10-Q – 2025-10-29 – csgp-20250930.htm

Development, Investments, and Expansion
We plan to continue to invest in our business and our services, evaluate strategic growth opportunities, and pursue our key priorities as described below. We are committed to supporting, improving, and enhancing our information, analytics, and online marketplace solutions, including expanding and improving our offerings for our client base and site users, including property owners, property managers, buyers, commercial tenants, and residential renters and buyers. We expect to continue our software development efforts to improve existing services, introduce new services, integrate and cross-sell services, integrate recently completed acquisitions, and expand and develop supporting technologies for our research, sales, and marketing organizations. We may reevaluate our priorities as economic conditions continue to evolve.
Our key priorities for the remainder of 2025 currently include:
• Continuing to invest in and develop Homes.com. In 2024, we launched Homes.com memberships giving real estate agents the ability to advertise and promote their listings on our website featuring original, media rich content. We plan to continue developing our dedicated Homes.com sales force; raising unaided brand awareness of the site through targeted marketing campaigns; and focusing on attracting recurring visitors to the site. In addition, we plan to develop and market additional products and improve the site's functionality, including AI-enabled search technology. We plan
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to continue integrating Domain within CoStar Group in preparation to eventually launch Homes.com in the Australian market.
• Integrating Matterport's existing AI, computer vision, and machine learning across our products to build features that will enhance user experience to drive better engagement with our existing products and use the capability from the Matterport Acquisition to increase development of AI, computer vision, and machine learning to improve property analytics, optimize operational efficiency, and broaden the use of digital twin technologies throughout the real estate industry. We also intend to integrate Matterport's equipment and services into new market offerings to customers.
• Continuing to expand our CoStar and LoopNet products internationally. We continue to increase our international research team to collect data in the Australian and European markets. We have launched our LoopNet branded advertising products in Spain and France and continue to expand our footprint of commercial listings in these markets. We plan to continue integrating Domain within CoStar Group and to build the technology necessary to launch CoStar and LoopNet into the Australian market.
• Using the aggregate and anonymized data from leases within CoStar Real Estate Manager and Visual Lease to create a trusted source of pricing and occupancy information for Commercial Real Estate. We also plan to begin the integration of the CoStar Real Estate Manager and Visual Lease products.
We expect our investment in the sales force will increase our selling and marketing expenses (excluding customer base amortization) for the year ending December 31, 2025 compared to the year ended December 31, 2024. We intend to continue to assess the need for additional investments in our business in order to develop and distribute new services and functionality within our current platform or expand the reach of, or otherwise improve, our current service offerings. Any future product development or expansion of services, combination and coordination of services, or elimination of services or corporate expansion, development, or restructuring efforts could reduce our profitability and increase our capital expenditures. Any new investments, changes to our service offerings, or other unforeseen events could cause us to experience reduced revenues or generate losses and negative cash flow from operations in the future. Any development efforts must comply with our credit facility, which contains restrictive covenants that restrict our operations and use of our cash flow and may prevent us from taking certain actions that we believe could increase our profitability or otherwise enhance our business.

