Home/CoStar Group Inc./Q3-2025
▲ TAILWIND◑ DEPLOYING2025-10-28

CoStar Group Inc. Q3-2025

Real Estate · Real Estate Services

Revenue
$834M
YoY Growth
20.0%
EPS
$-0.07
Gross Margin
79.3%
Revenue by Segment
CoStar
+8%$277M
Information Services
+25%$41M
Multifamily
+12%$303M
LoopNet
+12%$79M
Residential
+98%$55M
Other Revenues
+142%$78M

Operator Signal: TAILWIND

CoStar is aggressively investing in Homes.com and integrating Domain and Matterport acquisitions. Net new bookings surged 92% YoY to $84M, and the dedicated Homes.com sales team hit its best quarter ever. Commercial information and marketplace businesses delivered a 47% profit margin, up 400 bps sequentially.

Founder Implication

If you're building in proptech or adjacent to real estate marketplaces, CoStar is flooding the zone with capital and AI-powered search. Their Homes.com network at 115M monthly uniques makes them a platform you either integrate with or get steamrolled by.

AI Intelligence

◑ DEPLOYING

CoStar has launched Smart Search on Homes.com, a production AI feature using natural language and voice-based home search. This is a named, shipped product feature — not a pilot or vague aspiration.

Mentions: 2
◑ DEPLOYING
“I am extremely excited about the launch of Smart Search on Homes.com. Using proprietary AI and natural language capabilities designed by our engineers and developers, Smart Search lets consumers use their own voice to precisely search for a home.”— Andy Florance

Competitor Intelligence

Zillow Group1x mentioned
NEUTRAL
“Zillow Group's average monthly unique users (243 million) for the quarter ended June 30, 2025”
Realtor.com1x mentioned
NEUTRAL
“Realtor.com's average monthly unique users (72 million) of Realtor.com's web and mobile sites”
Redfin1x mentioned
NEUTRAL
“Redfin's monthly active visitors (50 million) as reported in Rocket Companies, Inc's press release”
Domain2x mentioned
BULLISH
“We are hard at work integrating our two recent acquisitions of Domain and Matterport across CoStar”
Matterport2x mentioned
BULLISH
“We are hard at work integrating our two recent acquisitions of Domain and Matterport across CoStar”

What They Actually Said

“We had an outstanding Q3 2025 as we delivered our 58th consecutive quarter of double-digit revenue growth with a 20% year-over-year increase in revenue.”

— Andy Florance, Founder and CEO
growth-signal

“We achieved net new bookings in the third quarter of $84 million, up 92% year-over-year. The dedicated Homes.com sales team achieved its best net new bookings quarter.”

— Andy Florance, Founder and CEO
growth-signalproduct-launch

“We delivered a 47% profit margin for Q3 2025 for our commercial information and marketplace businesses, an increase of 400 basis points sequentially from Q2 2025.”

— Andy Florance, Founder and CEO
margin-expansion

“I am extremely excited about the launch of Smart Search on Homes.com. Using proprietary AI and natural language capabilities designed by our engineers and developers, Smart Search lets consumers use their own voice to precisely search for a home.”

— Andy Florance, Founder and CEO
aiproduct-launch

“The Homes.com Network is the second largest in the industry in the United States, with 115 million average monthly unique visitors.”

— Andy Florance, Founder and CEO
growth-signalcompetition

“We delivered strong revenue growth and adjusted EBITDA growth well ahead of our guidance, in this quarter.”

— Christian Lown, CFO
guidancegrowth-signal

Forward Guidance

RAISED
The Company now expects revenue in the range of $3.23 billion to $3.24 billion for the full year of 2025, representing revenue growth of approximately 18% year-over-year at the midpoint(full year)
INITIATED
The Company expects revenue for the fourth quarter of 2025 in the range of $885 million to $895 million, representing revenue growth of approximately 25% year-over-year at the midpoint(next quarter)
RAISED
The Company is increasing its adjusted EBITDA guidance for the full year 2025 to a range of $415 million to $425 million, an increase of $40 million at the midpoint from its previous guidance(full year)
INITIATED
For the fourth quarter 2025, the Company expects adjusted EBITDA in the range of $150 million to $160 million(next quarter)
RAISED
The Company expects full year 2025 non-GAAP net income per diluted share in a range of $0.82 to $0.84 based on 420 million shares(full year)
INITIATED
For the fourth quarter of 2025, the Company expects non-GAAP net income per diluted share in a range of $0.26 to $0.28 based on 424 million shares(next quarter)

Who Ran This Call

DynamicCEO-Led Call
CEO Share89%
Andy FloranceFounder and CEO
OPTIMISTIC250 words
Christian LownCFO
CONFIDENT30 words
Andy Florance: “outstanding Q3, extremely excited, 58th consecutive quarter of double-digit revenue growth, best net new bookings quarter”
Christian Lown: “strong revenue growth and adjusted EBITDA growth well ahead of our guidance”
Themes
ai-integrationm-and-amargin-expansionguidance-raiseddigital-transformationpricing-powerheadcount-growth