Short answer
CoStar Group (CSGP) filed its fiscal 2025 10-K annual report with the SEC on Feb 26, 2026. It reported revenue of $3.2B (+18.7% year over year) and net income of $7M.
- Top risk flagged: EU AI Act enforcement from Aug 2026: fines up to 7% of worldwide annual turnover for non-compliance with risk-based AI governance rules
FY2025 key financial metrics · XBRL
- Revenue
- $3.2B
- +18.7% YoY
- Net income
- $7M
- −95.0% YoY
- Operating margin
- -2.2%
- −2.4 pp YoY
- Gross margin
- 78.9%
- −0.7 pp YoY
- EPS (diluted)
- $0.02
- −94.1% YoY
- ROE
- 0.1%
- −1.8 pp YoY
- Operating cash flow
- $430M
- +9.5% YoY
Source: XBRL data from the CoStar Group (CSGP) FY2025 10-K on SEC EDGAR. USD.
CoStar Group FY2025 10-K analysis
AI summary of each section, grounded in the filing text
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
Generated from the filing text; verify against the original. How to read a 10-K
Ask about this 10-K
Compare years, dig into a risk factor or check the numbers against insider trades and fund holders.