Non-GAAP Financial Measures
We prepare and publicly release quarterly unaudited financial statements prepared in accordance with GAAP. We also disclose and discuss certain non-GAAP financial measures in our public releases, investor conference calls, and filings with the SEC. The non-GAAP financial measures that we may disclose include EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share. EBITDA is our net income (loss) before interest income or expense, net, other expense or income, net, loss on debt extinguishment, income taxes, depreciation, and amortization. We typically disclose EBITDA on a consolidated and an operating segment basis in our earnings releases, investor conference calls, and filings with the SEC. Adjusted EBITDA is different from EBITDA because we further adjust EBITDA for stock-based compensation expense; acquisition- and integration-related costs; restructuring and related costs, including certain advisory fees; and settlements and impairments incurred outside our ordinary course of business. Adjusted EBITDA margin represents adjusted EBITDA divided by revenues for the period. Non-GAAP net income is determined by adjusting our net income (loss) for stock-based compensation expense, acquisition- and integration-related costs, including gains or losses on equity investments acquired in prospective targets and related to deal-contingent financial instruments; restructuring costs, settlement and impairment costs incurred outside our ordinary course of business, and loss on debt extinguishment, as well as amortization of acquired intangible assets and other related costs, and then subtracting an assumed provision for income taxes. Non-GAAP net income per diluted share is a non-GAAP financial measure that represents non-GAAP net income divided by the number of diluted shares outstanding for the period used in the calculation of GAAP net income per diluted share.
We may disclose adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share on a consolidated basis in our earnings releases, investor conference calls, and filings with the SEC. The non-GAAP financial measures that we use may not be comparable to similarly titled measures reported by other companies. Also, in the future, we may disclose different non-GAAP financial measures in order to help our investors meaningfully evaluate and compare our results of operations to our previously reported results of operations or to those of other companies in our industry.
We view EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share as operating performance measures. We believe that the most directly comparable GAAP financial measure to EBITDA, adjusted EBITDA, and non-GAAP net income is net income (loss). We believe the most directly comparable GAAP financial measure to non-GAAP net income per diluted share and adjusted EBITDA margin are net income (loss) per diluted share and net income (loss) divided by revenues, respectively. In calculating EBITDA, adjusted EBITDA, adjusted EBITDA
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margin, non-GAAP net income, and non-GAAP net income per diluted share, we exclude from net income (loss) the financial items that we believe should be separately identified to provide additional analysis of the financial components of the day-to-day operation of our business. We have outlined below the type and scope of these exclusions and the material limitations on the use of these non-GAAP financial measures as a result of these exclusions. EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share are not measurements of financial performance under GAAP and should not be considered as a measure of liquidity, as an alternative to net income (loss), or as an indicator of any other measure of performance derived in accordance with GAAP. Investors and potential investors in our securities should not rely on EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share as a substitute for any GAAP financial measure, including net income (loss) and net income (loss) per diluted share. In addition, we urge investors and potential investors in our securities to carefully review the GAAP financial information included as part of our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q that are filed with the SEC, as well as our quarterly earnings releases, and compare the GAAP financial information with our EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share.
EBITDA, adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share may be used by management to internally measure our operating and management performance and may be used by investors as supplemental financial measures to evaluate the performance of our business. We believe that these non-GAAP measures, when viewed with our GAAP results and accompanying reconciliations, provide additional information to investors that is useful to understand the factors and trends affecting our business without the impact of certain acquisition-related items. We have spent more than 30 years building our database of commercial real estate information and expanding our markets and services partially through acquisitions of complementary businesses. Due to these acquisitions, our net income (loss) has included significant charges for amortization of acquired intangible assets; depreciation and other amortization; acquisition- and integration-related costs, including gains or losses on equity investments acquired in prospective targets and related to deal-contingent financial instruments; restructuring and related costs, including certain advisory fees; and loss on debt extinguishment. Adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, and non-GAAP net income per diluted share exclude these charges and provide meaningful information about the operating performance of our business, apart from charges for amortization of acquired intangible assets; depreciation and other amortization; acquisition- and integration-related costs; restructuring and related costs, including certain advisory fees; settlement and impairment costs incurred outside our ordinary course of business. We believe the disclosure of non-GAAP measures can help investors meaningfully evaluate and compare our performance from quarter to quarter and from year to year without the impact of these items. We also believe the non-GAAP measures we disclose are measures of our ongoing operating performance because the isolation of non-cash charges, such as amortization and depreciation, and other items, such as interest income or expense, net; other expense or income, net; income taxes; stock-based compensation expenses; acquisition- and integration-related costs; restructuring and related costs, including certain advisory fees; loss on debt extinguishment; and settlement and impairment costs incurred outside our ordinary course of business, provides additional information about our cost structure, and, over time, helps track our operating progress. In addition, investors, securities analysts, and others have regularly relied on EBITDA and may rely on adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, or non-GAAP net income per diluted share to provide a financial measure by which to compare our operating performance against that of other companies in our industry.
Set forth below are descriptions of financial items that have been excluded from net income (loss) to calculate EBITDA and the material limitations associated with using this non-GAAP financial measure as compared to net income (loss):
• Amortization of acquired intangible assets in cost of revenues may be useful for investors to consider because it represents the diminishing value of any acquired trade names and other intangible assets and the use of our acquired technology, which is one of the sources of information for our database of commercial real estate information. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.
• Amortization of acquired intangible assets in operating expenses may be useful for investors to consider because it represents the estimated attrition of our acquired customer base. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.
• Depreciation and other amortization may be useful for investors to consider because they generally represent the wear and tear on our property and equipment used in our operations. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.
• The amount of interest income or expense, net and other expense or income, net we generate and incur may be useful for investors to consider and may result in current cash inflows and outflows. However, we do not consider the amount of interest income or expense, net and other expense or income, net to be a representative component of the day-to-day operating performance of our business.
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• Income tax expense may be useful for investors to consider because it generally represents the taxes that may be payable for the period and the change in deferred income taxes during the period and may reduce the amount of funds otherwise available for use in our business. However, we do not consider the amount of income tax expense to be a representative component of the day-to-day operating performance of our business.
• The amount of loss on our debt extinguishment may be useful for investors to consider because it generally represents losses from the early extinguishment of debt. However, we do not consider the amount of the loss on debt extinguishment to be a representative component of the day-to-day operating performance of our business.
Set forth below are descriptions of additional financial items that have been excluded from EBITDA to calculate adjusted EBITDA and the material limitations associated with using this non-GAAP financial measure as compared to net income (loss):
• Stock-based compensation expense may be useful for investors to consider because it represents a portion of the compensation of our employees and executives. Determining the fair value of the stock-based instruments involves a high degree of judgment and estimation and the expenses recorded may bear little resemblance to the actual value realized upon the future exercise or termination of the related stock-based awards. Therefore, we believe it is useful to exclude stock-based compensation in order to better understand the long-term performance of our core business.
• The amount of acquisition- and integration-related costs incurred may be useful for investors to consider because such costs generally represent professional service fees and direct expenses related to acquisitions. Because we do not acquire businesses on a predictable cycle, we do not consider the amount of acquisition- and integration-related costs to be a representative component of the day-to-day operating performance of our business.
• The amount of settlement and impairment costs incurred outside of our ordinary course of business may be useful for investors to consider because they generally represent gains or losses from the settlement of litigation matters, charges related to terminations of contracts or impairments of acquired intangible assets or other long-lived assets. We do not believe these charges necessarily reflect the current and ongoing cash charges related to our operating cost structure.
• The amount of restructuring and related costs, including certain advisory costs, incurred may be useful for investors to consider because they generally represent costs incurred in connection with changes to the structure of our operations, governance, offices and related properties, and suppliers or employees used to deliver services and include costs to terminate contracts, advisory fees and other professional services, and severance. Because we do not carry out restructuring activities on a predictable cycle, we do not consider the amount of restructuring-related costs to be a representative component of the day-to-day operating performance of our business.
The financial items that have been excluded from our net income to calculate non-GAAP net income and non-GAAP net income per diluted share are amortization of acquired intangible assets and other related costs, stock-based compensation, acquisition- and integration-related costs, including gains or losses on equity investments acquired in prospective targets and related to deal-contingent financial instruments; restructuring and related costs, and settlement and impairment costs incurred outside our ordinary course of business. These items are discussed above with respect to the calculation of adjusted EBITDA together with the material limitations associated with using non-GAAP financial measures as compared to net income (loss). In addition to these exclusions from net income, we subtract an assumed provision for income taxes to calculate non-GAAP net income. In both 2025 and 2024, we assume a 26.0% tax rate, which approximates our historical long-term statutory corporate tax rate, excluding the impact of discrete items.
Management compensates for the above-described limitations of using non-GAAP measures by using a non-GAAP measure only to supplement our GAAP results and to provide additional information that is useful to investors to understand the factors and trends affecting our business.
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Results of Operations
Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024
The following table compares our selected condensed consolidated results of operations for the three months ended September 30, 2025 and 2024 (in millions, except percentages):

Three Months Ended
September 30,
2025 2024 Increase (Decrease) ($) Increase (Decrease) (%)
Revenues:
CoStar $ 277.0  $ 256.9  $ 20.1  8  %
Information Services 41.3  33.0  8.3  25 
Multifamily 303.0  271.8  31.2  11 
LoopNet 79.3  70.9  8.4  12 
Residential 54.9  27.7  27.2  98 
Other Revenues
78.1  32.3  45.8  142 
Total revenues 833.6  692.6  141.0  20 
Cost of revenues 172.2  140.6  31.6  22 
Gross profit 661.4  552.0  109.4  20 
Operating expenses:  
Selling and marketing (excluding customer base amortization) 418.3  331.2  87.1  26 
Software development 105.4  81.0  24.4  30 
General and administrative 157.0  105.8  51.2  48 
Customer base amortization 31.8  10.3  21.5  209 
Total operating expenses 712.5  528.3  184.2  35 
Income (loss) from operations
(51.1) 23.7  (74.8) NM
Interest income, net
26.0  55.6  (29.6) (53)
Other expense, net (20.7) (1.6) (19.1) NM
Income (loss) before income taxes
(45.8) 77.7  (123.5) NM
Income tax expense (benefit)
(14.9) 24.7  (39.6) NM
Net income (loss)
$ (30.9) $ 53.0  $ (83.9) NM
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NM - Not meaningful

