olivLaw · US equity research
CoStar Group, Inc. CSGP
Services-Business Services, NEC · SIC 7389 · Vertical: Services-Business Services, NEC (SIC 7389)
CoStar Group operates online real estate marketplaces, information, analytics and 3D digital twin technology, serving commercial and residential customers. In the second quarter of 2026 revenue grew 18%, and the company says it marks a profitability inflection, which matters now for investors tracking the shift from growth to efficiency.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, CoStar Group, Inc. (CSGP) stock was 32.58 USD (+4.02% on the day), with market capitalisation 13.1 bn USD, P/E 74.3 on diluted EPS of 0.44 USD over the last 12 months, beta 0.62, 52-week range 26.95–70.44 USD. Latest reported quarter (Q3 2026): revenue of 952.0 m USD (+14.1% YoY), net income of 74.0 m USD, diluted EPS 0.18 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 55.9
- strong (55–70)
- Bollinger (20, 2)
- 27.44 – 35.31
- in the upper half of the band · %B 0.65 · band width 25.1%
- SMA 50 / 200
- 30.28 / 36.19
- mixed trend
- MACD (12, 26, 9)
- 0.41 / 0.47
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +17.8% | −2.0% | +19.8 pp | — |
| 3 months | +7.8% | −2.2% | +10.0 pp | — |
| 6 months | −4.4% | +4.3% | −8.6 pp | — |
| Year to date | −51.5% | +10.6% | −62.1 pp | — |
| 1 year | −53.3% | +10.5% | −63.8 pp | −5.1% |
| 3 years | −57.9% | +73.7% | −131.6 pp | +1.0% |
| 5 years | −60.9% | +61.7% | −122.6 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 709.2 m | 732.0 m | 781.0 m | 834.0 m | 900.0 m | 897.0 m | 925.0 m | 952.0 m |
| Cost of revenue | 140.4 m | 153.0 m | 168.0 m | 172.0 m | 193.0 m | 196.0 m | 197.0 m | 211.0 m |
| Gross profit | 568.8 m | 579.0 m | 613.0 m | 662.0 m | 707.0 m | 701.0 m | 728.0 m | 741.0 m |
| Operating income | 40.3 m | -43.0 m | -27.0 m | -51.0 m | 49.0 m | 3.0 m | 76.0 m | 84.0 m |
| Depreciation & amortisation | 39.4 m | 47.0 m | 66.0 m ≈ | 69.0 m ≈ | 81.0 m | 82.0 m | 85.0 m ≈ | 98.0 m ≈ |
| Interest expense | 6.0 m | 6.0 m | 5.0 m | 4.0 m | 4.0 m | 4.0 m | 12.0 m | 9.0 m |
| Pre-tax income | 84.9 m | -7.0 m | 22.0 m | -46.0 m | 61.0 m | 12.0 m | 74.0 m | 84.0 m |
| Income tax | 24.8 m | 8.0 m | 16.0 m | -15.0 m | 14.0 m | 9.0 m | 19.0 m | 10.0 m |
| Net income | 60.1 m | -15.0 m | 6.0 m | -31.0 m | 47.0 m | 3.0 m | 55.0 m | 74.0 m |
| Diluted EPS | 0.15 ≈ | -0.04 | 0.01 | -0.07 | 0.11 ≈ | 0.01 | 0.14 | 0.18 |
| Operating cash flow | 95.0 m | 53.0 m | 147.0 m ≈ | 68.0 m ≈ | 162.0 m | 152.0 m | 115.0 m ≈ | 188.0 m ≈ |
| Capex | 69.4 m | 54.0 m | 119.0 m ≈ | 73.0 m ≈ | 61.0 m | 45.0 m | 38.0 m ≈ | 51.0 m ≈ |
| Share repurchases | 0 | 19.0 m | 45.0 m ≈ | 51.0 m ≈ | 385.0 m | 505.0 m | 82.0 m ≈ | 81.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 55 percentile of its own 40-quarter history (min 5.2, median 61.5, max 7,770.7; quarters with earnings only).
