CoStar Group (CSGP) FY2025 10-K Annual Report
CoStar Group (CSGP) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 26, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
CoStar Group FY2025 10-K Analysis
Business Overview
- • Online real estate marketplace and data/analytics platform serving commercial and residential property markets across U.S., Australia, Europe, Canada, and Asia-Pacific
- • Three acquisitions integrated: Visual Lease (Nov 2024), Matterport 3D digital twin technology (Feb 2025), and Domain Australian marketplace (Aug 2025)
- • Segment structure overhauled Q4 2025 from geography-based to product portfolio-based (Commercial Real Estate vs Residential Real Estate) to align with CODM internal reporting
- • Workforce of ~8,441 employees across 20 countries as of Jan 31, 2026, with 78% (6,602) U.S.-based
- • Homes.com now features "Homes AI" — voice/text conversational search drawing on Matterport 3D tours, proprietary school data, and market intelligence, representing notable AI-native product differentiation in residential
Management Discussion & Analysis
- • Revenue $3.247B, up $511M (+19%) YoY; Commercial Real Estate +18% to $1.787B, Residential +20% to $1.460B
- • Gross margin 79% vs 80% prior year; operating loss $(72)M vs breakeven; selling & marketing 48% vs 50% of revenue
- • Best segment: Commercial Real Estate Adjusted EBITDA $672M (+$70M YoY); worst: Residential Adjusted EBITDA loss $(230)M, though improved $131M YoY
- • Operating cash flow $430M vs $393M; $500M shares repurchased (7.1M shares); $1.5B new buyback program authorized; $155M remaining campus construction obligations
- • 2026 outlook: ~$700M planned buybacks including $500M ASR in Q1; CRE revenue growth expected to moderate; Residential growth expected to accelerate via Domain full-year contribution and Homes.com member growth
Risk Factors
- • EU AI Act enforcement from Aug 2026 — fines up to 7% of worldwide annual turnover for non-compliance with risk-based AI governance rules
- • Matterport hardware supply chain relies on single-source suppliers in China, exposed to recent US tariffs disrupting component access
- • AI-powered platforms and generative AI tools lowering entry barriers, threatening CoStar's marketplace traffic and advertiser revenue
- • Key-person dependency on Founder/CEO Andrew Florance — loss cited as potential "material adverse impact on operations"
- • $1.0B Senior Notes outstanding plus $1.1B undrawn credit facility; net leverage covenant capped at 4.50x EBITDA under 2024 Credit Agreement
CoStar Group FY2025 Key Financial MetricsXBRL
Revenue
$3.2B
▲ +18.7% YoY
Net Income
$7M
▼ -95.0% YoY
Gross Margin
78.9%
▼ -72bp YoY
Operating Margin
-2.2%
▼ -239bp YoY
Net Margin
0.2%
▼ -485bp YoY
ROE
0.1%
▼ -175bp YoY
Total Assets
$10.5B
▲ +13.8% YoY
EPS (Diluted)
$0.02
▼ -94.1% YoY
Operating Cash Flow
$430M
▲ +9.5% YoY
Source: XBRL data from CoStar Group FY2025 10-K filing on SEC EDGAR. All figures in USD.
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