All financial figures in U.S. dollar constant currency.HighlightsU.S. weekly RevPAR down againU.S. occupancy down 118 days since May, ADR only up over inflation five timesTop 25 Markets causing U.S. RevPAR decreaseGlobal RevPAR positive; ADR growth slowed due to calendar shiftsGermany posted a growth week due to eventsCanada’s growth streak continued across all markets except MontrealComing weeks don’t look any easier for the U.S.Occupancy pulling down U.S. RevPARUnfortunately, revenue per available room (R ...

Federal Reserve and Interest Rates - The Federal Reserve cut the benchmark lending rate by 25 basis points to a range of 4-4.25% on September 17, marking the first rate cut of the year [1] - The Fed's dot-plot indicates two additional rate cuts of 25 basis points each in 2025 and one in both 2026 and 2027 [1] Fintech Industry Overview - The fintech sector benefits from a low-interest-rate environment, which fosters technological improvement and product innovation [2] - The growth of mobile and broadband networks, along with advancements in AI and machine learning, positions fintech for significant expansion [3] Investment Recommendations - Five fintech companies are recommended for investment based on favorable Zacks Ranks: CoStar Group Inc. (CSGP), PayPal Holdings Inc. (PYPL), SoFi Technologies Inc. (SOFI), Interactive Brokers Group Inc. (IBKR), and Robinhood Markets Inc. (HOOD) [4][9] - All five companies exhibit strong revenue and earnings growth expectations for the current year [9] CoStar Group Inc. (CSGP) - CSGP benefits from a resilient subscription business and a strong portfolio of marketplaces, with global traffic reaching 141 million in Q2 2025 [7] - New product launches, such as Matterport 3D tours and AI voice search, enhance customer experience [8] - Expected revenue and earnings growth rates for CSGP are 18.1% and 21.1%, respectively, for the current year [10] PayPal Holdings Inc. (PYPL) - PYPL is experiencing robust growth in total payment volume and strengthening customer engagement [11] - The company leverages AI for fraud detection and operational efficiency, contributing to an expected revenue and earnings growth rate of 4% and 12.5%, respectively, for the current year [13] SoFi Technologies Inc. (SOFI) - SOFI is positioned as a leader in online banking services, benefiting from lower interest rates that encourage customer growth [14] - The expected revenue and earnings growth rates for SOFI are 31.7% and over 100%, respectively, for the current year [16] Interactive Brokers Group Inc. (IBKR) - IBKR's initiatives to enhance its global presence and product suite are expected to support revenue growth, with a projected CAGR of 6.5% by 2027 [17] - Expected revenue and earnings growth rates for IBKR are 8.9% and 11.4%, respectively, for the current year [19] Robinhood Markets Inc. (HOOD) - HOOD operates a financial services platform that allows users to invest in various assets, benefiting from increased retail market participation [20][21] - The expected revenue and earnings growth rates for HOOD are 35.4% and 41.3%, respectively, for the current year [22]

Core Insights - The U.S. hotel industry is experiencing mostly negative year-over-year comparisons, as reported by CoStar's latest data through September 13, 2025 [1][2]. Performance Metrics - Anaheim reported the largest declines in key performance metrics: occupancy decreased by 15.4% to 70.6%, Average Daily Rate (ADR) fell by 10.5% to US$212.16, and Revenue per Available Room (RevPAR) dropped by 24.2% to US$149.80 [2]. - Washington, D.C. also saw significant performance drops: occupancy decreased by 11.7% to 67.8%, ADR fell by 7.4% to US$198.85, and RevPAR declined by 18.3% to US$134.77 [2]. - Overall, 16 out of the Top 25 Markets reported a decline in occupancy [3]. Additional Data - CoStar's hotel performance sample includes over 90,000 properties and 11.8 million rooms globally [4]. - The U.S. hotel industry reported an occupancy rate of 65.4% (down 1.8%), an ADR of US$162.71 (up 0.1%), and a RevPAR of US$106.43 (down 1.7%) [7].

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].