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.2 bn | 1.4 bn | 1.7 bn | 1.9 bn | 2.2 bn | 2.5 bn | 2.7 bn | 3.2 bn |
| Revenue YoY | +23.5% | +17.4% | +18.5% | +17.2% | +12.3% | +12.5% | +11.4% | +18.7% |
| Net income | 238.3 m | 315.0 m | 227.1 m | 292.6 m | 369.5 m | 375.0 m | 139.0 m | 7.0 m |
| Net income YoY | +94.2% | +32.2% | −27.9% | +28.8% | +26.3% | +1.5% | −62.9% | −95.0% |
| Diluted EPS | 6.54 | 0.86 | 0.59 | 0.74 | 0.93 | 0.92 | 0.34 | 0.02 |
| Diluted EPS YoY | +78.7% | −86.9% | −31.4% | +25.4% | +25.7% | −1.1% | −63.0% | −94.1% |
| net % | 20.0% | 22.5% | 13.7% | 15.1% | 16.9% | 15.3% | 5.1% | 0.2% |
| Free cash flow | 305.8 m | 457.8 m | 486.1 m | 346.0 m | 443.5 m | 372.0 m | -186.0 m | 123.0 m |
Reported results vs expectations
Loading…
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 1.6 bn USD
- Financial debt
- 993.0 m USD
- Net debt
- -640.0 m USD
- Equity
- 8.4 bn USD
- Total assets
- 10.5 bn USD
- Debt / equity
- 0.12x
- Current ratio
- 2.84x
- ROE
- 0.1%
- ROA
- 0.1%
- FCF margin
- 3.8%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 1.7 bn | 1.9 bn | 2.2 bn | 2.5 bn | 2.7 bn | 3.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Cost of revenue | 309.0 m | 357.2 m | 414.0 m | 491.0 m | 558.0 m | 686.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Gross profit | 1.4 bn | 1.6 bn | 1.8 bn | 2.0 bn | 2.2 bn | 2.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Operating income | 289.2 m | 432.3 m | 451.0 m | 282.0 m | 5.0 m | -72.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Depreciation & amortisation | 116.9 m | 139.6 m | 137.9 m | 108.0 m | 147.0 m | 263.0 m | SEC (XBRL)· 26 Feb 2026verified |
| EBITDA | 406.1 m ≈ | 571.9 m ≈ | 588.9 m ≈ | 390.0 m ≈ | 152.0 m ≈ | 191.0 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Interest expense | 21.8 m | 32.3 m | 32.3 m | 31.0 m | 27.0 m | 19.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Pre-tax income | 271.0 m | 404.0 m | 486.5 m | 502.0 m | 210.0 m | 30.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Income tax | 43.9 m | 111.4 m | 117.0 m | 127.0 m | 71.0 m | 23.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Net income | 227.1 m | 292.6 m | 369.5 m | 375.0 m | 139.0 m | 7.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Diluted EPS | 0.59 | 0.74 | 0.93 | 0.92 | 0.34 | 0.02 | SEC (XBRL)· 26 Feb 2026verified |
| Weighted average diluted shares | 383.3 m | 394.2 m | 397.8 m | 406.9 m | 407.8 m | 420.7 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 3.7 bn | 3.8 bn | 5.0 bn | 5.2 bn | 4.7 bn | 1.6 bn | SEC (XBRL)· 26 Feb 2026verified |
| Receivables | 103.9 m | 124.8 m | 153.9 m | 190.0 m | 188.0 m | 234.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Inventories | — | — | — | — | — | 6.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Current assets | 3.9 bn | 4.0 bn | 5.2 bn | 5.5 bn | 5.0 bn | 2.1 bn | SEC (XBRL)· 26 Feb 2026verified |
| Property, plant & equipment, net | 126.3 m | 271.4 m | 321.3 m | 472.2 m | 1.0 bn | 1.3 bn | SEC (XBRL)· 26 Feb 2026verified |
| Goodwill | 2.2 bn | 2.3 bn | 2.3 bn | 2.4 bn | 2.5 bn | 4.9 bn | SEC (XBRL)· 26 Feb 2026verified |
| Intangibles (excl. goodwill) | 426.7 m | 435.7 m | 329.3 m | 313.7 m | 433.0 m | 1.8 bn | SEC (XBRL)· 26 Feb 2026verified |
| Total assets | 6.9 bn | 7.3 bn | 8.4 bn | 8.9 bn | 9.3 bn | 10.5 bn | SEC (XBRL)· 26 Feb 2026verified |
