CoStar Group Earnings Call Transcripts
Fiscal Year 2025
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Revenue grew 19% to $3.2B in 2025, with adjusted EBITDA up 83% to $442M, both exceeding guidance. Strong growth in both commercial and residential segments, record net new bookings, and major AI-driven product launches position the company for continued margin expansion and global growth in 2026.
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Apartments and Homes.com are driving growth through technology, AI, and original content, with strong expansion in underpenetrated markets and a focus on agent value. Capital allocation is shifting toward accelerated buybacks, while commercial real estate and LoopNet show signs of recovery and innovation.
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Q3 2025 saw 20% revenue growth to $834M, with adjusted EBITDA up 51% and strong performance across all segments. Major investments in AI and the Domain acquisition are driving future growth, while legal and regulatory risks remain a focus.
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Q2 2025 saw 15% revenue growth to $781M, record net new bookings, and strong performance across all segments. Full-year guidance was raised, with continued investment in sales force and product innovation, and major acquisitions and integrations underway.
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The meeting covered director elections, auditor ratification, executive compensation, and a new stock incentive plan, all of which were approved. A shareholder proposal for greater political spending transparency was discussed but not adopted. Voting results and Q&A procedures were clearly outlined.
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Q1 2025 revenue grew 12% to $732M, with adjusted EBITDA up 429% year-over-year. Homes.com brand awareness surged, and the Matterport acquisition closed, supporting future growth. Full-year revenue is forecast at $3.115–$3.155B, with strong segment performance and cost controls.
Fiscal Year 2024
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Q4 and full year 2024 results exceeded expectations, with 11% revenue growth and strong profit margins. Strategic investments in Homes.com and international expansion are fueling future growth, while a $500 million share buyback and robust cash position support capital allocation.
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The company is rapidly expanding its integrated real estate platforms, achieving strong double-digit growth across segments like Homes.com, Apartments.com, and Land.com, while scaling internationally and innovating with proprietary data and SaaS solutions. Homes.com is now the #2 residential portal, and new initiatives target further market share and operational efficiency.
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Investor Day will highlight management and product suite, with Homes.com positioned as a unique, agent-focused platform. Dedicated sales force expansion and product enhancements like Matterport are driving growth, while investments shift from marketing to sales. Core and Apartments.com businesses remain strong, with margin expansion expected as scale increases.
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The event detailed a strategic expansion into residential real estate, emphasizing a unique agent-focused model and significant investment in Homes.com. Core commercial platforms are refocused for growth, with international expansion and new products driving future opportunities. Investor sentiment is improving as the company clarifies its long-term vision and growth levers.
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Leadership highlighted ongoing digitalization of real estate, with core products showing resilience and international expansion progressing. Apartments.com and Homes.com are positioned for growth, with significant investment in sales and brand awareness. Disciplined capital allocation and M&A remain central to strategy.
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Q3 2024 revenue grew 11% year-over-year to $693M, with strong performance in core segments and a 54th consecutive quarter of double-digit growth. Adjusted EBITDA exceeded guidance, and Homes.com ramped up sales force and revenue. Full-year outlook remains positive, with investments focused on sales expansion.
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Q2 2024 revenue grew 12% year-over-year to $678M, with adjusted EBITDA of $41M, both above guidance. Homes.com and Apartments.com drove strong segment growth, while guidance for full-year revenue and EBITDA was raised. Focus shifts to building a dedicated Homes.com sales force.