Core Insights - CoStar Group reported $781.3 million in revenue for Q2 2025, a year-over-year increase of 15.3% and an EPS of $0.17, up from $0.15 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $771.67 million by 1.25%, while the EPS surpassed the consensus estimate of $0.14 by 21.43% [1] Revenue Breakdown - Total Revenues: $270.9 million, exceeding the estimated $267.89 million by analysts, representing a 7.1% increase year-over-year [4] - Information Services Revenues: $39.3 million, surpassing the estimated $36.74 million, reflecting a 17.7% year-over-year increase [4] - Other Marketplaces Revenues: $74.7 million, significantly higher than the estimated $50.2 million, marking a 139.4% year-over-year change [4] - LoopNet Revenues: $75.7 million, slightly above the estimated $74.65 million, with an 8.5% increase year-over-year [4] - Residential Revenues: $28.4 million, below the estimated $31.02 million, but still showing an 8.4% year-over-year increase [4] - Multifamily Revenues: $292.3 million, slightly below the estimated $293.26 million, with a 10.6% year-over-year increase [4] Stock Performance - CoStar's shares have returned +6.2% over the past month, outperforming the Zacks S&P 500 composite's +5.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Financial Data and Key Metrics Changes - CoStar Group achieved revenue of $781 million, a strong 15% increase compared to the previous year, marking the fifty-seventh consecutive quarter of double-digit revenue growth [6][7][58] - Adjusted EBITDA rose significantly to $85 million, representing an impressive 108% increase compared to Q2 of 2024 [7][59] - Net new bookings totaled $93 million, a remarkable 65% increase over the previous quarter and a 38% increase year over year, setting a new record for the highest quarterly net new bookings in CoStar Group's history [7][59][56] Business Line Data and Key Metrics Changes - Apartments.com revenue increased by 11% year over year, reaching $292 million, with net new bookings of $45 million, a 20% increase year over year [8][59] - Homes.com achieved residential annualized net new bookings of $12 million for the quarter, with revenue growing by 8% compared to Q2 of 2024 [17][59] - CoStar product revenue reached $271 million in Q2 2025, with a 7% year-over-year growth [34][59] Market Data and Key Metrics Changes - The commercial real estate (CRE) market continues to face challenges, particularly in the office segment, with high vacancy rates and negative net absorption rates [38] - Transaction volumes in the CRE market increased by 43% year over year, with office transaction volumes spiking 71% [38] - The UK residential marketplace saw a 14% year-over-year revenue growth in Q2 2025, with net new bookings up by 257% compared to the first half of the previous year [39] Company Strategy and Development Direction - CoStar is expanding its core sales team by 20% and tripling the homes.com sales force from 230 representatives in 2024 to about 750 by the end of 2025 [8] - The company is focusing on integrating Matterport's technology to enhance its marketplace offerings and improve profitability [51][52] - CoStar is in the final stages of acquiring Domain Holdings, which is expected to close in Q3 2025, positioning the company for further growth in the Australian market [32][66] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong competitive position, stating that they have not observed any loss of market share or pricing power [72][74] - The company anticipates continued growth in residential revenue, expecting a 20% increase in 2025 [61] - Management highlighted the significant total addressable market (TAM) in the industry, indicating that wallet share dynamics are less relevant due to the vast market size [74] Other Important Information - CoStar's cash balance as of June 30 was $3.7 billion, with a net interest income of $33 million in Q2 [65] - The company repurchased 585,000 shares for $45 million in Q2, with plans to repurchase at least $150 million of the $500 million authorized in 2025 [66] - The company is discontinuing certain non-core Matterport revenue that did not positively contribute to earnings, which is expected to impact Q3 revenue [64] Q&A Session Summary Question: Competitive dynamics in apartments.com - Management stated that they have not seen any loss of share or ability to capture price value at apartments.com, emphasizing strong product performance and high renewal rates [72][73] Question: Improvement in homes.com NPS scores - Management attributed the improvement to better communication of value propositions and the effectiveness of the sales force, noting that they are building a superior product offering [78][80] Question: Pricing strategies across different business segments - Management indicated that they are comfortable with current pricing strategies, focusing on penetration initially before maximizing average selling prices (ASP) [88]