Revenues. Revenues increased $141 million, or 20%, to $834 million. The increase in our revenues included:
• an increase in Other revenues of $46 million, or 142%, primarily due to the Matterport Acquisition,
• an increase in Multifamily revenues of $31 million, or 11%, due to an increase in the number of properties listed on our network,
• an increase in Residential revenues of $27 million, or 98%, due to the Domain Acquisition and an increase in the number of Homes.com memberships,
• an increase in CoStar revenues of $20 million, or 8%, due to increased sales driven by inflation-based price increases on renewals and an increase in subscribers,
• an increase in LoopNet revenues of $8 million, or 12%, due to an increase in the number of listings, as well as an increase in the average price per listing, and
• an increase in Information Services revenues of $8 million, or 25%, primarily attributable to the Visual Lease Acquisition.
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Gross Profit and Cost of Revenues . Gross profit increased $109 million, or 20%, to $661 million, and the gross profit margin decreased from 80% to 79%. The increase in gross profit was due to higher revenues, partially offset by an increase in cost of revenues. Cost of revenues increased $32 million, or 22%, to $172 million and, as a percentage of revenues, increased from 20% to 21%. The increase in cost of revenues primarily included:
• an increase of $13 million in amortization expense for the acquired technology and trade names from the Matterport Acquisition and Domain Acquisition,
• an increase in $7 million in costs related to sales of Matterport capture equipment and services,
• an increase in personnel costs of $6 million related to additional headcount from the Matterport Acquisition and Domain Acquisition, and
• an increase in software and equipment costs of $4 million, primarily driven by web hosting costs.
Selling and Marketing Expenses (Excluding Customer Base Amortization) . Selling and marketing expenses increased $87 million, or 26%, to $418 million and, as a percentage of revenues, increased from 48% to 50%. The increase primarily included:
• an increase in personnel costs of $45 million primarily related to sales hiring and the sales force from the Matterport Acquisition and Domain Acquisition,
• an increase in commissions expense of $20 million related to increased sales force, and
• an increase in marketing expenses of $17 million for advertising of our brands.
Software Development Expenses . Software development expenses increased $24 million, or 30%, to $105 million and, as a percentage of revenues, increased from 12% to 13%. The increase primarily included:
• an increase in personnel costs of $21 million, primarily due to additional headcount from the Matterport and Domain acquisitions, as well as costs for our existing employees.
General and Administrative Expenses . General and administrative expenses increased $51 million, or 48%, to $157 million and, as a percentage of revenues, increased from 15% to 19%. The increase primarily included:
• an increase in personnel costs of $40 million, primarily due to additional headcount from the Matterport and Domain Acquisitions, as well as an increase in costs for our existing employees,
• an increase in professional services and third-party costs of $9 million primarily related to acquisition activities, and
• an increase in software and equipment costs of $3 million, primarily driven by the Matterport acquisition.
Customer Base Amortization Expense . Customer base amortization expense increased $22 million, or 209%, to $32 million, and, as a percentage of revenues, increased from 1% to 4%. The increase was primarily due to the Matterport Acquisition, Domain Acquisition, and Visual Lease Acquisition.
Interest Income, Net . Interest income, net decreased $30 million, or 53%, to $26 million. The decrease was primarily due to a decrease in our cash and cash equivalents.
Other Expense, Net. Other expense, net increased $19 million to $21 million for the three months ended September 30, 2025. The increase in expense was primarily driven by:
• a realized loss of $23 million on the deal-contingent forward U.S. dollar to Australian dollar contracts entered into in conjunction with the Domain Transaction, partially offset by
• a gain of $3 million relating to the previously held equity interests in Domain, inclusive of dividend income of $6 million.
Income Tax Expense (Benefit) . Income tax expense (benefit) changed from $25 million of tax expense for the three months ended September 30, 2024 to a $15 million tax benefit for the three months ended September 30, 2025. The effective tax rate was 33% of loss before income taxes for the three months ended September 30, 2025, compared to 32% of income before
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income taxes for the three months ended September 30, 2024. The change in income tax expense (benefit) was primarily attributable to lower income before taxes.

Business Segment Results for Three Months Ended September 30, 2025 Compared to Three Months Ended September 30, 2024
We manage our business geographically in two operating segments, with our primary areas of measurement and decision-making being North America, which includes the U.S. and Canada, and International, which primarily includes Asia-Pacific, Europe, and Latin America. Management relies on an internal management reporting process that provides revenue and operating segment EBITDA. Management believes that operating segment EBITDA is an appropriate measure for evaluating the operational performance of our operating segments. EBITDA is used by management internally to measure our operating and management performance and to evaluate the performance of our business. However, this measure should be considered in addition to, not as a substitute for or superior to, (loss) income from operations or other measures of financial performance prepared in accordance with GAAP. See “Non-GAAP Financial Measures” for further information regarding our segment operating results.
Segment Revenues. North America revenues increased $111 million, or 17%, to $769 million and included:
• an increase in Other revenues of $46 million, primarily due to the Matterport Acquisition,
• an increase in Multifamily revenues of $31 million, primarily due to an increase in the number of properties listed on our network,
• an increase in CoStar revenues of $15 million, primarily due to increased sales driven by inflation-based price increases on renewals and an increase in subscribers,
• an increase in Information Services revenues of $9 million, primarily attributable to the Visual Lease Acquisition,
• an increase in LoopNet revenues of $7 million, due to an increase in the number of listings, as well as an increase in the average price per listing, and
• an increase in Residential revenues of $4 million, primarily due to an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy.
The $30 million, or 88%, increase in In ternational revenues was primarily attributable to the Domain Acquisition and an increase in CoStar sales driven by inflation-based price increases on renewals and an increase in subscribers.
Segment EBITDA . North America EBITDA decreased $30 million, or (48)%, to $33 million. The decrease in North America EBITDA was primarily due to increases in personnel costs and general and administrative costs, partially offset by increases in revenue. International EBITDA decreased $8 million to a loss of $21 million. The decrease was primarily due to additional transaction costs associated with the Domain Acquisition.
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Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
The following table provides a comparison of our selected condensed consolidated results of operations for the nine months ended September 30, 2025 and 2024 (in millions):

