CoStar Media Release
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CoStar Group First Quarter 2025 Revenue Increased 12% Year-over-Year


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“We completed the Matterport acquisition in February 2025,” said Florance. “Matterport is the best way to present physical real estate spaces online and transform them into data. There are valuable applications for every type of real estate, and we plan to deploy Matterport across CoStar Group and meaningfully expand this unique data set.”
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-- Strong net new bookings growth in CoStar, LoopNet year-over-year
-- Apartments.com adds most properties in a quarter since 2016
-- Homes.com continues to rapidly scale sales force

ARLINGTON, Va.--Tuesday, 29 April 2025 (BUSINESS WIRE) -- CoStar Group, Inc. (NASDAQ: CSGP), a leading provider of online real estate marketplaces, information, analytics and 3D digital twin technology in the property markets, announced today that revenue for the quarter ended March 31, 2025 was $732 million, up 12% over revenue of $656 million for the quarter ended March 31, 2024.

Net loss was $15 million and net loss per diluted share was $0.04 for the first quarter of 2025, which included a negative impact of $31 million associated with the Matterport acquisition. Adjusted EBITDA was $66 million in Q1 2025, an increase of 429% from Q1 2024.

“CoStar Group delivered another strong quarter of results achieving 12% year-over-year revenue growth in Q1 2025, our 56th quarter of double-digit revenue growth as we met the top-end of our revenue guidance and exceeded the top-end of our Adjusted EBITDA guidance,” said Andy Florance Founder and Chief Executive Officer of CoStar Group. “Once again, CoStar Group's commercial information and marketplace brands1 delivered exceptional results with a 43% profit margin for Q1 2025.

We are gaining sales momentum across the board. In Q1 2025, our commercial real estate businesses, CoStar and LoopNet, had very strong annualized net new bookings with CoStar up 68% year-over-year, the highest level since Q3 2023 and LoopNet generating an impressive 200% increase year-over-year, which was LoopNet’s highest level since Q3 2022. In Q1 2025, Apartments.com added 4,300 properties, the most properties in one quarter since Q1 2016. Today, our dedicated Homes.com salesforce has grown to 370 representatives and we believe we will be at 500 sales reps by the end of June, as we continue to gain sales momentum. In April, Homes.com's demo-to-close rate increased to over 50%, the highest ever by any CoStar Group sales team. This demonstrates the strong demand for Homes.com.”

Florance continued, “In one year, the Homes.com Network has become the second largest in the industry in the United States, with 104 million average monthly unique visitors 2. In Q1 2025, unaided consumer awareness grew to 36% up from just 4% before the February 2024 launch. Importantly, Member agents are winning 61% more listings than comparable non-Member agents3. Our Net Promoter Score has risen 85 points since May 2024 to 43 today.”

“We completed the Matterport acquisition in February 2025,” said Florance. “Matterport is the best way to present physical real estate spaces online and transform them into data. There are valuable applications for every type of real estate, and we plan to deploy Matterport across CoStar Group and meaningfully expand this unique data set.”

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1. References to “commercial information and marketplace brands” refer to our consolidated financial position and results excluding the impact of Homes.com, OnTheMarket and Matterport.

2. Based on: (1) the Homes.com Network (which includes Homes.com, the Apartments Network, and the Land Network) average monthly unique visitors (104 million) for the quarter ended March 31, 2025, according to Google Analytics, and (2) Realtor.com’s average monthly unique users (62 million) of Realtor.com’s web and mobile sites according to internal data, for the quarter ended December 31, 2024, as reported in News Corp’s press release on February 5, 2025, (3) Redfin’s monthly average visitors (42.68 million) for the quarter ended December 31, 2024, according to Google Analytics, as reported in Redfin’s Form 10-K filed on February 27, 2025 and (4) Zillow Group’s average monthly unique users (204 million) for the quarter ended December 31, 2024, as reported in Zillow Group’s shareholder letter dated February 11, 2025.

3Based on CoStar Group’s internal analysis comparing Members to non-Members on Homes.com.

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2025 Outlook

“This quarter, we delivered strong revenue growth and adjusted EBITDA growth as we met the top end of our revenue guidance and exceeded the top-end of our Adjusted EBITDA guidance,” said Christian Lown, CFO of CoStar Group. The Company now expects revenue in the range of $3.115 billion to $3.155 billion for the full year 2025, representing revenue growth of approximately 15% year-over-year at the midpoint of the range. The Company expects revenue for the second quarter of 2025 in the range of $770 million to $775 million, representing revenue growth of approximately 14% year-over-year at the midpoint of the range.

"With the inclusion of Matterport, we now expect adjusted EBITDA for the full year of 2025 in the range of $355 million to $385 million, a margin of 12% at the midpoint of the range. For the second quarter of 2025, we expect adjusted EBITDA in the range of $50 million to $60 million."

The preceding forward-looking statements reflect CoStar Group’s expectations as of April 29, 2025, including forward-looking non-GAAP financial measures on a consolidated basis, based on current estimates, expectations, observations, and trends. Given the risk factors, rapidly evolving economic environment, and uncertainties and assumptions discussed in this release and in our quarterly reports on Form 10-Q and annual reports on Form 10-K, actual results may differ materially. Other than in publicly available statements, the Company does not intend to update its forward-looking statements until its next quarterly results announcement.

Reconciliations of EBITDA and adjusted EBITDA to the most directly comparable GAAP measures are shown in detail below, along with definitions for those terms. A reconciliation of forward-looking non-GAAP guidance to the most directly comparable GAAP measure, net income, can be found within the tables included in this release.

Operating Metrics[/]

Net new bookings is calculated based on the annualized amount of change in the Company's sales bookings resulting from new subscription-based contracts, changes to existing subscription-based contracts and cancellations of subscription-based contracts for the period reported. Information regarding net new bookings is not comparable to, nor should it be substituted for, an analysis of the Company's revenues over time.

[b]Earnings Conference Call

Management will conduct a conference call to discuss the first quarter 2025 results and the Company’s outlook at 5:00 PM ET on Tuesday, April 29, 2025. A live audio webcast of the conference will be available in listen-only mode through the Investors section of the CoStar Group website: https://investors.costargroup.com. A replay of the webcast audio will also be available in the Investors section of our website for a period of time following the call.

[Financial Statements Here]

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Source: CoStar via Business Wire