CoStar reported a strong Q4 2025, beating expectations and raising guidance, driven by strong performance in its commercial and residential segments. Management highlighted significant competitive wins against Zillow and Redfin in the multifamily rental market, as well as the collapse of UK competitor EG Radius. The company is entering a phase of significant EBITDA expansion as it scales the Homes.com business and leverages AI across its platforms. CoStar beat Q4 and FY2025 revenue expectations, with record net new bookings and strong growth across commercial and residential segments.
CoStar reported a strong Q4 2025, beating expectations and raising guidance, driven by strong performance in its commercial and residential segments. Management highlighted significant competitive wins against Zillow and Redfin in the multifamily rental market, as well as the collapse of UK competitor EG Radius. The company is entering a phase of significant EBITDA expansion as it scales the Homes.com business and leverages AI across its platforms. CoStar beat Q4 and FY2025 revenue expectations, with record net new bookings and strong growth across commercial and residential segments.
Management highlights Homes AI as a transformative product driving engagement and lead growth, leveraging proprietary data as a competitive moat. They plan to deploy AI across all platforms and use it to cut costs and enhance products, positioning CoStar as a clear winner in…
Management expresses strong confidence in market recovery, product innovation, and competitive positioning, repeatedly emphasizing record sales, superior data, and a clear path to profitability.
CoStar sees accelerating growth as CRE market recovers. Management expresses strong confidence in market recovery, product innovation, and competitive positioning, repeatedly emphasizing record sales, superior data, and a clear path to profitability.
Guidance · revenue to $3.8B
Management highlights Homes AI as a transformative product driving engagement and lead growth, leveraging proprietary data as a competitive moat. They plan to deploy AI across all platforms and use it to cut costs and enhance products, positioning CoStar as a clear winner in the AI era.
CoStar sees accelerating growth as CRE market recovers. Management expresses strong confidence in market recovery, product innovation, and competitive positioning, repeatedly emphasizing record sales, superior data, and a clear path to profitability.
CapEx for 2026 is expected to range from $175 to $225 million, primarily to complete the Richmond campus in Q2. The company expects accelerated cash flow in 2027 and 2028, with potential capital release from sale-leasebacks of its buildings.
Management expresses strong confidence in market recovery, product innovation, and competitive positioning, repeatedly emphasizing record sales, superior data, and a clear path to profitability.
“We signed approximately 1,200 of them to apartments at just over about $1,000 a month, and we didn't have to acquire anything or end up in a legal thing.”
“A primary UK competitor, EG Radius, shut down their operations in December 2025. We have onboarded 166 of their reported 150 clients, so I think we got most of them.”
“According to Comscore, visits to Apartments.com network were up 14% year-over-year in January. Our growth is in contrast with Comscore's data that showed that Zillow's rental traffic was down 48% year-over-year.”
| 지표 | 기간 | 범위 | 중간값 | 상태 |
|---|---|---|---|---|
| Capex | FY2026 | $0.175B–$0.225B | $0.2B | GUIDED |
| Op margin | FY2026 | 20%–21% | 20.5% | MAINTAINED |
| Revenue | FY2026 | $3.78B–$3.82B | $3.8B | MAINTAINED |
| Revenue | FY2026 Q1 | $0.89B–$0.9B | $0.895B | GUIDED |
| 제시 시점 | 지표 | 목표 기간 | 가이던스 | 실제 | 결과 |
|---|---|---|---|---|---|
| FY2026 Q1 | EPS | FY2026 Q2 | $0.27–$0.30 | $0.32 | Met / beat |
| FY2026 Q1 | Revenue | FY2026 Q2 | $0.922B–$0.932B | $0.925B | Met / beat |
CoStar's new Homes AI product relies on Microsoft's Azure OpenAI models, indicating a deepening relationship and potential for increased cloud spend with Microsoft.
“This transformative home search experience is powered by Microsoft Azure OpenAI Advanced AI Models, integrated with several other large and small models, including some models from AWS, as well as our own proprietary AI model.”