Nine Months Ended
September 30,
2025 2024 Increase (Decrease) ($) Increase (Decrease) (%)
Revenues:
CoStar $ 813.0  $ 760.2  $ 52.8  7  %
Information Services 120.4  99.4  21.0  21 
Multifamily 877.8  790.8  87.0  11 
LoopNet 227.8  209.8  18.0  9 
Residential 110.5  72.5  38.0  52 
Other Revenues
197.6  94.1  103.5  110 
Total revenues 2,347.1  2,026.8  320.3  16 
Cost of revenues 493.3  417.6  75.7  18 
Gross profit 1,853.8  1,609.2  244.6  15 
Operating expenses:
Selling and marketing (excluding customer base amortization) 1,182.1  1,055.7  126.4  12 
Software development 297.0  243.0  54.0  22 
General and administrative 420.3  314.3  106.0  34 
Customer base amortization 75.5  31.5  44.0  140 
Total operating expenses 1,974.9  1,644.5  330.4  20 
Income (loss) from operations
(121.1) (35.3) (85.8) 243 
Interest income, net
97.0  165.3  (68.3) (41)
Other expense, net (6.8) (4.9) (1.9) 39 
Income (loss) before income taxes
(30.9) 125.1  (156.0) NM
Income tax expense (benefit)
8.6  46.2  (37.6) (81)
Net income (loss)
$ (39.5) $ 78.9  $ (118.4) NM
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NM - Not meaningful

Revenues. Revenues increased $320 million, or 16%, to $2.3 billion. The increase in our revenues included:
• an increase in Other Revenues of $104 million, or 110%, due to the Matterport Acquisition,
• an increase in Multifamily revenues of $87 million, or 11%, due to an increase in the number of properties listed on our network, as well as customers selecting higher-priced ad packages,
• an increase in CoStar revenues of $53 million, or 7%, due to increased sales driven by inflation-based price increases on renewals and an increase in subscribers,
• an increase in Residential revenues of $38 million, or 52%, due to the Domain Acquisition and an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy,
• an increase in Information Services revenues of $21 million, or 21%, primarily attributable to the Visual Lease Acquisition, and
• an increase in LoopNet revenues of $18 million, or 9%, due to an increase in the number of listings, as well as an increase in the average price per listing.
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Gross Profit and Cost of Revenues . Gross profit increased $245 million, or 15%, to $1,854 million, and the gross profit percentage was consistent at 79%. The increase in gross profit was due to higher revenues, partially offset by an increase in cost of revenues. Cost of revenues increased $76 million, or 18%, to $493 million and, as a percentage of revenues, was consistent at 21%. The increase in cost of revenues included:
• an increase of $25 million in amortization expense for the acquired technology and trade name from the Matterport Acquisition and Domain Acquisition,
• an increase of $19 million in costs related to sales of Matterport capture equipment and services,
• an increase in personnel costs of $18 million related to additional headcount from the Matterport Acquisition and Domain Acquisition,
• an increase in software and equipment costs of $11 million, primarily driven by web hosting costs, and
• an increase in depreciation expense of $7 million driven by the increased headcount from the Matterport Acquisition and Domain Acquisition.
Selling and Marketing Expenses (Excluding Customer Base Amortization) . Selling and marketing expenses increased $126 million, or 12%, to $1,182 million and, as a percentage of revenues, decreased from 52% to 50%. The increase included:
• an increase in personnel costs of $93 million, primarily related to sales hiring and the sales force from the Matterport Acquisition and Domain Acquisition,
• an increase in commissions expense of $32 million related to increased sales force,
• an increase of $6 million in depreciation expense driven by increased headcount from the Matterport Acquisition and Domain Acquisition,
• an increase of $4 million in third party photography fees driven by the Matterport Acquisition,
• an increase of $3 million for conferences and development related to our sales force, and
• an increase in occupancy and equipment costs of $7 million related to our sales force, partially offset by
• a decrease in marketing expenses of $20 million.
Software Development Expenses . Software development expenses increased $54 million, or 22% to $297 million and, as a percentage of revenues, increased from 12% to 13%. The increase primarily included:
• an increase in personnel costs of $45 million, primarily due to additional headcount from the Matterport and Domain Acquisition, as well as costs for our existing employees, and
• an increase in depreciation expense of $5 million driven by the additional headcount.
General and Administrative Expenses . General and administrative expenses increased $106 million, or 34%, to $420 million and, as a percentage of revenues, increased from 16% to 18%. The increase primarily included:
• an increase in personnel costs of $74 million, primarily related to additional headcount from Matterport and Domain Acquisition, as well as costs for our existing employees,
• an increase in professional service fees of $35 million, primarily related to acquisition activities and costs to defend our intellectual property, and
• an increase in software and equipment costs of $9 million, primarily driven by the Matterport Acquisition, partially offset by
• a decrease in depreciation expense of $11 million, primarily driven by headcount changes.
Customer Base Amortization Expense . Customer base amortization expense increased $44 million, or 140%, to $76 million and, as a percentage of revenues, increased from 2% to 3%. The increase was primarily due to the Matterport Acquisition, Domain Acquisition, and Visual Lease Acquisition.
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Interest Income, Net . Interest income, net decreased $68 million, or 41%, to $97 million. The decrease was primarily due to a decrease in our cash equivalents.
Other Expense, Net. Other expense, net was $7 million for the nine months ended September 30, 2025, a change of $2 million over the nine months ended September 30, 2024. The increase in expense primarily included:
• a realized loss of $10.4 million on the deal-contingent forward U.S. dollar to Australian dollar contracts entered into in conjunction with the Domain Transaction, partially offset by
• a gain of $12 million relating to the previously held equity interests in Domain, inclusive of dividend income of $6 million .
Income Tax Expense (Benefit) . Income tax expense decreased $38 million, or 81%, to $9 million and the effective tax rate was (28)% of loss before income taxes for the nine months ended September 30, 2025 compared to 37% of income before income taxes for the nine months ended September 30, 2024. The decrease in income tax expense was primarily attributable to lower income before income taxes.

