CoStar Group, Inc. (NASDAQ: CSGP) Q2 2025 Earnings | 07/23/2025

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CoStar Group, Inc. reported its Q2 2025 results, achieving another quarter of significant growth and operational expansion despite ongoing investments and rising costs. The company delivered revenue of $781.3 million, a robust 15% increase compared to Q2 2024, marking the 57th consecutive quarter of double-digit revenue growth. This top-line outperformance was driven by strong momentum in core segments, including Apartments.com, which grew revenue by 11% to $292 million, and CoStar’s namesake platform, which raised revenue by 7% to $270.9 million. Online Marketplaces and Information Services also registered healthy gains, while new bookings hit an all-time high of $93 million, up 65% quarter-over-quarter—a testament to the strength of both the Apartments.com and Homes.com sales teams. Profitability metrics reflected the substantial strategic investments underway. Net income for the quarter totaled $6.2 million, or $0.01 per diluted share, down nearly 68% year-over-year. Adjusted EBITDA, however, reached $85 million, soaring 108% over the prior year—underscoring considerable cost discipline even as the company expanded its sales force and marketing reach for recently acquired platforms like Matterport. Gross profit improved by 13% to $613.5 million, with a margin of 79%. The operating loss widened to $27.2 million, mainly due to elevated expenses in marketing, technology, and personnel linked to new acquisition integration and organic growth investments. Cash and equivalents remained strong at $3.7 billion at quarter-end, and CoStar executed $45 million in share repurchases during Q2. The company continues to invest heavily in building out new verticals and product offerings. Homes.com, integrated under the CoStar umbrella, delivered a 56% jump in agent memberships in the quarter with net new bookings annualized at $12 million. Matterport, while not yet profitable, is being repositioned with a new B2B go-to-market strategy aimed at deepening integration with CoStar’s diverse property platforms. International growth also accelerated, particularly in the UK, with OnTheMarket surpassing 800,000 property listings in Q2. Looking ahead, management raised 2025 full-year revenue guidance to $3.135–$3.155 billion and increased its adjusted EBITDA forecast to between $370–$390 million. Q3 revenue is expected in the range of $800–$805 million, reflecting ongoing confidence in demand, platform adoption, and the scalability of CoStar’s technology and data-driven model. About Inside Ticker: For more expert analysis and real-time updates on CoStar Group, Inc. (NASDAQ: CSGP) and other market movers, follow Inside Ticker and visit InsideTicker.com for in-depth reports, financial insights, and the latest news on leading companies. #CoStarGroup #CSGP #Q22025 #Earnings #FinancialResults #RevenueGrowth #ApartmentsDotCom #HomesDotCom #Matterport #OnlineMarketplaces #DataAnalytics #CommercialRealEstate #NetIncome #AdjustedEBITDA #PlatformExpansion #TechInvestment #StockMarket #InsideTicker #Bookings #Guidance #2025Outlook #RealEstateTech #CashFlow #OperationalExcellence #ShareRepurchase #DigitalTwin #UKMarket #GrowthStrategy