| Accounts payable | 15.7 m | 22.2 m | 28.6 m | 23.1 m | 44.0 m | 42.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Long-term debt | 986.7 m | 987.9 m | 989.2 m | 990.5 m | 992.0 m | 993.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Current liabilities | 330.9 m | 338.7 m | 372.7 m | 455.8 m | 552.0 m | 746.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Total liabilities | 1.5 bn | 1.5 bn | 1.5 bn | 1.6 bn | 1.7 bn | 2.2 bn | SEC (XBRL)· 26 Feb 2026verified |
| Equity | 5.4 bn | 5.7 bn † | 6.9 bn | 7.3 bn | 7.6 bn | 8.4 bn | SEC (XBRL)· 26 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 486.1 m | 469.7 m | 478.7 m | 490.0 m | 393.0 m | 430.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Capex | 0 | 123.7 m | 35.2 m | 118.0 m | 579.0 m | 307.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Free cash flow | 486.1 m ≈ | 346.0 m ≈ | 443.5 m ≈ | 372.0 m ≈ | -186.0 m ≈ | 123.0 m ≈ | SEC (XBRL)· 26 Feb 2026derived |
| Investing cash flow | -464.2 m | -381.3 m | -69.1 m | -239.0 m | -913.0 m | -2.8 bn | SEC (XBRL)· 26 Feb 2026verified |
| Financing cash flow | 2.7 bn | -15.7 m | 734.0 m | -4.0 m | -14.0 m | -559.0 m | SEC (XBRL)· 26 Feb 2026verified |
| Share repurchases | — | — | — | 0 | 0 | 500.0 m | SEC (XBRL)· 26 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 50 / 100
A scoring methodology on indicators and valuation, not investment advice.
(margin_of_safety <= -0.25 & agreement in ['high', 'medium'])
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 13.1 bn USD
Key indicators
Coverage and freshness
Score by group
- Valuation25
- Returns100
- Quality50
- Balance sheet71
- Growth50
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 7.96 – 27.83 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)17.40 – 27.83 (Mid 21.42)WACC 9.0% · starting FCFF 444.5 m USD · terminal value share of EV 75%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: starting growth implied by the price (fading linearly to terminal growth, everything else fixed): 34.1%
- Peers: EV/EBITDA15.42 – 25.14 (Mid 19.88)17 companies used · median multiple 15.2x · quartiles 12.0x – 19.0xBR, CBZ, CPAY, EBAY, FICO, FIS, GPN, HQY, MELI, MSCI, PAYS, PHR, PSFE, PYPL, RBA, UBER, WEX
- Peers: P/E7.96 – 14.85 (Mid 9.18)21 companies used · median multiple 20.9x · quartiles 18.1x – 33.9xACN, BR, CASS, CBZ, CPAY, EBAY, FICO, FIS, FISV, GRAB, HQY, MA, MELI, MSCI, PAYS, PYPL, RBA, RSSS, TNET, UBER, WEX
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 50/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 2.0% | 23 (vs peers) | 11% |
| Net margin · Quality | 4.9% | 46 (vs peers) | 7% |
| FCF conversion · Quality | 235.8% | 100 (on a fixed band) | 7% |
| Revenue CAGR 3Y · Growth | 14.2% | 100 (on a fixed band) | 9% |
| EPS CAGR 3Y · Growth | -72.2% | 0 (on a fixed band) | 9% |
| Net debt / EBITDA · Balance sheet | 0.9x | 70 (vs peers) | 11% |
| Interest coverage · Balance sheet | 7.3x | 89 (on a fixed band) | 7% |
| Current ratio · Balance sheet | 1.3x | 43 (on a fixed band) | 4% |
| P/E (TTM) · Valuation | 74.3x | 19 (vs peers) | 11% |
| EV/EBITDA · Valuation | 24.4x | 18 (vs peers) | 11% |
| FCF yield · Valuation | 3.2% | 40 (on a fixed band) | 9% |
| Shareholder yield (distributions) · Returns | 8.0% | 100 (on a fixed band) | 7% |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet71/100 · 3/3 factors with a value
- Growth50/100 · 2/2 factors with a value
- Quality50/100 · 3/3 factors with a value
- Returns· partial100/100 · 1/2 factors with a value
- Valuation25/100 · 3/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
CoStar Group, Inc. (CSGP). Latest full fiscal year: 2025; data up to 2026-09-30.