Business Segment Results for Nine Months Ended September 30, 2025 Compared to Nine Months Ended September 30, 2024
We manage our business geographically in two operating segments, with our primary areas of measurement and decision-making being North America, which includes the U.S. and Canada, and International, which primarily includes Asia-Pacific, Europe, and Latin America. Management relies on an internal management reporting process that provides revenues and operating segment EBITDA. Management believes that operating segment EBITDA is an appropriate measure for evaluating the operational performance of our operating segments. EBITDA is used by management to internally measure our operating and management performance and to evaluate the performance of our business. However, this measure should be considered in addition to, not as a substitute for or superior to, income from operations or other measures of financial performance prepared in accordance with GAAP.
Segment Revenues . North America revenues increased $285 million, or 15%, to $2.2 billion and included:
• an increase in Other Revenues of $104 million, primarily due to the Matterport Acquisition,
• an increase in Multifamily revenues of $87 million, primarily due to an increase in the number of properties listed on our network, as well as customers selecting higher-priced ad packages,
• an increase in CoStar revenues of $42 million, primarily due to increased sales driven by inflation-based price increases on renewals and an increase in subscribers,
• an increase in Information Services revenues of $25 million, primarily attributable to the Visual Lease Acquisition,
• an increase in LoopNet revenues of $16 million, due to an increase in the number of listings, as well as an increase in the average price per listing, and
• an increase in Residential revenues of $13 million, primarily due to an increase in the number of Homes.com memberships, partially offset by the discontinuation of certain products that were inconsistent with our long-term business strategy.
The $35 million, or 35%, increase in International revenues was primarily attributable to the Domain Acquisition and an increase in CoStar sales driven by inflation-based price increases on renewals and an increase in subscribers.
Segment EBITDA . North America EBITDA decreased $12 million, or 12%, to $86 million. The decrease in North America EBITDA was primarily due to increases in personnel costs and general and administrative costs described above, offset by increases in revenue. International EBITDA increased $2 million to a loss of $45 million. The increase was primarily due to an increase in revenues, partially offset by transaction costs associated with the Domain Acquisition and an increase in personnel costs.

Liquidity and Capital Resources
We believe the balance of cash, cash equivalents, and restricted cash, which was $2.0 billion as of September 30, 2025, along with cash generated by ongoing operations and continued access to capital markets, will be sufficient to satisfy our cash
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requirements over the next 12 months and beyond. Other than the matters discussed below, our cash requirements have not changed materially from what is described in the 2024 Form 10-K.
Construction Commitments . We are expanding our Richmond, Virginia campus, which is expected to result in a material cash requirement in 2025 and 2026. We broke ground on the expansion in November 2022 and expect construction to be substantially completed in the first half of 2026. We have engaged a project manager, architects, and a general contractor on terms that generally require payments as services are provided or construction is performed. As of September 30, 2025, we were obligated to spend an additional $188 million as further work is performed under these contracts. We expect $73 million of these costs to be paid during the remainder of 2025 and intend to fund these expenditures with cash on hand.
In conjunction with this expansion, we negotiated various tax incentives with the Commonwealth of Virginia and the City of Richmond, including the allowance to use market-based income apportionment for income taxes and partial reimbursements of property tax assessments related to the value of the campus expansion. These incentives are conditional upon achieving job creation and capital expenditure targets from 2022 to 2029. Failure to meet these targets could result in a reduction of the value of the tax incentives and repayment of previous tax reductions. The value of the allowance to use a market-based income apportionment for income taxes is dependent on our taxable income. We estimate the value of the allowance to use market-based income apportionment for income taxes for tax years 2023 to 2032 and partial reimbursements of property tax assessments related to the value of the campus expansion to be in the range of $275 million to $285 million.
Stock Repurchase Program. In February 2025, our Board of Directors approved the Stock Repurchase Program that authorizes the repurchase of up to $500 million of the CoStar Group Shares. Stock repurchases may be effected through open market repurchases in compliance with Rule 10b-18 under the Exchange Act or through a trading plan adopted in accordance with Rule 10b5-1 under the Exchange Act. Repurchases may be made from time to time at management's discretion, and the timing and amount of any such repurchases will be determined based on share price, market conditions, legal requirements, and other relevant factors. The program has no time limit and can be discontinued at any time at our discretion.
During the nine months ended September 30, 2025, we repurchased 1.4 million CoStar Group Shares for an aggregate cost of $115 million. As of September 30, 2025, $385 million remains available for repurchases under the Stock Repurchase Program. We anticipate repurchasing at least $165 million of CoStar Group Shares in 2025.
Cash on Hand. Cash, cash equivalents, and restricted cash decreased to $2.0 billion as of September 30, 2025, compared to cash and cash equivalents of $4.7 billion as of December 31, 2024. The decrease in cash, cash equivalents, and restricted cash for the nine months ended September 30, 2025 was primarily due to $2.7 billion of net cash used in investing activities and net cash used in financing activities of $162 million partially offset by cash provided by operating activities of $268 million.
Net cash provided by operating activities for the nine months ended September 30, 2025 was $268 million compared to $298 million for the nine months ended September 30, 2024. The $30 million decrease in net cash provided by operating activities was primarily driven by a decrease in working capital of $107 million and a decrease in net income partially offset by an increase in non-cash expenses.
Net cash used in investing activities for the nine months ended September 30, 2025 was $2.7 billion compared to $563 million for the nine months ended September 30, 2024, primarily driven by the Matterport and Domain Acquisitions, including the initial purchase of equity securities in Domain, partially offset by proceeds from the sale of investments and a decrease in purchases of property, equipment, and other assets for new campuses.
Net cash used in financing activities for the nine months ended September 30, 2025 was $162 million compared to $14 million for the nine months ended September 30, 2024. The increase was primarily driven by repurchases of the Company's outstanding common stock under the Stock Repurchase Program and repurchases of restricted stock to satisfy tax withholding obligations.

Critical Accounting Estimates
The preparation of financial statements and related disclosures in conformity with GAAP requires management to make estimates, judgments, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosures. While we have used our best estimates based on facts and circumstances available to us at the time, different acceptable assumptions would yield different results. Changes in the accounting estimates are reasonably likely to occur from period to period, which may have a material impact on the presentation of our financial condition and results of operations. We review these estimates and assumptions periodically and reflect the effects of revisions in the period that they are determined to be necessary. We consider the accounting for the following matters to contain critical accounting estimates:
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• Intangible assets and goodwill,
• Income taxes, and
• Business combinations.
For an in-depth discussion of each of our significant accounting policies, including the related critical accounting estimates and further information regarding estimates and assumptions involved in their application, see the 2024 Form 10-K and Note 2 of the Notes to Condensed Consolidated Financial Statements included in Part I of this Report. During the nine months ended September 30, 2025, there were no material changes to our critical accounting estimates from those described in the 2024 Form 10-K.
Recent Accounting Pronouncements
See Note 2 of the Notes to Condensed Consolidated Financial Statements included in Part I of this Report.