… end quote. In the first week post-release, Homes.ai is having a huge impact on user engagement. Site visitors that hit the AI mode are on the site for 16 minutes, 50 seconds, as opposed to four minutes, 24 seconds for non-users. AI users do nearly four times as many searches, favorite seven times as many properties, look at four times as many properties, and submit seven times as many email leads. This transformative home search experience is powered by Microsoft Azure OpenAI Advanced AI Models, integrated with several other large and small models, including some models from AWS, as well as our own proprietary AI model. Using multiple models gives us tremendous flexibility and keeps token costs down. Using dynamic example injection, queries that originally consumed 2,000 tokens have been optimized to just 20 tokens. Unlike other AI implementations, Homes AI data remains entirely within the homes.com proprietary ecosystem and is never used to train or refine external AI models, giving us a real advantage as we build out the best-in-class real estate AI. While we're launching the capability of Homes.com, we plan to deploy it to Apartments.com, CoStar, LoopNet, Land, Biz by …
CoStar sees REA Group as a peer using its same portal model, but in a different market (Australia), where CoStar is investing through its Domain acquisition.
“The Homes.com business model is the global best practice for real estate portals, and it's utilized by REA Group, EDLista, Rightmove, Scout24, Hemnet, Domain, and many, many others.”
… and climbed to an excellent NPS score of 42 in less than two years, and it's still improving. Our You're Listing Your Lead principle in our Market at the Home and Win More Listings model is now clearly resonating with agents. Homes.com is the only real estate portal in the United States whose core business model is to use the power of the Internet to help real estate agents market their listings to potential homebuyers. The Homes.com business model is the global best practice for real estate portals, and it's utilized by REA Group, EDLista, Rightmove, Scout24, Hemnet, Domain, and many, many others. If you normalize these portals' financials from their home countries to the U.S. on a GDP basis, they would be generating $4 to $21 billion in revenue in the U.S. and $1.5 to $11 billion of EBITDA in the U.S., which is orders of magnitude more than anyone has ever generated in the United States. We believe we can generate $4.75 billion of revenue and $2.85 billion of EBITDA with Homes.com inside the next 13 years. Apartments.com has a very similar business model to Homes.com, and grew revenue initially at a measured pace, but now over 13 years has reached $1.2 billion of revenue run …
Apartments.com saw a significant decline in competitor's brand awareness and traffic, and is gaining properties (nearly 14,000) at a record pace, partly due to Zillow's rental traffic down 48% YoY. — This indicates a major shift in the multifamily rental market, with CoStar directly capitalizing on the weakness of its main competitors.
“Comscore's data that showed that Zillow's rental traffic was down 48% year-over-year, and Zillow's partner Redfin Rentals was down 46% year-over-year.”
… Super Bowl ad, we've begun to co-brand ApartmentsWithHomes.com, the place to find a place. The campaign featuring Jeff Goldblum and Heidi Gardner, who have excellent chemistry together, kicked off with a Super Bowl, which had a total audience of 125 million and the highest peak viewership in U.S. media history. According to Comscore, visits to Apartments.com network were up 14% year-over-year in January. Our growth is in contrast with Comscore's data that showed that Zillow's rental traffic was down 48% year-over-year, and Zillow's partner Redfin Rentals was down 46% year-over-year. Zillow's expanded rental network, Zillow Realtor Redfin, was down 29% year-over-year in January. Zillow's rental revenue fell sequentially in the fourth quarter compared to the third quarter as the rental traffic was falling. With traffic falling, our closest competitor is now doing something called shotgunning leads. That's encouraging potential renters to contact not just the person you intend to contact, but all the competitor's properties. And while this increases and distorts the number of pure leads, it significantly lowers the quality of the leads and therefore hurts ROI and lead-to-lease …
Apartments.com saw a significant decline in competitor's brand awareness and traffic, and is gaining properties (nearly 14,000) at a record pace, partly due to Zillow's rental traffic down 48% YoY. — This indicates a major shift in the multifamily rental market, with CoStar directly capitalizing on the weakness of its main competitors.
“We won many of these new properties from rent.com after Redfin, quote unquote, sold those clients to Zillow. We estimate that Redfin had about 4.5 thousand apartment properties marketing on their platform that were not already on”
… by apartment seekers with our 67% brand awareness in December, up four points from Q3 25. While in contrast, the second rental competitor fell five points to 36%. We were thus able to accelerate our paying property count significantly in 25 by adding almost 14,000 properties to our network to end the year at 89,275 properties. That's the largest number of properties we've ever added in a year. We won many of these new properties from rent.com after Redfin, quote unquote, sold those clients to Zillow. We estimate that Redfin had about 4.5 thousand apartment properties marketing on their platform that were not already on apartments.com. We signed approximately 1,200 of them to apartments at just over about $1,000 a month, and we didn't have to acquire anything or end up in a legal thing. This increase in properties coupled with our 99% monthly renewal rate and 92% and 92 NPS confirms that property owners and managers understand the value of the apartments.com site built specifically for the apartment industry. This is further reinforced by our number one ranking 82% of the time for the core 10,000 multifamily SEO keywords and the most comprehensive SEM program in the …
CoStar's investment in Domain is paying off, with record audience and strong revenue growth as they integrate the platform into their global ecosystem.
