CoStar Group (CSGP) Q3 2025 10-Q Quarterly Report

Filed: Oct 29, 2025Period ending Sep 30, 2025
Information Technology
Services-Business Services, NECSEC EDGAR

CoStar Group (CSGP) 10-Q quarterly report for Q3 2025, filed with SEC EDGAR on Oct 29, 2025 for the fiscal period ending Sep 30, 2025. This page provides AI-powered analysis including management discussion & analysis (MD&A), risk factor updates, and key quarterly financial data such as revenue and net income extracted from XBRL.

CoStar Group Q3 2025 10-Q Analysis

Management Discussion & Analysis

  • Revenue $834M, up $141M (20%) YoY; driven by Other (+$46M, 142%, Matterport Acquisition), Multifamily (+$31M, 11%), Residential (+$27M, 98%), CoStar (+$20M, 8%), LoopNet (+$8M, 12%), Info Services (+$8M, 25%)
  • Gross margin 79% vs 80% YoY; gross profit $661M, up $109M (20%); increased costs included $13M amortization (Matterport, Domain acquisitions)
  • Best performing segment: Residential revenue +$27M (98%) YoY driven by Domain Acquisition and Homes.com growth; Worst: EBITDA North America down 48% to $33M on higher expenses
  • Cash & equivalents $2.0B down from $4.7B Dec’24; operating cash flow $268M (down $30M YoY); investing cash outflow $2.7B mainly for Matterport, Domain acquisitions; stock repurchase $115M YTD, $385M remaining
  • Management expects continued growth but moderating revenue growth in CoStar and Multifamily; plans investments in Homes.com, AI integration, international expansion; notes risks: economic uncertainty, competitive pressure, investment impact on margins

Risk Factors

  • New supplier risk for Matterport hardware from supply chain, tariffs, geopolitical factors, and single-source dependence affecting production timelines and costs
  • Most material update: Domain acquisition completed August 27, 2025, at $4.43 AUD/share, risks include integration costs, employee loss, and management distraction
  • Regulatory/legal risk from open source software use exposing CoStar to potential IP litigation, indemnity gaps, and source code disclosure under license terms
  • Operational risk from dependence on suppliers in China with risks of tariffs, trade restrictions, and potential supply disruptions impacting near-term hardware availability
  • Financial risk: transaction and integration costs incurred for Domain acquisition with uncertain realization of synergies and efficiencies affecting profitability

CoStar Group Q3 2025 Quarterly Financials
XBRL

Revenue

$834M

+20.4% YoY +6.7% QoQ

Net Income

-$31M

-158.3% YoY -598.4% QoQ

Net Margin

-3.7%

-1136bp YoY -450bp QoQ

Source: XBRL data from CoStar Group Q3 2025 10-Q filing on SEC EDGAR. All figures in USD.

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