Certain portions of the discussion today may contain forward-looking statements, including the company's outlook and expectations for the third and fourth quarters and full year and beyond. CoStar Group achieved revenue of $781 million, a strong 15% increase compared to last year. Adjusted EBITDA rose significantly to $85 million, representing an impressive 108% increase compared to Q2 of 2024. Both revenue and adjusted EBITDA exceeded consensus estimates and were above the high end of our guidance range.
Our commercial real estate information and marketplace businesses also delivered an outstanding profit margin of 43% this quarter. Net new bookings totaled $93 million, a remarkable 65% increase over the previous quarter. This sets a new record as the highest quarterly net new bookings in CoStar Group's history. Apartments.com had another excellent quarter, with revenue up 11% from Q2 2024, reaching $292 million.
Our sales team achieved $45 million in net new bookings, the fourth-highest quarter ever, representing a 20% increase year-over-year. Apartments.com is approaching an annual revenue run rate of $1.2 billion and maintains a very strong EBITDA margin. We significantly increased our investment across key media channels, streaming video grew by 25%. We believe the Apartments.com network holds the industry's most comprehensive inventory, with a record 2.2 million rental availabilities in June of 2025.
| Metric | Period | Current guidance |
|---|---|---|
| Revenue | FY2025 | $3.135 billion to $3.155 billion (raised at the midpoint on the Q2 beat, implying 15% annual growth and excluding the pending Domain acquisition) |
| Adjusted EBITDA | FY2025 | $370 million to $390 million (raised, reflecting the Q2 beat while incorporating growth-initiative spend pushed to the back half of the year) |
| Revenue | Q3 2025 | $800 million to $805 million (reiterated as new quarterly guide, about 16% year-over-year growth at midpoint) |
| Adjusted EBITDA | Q3 2025 | $75 million to $85 million (reiterated as new quarterly guide, reflecting timing of growth-initiative spend) |
| CoStar product revenue growth | FY2025 | 7% (raised on the strong Q2 and internal leading indicators, with Q3 growth also expected at 7%) |
| Other revenue | FY2025 | $270 million to $275 million (lowered at the top end due to discontinuing about $10 million of non-core Matterport revenue) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | up 15% to $781 million | Broad strength across segments plus a $44 million Matterport contribution that beat guidance |
| Adjusted EBITDA | up 108% to $85 million | Higher revenue, lower professional services costs, and timing of investment spend |
| Apartments.com revenue | up 11% to $292 million | Record $45 million net new bookings, up 20% year-over-year, with sales rep productivity at its highest in two years |
| CoStar product revenue | up 7% | Sales rep productivity at its highest since Q3 2023 amid improving CRE conditions |
| LoopNet revenue | up 8% | Highest first-half net new bookings ever from the shift to broad subscription packages and asset-based pricing |
| Homes.com revenue | up 8% | $12 million annualized net new bookings and 6,300 net new members after absorbing Q1 churn from initial sales |
| Matterport revenue | $44 million in the quarter | Beat guidance and contributed to the overall revenue outperformance, though some non-core revenue is being discontinued |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Sales force expansion | Core team plus Homes.com launch team | 1,800 reps at quarter end, up more than 400 since year start and 43% year-over-year, tripling Homes.com from 230 at end of 2024 toward about 750 by end of 2025 | — |
| Homes.com pricing strategy | Optimizing pricing model post-launch | Prioritizing penetration over ASP at low penetration, shifting pricing toward the listing side and asset value, with deals ranging from a couple hundred dollars to $7,500 to $8,000 per month | — |
| Matterport as leasing driver | Recently acquired hardware and SaaS business | 3D tours viewed 67 million times, up 193%, with listings featuring a Matterport tour receiving 23 times more leads, and new Matterport Max packages rolled out at the NAA convention | — |
| Domain acquisition | Held a 16.9% stake | Agreed May 9 to acquire the rest at AUD 4.43 per share, roughly $1.5 billion incremental, with a USD-to-AUD forward swap to hedge, expected to close in Q3 and not yet in guidance | — |
| Competitive positioning versus Zillow | Defending Apartments.com share | Management argued no wallet-share loss, framing the competitor as buying low-ASP share from Redfin and Realtor, and emphasized selling leases rather than leads into a massive greenfield TAM | — |