Figures computed from the financial statements: revenue 3.2 bn USD in 2025; YoY growth 18.7%; net margin 4.9%; ROE 2.2%; net debt/EBITDA 0.9x.
The estimated value range is 15.42–25.14 USD per share (median of 3 methods, agreement: medium); assumptions are illustrative. Against the central value of 19.88 USD, the price of 32.58 USD leaves a potential of -39.0% (value / price − 1) and a margin of safety of -63.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 50/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: returns. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 235.8%
- Revenue CAGR 3Y: 14.2%
- Net debt / EBITDA: 0.9x
- Interest coverage: 7.3x
- Shareholder yield (distributions): 8.0%
What contradicts it
- ROIC: 2.0%
- EPS CAGR 3Y: -72.2%
- P/E (TTM): 74.3x
- EV/EBITDA: 24.4x
- The price is above the estimated value range
Not assessed (insufficient data or a ratio without meaning): Payout ratio (FCF).
Versus the vertical median
Services-Business Services, NEC (SIC 7389) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BABAAlibaba Group Holding Ltd | 195.6 bn | 131.6 | 10.3% | 10.1% | +8.1% | −33% / +41% |
| UBERUber Technologies, Inc | 136.0 bn | 14.6 | 38.4% | 17.3% | +18.3% | −24% / +18% |
| MELIMercadoLibre, Inc. | 84.3 bn | 45.2 | 27.5% | 5.3% | +39.1% | −20% / +3% |
| EBAYeBay Inc. | 52.1 bn | 25.8 | 46.6% | 16.9% | +7.9% | +43% / +189% |
| PYPLPayPal Holdings, Inc. | 48.4 bn | 11.1 | 23.8% | 13.8% | +4.3% | −7% / +1% |
| MSCIMsci Inc. | 45.7 bn | 33.9 | — | 40.3% | +9.7% | +13% / +23% |
| FISVFiserv, Inc. | 31.1 bn | 11.2 | 10.7% | 13.4% | +3.6% | −5% / −55% |
| CPAYCorpay, Inc | 26.7 bn | 24.7 | 30.5% | 22.7% | +13.9% | +37% / +69% |
| GPNGlobal Payments Inc. | 25.9 bn | — | -4.1% | -9.1% | −0.4% | +29% / −16% |
| BRBroadridge Financial Solutions, Inc. | 20.8 bn | 20.3 | 40.2% | 13.9% | +8.5% | −19% / −5% |
| FISFidelity National Information Services, Inc. | 20.1 bn | 6.0 | 22.3% | 27.6% | +5.4% | −41% / −34% |
| RBARB Global, Inc | 17.3 bn | 39.1 | 8.8% | 10.0% | +7.2% | −5% / +46% |
| FICOFair Isaac Corp | 15.6 bn | 20.9 | — | 34.1% | +15.9% | −60% / −33% |
| CSGPCoStar Group, Inc. | 13.1 bn | 74.3 | 2.2% | 4.9% | +18.7% | −53% / −58% |
| HQYHealthequity, Inc. | 9.0 bn | 39.4 | 11.4% | 17.4% | +9.5% | +3% / +62% |
| WEXWEX Inc. | 5.9 bn | 15.5 | 35.6% | 14.0% | +1.2% | +21% / +2% |
| ALITAlight, Inc. | 5.7 bn | — | -67.9% | -46.0% | −3.0% | −72% / −92% |
| XMTRXometry, Inc. | 5.2 bn | — | -3.9% | -2.0% | +25.9% | +94% / +364% |
| TNETTrinet Group, Inc. | 3.1 bn | 18.1 | 141.6% | 3.6% | −0.9% | +14% / −42% |
| CBZCBIZ, Inc. | 3.0 bn | 25.8 | 6.8% | 4.6% | +52.1% | −0% / +6% |
| FLYWFlywire Corporation | 2.7 bn | 83.8 | 4.2% | 4.8% | +26.6% | +56% / −6% |
| AHGAkso Health Group | 2.2 bn | 133.0 | -9.8% | -135.0% | −6.4% | −11% / +56% |
| PAYSPaysign, Inc. | 863.9 m | 58.4 | 30.8% | 15.7% | +40.5% | +194% / +551% |
| PHRPhreesia, Inc. | 818.1 m | 77.1 | 3.1% | 2.1% | +14.5% | −36% / −14% |
| CASSCass Information Systems, Inc. | 704.7 m | 19.8 | 15.1% | 18.5% | +5.3% | +31% / +33% |
1- and 3-year price returns: for CSGP from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 21.43 Total return -34% · Per year -34% | 37.72 Total return 16% · Per year 16% | 56.60 Total return 74% · Per year 74% |
| 3 years | 25.03 Total return -23% · Per year -8% | 49.16 Total return 51% · Per year 15% | 80.37 Total return 147% · Per year 35% |
