commercial Real Estate 348 356 366 373 369 374 380 391 409 446 461 471
Residential Real Estate 236 250 259 267 287 304 313 318 323 335 373 429
Total revenue $584 $606 $625 $640 $656 $678 $693 $709 $732 $781 $834 $900

5 Guidance

Table 5: Guidance
CoStar Group, Inc.
Reconciliation of Forward-Looking Guidance - Unaudited
(in millions, except per share data)
Reconciliation of Forward-Looking Guidance, Net Income (Loss) to Adjusted Net Income and Adjusted EPS
Guidance Range Guidance Range
For the Three Months For the Year Ending
Ending March 31, 2026 December 31, 2026
Low High Low High
Net income (loss) $ (21) $ (5) $ 184 $ 227
Income tax expense 1 5 74 91
Income (loss) before taxes (20) 0 258 318
Amortization of acquired intangible assets 63 63 251 251
Stock-based compensation expense 42 42 170 170
Acquisition and integration related costs 4 4 5 5
Adjusted income before income taxes 89 109 684 744
Assumed rate for income tax expense(1) 26 % 26 % 26 % 26 %
Assumed provision for income tax expense (23) (28) (177) (193)
Adjusted Net Income $ 66 $ 81 $ 507 $ 551
Earnings per share - diluted $ (0.05) $ 0.00 $ 0.44 $ 0.55
Adjusted EPS $ 0.16 $ 0.19 $ 1.22 $ 1.33
Adjusted weighted average outstanding shares - diluted 419.0 419.0 416.0 416.0
__________________________
(1) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
Reconciliation of Forward-Looking Guidance, Net Income (Loss) to Adjusted EBITDA
Guidance Range Guidance Range
For the Three Months Ending For the Year Ending
March 31, 2026 December 31, 2026
Low High Low High
Net income (loss) $ (21) $ (5) $ 184 $ 227
Amortization of acquired intangible assets 63 63 251 251
Depreciation and other amortization 14 14 77 77
Interest income, net (8) (8) (21) (21)
Income tax expense 1 5 74 91
EBITDA 49 69 565 625
Stock-based compensation expense 42 42 170 170
Acquisition and integration related costs 4 4 5 5
Adjusted EBITDA(1) $ 95 $ 115 $ 740 $ 800
__________________________
(1) Totals may not foot due to rounding.
Guidance Range Guidance Range
For the Three Months Ending For the Year Ending
March 31, 2026 December 31, 2026
Low High Low High
EBITDA
Commercial Real Estate $ 114 $ 124 $ 535 $ 565
Residential Real Estate (65) (55) 30 60
Total EBITDA $ 49 $ 69 $ 565 $ 625
Adjusted EBITDA
Commercial Real Estate $ 145 $ 155 $ 650 $ 680
Residential Real Estate (50) (40) 90 120
Total Adjusted EBITDA $ 95 $ 115 $ 740 $ 800