Financial Data and Key Metrics Changes - CoStar Group achieved revenue of $781 million, a strong 15% increase compared to the previous year, marking the fifty-seventh consecutive quarter of double-digit revenue growth [6][55] - Adjusted EBITDA rose significantly to $85 million, representing an impressive 108% increase compared to Q2 2024, with a profit margin of 11% [6][56] - Net new bookings totaled $93 million, a remarkable 65% increase over the previous quarter and a 38% increase year over year, setting a new record for the highest quarterly net new bookings in CoStar Group's history [6][56] Business Line Data and Key Metrics Changes - Apartments.com reported revenue of $292 million, an 11% increase from Q2 2024, with net new bookings of $45 million, representing a 20% increase year over year [7][56] - Homes.com achieved residential annualized net new bookings of $12 million for the quarter, with revenue growing by 8% compared to Q2 2024 [17][56] - CoStar product revenue reached $271 million in Q2 2025, with a 7% year-over-year growth [32][56] Market Data and Key Metrics Changes - The UK residential marketplace saw a 20% year-over-year increase in inventory, reaching over 800,000 listings [29] - The commercial real estate market experienced a 43% year-over-year increase in transaction volumes, with office transaction volumes spiking 71% [36] - International businesses achieved 90% year-over-year growth in net new bookings in Q2 2025 compared to Q2 2024 [36] Company Strategy and Development Direction - CoStar is expanding its core sales team by 20% and tripling the homes.com sales force from 230 to about 750 by the end of 2025 to capture additional growth opportunities [7] - The company plans to integrate Matterport's capabilities more deeply into its platforms, shifting Matterport towards a business-to-business approach [49][52] - CoStar is in the final stages of acquiring Domain Holdings, which is expected to close in Q3 2025, enhancing its market position in Australia [30][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong competitive position of apartments.com, noting no loss of market share despite competitive pressures [68][69] - The company anticipates continued growth in residential revenue, expecting a 20% increase in 2025 [58] - Management highlighted the ongoing challenges in the commercial real estate market, particularly in the office segment, but noted positive trends in transaction volumes [36] Other Important Information - CoStar's cash balance as of June 30 was $3.7 billion, earning net interest income of $33 million in Q2 2025 [62] - The company repurchased 585,000 shares for $45 million in Q2, with plans to repurchase at least $150 million of the $500 million authorized in 2025 [63] - The company is revising its revenue guidance for 2025 to a range of $3.135 billion to $3.155 billion, implying an annual growth rate of 15% [64] Q&A Session Summary Question: Competitive dynamics in apartments.com - Management stated there has been no loss of share or ability to capture price value at apartments.com, emphasizing strong product performance and high renewal rates [68][69] Question: Improvement in homes.com NPS scores - Management attributed the improvement to a better product offering and effective communication of value propositions to clients, noting the learning curve for the sales force [73][76] Question: Pricing strategies across business segments - Management indicated that while the lender ASP is higher than standard broker owner ASP, they are focusing on penetration pricing for new products to build market share [82][84] Question: Contextualizing new member growth for homes.com - Management did not provide specific details on member growth but indicated strong momentum and improvements in NPS and bookings [86] Question: EBITDA guidance for the third quarter - Management clarified that the guidance reflects timing shifts and organic performance, with the majority of the delta attributed to timing [88]

Core Insights - CoStar Group (CSGP) is expected to report second-quarter 2025 earnings on July 22, with projected revenues between $770 million and $775 million, indicating a year-over-year growth of 14% at the midpoint of the range [1][11] - The Zacks Consensus Estimate for revenues is currently at $771.67 million, suggesting a growth of 13.85% from the previous year's quarter [2] Revenue Growth Drivers - CoStar Group's second-quarter performance is likely to benefit from its strong portfolio of marketplaces, including Apartments.com, LoopNet, and Homes.com [4] - Apartments.com is projected to grow by 10% in Q2 2025, driven by increased traffic and higher advertising spending [4][11] - Homes.com has reached 104 million average monthly unique visitors in Q1 2025, contributing to overall traffic of 130 million unique visitors across CoStar Group sites [5] Segment Performance - LoopNet's revenue growth rate is anticipated to be 7% in the second quarter, supported by a revamped sales strategy focusing on broad subscription packages [6] - The Homes.com segment is expected to experience low single-digit revenue growth due to the impact of first-quarter cancellations [7] Acquisition Impact - CoStar Group's acquisition of Matterport is expected to enhance its real estate marketplaces by integrating 3D capture technology, contributing approximately $40 million to second-quarter revenues [8][9][11] Earnings Expectations - CoStar Group has an Earnings ESP of 0.00% and a Zacks Rank 3, indicating that the odds of an earnings beat are not favorable [12]