| 5 years | 29.24 Total return -10% · Per year -2% | 64.07 Total return 97% · Per year 14% | 114.12 Total return 250% · Per year 28% |
- Exit P/E± 12.29
- Net margin± 8.60
- Annual revenue growth± 6.46
- Annual dilution± 0.72
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 10-Q (28 Oct 2026), 8-K (27 Oct 2026 · results).
In brief
CoStar Group operates online real estate marketplaces, information, analytics and 3D digital twin technology, serving commercial and residential customers. In the second quarter of 2026 revenue grew 18% 3, and the company says it marks a profitability inflection, which matters now for investors tracking the shift from growth to efficiency.
SWOT
Strengths
- The commercial real estate database is among the most comprehensive in the industry and supports multiple services and products 1.
- The subscription model, with stable renewals, provides relatively predictable revenue 12.
- Second-quarter results show strong profitability growth compared with the prior year 3.
Weaknesses
- Transactional revenue has grown as a share of the mix, which may make revenue less predictable than subscription income 2.
- High development and marketing spending could weigh on margins if new services do not achieve adoption 1.
- Financial results have fluctuated in the past, and prior net losses show sensitivity of profit 3.
Opportunities
Risks
- Dependence on subscription renewalsmedium
If clients do not renew or cancel contracts, revenue could decline, especially in difficult economic periods 1.
- AI-driven competitionhigh
New AI-based platforms could attract users and reduce the role of the company's marketplaces 1.
- Acquisition integrationmedium
If integration of Matterport and Domain runs into difficulties, anticipated benefits could be delayed 1.
- Indebtednessmedium
Significant debt could reduce financial flexibility and raise borrowing costs if ratings were lowered 1.
- Cybersecurity and regulationhigh
Cyberattacks and privacy breaches could harm reputation and invite penalties 1.
Investment thesis
What would need to be true (bull case)
- If profitability holds after the second-quarter inflection, the company could have more room to invest 3.
- Rapid adoption of AI features in consumer products could support growth and user retention 3.
- The large database and recurring subscriptions could make the company hard to replace for professional clients 1.
What to watch
- Delivery of the 2026 Adjusted EBITDA guidanceQ4 2026
- Trend in net new bookings and contract renewal rateQ3 2026
- Impact of AI launches on traffic and conversionnext 10-K
- Progress integrating Domain and the residential platforms2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 29 Jul 2026; since then the company filed 10-Q (28 Oct 2026), 8-K (27 Oct 2026 · results).
The business
CoStar Group is a provider of online real estate marketplaces, information, analytics and 3D digital twin technology in the property markets 1. Its stated mission is to digitize the world's real estate 1. The company owns and operates leading online marketplaces in the U.S., Australia, Europe, Canada and Asia-Pacific, based on unique visitors and site visits per month 1. Its revenue model is largely subscription-based, which made up 89% of revenue in the second quarter of 2026 2.