6 Recon

Table 6: Reconciliation of Non-GAAP Financial Measures with Quarterly Results - Unaudited
CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures with Quarterly Results - Unaudited
(in millions, except per share data)
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
2024 2025
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Net income (loss) $ 7 $ 19 $ 53 $ 60 $ (15) $ 6 $ (31) $ 47
Amortization of acquired intangible assets 20 18 16 20 28 44 51 69
Depreciation and other amortization 10 10 11 13 14 12 13 11
Interest income, net (56) (54) (56) (47) (38) (33) (26) (13)
Other (income) expense, net(1) 2 2 2 2 2 (16) 21 1
Income tax expense (benefit) 4 17 25 25 8 16 (15) 14
EBITDA (13) 12 51 73 (1) 29 13 129
Stock-based compensation expense 22 23 22 22 30 52 71 41
Acquisition and integration related costs 3 6 4 16 22 4 30 7
Restructuring and related costs 0 0 0 1 7 (1) 0 0
Settlements and impairments 0 0 (1) 0 8 1 0 0
Adjusted EBITDA $ 12 $ 41 $ 76 $ 112 $ 66 $ 85 $ 114 $ 177
__________________________
(1) Includes $6 million, $8 million, $8 million, $5 million, $7 million, $9 million, $4 million, and $4 million of depreciation and amortization expense, including above-market lease amortization, associated with lessor activities, for the three months ending March 31, 2024, June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025, respectively.
Reconciliation of Net Income (Loss) to Adjusted Net Income and Adjusted EPS
2024 2025
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Net income (loss) $ 7 $ 19 $ 53 $ 60 $ (15) $ 6 $ (31) $ 47
Income tax expense (benefit) 4 17 25 25 8 16 (15) 14
Income (loss) before income taxes 11 36 78 85 (7) 22 (46) 61
Amortization of acquired intangible assets 20 18 16 20 28 44 51 69
Stock-based compensation expense 22 23 22 22 30 52 71 41
Acquisition and integration related costs 3 6 4 16 22 4 30 7
(Gains) losses on investments and deal-contingent foreign currency forward contracts related to an acquisition(1) 0 0 0 0 (3) (22) 23 0
Restructuring and related costs 0 0 0 1 7 (1) 0 0
Settlements and impairments 0 0 (1) 0 8 1 0 0
Adjusted income before income taxes 56 83 119 144 85 100 129 178
Assumed rate for income tax expense(2) 26 % 26 % 26 % 26 % 26 % 26 % 26 % 26 %
Assumed provision for income tax expense (14) (22) (31) (38) (22) (26) (33) (47)
Adjusted Net Income $ 42 $ 61 $ 88 $ 106 $ 63 $ 74 $ 96 $ 131
Adjusted EPS $ 0.10 $ 0.15 $ 0.22 $ 0.26 $ 0.15 $ 0.17 $ 0.23 $ 0.31
Weighted average outstanding shares - diluted 407.3 407.4 408.0 408.4 410.5 424.3 419.9 419.6
Adjusted dilutive shares(3) 0.0 0.0 0.0 0.0 5.0 0.0 3.4 0.0
Adjusted weighted average shares, diluted 407.3 407.4 408.0 408.4 415.5 424.3 423.3 419.6
__________________________
(1) Recorded in other expense, net in the condensed consolidated statements of operations.
(2) The assumed tax rate approximates our statutory federal and state corporate tax rate for the applicable period.
(3) Diluted earnings per share includes the effect of potential common shares, such as the Company's stock options, restricted stock units, and deferred stock units, to the extent the effect is dilutive. In periods with a net loss, the anti-dilutive effect of these potential common shares is excluded and diluted earnings (loss) per share is equal to basic earnings (loss) per share. In periods with GAAP net losses and Adjusted Net Income, the weighted average shares outstanding have been adjusted to include the dilutive impact on Adjusted EPS.

7 Seq. Adjusted EBITDA Recon

CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures - Unaudited
(in millions)
Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA
2023 2024 2025 2026 Guidance Range 2026 Guidance Range
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 - Low Q1- High FY 2026 - Low FY 2026 - High
Net income (loss) $ 87 $ 101 $ 91 $ 96 $ 7 $ 19 $ 53 $ 60 $ (15) $ 6 $ (31) $ 47 $ (21) $ (5.0) $ 184 $ 227
Amortization of acquired intangible assets in cost of revenues 7 8 9 8 10 8 6 7 11 17 19 27 27 27 108 108
Amortization of acquired intangible assets in operating expenses 11 11 10 11 10 10 10 13 17 27 32 42 36 36 143 143
Depreciation and other amortization 9 8 8 9 10 10 11 13 14 12 13 11 14 14 77 77
Interest income, net (44) (53) (58) (60) (56) (54) (56) (47) (38) (33) (26) (13) (8) (8) (21) (21)
Other (income) expense, net(1) (1) (1) (1) (2) 2 2 2 2 2 (16) 21 1 - - - -
Income tax expense (benefit) 29 31 30 36 4 17 25 25 8 16 (15) 14 1 5 74 91
EBITDA 98 105 89 98 (13) 12 51 73 (1) 29 13 129 49 69 565 625
Stock-based compensation expense 20 22 22 21 22 23 22 22 30 52 71 41 42 42 170 170
Acquisition and integration related costs 2 0 1 11 3 6 4 16 22 4 30 7 4 4 5 5
Restructuring and related costs 3 0 0 0 0 0 0 1 7 (1) 0 0 - - - -
Settlements and impairments 0 0 0 0 0 0 (1) 0 8 1 0 0 - - - -
Adjusted EBITDA $ 123 $ 127 $ 112 $ 130 $ 12 $ 41 $ 76 $ 112 $ 66 $ 85 $ 114 $ 177 $ 95 $ 115 $ 740 $ 800
__________________________
(1) Includes $6 million, $8 million, $8 million, $5 million, $7 million, $9 million, $4 million, and $4 million of depreciation and amortization expense, including above-market lease amortization, associated with lessor activities, for the three months ending March 31, 2024, June 30, 2024, September 30, 2024, December 31, 2024, March 31, 2025, June 30, 2025, September 30, 2025, and December 31, 2025, respectively.
CoStar Group, Inc.
Results of Segments - Unaudited(1)
(in millions)
2023 2024 2025 2026 Guidance Range 2026 Guidance Range
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 - Low Q1- High FY 2026 - Low FY 2026 - High
EBITDA
Commercial Real Estate $ 102 $ 117 $ 126 $ 132 $ 126 $ 125 $ 136 $ 132 $ 103 $ 118 $ 114 $ 145 $ 114 $ 124 $ 535 $ 565
Residential Real Estate (4) (12) (37) (34) (139) (113) (85) (59) (104) (89) (101) (16) (65) (55) 30 60
Total EBITDA $ 98 $ 105 $ 89 $ 98 $ (13) $ 12 $ 51 $ 73 $ (1) $ 29 $ 13 $ 129 $ 49 $ 69 $ 565 $ 625
Segment Adjusted EBITDA
Commercial Real Estate $ 118 $ 132 $ 140 $ 146 $ 143 $ 144 $ 153 $ 162 $ 151 $ 161 $ 183 $ 177 $ 145 $ 155 $ 650 $ 680
Residential Real Estate 5 (5) (28) (16) (131) (103) (77) (50) (85) (76) (69) 0 (50) (40) 90 120
Total Adjusted EBITDA $ 123 $ 127 $ 112 $ 130 $ 12 $ 41 $ 76 $ 112 $ 66 $ 85 $ 114 $ 177 $ 95 $ 115 $ 740 $ 800
__________________________
(1) During the fourth quarter of 2025, we changed the composition of our segments from geography-based to product portfolio-based. We have recast certain prior period disclosures to align with new segments.