Core Insights - CoStar Group (CSGP) reported non-GAAP earnings of 14 cents per share in Q1 2025, exceeding the Zacks Consensus Estimate by 27.27% and showing a 40% increase year over year from 10 cents per share in the same quarter last year [1] - Revenues reached $732.2 million, surpassing the Zacks Consensus Estimate by 1.78% and reflecting an 11.5% year-over-year growth, marking the 56th consecutive quarter of double-digit revenue growth [2] - The Matterport acquisition contributed $15.9 million in revenues during Q1 2025, enhancing overall performance [2] Revenue Breakdown - CoStar's revenues from its primary segment accounted for 36.2% of total revenues, amounting to $265.1 million, which beat the consensus estimate by 0.11% and increased 5.9% year over year [3] - Apartments.com generated $282 million in revenues, an 11% year-over-year increase, with 38 million average monthly unique visitors [4] - Multifamily revenues totaled $282.5 million, a 10.9% year-over-year increase, although it missed the consensus estimate by 0.34% [5] - LoopNet's revenues were $72.8 million, up 5.4% year over year but missed the consensus mark by 0.78% [5] - Other marketplace revenues reached $44.8 million, exceeding the consensus mark by 51.61% and increasing 46.4% year over year [6] Operating Performance - Selling and marketing expenses rose 0.8% year over year to $368.9 million, constituting 50.4% of revenues, down from 55.8% in the previous year [7] - Adjusted EBITDA was reported at $66 million, significantly up from $12 million in the year-ago quarter, with an adjusted EBITDA margin expansion of 710 basis points to 9% [9] Financial Position - As of March 31, 2025, CoStar had cash and cash equivalents of $3.68 billion, down from $4.68 billion as of December 31, 2024 [10] - Long-term debt stood at $992.2 million, slightly up from $991.9 million at the end of the previous year [10] Guidance - For Q2 2025, CoStar expects revenues between $770 million and $775 million, indicating a year-over-year growth of 14% at the mid-point [11] - For the full year 2025, revenues are projected to be between $3.115 billion and $3.155 billion, reflecting a year-over-year growth of 15% at the mid-point [11][12]

Financial Data and Key Metrics Changes - Q1 2025 revenue was $732 million, a 12% increase year over year, marking the 56th consecutive quarter of double-digit revenue growth [4][5] - Adjusted EBITDA for Q1 2025 was $66 million, representing a 429% increase over Q1 2024, with a profit margin of 43% in commercial real estate and information marketplace businesses [5][63] - Company net new bookings were $56 million in Q1 2025, up 6% sequentially from Q4 2024 [5][70] - The company reported a net loss of $15 million primarily due to one-time costs from the Matterport acquisition [69] Business Line Data and Key Metrics Changes - CoStar revenue grew 6% year over year, with net new bookings at their highest level since Q3 2023 [6][64] - Apartments.com revenue increased by 11% year over year, with a significant rise in quality interactions and new community additions [18][65] - LoopNet revenue grew 5% in Q1 2025, with expectations for revenue growth to accelerate throughout the year [66] - STR's integration into CoStar contributed to its best quarter ever for net new bookings, up 17% year over year [6] Market Data and Key Metrics Changes - The commercial real estate environment remains challenging, with historic high vacancy rates around 16% and real asking rents at a 30-year low [8][9] - In retail, real asking rents are at ten-year lows, but signs of improvement are emerging as vacancy rates begin to fall [10] - The international business achieved over $5 million in annual recurring revenue (ARR) in Q1 2025, representing 56% year-over-year growth [5] Company Strategy and Development Direction - The company is focused on enhancing its product offerings and integrating various brands to create a comprehensive solution for clients [13][14] - A new marketing strategy for LoopNet aims to increase the number of paid properties on the platform, enhancing consumer choice [12] - The company plans to expand its sales force by 23% in 2025 to capitalize on market opportunities, particularly in the multifamily sector [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to double-digit growth as market conditions improve over the next few years [11] - The company anticipates slight headwinds from government contract cancellations but expects revenue growth to remain stable [64][72] - The integration of Matterport is expected to enhance the company's offerings and drive future growth [63][68] Other Important Information - The company repurchased 240,000 shares for $18.5 million and plans to repurchase a total of $150 million in shares in 2025 [71] - The company is in the process of acquiring Domain Group, which could significantly enhance its market position in Australia [71][54] Q&A Session Summary Question: Comments on the delayed market listing exemption and Zillow's reaction - Management noted overwhelmingly negative feedback from agents regarding Zillow's actions, indicating a potential opportunity for the company [76][77] Question: Nonresidential EBITDA margin in Q1 and outlook for residential spending - The commercial margin was reported at 43% for Q1, with no changes to the residential spending outlook [78][79] Question: Integration and monetization of Matterport - Management discussed plans for integrating Matterport into the CoStar platform and its potential for monetization [82]