… increase. In just four months, this resulted in a total of 1.7 million in annualized net new bookings. Our domain residential platform in Australia, in Q4, our residential marketplace domain had revenue of $73 million, which was well ahead of our expectations. Domain residential marketplace is profitable, delivering approximately 28% margins in 25. Domain will become a part of homes.com within a year to 18 months. In the fourth quarter, we had exceptional audience momentum, resulting in domain's strongest audience quarter on record. with an average of 8 million monthly unique audience. In October, Domain delivered a record residential audience of 9 million, up from 6.6 million in July, the month prior to our acquisition. Domain added six times more audience volume than its nearest competitor in Q4-25 compared to Q3-25. We did this through strategic increases in marketing investment, improved media mix, and leveraging Homes.com technology capabilities to deliver improvements in product speed, latency, and user experience. These results highlight our ability to realize global synergies that deliver a competitive advantage. As our audience grew, quality remains a key …
CoStar is aggressively cutting costs at Matterport and preparing to scale the business with new products and sales hires to accelerate revenue growth.
… In 2026, we delivered over 400,000 leads and inquiries, and 633 million total listing impressions. We are investing in Matterport Salesforce in 26, growing the team from 30 to 90 over the course of the year. This will enable us to expand our customer base, accelerate revenue growth in a wide range of segments, including residential, commercial, architecture, construction, insurance, and manufacturing. We eliminated approximately 120 million in cash and equity costs from the business in 25, mostly from duplicative public company costs. The market-leading Pro3 camera has been the workhorse for our customers for the past few years. It's a wonderful camera. We will make it more accessible going forward for a wide range of customers by introducing a subscription-based pricing model in the future, which is a little bit more of a razor blade model. We're currently hard at work on developing the next generation camera, the Pro4, which we expect will launch next year. The very popular defurnish feature launched last year, which allows customers to remove objects such as furniture and clutter from spaces. We are developing the furnish feature, which uses generative AI to virtually stage or …
CoStar's UK business is growing rapidly, gaining significant market share against competitors like Zoopla and Rightmove.
… and will allow the business to be more strongly focused on the key opportunities we see in commercial and residential in Australia. We are actively working on integrating the main residential platform into Homes.com and the Homes AI software platform. Doing so is essential to improving margins by limiting duplicative development efforts and creating a cost-efficient competitive edge in Australia. In the UK, we had an excellent year on the market. We ended 25 with our 20th consecutive month of positive net new bookings. We now have about the same number of listings as the number two player in the United Kingdom, and we have more new home listings than the number one player, continuing to gain share there. We have achieved huge growth since our acquisition two years ago, growing sales leads by 94%, properties on site by 47%, increasing brand awareness by 54%, increasing time on site by 77%. Importing best practices from homes.com on the market has dramatically improved the consumer experience with list and map view, along with rich map layers, property alerts, that have become our largest source of leads. We plan to integrate on the market into homes.com software platform …
CoStar acquired 1,200 of Redfin's apartment properties post-sale to Zillow, stealing key clients and market share at a low cost, indicating successful competitive disruption.
… property count significantly in 25 by adding almost 14,000 properties to our network to end the year at 89,275 properties. That's the largest number of properties we've ever added in a year. We won many of these new properties from rent.com after Redfin, quote unquote, sold those clients to Zillow. We estimate that Redfin had about 4.5 thousand apartment properties marketing on their platform that were not already on apartments.com. We signed approximately 1,200 of them to apartments at just over about $1,000 a month, and we didn't have to acquire anything or end up in a legal thing. This increase in properties coupled with our 99% monthly renewal rate and 92% and 92 NPS confirms that property owners and managers understand the value of the apartments.com site built specifically for the apartment industry. This is further reinforced by our number one ranking 82% of the time for the core 10,000 multifamily SEO keywords and the most comprehensive SEM program in the industry. In 2025, our marketing campaign delivered over 12 billion media impressions, reaching 90% of U.S. households. As you saw in our Super Bowl ad, we've begun to co-brand ApartmentsWithHomes.com, the place to find …