The commercial real estate database is central to the strategy: the company has spent more than 35 years building and acquiring real estate data 1. This database powers its information services, analytics and marketplaces, supported by the largest commercial real estate research department in the industry 1. AI is integrated into products and internal processes to improve research efficiency and data quality 1.
Recent acquisitions expanded the group: Visual Lease, Matterport and Domain were acquired in November 2024, February 2025 and August 2025 respectively 1. The company aims to integrate these assets into its CoStar network, and its 2026 priorities include integrating residential platforms, launching AI features and expanding internationally 1.
Segments
Market context
The market the company serves is described as highly competitive and rapidly changing, as consumer behaviour and technology evolve 1. The company estimates its total addressable market at 100 billion dollars 3. The real estate sector is cyclical, and quarterly results can fluctuate with seasonality and economic conditions 1.
Demand depends on the activity of agents, investors and tenants, and transaction volumes and interest rates influence customer budgets 1. International markets are an expansion focus, including Spain, France and Australia 1.
Trends
- AI in productstailwind
The launch of Homes AI and Apartments AI, with intensive AI sessions, suggests AI could deepen user engagement and lead conversion 3. The company is extending these capabilities to CoStar and LoopNet 1.
- International expansionmixed
The LoopNet launch in Spain and France and CoStar's entry into France could open new markets, but acquisition integration and associated costs could slow gains 13.
- Cyclicality of property marketsheadwind
Sales may be affected by economic conditions, interest rates and seasonality, which can change quarterly revenue 1.
- Cost efficiencytailwind
The company says it reduced its projected expense base and has set Adjusted EBITDA targets for 2028 and 2030 3, which could support margins.
Competitive position
The company notes competitors may have greater name recognition, larger customer bases, or superior marketing and data resources 1. The risk also includes AI-powered platforms that provide real estate data and content without sending users to the company's marketplaces 1.
Competition for advertisers could pressure pricing and margins, especially if rivals with larger marketing budgets enter 1. The company explicitly flags that generative AI may lower barriers to entry for new competitors 1.
- AI-powered real estate data platforms
Platforms that provide access to real estate data and content without directing users to the company's marketplaces, cited as a competitive risk 1.
- Competitors with greater brand recognition
Rivals that may have larger customer bases and stronger marketing resources, according to the annual report 1.
- Local listing and marketplace operators in Australia and Europe
Regional players competing in the listing markets where the company is expanding, described generically in the sources 1.
- Providers of benchmarking and lease management services
Competitors in analytics and SaaS for lease management and hospitality benchmarking, mentioned generically in the sources 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
Loading the links…
News & filings
In the press
- CoStar’s Revenue Growth Fell 9% in Two Quarters. Here’s What It Isn’t SayingYahoo Finance — News · 19 Sept 2026 · EN
- CoStar (CSGP): Residential Strategy Unchanged Despite Persistent Market SkepticismYahoo Finance — News · 16 Sept 2026 · EN
- Is CoStar Group Stock Underperforming the S&P 500?Yahoo Finance — News · 14 Sept 2026 · EN
The latest news item in our archive is from 19 Sept 2026; the newest SEC filing is from 28 Oct 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.
SEC filings
- Quarterly report28 Oct 2026
- Current report27 Oct 2026Material agreement · Results of operations · Regulation FD disclosure · Financial statements and exhibits
- Current report21 Aug 2026Regulation FD disclosure · Financial statements and exhibits
- Quarterly report29 Jul 2026
- Current report28 Jul 2026Results of operations · Financial statements and exhibits
- Current report13 Jul 2026Departure or appointment of officers · Regulation FD disclosure · Financial statements and exhibits
- Current report25 Jun 2026Departure or appointment of officers · Shareholder vote · Regulation FD disclosure · Financial statements and exhibits
- Current report29 May 2026Material agreement · Regulation FD disclosure · Financial statements and exhibits
- Proxy statement30 Apr 2026
- Quarterly report29 Apr 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / CoStar Group, Inc. · 26 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / CoStar Group, Inc. · 29 Jul 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / CoStar Group, Inc. · 28 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.