CoStar Group Inc.

CSGP
Financial Analysis · Updated May 13, 2026 · Coverage 2026-Q2
Latest Q Revenue
$897M
Q1 2026 · +23% YoY · Beat consensus by 2%

Financial Snapshot

ticker: CSGP step: 04 generated: 2026-05-12 source: quick-research

CoStar Group Inc. (CSGP) — Financial Snapshot

Income Statement Summary

Metric FY2022 FY2023 FY2024 YoY
Revenue $2.18B $2.46B $2.74B +11%
Gross Margin ~73% ~74% ~72% -2pp
Operating Margin ~8% ~7% ~2% -5pp
Net Income $369M $375M ~$100M ~-73%
EPS (diluted) $0.93 $0.92 ~$0.25 ~-73%

Note: Declining net income reflects massive Homes.com investment (~$700M+ annual losses). The core commercial and Apartments.com businesses are highly profitable. FY2025 revenue was $3.2B (+19%) with only $7M net income and $442M Adjusted EBITDA (+83%) — a cleaner proxy for core profitability.

Cash Flow & Balance Sheet (FY2024/2025)

Metric Value
Operating Cash Flow ~$150M (FY2024)
Free Cash Flow ~$40M (FY2025E, depressed by Homes.com)
FCF (2026E) ~$490M (post-Homes.com spend reduction)
Cash & Equivalents ~$3.5B net cash
Total Debt Minimal (net cash position of $3.53B)

Key Ratios (approximate)

  • P/E: N/M (earnings near zero) | EV/Sales: ~3.9x | Adj EV/EBITDA: ~28x (FY2025)
  • Revenue Growth (FY2024): +11% | Revenue Growth (FY2025): +19%
  • Net Margin (FY2025): 0.2% | Adj EBITDA Margin (FY2025): ~14%

Growth Profile

CoStar's topline continues to compound at 11–19% annually on the strength of its core data and marketplace franchises. The fundamental story is that Apartments.com (~$1.2B run rate) and CoStar Suite are highly profitable businesses whose earnings are masked by Homes.com losses of $700M+/year. Management has now cut Homes.com spend by ~$300M in 2026 and ~$100M annually through 2030, which should drive rapid FCF expansion from ~$40M (FY2025) to ~$490M (FY2026E) — a 1,100%+ increase. The Matterport acquisition (Feb 2025) adds a 3D spatial data capability with additional long-term monetization potential.

Forward Estimates

  • FY2026E: FCF ~$490M (consensus), Adj EBITDA expansion continuing
  • Q1 2026E EPS: $0.16–$0.19 (below $0.23 consensus — margin headwinds more persistent than expected)
  • Homes.com projected break-even: 2030 per management guidance

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $CSGP.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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