Core Insights - CoStar Group reported a strong Q4 2025 earnings performance, with non-GAAP earnings of 31 cents per share, exceeding estimates by 13.76% and showing a 19.2% increase year-over-year [2] - Revenues reached $900 million, surpassing estimates by 1% and reflecting a 26.9% year-over-year growth, marking the 59th consecutive quarter of double-digit revenue growth [3] Financial Performance - The Commercial Real Estate segment generated $471 million, accounting for 52.3% of total revenues, while CoStar's own revenues were $325 million, up 9.4% year-over-year [4] - LoopNet's revenues increased by 16.7% year-over-year to $84 million, and Other Commercial Real Estate revenues surged by 181.8% to $62 million [5] - Residential revenues reached $429 million, a 34.9% increase year-over-year [5] - Net New Bookings for Q4 2025 were $75 million, a 41.5% increase year-over-year, with total Net New Bookings for 2025 at $308 million, up 23.2% [6] Operating Expenses - Selling and marketing expenses rose by 22.3% year-over-year to $378 million, constituting 42% of revenues, down from 43.6% in the previous year [7] - Operating expenses increased by 24.4% year-over-year to $658 million, but as a percentage of revenues, they decreased to 73.1% [8] - Adjusted EBITDA was $177 million, up from $112 million year-over-year, with an adjusted EBITDA margin expansion of 390 basis points to 19.7% [9] Balance Sheet and Cash Flow - Cash and cash equivalents stood at $1.63 billion as of December 31, 2025, down from $1.93 billion as of September 30, 2025 [10] - Long-term debt was reported at $993 million, slightly up from $992.9 million [10] - Cash generated from operating activities was $430 million in the reported quarter, compared to $267.9 million in the previous quarter [10] Share Repurchase and Guidance - The company completed a $500 million share repurchase program initiated in 2025 [11] - For Q1 2026, CoStar expects revenues between $890 million and $900 million, indicating a year-over-year growth of 22% to 23% [12] - For the full year 2026, revenues are projected to be between $3.78 billion and $3.82 billion, reflecting a year-over-year growth of 16% to 18% [13] Market Sentiment and Estimates - There has been a downward trend in estimates, with the consensus estimate shifting down by 42.34% [14] - CoStar currently holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [16] Industry Comparison - CoStar is part of the Zacks Computers - IT Services industry, where Vertiv Holdings Co. reported a year-over-year revenue increase of 22.7% to $2.88 billion [18] - Vertiv's expected earnings for the current quarter indicate a change of +56.3% from the year-ago quarter, with a Zacks Rank 2 (Buy) [19]

Core Insights - CoStar Group (CSGP) reported non-GAAP earnings of 23 cents per share in Q3 2025, exceeding the Zacks Consensus Estimate by 27.78% and marking a 4.5% increase from 22 cents per share in the same quarter last year [1][8] Revenue Performance - Revenues reached $833.6 million, surpassing the Zacks Consensus Estimate by 0.91% and reflecting a 20.4% year-over-year growth, marking the 58th consecutive quarter of double-digit revenue growth [2][8] - Specific revenue contributions included: - CoStar's revenues of $277 million, beating estimates by 0.77% and increasing 7.8% year over year [3] - Information Services revenues of $41.3 million, exceeding estimates by 4.29% and growing 25.2% year over year [3] - Multifamily revenues of $303 million, missing estimates by 0.73% but increasing 11.5% year over year [3] - LoopNet revenues of $79.3 million, beating estimates by 0.76% and increasing 11.8% year over year [4] - Residential revenues of $54.9 million, surpassing estimates by 74.29% and growing 98.2% year over year [4] - Other marketplace revenues of $78.1 million, exceeding estimates by 4.13% and increasing 141.8% year over year [4] Operational Metrics - Net New Bookings reached $84 million, representing a 92% increase year over year [5] - Average monthly unique visitors to CoStar's sites reached 143 million, while Homes.com Network achieved 115 million [5] Expense Overview - Selling and marketing expenses increased 26.3% year over year to $418.3 million, accounting for 50.2% of revenues compared to 47.8% in the previous year [6] - General and administrative expenses rose to 18.8% of revenues, an increase of 360 basis points year over year [6] - Operating expenses increased 34.9% year over year to $712.5 million, representing 85.5% of revenues, an increase of 920 basis points [7] Profitability Metrics - Adjusted EBITDA was $114.6 million, up from $75.9 million in the previous year, with an adjusted EBITDA margin expanding 280 basis points to 13.7% [9] Guidance - For Q4 2025, the company expects revenues between $885 million and $895 million, indicating 25% growth at the midpoint, and anticipates adjusted EBITDA between $150 million and $160 million [11] - For the full year 2025, revenues are expected to be between $3.23 billion and $3.24 billion, indicating 18% year-over-year growth at the midpoint, with adjusted EBITDA anticipated between $415 million and $425 million [12]

Core Viewpoint - CoStar Group's recent earnings report shows strong revenue growth and earnings performance, but there are concerns about downward revisions in estimates and overall stock momentum [2][10][12]. Financial Performance - CoStar Group reported non-GAAP earnings of 17 cents per share for Q2 2025, exceeding the Zacks Consensus Estimate by 21.43% and increasing 13.3% year over year [2]. - Revenues reached $781.3 million, surpassing the consensus estimate by 1.25% and reflecting a 15.3% year-over-year increase, marking the 57th consecutive quarter of double-digit revenue growth [3]. Revenue Breakdown - CoStar's revenues from its primary segments include: - CoStar: $270.9 million (34.7% of total revenues), beating estimates by 1.12% and increasing 7.1% year over year [4]. - Multifamily: $292 million (37.4% of total revenues), missing estimates by 0.33% but increasing 10.6% year over year [5]. - LoopNet: $75.7 million (9.7% of total revenues), beating estimates by 1.41% and increasing 8.5% year over year [5]. - Other marketplace revenues: $74.7 million (9.6% of total revenues), beating estimates by 48.81% and increasing 139.4% year over year [6]. Operating Expenses - Selling and marketing expenses rose 10.2% year over year to $394.9 million, constituting 50.5% of revenues, down from 52.9% in the previous year [7]. - Total operating expenses increased 14.8% year over year to $640.7 million, with the operating expense ratio decreasing to 82% [8]. Cash Flow and Balance Sheet - As of June 30, 2025, CoStar reported cash and cash equivalents of $3.62 billion, down from $3.68 billion as of March 31, 2025 [9]. - Cash generated by operating activities was $199.7 million in the reported quarter, significantly up from $53.2 million in the previous quarter [9]. Guidance - For Q3 2025, CoStar expects revenues between $800 million and $805 million, indicating a year-over-year growth of 16% at the mid-point [10]. - For the full year 2025, revenues are projected to be between $3.135 billion and $3.155 billion, reflecting a year-over-year growth of 15% at the mid-point [10][11]. Market Sentiment - Following the earnings release, there has been a downward trend in estimates, with the consensus estimate shifting down by 35.9% [12]. - CoStar currently holds a Zacks Rank of 3 (Hold), indicating expectations for an in-line return in the coming months [14].