# CoStar Group Inc. (CSGP) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-13  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/CSGP/thesis · /stocks/CSGP/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/CSGP/fundamental

## Navigation

- Overview: /stocks/CSGP
- Financials (this page): /stocks/CSGP/financials
- Thesis: /stocks/CSGP/thesis
- Investment Memo: /stocks/CSGP/memo
- Coverage universe: /stocks