07/22/2025 – 04:03 PM
ARLINGTON, Va. – CoStar Group, Inc. (NASDAQ: CSGP), a heavyweight in online real estate marketplaces and data analytics, just announced robust second-quarter 2025 results, signaling continued growth in a competitive market. Revenue for the quarter surged to $781 million, a notable 15% increase from the $678 million reported in Q2 2024. While net income landed at $6.2 million, translating to a mere $0.01 per diluted share, the adjusted EBITDA painted a more optimistic picture, soaring 108% year-over-year to $85 million.
Andy Florance, Founder and CEO of CoStar Group, didn’t mince words, declaring an “outstanding Q2 2025.” He highlighted the company’s impressive streak of 57 consecutive quarters of double-digit revenue growth. A key driver? Apartments.com, which powered the highest net new bookings quarter in two years, culminating in an all-time high of $93 million in net new bookings – a substantial 65% leap from the previous quarter. The Homes.com dedicated sales team also shined. They added 6,300 members, a 56% jump from the end of Q1 2025, boasts a demo-to-close rate exceeding 50%. Florance emphasized that investments in the sales force, products, and marketplaces are bearing fruit, noting that the commercial information and marketplace brands enjoyed a handsome 43% profit margin in Q2 2025.
But the celebration doesn’t stop there. Florance pointed out a compelling statistic: member agents are securing a whopping 62% more listings compared to their non-member counterparts on Homes.com. Adding another string to its bow, CoStar launched “Boost” on Homes.com in Q2—a digital marketing package that supercharges the exposure of individual properties for sellers and their agents. Over 1,200 Boosts have already been snapped up, demonstrating the appeal of enhanced visibility. The Homes.com Network is now the second-largest in the U.S., commanding an impressive army of 111 million average monthly unique visitors.
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| 1References to “commercial information and marketplace brands” refer to our consolidated financial position and results excluding the impact of Homes.com, OnTheMarket, and Matterport. |
| 2Based on CoStar Group’s internal analysis comparing Members to non-Members on Homes.com. |
| 3Based on: (1) the Homes.com Network (which includes Homes.com, the Apartments Network, and the Land Network) average monthly unique visitors (111 million) for the quarter ended June 30, 2025, according to Google Analytics, (2) Realtor.com’s average monthly unique users (66 million) of Realtor.com’s web and mobile sites according to internal data, for the quarter ended March 31, 2025, as reported in News Corp’s press release on May 8, 2025, (3) Redfin’s monthly average visitors (45.66 million) for the quarter ended March 31, 2025, according to Google Analytics, as reported in Redfin’s Quarterly Report on Form 10-Q filed on May 6, 2025 and (4) Zillow Group’s average monthly unique users (227 million) for the quarter ended March 31, 2025, as reported in Zillow Group’s Quarterly Report on Form 10-Q dated May 7, 2025. |
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Year 2024-2025 Quarterly Results – Unaudited |
|||||||||||
|
(in millions, except per share data) |
|||||||||||
2024 |
2025 |
||||||||||
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
||||||
Revenues |
$656 |
$678 |
$693 |
$709 |
$732 |
$781 |
|||||
|
Net income (loss) |
7 |
19 |
53 |
60 |
(15) |
6 |
|||||
|
Net income (loss) per share – diluted |
0.02 |
0.05 |
0.13 |
0.15 |
(0.04) |
0.01 |
|||||
|
Weighted-average outstanding shares – diluted |
407 |
|
407 |
408 |
408 |
411 |
424 |
||||
|
Adjusted EBITDA |
12 |
|
41 |
|
76 |
|
112 |
|
66 |
|
85 |
|
Non-GAAP net income |
42 |
|
61 |
|
88 |
|
106 |
|
63 |
|
74 |
|
Non-GAAP net income per share – diluted |
0.10 |
|
0.15 |
|
0.22 |
|
0.26 |
|
0.15 |
|
0.17 |
Looking ahead, CoStar Group is bullish. CFO Christian Lown announced raised guidance, expecting full-year 2025 revenue to fall between $3.135 billion and $3.155 billion, hinting at a roughly 15% year-over-year growth trajectory. The third-quarter 2025 revenue is projected to be in the range of $800 million to $805 million, representing an approximate 16% year-over-year increase, at the midpoint of the range.
CoStar is increasing its adjusted EBITDA guidance for the full year 2025 to a range of $370 million to $390 million, an increase of $10 million at the midpoint of the range from its previous guidance. For the third quarter 2025, the Company expects adjusted EBITDA in the range of $75 million to $85 million.
The Company expects full year 2025 non-GAAP net income per diluted share in a range of $0.76 to $0.80 based on 421 million shares. For the third quarter 2025, the Company expects non-GAAP net income per diluted share in a range of $0.15 to $0.17 based on 425 million shares. These ranges include an estimated non-GAAP tax rate of 26% for the full year and the third quarter 2025.
CoStar Group’s management team plans to host an earnings conference call at 5:00 PM ET today, July 22, 2025, to discuss these results and the company’s outlook in greater detail.
About CoStar Group
CoStar Group (NASDAQ: CSGP) is a global provider of commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.
CoStar Group’s major brands include CoStar, a global provider of commercial real estate data; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data , STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids, and OnTheMarket, a leading residential property portal in the United Kingdom.
CoStar Group’s websites attracted over 111 million average monthly unique visitors in the second quarter of 2025, serving clients around the world. Headquartered in Arlington, Virginia, CoStar Group is committed to transforming the real estate industry through technology and market intelligence. More information is available at CoStarGroup.com.
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