Cautionary Statement Concerning Forward-Looking Statements
We have made forward-looking statements in this Report and make forward-looking statements in our other reports filed with the SEC, press releases, and conference calls that are subject to risks and uncertainties. Forward-looking statements include information that is not purely historic fact.
Our forward-looking statements are also identified by words such as “hope,” “anticipate,” “may,” “likely,” “might,” “believe,” “expect,” “observe,” “consider,” “think,” “intend,” “envision,” “will,” “should,” “could,” “would,” “plan,” “target,” “estimate,” “predict,” “continue,” “commit,” and “potential” or the negative of these terms or other comparable terminology. You should understand that these forward-looking statements are estimates reflecting our judgment, beliefs, and expectations, not guarantees of future performance. They are subject to a number of assumptions, risks, and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements. The following important factors, in addition to those discussed or referred to under the heading “Risk Factors” in Item 1A of Part I of our 2024 Form 10-K and “Risk Factors” in Item 1A of Part II of this Report and other unforeseen events or circumstances, could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements:

• the risks related to the specific timing, price, and size of repurchases under the Stock Repurchase Program, including that the Stock Repurchase Program may be suspended or discontinued at any time at the Company’s discretion;
• our inability to attract and retain new clients;
• our inability to successfully develop and introduce new or updated online marketplace services, information, and analytics;
• our inability to compete successfully against existing or future competitors in attracting advertisers and in general;
• the effects of fluctuations and market cyclicality;
• the effects of global economic uncertainties and downturns or a downturn or consolidation in the real estate industry;
• our inability to hire qualified persons for, or retain and continue to develop, our sales force, or unproductivity of our sales force;
• our inability to retain and attract highly capable management and operating personnel;
• the downward pressure that our internal and external investments may place on our operating margins;
• our inability to increase brand awareness;
• our inability to maintain or increase internet traffic to our marketplaces, and the risk that the methods, including Google Analytics, that we use to measure average monthly unique visitors to our portals may misstate the actual number of unique persons who visit our network of mobile applications and websites for a given month or may differ from the methods used by competitors;
• our inability to attract new advertisers;
• our inability to successfully identify, finance, integrate, and/or manage costs related to acquisitions;
• our inability to complete certain strategic transactions if a proposed transaction is subject to review or approval by regulatory authorities pursuant to applicable laws or regulations;
• our inability to realize the benefits of the Matterport Acquisition;
• the effects of cyberattacks and security vulnerabilities, and technical problems or disruptions;
• the significant costs associated with undertaking a large infrastructure project;
• our inability to generate increased revenues from our current or future geographic expansion plans;
• the risks related to acceptance of credit cards and debit cards and facilitation of other customer payments;
• the effects of climate-related events and other events beyond our control;
• the effects related to attention to climate-related risk and opportunities;
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• our inability to obtain and maintain accurate, comprehensive, or reliable data;
• our inability to obtain and maintain stable data feeds, or disruption of our data feeds;
• our inability to enforce or defend our ownership and use of intellectual property;
• the effects of use of new and evolving technologies, including AI, on our ability to protect our data and intellectual property from misappropriation by third parties;
• our inability to defend against potential legal liability for collecting, displaying, or distributing information;
• our inability to obtain or retain listings from real estate brokers, agents, property owners, and apartment property managers;
• our inability to maintain or establish relationships with third-party listing providers;
• our inability to comply with the rules and compliance requirements of MLSs;
• the risks related to international operations;
• the effects of foreign currency exchange rate fluctuations;
• our indebtedness;
• the effects of a lowering or withdrawal of the ratings assigned to our debt securities by rating agencies;
• the effects of any actual or perceived failure to comply with privacy or data protection laws, regulations, or standards;
• the effects of changes in tax laws, regulations, or fiscal and tax policies;
• the effects of third-party claims, litigation, regulatory proceedings, or government investigations;
• the risks related to return on investment;
• the inability of third-party suppliers upon which Matterport relies to fulfill its needs;
• the risks associated with the ability to integrate Domain and realize the benefits of the Domain Transaction; and
• the risks related to open source softw are.
Accordingly, you should not place undue reliance on forward-looking statements, which speak only as of, and are based on information available to us on, the date of this Report. All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. We do not undertake any obligation to update any such statements or release publicly any revisions to these forward-looking statements to reflect new information or events or circumstances after the date of this Report or to reflect the occurrence of unanticipated events, except as required by applicable law. Additionally, certain information disclosed herein or elsewhere (such as our website) is informed by various stakeholder expectations and third-party frameworks. Such information is not necessarily material for purposes of our SEC reporting, even if we use “material” or similar language. Particularly with respect to climate-related risks and opportunities, materiality is subject to various definitions that differ from, and are often more expansive than, the definition under U.S. federal securities laws.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
We provide information, analytics, and online marketplace services to real estate and related business communities within the regions where we operate, which primarily include, North America, Asia-Pacific, Europe, and Latin America. The functional currency for a majority of our operations is the local currency, with the exception of certain international locations for which the functional currency is the British Pound or U.S. Dollar.
Fluctuations in the British Pound, Canadian Dollar, Australian Dollar and Euro may have an impact on our business, results of operations and financial position. For the three and nine months ended September 30, 2025, approximately 9% of our revenues were denominated in foreign currencies. For the three and nine months ended September 30, 2025, our revenues would have decreased by approximately $8 million and $16 million, respectively, if the U.S. dollar exchange rate used strengthened by 10%. For the three and nine months ended September 30, 2025, our revenues would have increased by approximately $8 million and $16 million, respectively if the U.S. dollar exchange rate used weakened by 10%. In addition, we have assets and liabilities denominated in foreign currencies. As of September 30, 2025, accumulated other comprehensive loss included a gain from foreign currency translation adjustments of approximately $57 million.
We do not believe we have material exposure to market risks associated with changes in interest rates related to cash equivalent securities held as of September 30, 2025. As of September 30, 2025, we had $2.0 billion of cash, cash equivalents, and restricted cash. If there is an increase or decrease in interest rates, there will be a corresponding increase or decrease in the amount of interest earned on our cash and cash equivalents. We currently diversify our cash and cash equivalents holdings amongst multiple financial institutions and AAA-rated Government and Treasury Money Market Funds.
We are subject to interest rate market risk in connection with our revolving credit facility. On May 20, 2024, we entered into the 2024 Credit Agreement, which provides for variable rate borrowings of up to $1.1 billion. On July 1, 2020, we issued $1.0 billion aggregate principal amount of Senior Notes. Changes in interest rates would not have a material impact to our current interest and debt financing expense, as all of our borrowings except for our credit facility are fixed rate, and no amounts were outstanding under our credit facility as of September 30, 2025. See Note 10 of the Notes to Condensed Consolidated Financial Statements included in Part I of this Report for additional information regarding our 2024 Credit Agreement.
We had approximately $6.8 billion of goodwill and intangible assets as of September 30, 2025. As of September 30, 2025, we believe our intangible assets will be recoverable; however, changes in the economy, the industry in which we operate, and our own relative performance could change the assumptions used to evaluate intangible asset recoverability. In the event that we determine that an asset has been impaired, we would recognize an impairment charge equal to the amount by which the carrying amount of the assets exceeds the fair value of the asset. We continue to monitor these assumptions and their effect on the estimated recoverability of our intangible assets.
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Item 4. Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.
As of September 30, 2025, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2025, and were operating at a reasonable assurance level.
We are in the process of integrating the internal controls over financial reporting of recent acquisitions, and these integrations may require certain processes, systems, and other components of internal controls over financial reporting to be evaluated and modified. Consistent with process change that we implement, the design of the internal controls has been and will continue to be evaluated for effectiveness as part of our overall assessment of the effectiveness of our disclosure controls and procedures.
Other than the integration activities associated with recent acquisitions, there have been no changes in our internal control over financial reporting during our most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.
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PART II — OTHER INFORMATION

