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].