Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
CoStar Group (CSGP) delivered 18.7% revenue growth to $3.25B in FY2025, but swung to an operating loss of $72M and saw net income collapse 95% to $7M as aggressive investment spending and a major acquisition drove costs sharply higher.
Revenue
$3.25B
+18.68% YoY
EPS (Diluted)
$0.02
-94.12% YoY
Gross Margin
78.9%
-0.7 pts YoY
Operating Income
-$72M
-1540.00% YoY
Source: SEC XBRL
Costar Group (CSGP) reported FY2025 revenue of $3.25B, up 18.7% year over year. Operating margin was -2.2%, against 0.2% a year earlier. Operating cash flow was $430M, up 9.4% year over year.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.32 | 0.30 | Beat +7.0% |
| Mar 2026 | 0.23 | 0.19 | Beat +22.5% |
| Dec 2025This filing | 0.31 | 0.28 | Beat +10.9% |
| Sep 2025 | 0.23 | 0.18 | Beat +25.5% |
Reported EPS of $0.31 versus the $0.28 analyst consensus — a +10.9% beat for Dec 2025.
Compiled by AI from this SEC filing
Revenue grew 18.7% year-over-year from $2.74B to $3.25B in FY2025, reflecting continued expansion across CoStar's commercial real estate information and marketplace platforms. This sustained double-digit growth underscores strong demand for the company's data and analytics services.
Source: 10-K Income Statement
Operating income swung from a $5M gain in the prior year to a $72M loss in FY2025, a deterioration of over 1,500%. This reflects a deliberate strategy of heavy reinvestment in product development, sales force expansion, and infrastructure, with D&A alone surging 78.9% to $263M.
Source: 10-K Income Statement & Cash Flow Statement
Investing cash outflows ballooned to $2.82B (from $913M prior year), strongly suggesting a significant acquisition was completed during FY2025. Simultaneously, the company initiated $500M in share buybacks, signaling management confidence in long-term value despite near-term earnings pressure.
Source: 10-K Cash Flow Statement
Cash and equivalents fell 65.1% from $4.68B to $1.63B, primarily funding the large acquisition and buybacks. Long-term debt was reduced 86% to $140M, and stockholders' equity grew 10.3% to $8.33B, indicating the company remains financially sound with a current ratio of 2.84.
Source: 10-K Balance Sheet
Gross margin held near 79%, declining only modestly from 79.6% to 78.9%, demonstrating the durability of CoStar's high-margin, software and data-driven business model even as cost of revenue grew 22.9% to $686M.
Source: 10-K Income Statement
Compiled by AI from this SEC filing · 3 high, 2 medium, 0 low
CoStar is in a heavy investment phase, with operating losses widening and net income down 95% to just $7M. If revenue growth decelerates before these investments yield returns, the company could face prolonged periods of operating losses and investor pressure. The sustainability of this strategy depends on successful monetization of new products and market share gains.
Source: 10-K Income Statement
The sharp increase in investing cash outflows to $2.82B and the 78.9% surge in D&A strongly indicate a major acquisition was completed in FY2025. Integrating large acquisitions carries execution risk, including potential disruption to existing operations, cultural challenges, and the possibility of goodwill impairment if expected synergies are not realized.
Source: 10-K Cash Flow Statement & Balance Sheet
Cash and equivalents dropped 65.1% from $4.68B to $1.63B in a single year, primarily due to acquisition spending and share buybacks. While the current ratio of 2.84 remains healthy, the reduced cash buffer limits financial flexibility if business conditions deteriorate or additional capital is needed for further investments.
Source: 10-K Balance Sheet
CoStar has been investing heavily in its Homes.com residential marketplace to compete with established players like Zillow and Realtor.com. The return on this substantial investment remains unproven, and failure to achieve meaningful market share could result in continued operating losses without a clear path to profitability in this segment.
Source: 10-K Income Statement (inferred from investment patterns)
The company initiated $500M in share buybacks in FY2025 while simultaneously reporting near-zero net income and a significant cash drawdown. Deploying capital on buybacks during a period of heavy investment spending and declining liquidity may reduce financial flexibility and could be questioned if the stock underperforms.
Source: 10-K Cash Flow Statement
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.25 $B | 2.74 $B | +18.68% |
Cost of Revenue $M | 686.00 $M | 558.00 $M | +22.94% |
Gross Profit $B | 2.56 $B | 2.18 $B | +17.58% |
Operating Income $M | -72.00 $M | 5.00 $M | -1540.00% |
Net Income $M | 7.00 $M | 138.70 $M | -94.95% |
EPS (Basic) $ | 0.02 $ | 0.34 $ | -94.12% |
EPS (Diluted) $ | 0.02 $ | 0.34 $ | -94.12% |
Answers draw on this SEC filing and the data on this page
CoStar Group reported strong Q2 FY2026 financial results with revenue increasing 18.4% year-over-year to $925M and net income rising to $55M, driven by solid Residential segment expansion and the integration of strategic acquisitions.
CoStar Group (CSGP) returned to profitability in Q1 FY2026 with revenue surging 22.5% YoY to $897M and operating income turning positive at $3M, while the company deployed $505M in share buybacks, sharply reducing its cash balance.
Other companies in Real Estate Services