8 Seq Adjusted Net income Recon

CoStar Group, Inc.
Reconciliation of Non-GAAP Financial Measures - Unaudited
(in millions, except per share data)
Reconciliation of Net Income (Loss) to Adjusted Net Income and Adjusted EPS
2023 2024 2025 2026 Guidance 2026 Guidance
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 - Low Q1 - High FY 2026 - Low FY 2026 - High
Net income (loss) $ 87 $ 101 $ 91 $ 96 $ 7 $ 19 $ 53 $ 60 $ (15) $ 6 $ (31) $ 47 $ (21) $ (5) $ 184 $ 227
Income tax expense (benefit) 29 31 30 36 4 17 25 25 8 16 (15) 14 1 5 74 91
Income (loss) before income taxes 116 132 121 132 11 36 78 85 (7) 22 (46) 61 (20) 0 258 318
Amortization of acquired intangible assets 18 19 19 19 20 18 16 20 28 44 51 69 63 63 251 251
Stock-based compensation expense 20 22 22 21 22 23 22 22 30 52 71 41 42 42 170 170
Acquisition and integration related costs 2 0 1 11 3 6 4 16 22 4 30 7 4 4 5 5
(Gains) losses on investments and deal-contingent foreign currency forward contracts related to an acquisition(1) 0 0 (4) 0 0 0 0 0 (3) (22) 23 0 0 0
Restructuring and related costs 3 0 0 0 0 0 0 1 7 (1) 0 0 0 0
Settlements and impairments 0 0 0 0 0 0 (1) 0 8 1 0 0 0 0
Adjusted income before income taxes 159 173 159 183 56 83 119 144 85 100 129 178 89 109 684 744
Assumed rate for income tax expense(2) 26.0 % 26.0 % 26.0 % 26.0 % 26.0 % 26.0 % 26.0 % 26.0 % 26.0 % 26.0 % 26.0 % 26.0 % 26 % 26 % 26 % 26 %
Assumed provision for income tax expense (41) (46) (39) (50) (14) (22) (31) (38) (22) (26) (33) (47) (23) (28) (177) (193)
Adjusted Net Income $ 118 $ 127 $ 120 $ 133 $ 42 $ 61 $ 88 $ 106 $ 63 $ 74 $ 96 $ 131 $ 66 $ 81 $ 507 $ 551
Adjusted EPS $ 0.29 $ 0.31 $ 0.29 $ 0.33 $ 0.10 $ 0.15 $ 0.22 $ 0.26 $ 0.15 $ 0.17 $ 0.23 $ 0.31 $ 0.16 $ 0.19 $ 1.22 $ 1.33
Weighted average outstanding shares - diluted 406.2 406.8 407.2 407.5 407.3 407.4 408.0 408.4 410.5 424.3 419.9 419.6 419.0 419.0 416.0 416.0
Adjusted dilutive shares(3) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 5.0 0.0 3.4 - 0.0 0.0 0.0 0.0
Adjusted weighted average shares, diluted 406.2 406.8 407.2 407.5 407.3 407.4 408.0 408.4 415.5 424.3 423.3 419.6 419.0 419.0 416.0 416.0
__________________________
(1) Recorded in other expense, net in the condensed consolidated statements of operations.
(1) Recorded in other expense, net in the condensed consolidated statements of operations.
(3) Diluted earnings per share includes the effect of potential common shares, such as the Company's stock options, restricted stock units, and deferred stock units, to the extent the effect is dilutive. In periods with a net loss, the anti-dilutive effect of these potential common shares is excluded and diluted earnings (loss) per share is equal to basic earnings (loss) per share. In periods with GAAP net losses and Adjusted Net Income, the weighted average shares outstanding have been adjusted to include the dilutive impact on Adjusted EPS.
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