Item 1. Legal Proceedings
Currently, and from time to time, we are involved in litigation incidental to the conduct of our business. We are not currently a party to any lawsuit or proceeding that, in the opinion of our management based on consultations with legal counsel, is likely to have a material adverse effect on our financial position or results of operations. See Note 12 of the Notes to Condensed Consolidated Financial Statements included in Part I of this Report for further discussion.

Item 1A. Risk Factors
In addition to the other information set forth in this Report, you should carefully consider the factors disclosed in Part I, Item 1A, “Risk Factors” in our 2024 Form 10-K, which could materially affect our business, financial condition or future results. Additional risks and uncertainties not currently known to us, or that we currently deem to be immaterial, may also have a material adverse effect on our business, financial condition, and/or results of operations. Other than the following items there have not been any material changes to the risk factors as previously disclosed in Part I, Item 1A, “Risk Factors” in our 2024 Form 10-K.
Risks related to our business
If third-party suppliers upon which Matterport relies are not able to fulfill its needs, the ability to timely and cost effectively bring its hardware products to market could be affected. Matterport relies on a limited number of suppliers to supply its hardware components for its cameras and other hardware products, including in some cases only a single supplier for some products and components. This reliance on a limited number of manufacturers increases its risks, since Matterport does not currently have proven reliable alternative or replacement manufacturers beyond these key parties. In the event of interruption, we may not be able to increase capacity from other sources or develop alternate or secondary sources, and if such sources become available, they may result in material additional costs and substantial delays.
Unexpected changes in business conditions, materials pricing, labor issues, wars, trade policies, natural disasters, health epidemics, trade and shipping disruptions, port congestions, and other factors beyond our or our suppliers’ control could also affect these suppliers’ ability to deliver components to us or to remain solvent and operational. Such disruptions could adversely affect our business if we are not able to meet customer demands. In addition, some of our suppliers are located in China. Our access to suppliers in China may be limited or impaired as a result of tariffs, including those that have been recently introduced by the current U.S. administration, or other government restrictions in response to geopolitical factors. There is no guarantee we may be able to continually use alternative suppliers and alternative parts as we scale production to meet our growth targets. Additionally, if our suppliers do not accurately forecast and effectively allocate production or if they are not willing to allocate sufficient production to us, it may reduce our access to components and require us to search for new suppliers. The unavailability of any component or supplier could result in production delays, idle manufacturing facilities, product design changes, and loss of access to important technology and tools for producing and supporting our products, as well as impact our capacity expansion and our ability to fulfill our obligations under customer contracts. Moreover, new product launches or product design changes by us have required, and may in the future require, us to procure additional components in a short amount of time. Our suppliers may not be willing or able to sustainably meet our timelines or our cost, quality, and volume needs, or to do so may cost us more, which may require us to replace them with other sources.
If we face supply constraints for any of the reasons described above, it may not be possible to obtain or increase supplies on acceptable terms, which may undermine our ability to satisfy customer demands in a timely manner. For example, it may take a significant amount of time to identify a manufacturer that has the capability and resources to build and supply necessary hardware components in sufficient volume. Identifying suitable suppliers can be an extensive process that requires us to become satisfied with our suppliers’ quality control, technical capabilities, responsiveness and service, financial stability, regulatory compliance, and labor and other ethical practices. Accordingly, a loss of any significant suppliers or manufacturers would have an adverse effect on our business, financial condition, and operating results.
We may be unable to realize the benefits of the Domain Transaction, which could have an adverse effect on us.

On May 9, 2025, we announced that we entered into the binding Domain SID to acquire 100% of the issued capital of Domain not previously acquired by CoStar Group by way of Scheme of Arrangement. We previously acquired 17% of Domain's ordinary shares in February 2025. On August 27, 2025, we acquired the remaining approximately 83% of Domain's ordinary shares not previously acquired by CoStar Group by way of Scheme of Arrangement at $4.43 AUD per Domain ordinary share, less $0.088 AUD per share paid as a special dividend declared and paid by Domain on August 19, 2025

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Following the acquisition, it is possible that there could be a loss of key employees, higher than expected costs, diversion of management attention, or the disruption of our ongoing businesses, which may adversely affect the combined company’s ability to maintain relationships with customers, suppliers, and employees or to achieve the anticipated benefits of the Domain Transaction.

 We have incurred, and we will continue to incur, transaction fees, including legal, regulatory, and other costs associated with formulating and implementing integration plans, including systems consolidation costs and employment-related costs. We may be unable to offset transaction and integration-related costs with the realization of other efficiencies related to the integration of the business.

The success of the Domain Transaction will depend in part on our ability to realize the anticipated business opportunities and growth prospects from combining our business with that of Domain. We may never realize these business opportunities and growth prospects. Integrating operations will require significant efforts and expenditures. If we are unable to successfully or timely integrate Domain’s business with ours, we may be unable to realize the growth, synergies, and other anticipated benefits resulting from the Domain Transaction and our business could be adversely affected.
Risks related to our data, intellectual property, and listings
Some of our products or services contain third-party open source software components, and failure to comply with the terms of the underlying open source software licenses could restrict our ability to deliver our products or services or subject us to litigation or other action s . Some of our products or services contain software modules licensed to us by third-party authors under “open source” licenses, and we expect to continue to incorporate such open source software in our products in the future. Use and distribution of open source software may entail greater risks than use of third-party commercial software, as open source licensors generally do not provide support, warranties, indemnification, or other contractual protections regarding infringement claims or the quality of the code. In addition, the public availability of such software may make it easier for others to compromise these products.
Some open source licenses contain requirements that we make available source code for modifications or derivative works we create based upon the type of open source software we use, or grant other licenses to our intellectual property. We seek to ensure that our proprietary software is not combined with, and does not incorporate, open source software in ways that would require the release of the source code of our proprietary software to the public. However, if we combine our proprietary software with open source software in a certain manner, we could, under certain open source licenses, be required to release the source code of our proprietary software to the public. This would allow our competitors or new entrants to create similar offerings with lower development effort and time and ultimately could result in a loss of our competitive advantages. Alternatively, to avoid the public release of the affected portions of our source code, we could be required to expend substantial time and resources to re-engineer some or all of our software. For example, our Matterport platform incorporates software that is licensed under open source licenses, which could require release of proprietary code if such platform was released or distributed in any manner that would trigger such a requirement to third parties. Additionally, some open source projects have vulnerabilities and architectural instabilities and are provided without warranties or support services to actively provide us with patched versions when available, and which, if not properly addressed, could negatively affect the performance of the platform.
The terms of many open source licenses have not been interpreted by U.S. or foreign courts, and there is a risk that these licenses could be construed in a way that could impose unanticipated conditions or restrictions on our ability to provide or distribute our products or services. From time to time, there have been claims challenging the ownership of open source software against companies that incorporate open source software into their products or services, and the licensors of such open source software provide no warranties or indemnities with respect to such claims. As a result, we could be subject to lawsuits by parties claiming ownership of what we believe to be open source software. Moreover, we cannot assure you that our processes for monitoring and managing our use of open source software in our products and services will be effective. If we are held to have breached or failed to fully comply with all the terms and conditions of an open source software license, or if an author or other third party that distributes such open source software were to allege that we had not complied with the conditions of one or more of these licenses, we could be required to incur significant legal expenses defending against such allegations, could be subject to significant damages, enjoined from the sale of subscriptions to certain products or services, or other liability, or could be required to seek costly licenses from third parties to continue providing our products or services on terms that, if available at all, are not economically feasible, to re-engineer our products or services, to discontinue or delay the provision of our products or services if re-engineering could not be accomplished on a timely basis, or to make generally available, in source code form, our proprietary code, any of which would adversely affect our business, financial condition, and results of operations.
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The following table is a summary of our repurchases of common stock during each of the three months ended September 30, 2025:
ISSUER PURCHASES OF EQUITY SECURITIES

2025 Total Number of
Shares
Purchased (1)
Average
Price Paid
per Share Total Number of
Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs (2)
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (2)
(in millions)

July 1 through 31 273,326  $ 86.20  267,000  $ 413.1 
August 1 through 31 258,305  $ 91.60  252,000  $ 390.1 
September 1 through 30 60,770  $ 88.65  57,375  $ 385.0 
Total 592,401 

$ 88.81  576,375 
__________________________

(1) The number includes CoStar Group shares tendered by employees to the Company to satisfy the employees' minimum tax withholding obligations arising as a result of vesting of restricted stock grants under the Company’s 2025 Stock Incentive Plan, for which shares were purchased by the Company based on their fair market value on the trading day immediately preceding the vesting date.
(2) In February 2025, the Board of Directors approved the Stock Repurchase Program that authorizes the repurchase up to $500 million of outstanding CoStar Group Shares, with no expiration date. During the third quarter of 2025, the Company repurc hased 576,375 C oStar Group Shares for an aggregate cost of $51.2 million. See Note 14 for further discussion regarding the Stock Repurchase Program and stock repurchase activity.

Item 3. Defaults Upon Senior Securities
None.

Item 4. Mine Safety Disclosures
Not applicable.

Item 5. Other Information
During the three months ended September 30, 2025, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.
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Item 6. Exhibits

Exhibit No. Description

3.1
Fourth Amended and Restated Certificate of Incorporation (Incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed with the SEC on June 7, 2021).

3.2
Fourth Amended and Restated By-Laws (Incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed with the SEC on May 9, 2022).

* 10.1
CoStar Group, Inc. 2025 Stock Incentive Plan (Incorporated by reference to Appendix B to Registrant’s Definitive Proxy Statement on Schedule 14A filed with the SEC on April 30, 2025, File No. 000-24531).

* 10.2
Form of CoStar Group, Inc. 2025 Stock Incentive Plan Restricted Stock Grant Agreement between the Registrant and certain of its officers, directors and employees (filed herewith).

* 10.3
Form of CoStar Group, Inc. 2025 Stock Incentive Plan Restricted Stock Unit Grant Agreement between the Registrant and certain of its officers, directors and employees (filed herewith).

* 10.4
Form of CoStar Group, Inc. 2025 Stock Incentive Plan Restricted Stock Grant Agreement for Service Awards between the Registrant and certain of its officers, directors and employees (filed herewith).

31.1
Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
31.2
Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (filed herewith).
32.1
Certification of Principal Executive Officer pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
32.2
Certification of Principal Financial Officer pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (furnished herewith).
101.INS The following financial statements from the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025, formatted in Inline XBRL: (i) Condensed Consolidated Statements of Operations; (ii) Condensed Consolidated Statements of Comprehensive Income; (iii) Condensed Consolidated Balance Sheets; (iv) Condensed Consolidated Statements of Changes in Stockholders’ Equity; (v) Condensed Consolidated Statements of Cash Flows; and (vi) Notes to Condensed Consolidated Financial Statements, tagged as blocks of text and including detailed tags.

101.SCH Inline XBRL Taxonomy Extension Schema Document.

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104 The cover page from the Registrant's Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2025, formatted in Inline XBRL (included as Exhibit 101).

* Management Contract or Compensatory Plan or Arrangement.
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SIGNATURES
 Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 

     
COSTAR GROUP, INC.
 

Date: October 29, 2025 By: /s/ Christian M. Lown     

      Christian M. Lown
Chief Financial Officer
(Principal Financial Officer and Duly Authorized Officer)

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